The UK government has recently updated its guidance for work sponsors. The changes focus particularly on the practice of employers passing certain costs onto employees. With millions of foreign workers in the UK, the changes are set to have a significant impact on work visa sponsorship.
What do employers have to pay for?
When employers sponsor foreign workers, they incur various costs, including:
- Employer sponsorship licence application fees and associated administrative costs
- Certificate of Sponsorship fee
- Immigration Skills Charge
- Skilled worker visa application fee
- Immigration Health Surcharge
Employers must now cover the following costs themselves
Previously, due to the high costs involved, many employers required employees to cover these expenses or to recoup some of these costs if they left their job before their sponsorship period ended. This practice led to worker exploitation, particularly in the care sector, where employees felt financially trapped in poor working conditions.
On November 28, 2024, the UK Immigration Minister announced stricter rules to prevent this issue. From December 31, 2024, employers must cover the following costs themselves and cannot require employees to pay or reimburse them:
- Employer sponsorship licence application fees and associated administrative costs
- Certificate of Sponsorship fee
- Immigration Skills Charge
Some expenses must still be paid by employees
While employers are no longer allowed to pass on the above three costs, some expenses may still be reasonably paid by employees, including:
- Skilled worker visa application fee and Immigration Health Surcharge (as these directly benefit the employee)
- Associated administrative costs on assignment of a Certificate of Sponsorship or visa application (such as priority service or legal costs, depending on the specific situation)
Employers must also follow employment law when seeking reimbursement from employees. Any clawback agreement must be fair, and employers cannot unreasonably demand repayment—especially if the worker loses their job due to company-wide layoffs. Employers must ensure they comply with the new rules. Any violation could result in revocation of their sponsor licence.
Employees should be aware of their rights and should not be forced to pay costs that employers are required to cover.
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