The UK government has introduced new rules for employers sponsoring migrant workers, making it clearer who should pay sponsorship costs and tightening regulations on compliance. The changes aim to stop exploitation and ensure businesses follow immigration rules properly.
One major update is that employers can no longer pass on certain sponsorship costs to migrant workers. Before, only the Immigration Skills Charge was strictly banned from being transferred to employees. Now, the Skilled Worker sponsor license fee, certificate of sponsorship fee, and other related costs cannot be recovered from workers. Companies that try to reclaim these fees could lose their sponsor license, which would also affect their employees’ visas.
From January 1, 2025, at least one Level One User on a sponsor license must be a settled worker who is also an employee or director of the company. Previously, these could be two separate people. This change will affect businesses without local staff, such as start-ups and overseas companies expanding into the UK. Employers also cannot appoint someone as a key personnel member if they are banned from being a company director unless they have court approval.
A new rule states that a company’s ability to sponsor workers can now be affected by the background of individuals listed as “persons with significant control” on Companies House records. This means companies need to make sure their leadership meets all compliance requirements.
Sponsoring workers in a personal capacity is now banned. This means individuals or households can no longer sponsor workers like nannies or housekeepers unless they are employed in a diplomatic household. This expands on an earlier ban introduced in April 2024.
The care sector faces stricter checks. Businesses with multiple branches must now provide up-to-date Care Quality Commission reports for each location. The government is also cracking down on companies acting like recruitment agencies by supplying sponsored workers to third-party employers. Those found in violation risk losing their license.
The sponsorship system is also going digital. Bio-metric Residence Permits are being replaced with digital proof of right to work, making eVisas the new standard. Employers must be aware of these changes to avoid compliance issues.
The Home Office has also proposed an increase in sponsorship costs. The certificate of sponsorship fee for workers could rise from £239 to £525, with the changes expected to take effect early next year if approved.
Businesses must review their policies to follow these new rules, as penalties for non-compliance are getting stricter. The government plans to extend action plans for rule-breaking sponsors and double the waiting time before a company with a revoked license can reapply. With enforcement becoming tougher and costs rising, companies should explore all possible visa options to hire international talent.