Guidance for Sponsoring Workers

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Guidance for Sponsoring Workers

The UK Government has recently introduced significant updates to the guidance for sponsoring workers, which were published on 31 December 2024 and 1 January 2025. These updates affect multiple documents, including:

• Guidance for Sponsors Part 1: Apply for a Licence
• Sponsor a Worker: Sponsor Guidance Part 2
• Guidance for Sponsors Part 3: Sponsor Duties and Compliance
• Sponsor a Skilled Worker

This blog summarizes these changes, with detailed insights into their implications for employers and workers.

Brief Summary of Key Changes

1. Restrictions on Recouping Costs: Employers can no longer pass on certain sponsorship costs, such as licence fees and Certificate of Sponsorship (CoS) fees, to sponsored workers.
2. Expanded Definition of "You and Your": The list of individuals considered part of a sponsoring organization has been broadened.
3. Changes to Key Personnel Rules: Updates have been made to eligibility requirements for key personnel involved in sponsor licence applications.
4. New Rules on Sponsorship in a Personal Capacity: Sponsors cannot use their licences to employ workers in private households, with limited exceptions.
5. Additional Minor Updates: Clarifications and updates include changes to immigration status evidence and terminology.

 

Detailed Analysis of Changes

1. Restrictions on Recouping Costs

Employers previously had some flexibility in recouping sponsorship costs from employees, but new rules have imposed stricter limits. These changes aim to prevent exploitation and financial hardship for sponsored workers.

Key restrictions include:

• Licence Fees and Administrative Costs: Employers cannot recoup sponsor licence fees or associated administrative costs incurred on or after 31 December 2024.
• Certificate of Sponsorship Fees: Employers are prohibited from recovering CoS fees for Skilled Workers assigned on or after 31 December 2024.
• Immigration Skills Charge: Already prohibited, this restriction continues to apply.

Employers must now cover all sponsorship-related costs themselves, particularly in the Skilled Worker route, to ensure fair treatment of employees.

 

2. Expanded Definition of "You and Your"

The guidance broadens the definition of "you and your" to include individuals recorded as Persons with Significant Control (PSC) on the Companies House profile. This means PSCs are now subject to sponsor compliance checks and responsibilities.

Implications:

• Employers must assess the eligibility of PSCs when applying for a sponsor licence.
• Additional compliance measures may be required to ensure PSCs meet legal and regulatory standards.

 

3. Changes to Key Personnel Rules

Significant updates have been made to the eligibility criteria for key personnel managing sponsor licences:

• New Requirements: For applications made after 31 December 2024, sponsors must appoint at least one Level 1 user who is both an employee (or director/partner) and a settled worker.
• Clarifications: Key personnel must not be prohibited from acting as directors and must have valid National Insurance numbers unless exempt.

Impact:

• Start-ups and overseas businesses may face challenges if they lack eligible personnel who meet these criteria.
• Organizations are advised to appoint compliant personnel as Level 1 users to avoid future issues.

 

4. New Rules on Sponsorship in a Personal Capacity

Sponsors cannot use licences to employ workers for personal purposes, such as hiring nannies or private household staff. Exceptions apply to private servants in diplomatic households.

Key Points:

• Individuals and private households are ineligible to apply for sponsor licences.
• Organizations must ensure all sponsored roles align with their business activities.

 

5. Additional Minor Updates

Other updates include:

• Evidence of Immigration Status: New guidance reflects the transition from biometric residence permits to eVisas and short-term vignettes.
• Clarified Terminology: Updates to Certificate of Sponsorship categories and timelines ensure better understanding of post-study sponsorship requirements.
• Sponsor Licence Ratings: Clarifications on the frequency and conditions of B-rated licences under action plans.

 

Key Takeaways for Employers

Employers must adapt to these changes to ensure compliance with UK sponsorship rules. This includes:

• Reviewing clawback agreements to avoid breaching new restrictions.
• Assessing the eligibility of PSCs and key personnel.
• Ensuring sponsorship practices align with updated rules.

Non-compliance may result in licence revocations, penalties, and reputational damage.

Need Expert Assistance?

At Worldwide Immigration Ltd., we provide expert guidance on navigating the complexities of UK sponsor licences and worker sponsorship. Our team ensures compliance with the latest rules, offering tailored solutions for businesses of all sizes.

Contact us today for professional support.

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Consult an immigration specialist for specific guidance.

Author: Shyamal Jha Worldwide Immigration Ltd.