UK employers barred from passing skilled worker sponsorship costs to employees: Report

As per new guidelines, businesses must now bear expenses such as Certificates of Sponsorship (CoS), sponsor licences, and other related fees.

The policy, announced in a ministerial statement by the Labour government on November 28, 2024, became effective on December 31, 2024, following updates to the Home Office’s sponsor guidance.

Key features of the new policy 

The new regulations currently apply to the Skilled Worker route but are expected to extend to other sponsored work visa categories in the future.

Under the policy, employers sponsoring Skilled Workers are prohibited from passing on the following costs to employees:

Sponsor licence fees: Employers must cover all administrative expenses for applications submitted after December 31, 2024, including those to add the Skilled Worker route to existing licences.

These fees can total approximately £2,000, especially with priority processing services.

Certificate of sponsorship (CoS) fees: Employers must pay the £239 CoS fee for each worker for certificates issued from December 31, 2024.

This can become a substantial expense for organisations sponsoring multiple employees.

These measures expand on an existing policy that prohibits employers from transferring the Immigration Skills Charge (ISC) to workers.

However, employers may still recover other costs, such as visa application fees, Immigration Health Surcharges, and service charges paid on behalf of employees or their dependants.

Penalties for non-compliance

Employers who violate these rules face strict penalties, including the potential revocation of their sponsor licence.

Losing a licence could result in significant financial and reputational damage, as well as disruptions for affected employees who may be forced to find new sponsors or leave the UK.

Indian skilled workers in the UK

India remains the largest source of Skilled Worker visa recipients for the UK. In the year ending March 2024, approximately 160,676 work visas were granted to Indian nationals, making them the primary beneficiaries of this visa route.