Skilled Worker Sponsors Update

It seems that while we were out enjoying our New Years celebrations, the Home Office was busy updating its guidelines on Skilled Worker sponsorship fees. Specifically, which fees cannot be recouped from the worker.
This is an important update for British businesses that employ or are in the process of seeking to employ, non-British/Irish staff as Skilled Workers through the points-based immigration system.
From 31 December 2024, sponsors are now explicitly prohibited from passing on, or recouping (or attempting to recoup) the following fees:

• Skilled Worker sponsor licence fees or related administrative costs. These are the fees a business pays to become a sponsor in the first place (costing from £536 to £1,476).
• Certificate of Sponsorship (‘CoS’) fees for all certificates assigned on or after 31 December 2024. This is the fee to issue a certificate for the advertised role to the applicant (£239 per certificate).

It is already prohibited to pass on the Immigration Skills Charge, and this restriction remains in place.

Why does this matter?
If a sponsor is found to have recouped or attempted to recoup the prohibited costs, their sponsor licence will "normally" be revoked.

Why do sponsors recoup costs?
Sponsorship can be expensive, with the costs usually covered by the Employer. Depending on the circumstances, they can begin to add up quickly. Sponsors often seek to recover some of these costs, especially when employees leave their roles shortly after arriving, to protect their investment in recruitment.

Which costs can still be recovered?
The updated guidance doesn't prevent sponsors from recovering other legitimate costs, such as:

• Relocation expenses.
• Visa application fees for the worker’s visa and their dependents (if agreed in advance).
• Costs linked to early termination.

However, it’s crucial to ensure any agreements are reasonable and lawful. Review your sponsorship policies and "clawback" agreements now to ensure compliance with these updated rules. Act proactively to protect your licence and maintain best practice. If you're uncertain about recovering sponsor costs, please do get in touch with the Employment Team by emailing edisney@leathesprior.co.uk or calling 01603 610911 and we'll be happy to help.