New Sponsor Guidance updates have been published on 31 December 2024 on recouping fees and Level 1 user requirements. How will this affect sponsors? Eliana Barrera from the Business and Skilled Immigration team explores this topic.
Fees that can be paid or recouped from the worker under the Skilled worker route
In addition to the requirement that the Immigration Skills Charge cannot be paid or recouped from skilled workers, the UKVI sponsor guidance for skilled worker sponsors was updated on 31st December 2024 and significant changes have come into place.
The guidance expressly prohibits skilled worker sponsors from passing on the cost of:
- the sponsor licence fee or associated administrative costs from 31 December 2024, or
- the Certificate of Sponsorship (CoS) fee for CoS assigned on or after 31 December 2024. These fees can therefore not be paid by the skilled worker or be recouped by the sponsor.
The guidance further states that doing the following will normally result in the revocation of a sponsor licence:
- Asking the worker to pay some or all of the charge for a Certificate of Sponsorship assigned to a skilled worker on or after 31 December 2024, or
- Asking the worker to pay, recoup or attempting to recoup some or all of the sponsor licence fee and/or an associated administrative cost for applications made on or after 31 December 2024.
Level 1 user requirements have also changed
UKVI guidance has also been updated to introduce the requirement that for sponsor licence applications submitted on or after 31 December 2024, at least one Level 1 User must meet both of the following requirements:
• they are an employee, a director or a partner within your organisation
• they are a ‘settled worker’
The only exception to this is if the sponsor has gone into administration, in which case an insolvency practitioner can fill this role.
If your business already holds a valid sponsor licence on or before 31 December 2024, or applied for a licence before that date which was granted, you must have:
• at least one Level 1 User who is an employee, a director or a partner within your organisation
• at least one Level 1 User who is a settled worker (unless an exception specified above applies)
These requirements can be met by a single Level 1 User, or by two separate Level 1 Users.
The guidance also mentions that this may apply to all sponsors in the future. It is best practice to prepare for future changes by implementing these changes sooner rather than later.
If you would like assistance in making sure that your Key Personnel meets the requirement or that your existing policy and employment documentation regarding recoupment of fees is UKVI compliant, do not hesitate to reach out for a conversation with our Business and Skilled Immigration team.