UK Work Sponsor Rules Changed Significantly

18/01/2025

Recent updates to UK work sponsorship rules, effective late 2024 and early 2025, impact several areas:

1. Cost Responsibility:

Employers can no longer pass on or recoup costs for:
- Skilled Worker sponsor license fees (including adding the route to an existing license) and related administrative costs (like premium services) for applications made after December 31, 2024.
- Certificate of Sponsorship fees for Skilled Workers assigned after December 31, 2024.
- Immigration Skills Charge (this was already prohibited).
While previously some costs like visa fees and the Immigration Health Surcharge could potentially be recouped (with fair clawback agreements), the new rules significantly limit what employers can recover.

2. Definition of “Sponsor”:

The definition of “you and your” (referring to the sponsor) now includes anyone listed as a “Person with Significant Control” on the company’s Companies House profile, in addition to owners, directors, key personnel (Authorizing Officer, Key Contact, Level 1 Users), and those involved in day-to-day operations.

3. Key Personnel Requirements:

For licenses applied for after December 31, 2024, at least one Level 1 user must be both an employee, director, or partner and a settled worker (someone with permission to live permanently in the UK). Previously, these could be two different individuals.
Existing licenses granted before this date are exempt from this new requirement but UKVI might recommend adherence to this as best practice in the future.
Key personnel must not be legally barred from being company directors (unless a court grants permission). The previous exemption for undischarged bankrupts has been removed.
All key personnel must have a valid National Insurance number (unless exempt).
The new sponsorship system (“Sponsor UK”) will only have Level 1 users. Current Level 2 users should be upgraded.

4. Sponsorship in a Personal Capacity:

Sponsor licenses cannot be used to employ someone “in a personal capacity,” such as nannies, carers, or personal assistants working directly for an individual or household. This does not apply to diplomatic households. Other visa options may be available for these roles. Note that sponsorship of nannies is further complicated by separate changes to skill level requirements.

5. Other Updates:

Guidance on providing proof of immigration status has been updated to reflect the end of biometric residence permits.
The Certificate of Sponsorship category for post-study switching has been renamed for clarity.
Defined Certificates of Sponsorship must be assigned within 90 days (not three months) of allocation.
Rules regarding license B-ratings have been clarified.

These changes are significant and employers/potential sponsors should review them carefully to ensure compliance.

Applying for a Skilled Worker Sponsor Licence or Visa can be challenging. 1st Citizen Lawyer makes it easy with convenient online and in-office consultations. Book your consultation today and let us guide you through the process.