New rules on recouping sponsorship fees from employees

The Workers and Temporary Workers Guidance for Sponsors has been updated to prohibit the passing on of Skilled Worker sponsor licence or Certificate of Sponsorship fees to sponsored workers.

The Workers and Temporary Workers Guidance for Sponsors has been updated to prohibit the passing on of Skilled Worker sponsor licence or Certificate of Sponsorship fees to sponsored workers.

Due to the increasing costs of sponsorship, many employers have historically attempted to recoup some of these costs from their sponsored workers using claw-back clauses in employment contracts, or by charging workers upfront for sponsoring them. However, the government is concerned that this practice has led to the exploitation and unfair treatment of staff, particularly in the care sector, where many care workers have been left in debt to their employers

To rectify this, a new paragraph has been added which expressly states that sponsors are responsible for paying the sponsorship fees listed in the guidance, and that the Home Office will usually revoke your sponsor licence if you recoup, or attempt to recoup, by any means the following fees from a worker you are sponsoring:

  • The Skilled Worker sponsor licence fee (including the fee for adding that route to your existing licence) and any associated administrative costs (including premium services) where you recoup, or attempt to recoup, that fee or those costs on or after 31 December 2024.
  • The Certificate of Sponsorship fee for a Skilled Worker, where that Certificate was assigned on or after 31 December 2024.
  • The Immigration Skills Charge for a Skilled Worker or a Senior or Specialist Worker, where you are required to pay this.

This change means employers are now fully responsible for paying these fees, and none of these costs can be included in any claw-back clause or requested upfront from a prospective sponsored employee.

    Read more

    Latest News

    Read More

    The evolution of L&D strategies examined

    21 February 2025

    Newsletter

    Receive the latest HR news and strategic content

    Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

    Latest HR Jobs

    University of Cambridge – Judge Business School, Central CambridgeSalary: £33,232 to £39,105 per annum This provides summary information and comment on the subject areas covered.

    London Metropolitan University – Human Resources Salary: £31,617 to £35,610 per annum (inclusive of London Allowance) This provides summary information and comment on the subject

    Swansea University – Human ResourcesSalary: £46,485 to £55,295 per annum This provides summary information and comment on the subject areas covered. Where employment tribunal and

    Business Unit: People Salary range: up to £39,000 per annum DOE red-hot benefits Location: UK Hybrid – with monthly travel to a hub – Glasgow

    Read the latest digital issue of theHRDIRECTOR for FREE

    Read the latest digital issue of theHRDIRECTOR for FREE