Prohibition on passing on certain immigration costs to Skilled Workers

The Home Office’s guidance for sponsors of skilled workers has been updated in relation to a sponsor’s ability to pass on to, or recoup (or attempt to recoup) from, sponsored workers certain immigration fees.

It is well established that a sponsor is not permitted to pass on / recoup the Immigration Skills Charge which it is required to pay upon assigning a certificate of sponsorship; the updated guidance extends the prohibition to the following fees:

• the sponsor licence fee in relation to applications made on or 31 December 2024. This includes the fee for adding the skilled worker route to an existing licence and any administrative costs (e.g. for the use of priority services); and
• the fee for assigning a Certificate of Sponsorship on or after 31 December 2024.

Most sponsors bear the cost of sponsoring skilled workers which, in most cases, is very expensive. To guard against the risk of a sponsored worker leaving and, therefore, a wasted investment, many sponsors include clawback provisions in sponsored workers’ contracts of employment. Such provisions will usually obligate the individual to repay immigration-related costs to the sponsor if they leave its employment in a specified period of time.

In light of the updated guidance, sponsors should ensure that any immigration fees recouped pursuant to a clawback provision do not include the fees referred to above. Further, sponsors should review template contracts of employment and, if necessary, amend clawback provisions to reflect the updated guidance. Note that a sponsor is still allowed to pass on or recoup other immigration costs that it has paid for, for example, the Immigration Health Surcharge (if it has been paid for by the sponsor on the individual’s behalf) and an individual’s fees for applying for a visa.

A failure to comply with the updated guidance would put a sponsor in breach of their duties which, in turn, could lead to a revocation of their sponsor licence and the loss of the ability to sponsor migrant workers (whether they are currently working for the business or otherwise).

If you have any questions about the Home Office’s updated guidance on passing on immigration-related fees or about business immigration in general, please contact Emma Cousins, Legal Director at emma.cousins@torquelaw.co.uk.