On 31 December 2024, significant changes to the Sponsor Guidance came into effect. These updates have important implications for employers hiring Skilled Worker migrants.
This newsletter outlines the key changes and their potential impact on your business.
Settled Worker Level 1 Users
For new Sponsor Licences, applied for on or after 31 December 2024, there is a new requirement that the organisation must appoint at least one Level 1 User who meets both the following requirements:
- Employee / Director / Partner of the business;
- Settled worker
Until now, it has been possible to appoint a Level 1 User who is an employee but does not hold settled status, and a separate Level 1 User who holds settled status but is not necessarily an employee (e.g. a Legal Representative). The above change means that it will be necessary to have an employee/director in the business who holds settled status, to take on the Level 1 User role.
The organisation must at all times have at least one Level 1 User that meets both the above requirements, or the Licence may be revoked.
Note that although at this stage the above only applies to new Licence applied for on or after 31 December 2024, the Home Office have expressly stated that they intend to extend this requirement to all existing Sponsors. There is no timescale for this yet, but all Sponsors should be aware of this intention so they can begin making plans.
Cost of Certificate of Sponsorship No Longer Recoverable
Sponsors can no longer recover the costs of assigning a Certificate of Sponsorship (CoS) from Skilled Worker migrants. Businesses must now absorb these expenses as part of their recruitment costs.
Employers Fully Responsible for Licence Costs
The updated guidance also prevents employers from recovering costs related to obtaining and maintaining a Sponsor Licence. This includes the initial application cost, priority service charges, renewal fees, legal fees for preparing the application, and any other associated expenses.
What This Means for Business Owners
These changes require businesses to make a more substantial upfront investment when sponsoring Skilled Workers. Employers should review their contracts and internal policies to ensure compliance with the new rules.
How 3CS Can Help
Whether you need help understanding the updated Sponsor Guidance or ensuring compliance, our team of experienced immigration solicitors is here to assist.
Contact us for tailored support in managing your Sponsor Licence obligations.
