Background
From 31 December 2024, updated Home Office guidance prohibits employers from passing on certain immigration fees to sponsored workers. Specifically, sponsors can no longer recoup or attempt to recoup:
The Home Office states that a sponsor licence will 'normally' be revoked if an employer is found to have breached these rules.
Employers were already prohibited from recovering the Immigration Skills Charge from the workers they sponsor. The new measures expand on that restriction, emphasising the Home Office's commitment to safeguard sponsored workers from undue financial burdens associated with their visa sponsorship.
It is unclear precisely what the Home Office mean by "associated administrative costs" but it could be taken to include the costs of any legal advice relating to the individual's sponsorship and compliance with their duties as their sponsor. Employers should therefore ensure that any arrangements they have with sponsored workers to recover any of the costs associated with their Skilled Worker visa applications comply with these restrictions, including the costs which may be recovered under a clawback agreement.
For further information on recent developments in this area, please read our article on the tougher measures which are due to be introduced to combat visa mismanagement by employers.