ARTICLE
15 January 2025

Home Office Prohibition On Recouping Sponsorship Costs

D
Devonshires

Contributor

Based in the City of London for over 150 years, Devonshires is a leading practice providing high-quality, accessible and value-for-money services to domestic and international clients, including developers, local authorities, housing associations and financial services firms. The practice focuses on building strong, long-lasting relationships in order to achieve outstanding results based on practical advice. The foundation of its success is its commitment to people, both its own and those working for its clients. The firm ensures its staff have access to high-quality training and fosters ‘one to one’ connections between its solicitors and clients.

The firm acts on a broad range of matters including projects, property and real estate, securitisation, construction, housing management, commercial litigation, employment, banking, corporate work, and governance. The practice is a leader in social housing, including working on many development projects nationwide and helping to draft legislation.

On 31 December 2024 the Home Office updated its guidance stating that employers are prohibited from passing on to, or recouping (or attempting to recoup) from, sponsored workers, skilled worker sponsor licence.
United Kingdom Employment and HR

On 31 December 2024 the Home Office updated its guidance stating that employers are prohibited from passing on to, or recouping (or attempting to recoup) from, sponsored workers, skilled worker sponsor licence fees and associated administrative costs.

The Home Office guidance has been amended to reflect the commitment given in the Written Ministerial Statement of 28 November 2024.

What costs are prohibited?

It is not clear from the guidance what costs are actually covered by "associated administrative costs". However, we understand it to cover the following:

  • It is prohibited to pass on of the cost of a Certificate of Sponsorship to a skilled worker.
  • The request to add the skilled worker route to an existing sponsor licence
  • All legal advice obtained by an employer/sponsor relating to an individuals sponsorship, including advice on the employer compliance with its duties as their sponsor
  • the cost of priority processing services
  • the Application Fee
  • any delivery charges

What can be recouped?

An employer can still recoup other immigration related costs, such as any immigration application fees, Home Office commercial partner service charges and/or Immigration Health Surcharges paid on behalf of a sponsored worker or their dependents.

What happens if an employer seeks to recoup the prohibited costs?

The guidance states that if an employer sponsor is granted a licence, the Home Office will normally revoke a licence if it finds out an employer has sought to recoup, or attempted to recoup, any part of the sponsor licence fee or associated administrative costs, by any means, from a worker being sponsored on or after 31 December 2024.

Next steps

Review and amend:

  • any immigration policy
  • clawback clauses in contracts or employment or side letters

to update them to ensure compliance with the updated Home Office guidance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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