Sponsor guidance update: costs and claw backs

The latest version of the Home Office’s guidance for sponsor licence holders includes updates on the payment of sponsor-related fees.

It has long been the case that a sponsor must not seek to pass on the following costs to a sponsored worker: 

• the fee payable when applying for a sponsor licence, or to add a route to the licence, (and any priority processing for the sponsor licence application);
• the certificate of sponsorship fee (currently £239); and
• the immigration skills charge (currently £1,000 per year of sponsorship for a large sponsor or £364 per year for small or charitable sponsors).

The guidance clarifies that these costs must not be paid by workers in sponsored routes. It also makes clear that a sponsor must not seek to recoup “any associated administrative costs” for the sponsor licence and the certificate of sponsorship. Helpfully, the guidance sets out that:

 “Associated administrative costs” means any costs incurred by you to obtain, use or maintain your licence and includes, but is not limited to: 

• fees for premium services or priority services for sponsor licence applications, change of circumstances requests or assigning, requesting or applying for a Certificate of Sponsorship;
• fees for legal advice related to applying for, using or maintaining your sponsor licence, or assigning, requesting or applying for a Certificate of Sponsorship;
• immigration advice or immigration services provided by a third party to a sponsored worker where the worker did not have a genuine choice in whether or how to obtain such advice or services, or where you provide such advice or services to the worker directly. 

Part 3 (Compliance) of the guidance has been updated to reflect that recouping, or seeking to recoup the above fees from workers on any sponsored route is now grounds for revocation.

 As visa related costs have increased, contractual clauses providing for sponsored workers to repay some fees paid by the employer in certain circumstances have become more common. However, with new limitations on what can be reclaimed by a sponsor, employers need to urgently review any repayment agreements/provisions and should take advice before seeking to enforce any existing arrangements in respect of sponsored workers.