The UKVI have made various updates to the Sponsor Guidance with changes effective from 31 December 2024.
Sponsors are prohibited from passing on the cost of Skilled Worker Certificates of Sponsorship (CoS) to their sponsored workers. The updated guidance also prohibits sponsors from clawing back the cost of a Skilled Worker sponsor licence, including any associated administrative costs, such as use of the priority service or the premium service to expedite updates to a licence. With effect from 31 December 2024, sponsors face having their licence revoked if they fail to adhere to these new rules.
Other key changes to the guidance include a change to Level 1 User requirements for new sponsor licence applications submitted on or after 31 December 2024, plus a new prohibition on sponsoring workers in a personal capacity.
The updated sponsor guidance now expressly prohibits Skilled Worker sponsor licence holders from recouping the cost of Certificate of Sponsorship (currently £239) by any means from their sponsored workers.
This change applies to Skilled Worker CoS assigned on or after 31 December 2024.
Previously it was only expressly prohibited to pass on the cost of the Immigration Skills Charge.
From 31 December 2024, Skilled Worker sponsors are also prohibited from recouping the sponsor licence application fee and any associated administrative costs, such as use of the premium or priority processing services, by any means from their sponsored workers.
These changes apply to Skilled Worker sponsor licences and CoS fees only and so do not apply to the Global Business Mobility Senior/Specialist Worker route. However best practice is that no costs incurred in relation to obtaining/maintaining a sponsor licence, including CoS fees, should be passed on to sponsored workers under any route.
New sponsor licence revocation grounds have been implemented for sponsors who do not adhere to all of all of the above requirements.
Any company applying for a sponsor licence must nominate at least one Level 1 User who is both – (i) an employee, director or a partner within their organisation and (ii) also a ‘settled worker’*. This user is known as the ‘primary Level 1 User’.
There are limited exceptions for some sponsor licence types such as Expansion Worker.
Previously, sponsors needed to have a Level 1 User which met both of these requirements, but they could be two separate individuals.
Currently there is no change in the requirements for sponsors who obtained a licence before 31 December 2024 – they can continue to follow the previous guidance however it is understood this position may change.
The updated guidance also states that if a sponsor assigns a CoS to sponsor a worker in a personal capacity their sponsor licence will be revoked. There are two examples in the guidance on what may be considered as sponsoring a worker in a personal capacity and they are:
A person recorded on a sponsor’s Companies House listing as a Person with Significant Control has been added to the definition of ‘you’ and ‘your’ within the sponsor licence guidance.
This means that the past/future conduct of any Person with Significant Control will have an impact on the obtaining and keeping of the sponsor licence as they are seen as being an integral part of the sponsor.
*The definition of settled worker includes: British/Irish nationals; persons with status under the EUSS and permanent residency holders.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Lyudmyla Davies
Partner (Solicitor)
Ian Robinson
Partner
Andrea Als
Director (Solicitor)
Tom Marsom
Director (Solicitor)
Lucy Vaux
Senior Manager (Solicitor)
Simply follow our Vialto Alerts page on LinkedIn and posts will be displayed on your feed. To ensure you don’t miss one, once you’re on our LinkedIn page, click on the bell icon under the banner image to manage your notifications.
Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
© 2025 Vialto Partners. All rights reserved.