Further clarification from UKVI on costs which cannot be paid for or recouped from Skilled Workers by their sponsor and on new salary requirements for those sponsors looking to receive investments, repayments of loans or salary reductions from skilled workers has been recently published.
Costs which cannot be paid for or recouped from Skilled Workers
Recently published guidance provides further clarification on which costs can be recouped from workers.
It is now clear that none of these costs can be passed on to the worker:
- Sponsor licence application fee;
- Fee for adding other routes to a sponsor licence;
- Certificate of Sponsorship fee;
- Immigration Skills Charge;
The guidance also prohibits sponsors from passing on the cost of “associated administrative costs” which is now defined as "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, changes 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"
UKVI visa fees and the Immigration Health Surcharge can still be paid by the Skilled Worker or recouped from the worker.
Sponsors may want to review their costs agreements, payback agreements, claw back clauses or similar documentation to ensure that it meets the requirements. This may also include ways to evidence a “genuine choice”.
Further clarification on how to calculate a Skilled Worker’s salary to see if it meets the requirements for those sponsors looking to receive investments, repayments of loans or salary reductions from Skilled Workers
We recently reported that UKVI has introduced a new rule on how to calculate minimum salary for a Skilled Worker, namely that: “Any money paid by the applicant to the sponsor (or a related organisation) will be considered as follows:
- (a) The following payments will be subtracted from salary, unless (c) applies:
- (i) deductions from salary; or
- (ii) repayments of loans; or
- (iii) investments.
- (b) Any such subtractions will be averaged over the length of time the applicant is being sponsored for, for the purpose of salary considerations.
- (c) Money will not be deducted where the payment is not related to business costs, immigration costs or investment, but rather an additional benefit offer which the applicant has a genuine choice whether to take up, for example salary sacrifice arrangements.”
New UKVI Guidance has clarified that the length of time that the applicant is being sponsored for refers to the length of their sponsorship as stated on the CoS.
Money will not be subtracted where the payment is an additional benefit which the worker has a genuine choice in taking up, such as a salary sacrifice arrangement and if it is not related to business costs, immigration costs or investment.
This is relevant for all Certificate of Sponsorship assigned to Skilled Workers from 9 April 2025 onwards. It becomes essential that individual costs agreements, payback agreements, claw back clauses or similar documentation regarding Skilled Workers do not result in reducing a worker’s salary below the minimum salary requirements. Also, if these payments come into effect after sponsorship and result in a reduction in salary following the new rule, sponsors should report this on the SMS as a reduction in salary. The reduction in salary must not bring the salary to below the minimum salary requirements.
If you would like assistance with calculating minimum salary requirements, reviewing documentation in place on claw back, recoupment or payment of fees by the worker or evidencing a “genuine choice”, please do not hesitate to reach out for a conversation with our Business and Skilled Immigration Team either by clicking the link or emailing ebarrera@turpinmiller.co.uk.