The UK government prohibits sponsors from charging skilled workers for some immigration-related expenses
Companies that sponsor skilled workers, particularly those from India, in the UK, will no longer be able to pass along some sponsorship-related expenses to their staff.
Companies that sponsor skilled workers, particularly those from India, in the UK, will no longer be able to pass along some sponsorship-related expenses to their staff. Businesses are required by the new regulation to pay for fees including sponsor licenses, Certificates of Sponsorship (CoS), and other associated expenses.Following an update to the Home Office's sponsor guidelines, the move, which was first announced by the Labour administration in a cabinet statement on November 28, 2024, went into effect on December 31, 2024.
What is included in the new policy
According to the government statement, the ban now only applies to the Skilled Worker path, but it is anticipated to expand to other sponsored employment routes as well. Partner Aurelia Menezes of King Stubb & Kasiva, Advocates & Attorneys, told Business Standard, "This is good news for all non-residents working in the United Kingdom, including many skilled Indians who seek employment in the UK."The costs that are prohibited include the sponsor license fee, associated administrative costs, and Certificate of Sponsorship fees, amounting to approximately £2,239 (approximately Rs 2.3 lakh)," Menezes continued when describing the associated expenses. These expenses should now be covered by sponsors when they hire foreign talent, including Indians. Sponsor license payments and related administrative expenditures for applications submitted after December 31, 2024, including requests to add the Skilled Worker route to an existing license, are specifically prohibited from being transferred to employees by sponsors of skilled workers. These charges can add up to almost £2,000. This is especially true when employing priority processing services.
Effects on Indian Workers
India continues to be the UK's top source of skilled worker visa applicants. The largest beneficiaries were Indian nationals, who received over 160,676 work visas in the year ending March 2024. According to Menezes, the new rule won't stop UK companies from employing Indian experts. "There is a high demand for Indian skilled talent abroad, including in the United Kingdom, so we do not foresee any repercussions due to this burden being passed on to the sponsors," she stated.
The price of hiring qualified personnel
When applying for a skilled worker visa, Indian workers should be aware of the following expenses:
Application costs are £1,639 for longer stays and £719 for stays up to three years; the prices are reduced for employment on the immigration wage list.
Maintenance funds: Unless the employer confirms maintenance expenditures, employees must demonstrate that they have at least £1,270 available.
An Indian worker seeking a two-year skilled worker visa, for instance, would have to pay £2,789 in total, which includes the healthcare premium. If the employer does not agree to pay these expenses, an additional £1,270 must be shown.
