Home Office prohibition on recouping sponsorship costs

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.

If you require further advice on sponsoring a skilled worker, please contact the Employment Team.