Key Updates to Sponsor Guidance: What Employers Need to Know (21 January 2025)

The UK Home Office introduced significant changes to its guidance for sponsors of overseas workers on 31 December 2024 and 1 January 2025.

. These updates are designed to ensure compliance, prevent exploitation, and improve the management of sponsor licences. Below, we outline the most important changes and their implications for employers.

1. Ban on Sponsoring Workers in a Personal Capacity

The updated guidance explicitly prohibits sponsor licences from being used to employ workers in a personal capacity. This includes:

• Situations where an individual or household wishes to employ a worker for personal reasons.
• Cases where a worker is employed for the personal benefit of a close relative or partner of an employee, unrelated to the organisation’s business activities.

Violations of this rule could result in the revocation of the sponsor licence, underscoring the importance of adhering strictly to sponsorship rules.

2. Prohibition on Passing Sponsorship Fees to Sponsored Workers

Sponsors are now barred from transferring specific costs associated with sponsorship to their sponsored workers. Employers must not attempt to recoup or pass on the following fees:

• Skilled Worker sponsor licence fee.
• Certificate of Sponsorship (CoS) fee for a Skilled Worker.
• Immigration Skills Charge for a Skilled Worker or Senior or Specialist Worker.

This measure aims to protect employees, particularly in vulnerable sectors such as care, from being burdened with excessive costs. Non-compliance could result in the revocation of the sponsor licence. Employers must now budget for these fees as part of the cost of employing overseas workers.

3. Updates to Key Personnel Requirements

The Home Office has also revised its requirements for Key Personnel managing sponsor licences. Key changes include:

• Sponsors must not nominate individuals who are prohibited from being company directors unless a court grants permission.
• New sponsors are required to have at least one Level 1 User who is a settled worker and is employed, a partner, or a director within the organisation.
• Government Authorised Exchange sponsors should avoid appointing Level 2 Users from host employers, as they will not have access to the new sponsorship service, Sponsor UK.

These updates aim to ensure that those responsible for sponsorship within an organisation are appropriately qualified and capable of fulfilling their duties.

What These Changes Mean for Employers

The Home Office’s revised guidance reinforces the importance of compliance and accountability for sponsors. Employers must:

• Review their current sponsorship practices to ensure they align with the new rules.
• Budget for sponsorship costs to avoid passing fees onto workers.
• Verify that Key Personnel meet the updated requirements.

Failure to adhere to the updated guidance could result in significant consequences, including the loss of sponsorship privileges.

How Duncan Lewis Can Assist

Navigating the complexities of sponsorship can be challenging. At Duncan Lewis Solicitors, our Business Immigration team provides expert guidance to ensure your organisation remains compliant with Home Office regulations.

For tailored advice or support with your sponsor licence management, contact our team today.

About the author:

Tamana Aziz is a Director in the Private/Business Immigration department at Duncan Lewis Solicitors, having joined in January 2018. Tamana is recommended in the 2025 edition of the Legal 500 directory and has wide-ranging immigration law experience, including business immigration, advising high net worth and skilled individuals on extending visas, spousal applications and applications for British citizenship.

Contact via Tamana via email at tamanaa@duncanlewis.com or via telephone on 020 3114 1130.

About Duncan Lewis Solicitors

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