Important updates to UK Sponsorship Guidance: What employers need to know

27 Jan 2025, 31 mins ago

The UK government has recently rolled out key updates to the guidance for employers sponsoring workers, effective from 31 December 2024 and 1 January 2025. The updates affect several guidance documents in relation to how to apply for a licence, sponsorship guidance for employers, sponsor duties and compliance and sponsoring skilled workers. We have outlined below the key changes that employers should be aware of.

Key changes

  1. Limits on passing sponsorship costs to worker –new rules now restrict which sponsorship costs employers can transfer to their sponsored workers. This is especially relevant for contractual provisions where employers recover costs from sponsored workers.
  2. Wider definition of “You and Your” –the guidance expands the definition of “you and your” when referring to sponsors, meaning employers will have to adjust their understanding of who is considered part of the sponsoring entity.
  3. Updated key personnel rules – the requirements around key personnel for sponsors have been overhauled. These changes could create challenges for some employers who will need to meet these criteria as part of their new sponsor licence applications.
  4. Restrictions on sponsorship in private households – new rules also apply to employers who sponsor workers in private households, such as nannies. The changes bring more restrictions to personal capacity sponsorship arrangements.

Employers need to stay on top of these updates to ensure they remain compliant with the latest requirements for sponsoring workers.

Updated: 27 January 2025

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