If you are an employer with a sponsorship licence or are thinking about applying for one, you need to be aware of changes from the Home Office, which came into effect on 31 December 2024. 

If the wrong costs are recouped (or even just stated in contracts that they can be recouped) it could lead to suspension or even revocation of sponsorship licences. 

We have set out a summary of the costs that can and cannot be recouped:

Cost elements that applicants are responsible for (but some employers may choose to pay) such as:

• Visa costs (e.g. skilled worker health and care visa costs are £284 - £551) 
• Any related tests (e.g. English language test, TB test if applicable)
• Immigration Health Surcharge (if applicable) - £1,035 per year for most types of visas

Even with costs that can be recouped (if not paid directly by the applicant), it is important that this is done fairly. 

Cost elements that employers cannot recoup

• Skilled worker sponsor licence fee or associated administrative costs (including premium services)
• Certificate of Sponsorship fees (for CoS assigned on or after 31 December 2024)
• Immigration Skills Charge (this was already prohibited)

If a sponsor is found to have recouped or attempted to recoup these costs, their sponsor licence will normally be revoked according to the new guidance.

Next steps for employers and more information

Employers should review any clawback agreements to ensure compliance with these new restrictions. Please contact me for more information or if you are concerned that your clawback clauses are now out of date. You can also read our previous post about the repayment of immigration costs.