The UK government is implementing changes to the Skilled Worker rules on recouping visa application fees from the worker. This rule change concerns those sponsors who seek to recoup visa application fees from Skilled Workers. This change should not concern those employers who pay all Skilled Worker sponsorship application fees and do not ask the worker to pay anything.
Here is a summary of the rule change:
- Effect of the new rule. The new rule means that if an employer paid Skilled Worker visa application fees upfront but then seeks to recoup some or all of the fees from the sponsored worker, the fees they recoup will not be counted towards meeting the minimum Skilled Worker salary threshold required for the application. The new rule only applies to Skilled Worker applications.
- When does the new rule start? The change relates to all Skilled Worker applications where the certificate of sponsorship (CoS) is assigned on or after April 9, 2025.
- What arrangements would be caught? The payments from the sponsored worker to the sponsor which will not count towards meeting the minimum Skilled Worker salary level include: “deductions from salary; repayments of loans; or investments.” Sponsors who deduct Skilled Worker visa application fees from the worker’s salary or enter into a loan agreement with the Skilled Worker need to take note of this rule change. The reference to “investments” is unlikely to affect many sponsors but could apply if the sponsored worker is one of the owners of the business.
- Which visa fees does the new rule apply to? It is important to note that even before this rule change there are certain visa fees which the worker must never pay – whether upfront or in repayments to the sponsor. These include the Immigration Skills Charge and CoS fees. While further guidance is awaited to be sure which visa fees are intended to be covered by the new rule, it is likely to include the UKVI Skilled Worker visa application fee (for example normally £719 for a 3-year visa issued outside the UK) and the Immigration Health Surcharge (normally £1,035 per year of the visa for adults).
- Payments are averaged. Payments from the Skilled Worker to the sponsor which are caught by this new rule will be averaged over the length of time the applicant is being sponsored.
- Salaries close to the minimum threshold. As a result, the new rule is likely to be an issue for sponsors at or just above the minimum salary threshold who normally seek repayment of the Skilled Worker visa application fees from the sponsored worker. This rule change will not be an issue if sponsors pay sufficiently over the minimum salary amount.
- Are there any exceptions? There is an exception where the payment from the sponsored worker is “not related to business costs, immigration costs or investment” and is “an additional benefit offer which the applicant has a genuine choice whether to take up, for example salary sacrifice arrangements.”
Erickson Insights
Sponsors may avoid the new rule by applying before April 9, 2025, as mentioned above, the rule change only applies to applications where the CoS has been assigned on or after April 9, 2025; if the sponsor pays all the application fees; if the salary is increased and the sponsor still recoups the fees; if the sponsored worker pays the fees, noting there are certain fees the sponsored worker can never pay; instituting clawback provisions after the sponsorship ends.
Some questions remain about how exactly this change will work in practice. The guidance may not be released until April 9, 2025, when the rule takes effect.
Erickson Immigration Group will continue to monitor developments and share updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or case-specific questions.