Updates to the Sponsor Licence Guidance – Bad News for Domestic Workers
Written by
On 31 December 2024 and 1 January 2025, the Home Office updated the Skilled Worker Sponsor Licence guidance in Part 1: Apply for a Licence; Part 2: Sponsor a Worker and Part 3: Sponsor Duties and Compliance.
The most impactful changes are summarized below.
Prohibition on passing on licence fees or Certificate of Sponsorship fees to sponsored workers.
Section L6.17 of Part 1: Apply for a Licence confirms that licence holders cannot recoup, or attempt to recoup, any of the following fees from the worker they intend to sponsor:
- The Skilled Worker Sponsor Licence application fee or any administrative costs in relation to the licence application such as a fee for Pre-Licence priority service;
- The Certificate of Sponsorship fee;
- The Immigration Skills Charge for a Skilled Worker or a Senior or Specialist Worker (if applicable).
The above prohibition applies to applications made or certificates assigned after 31 December 2024. The Home Office will normally revoke your licence if you have been found to recoup or attempt to recoup any of the above fees from your sponsored worker. This guidance has also been updated in Annex C2: "circumstances in which we will normally revoke your licence" of Part 3: Sponsor Duties and Compliance.
Practically, this means that all such expenses should be incurred on a company credit card, where possible, or if not, there should be a clearly documented expenses claim. Such costs must not be claimed back from the Skilled Worker at a later date.
This change was aimed at preventing the fiscal exploitation of vulnerable workers, particularly in the health and social care sector. It also impacts those sponsored by their own businesses, and creates an increased need to clearly delineate personal and business funds.
Prohibition on sponsoring workers in a personal capacity.
The rules in relation to sponsoring staff in a personal capacity, such as a nanny or housekeeper, have become increasingly restrictive in the last 18 months and this is now expressly prohibited in the updated guidance.
The guidance states at L1.7 of Part 1: Apply for a Licence that a business will not be granted a sponsor licence if they intend to sponsor workers in a personal capacity, and provides the following examples:
- you are an individual person or household who wishes to employ or engage a worker, or workers, in a personal capacity and you are not otherwise conducting business or providing a service in the UK.
- the worker, or workers, will be employed by, or engaged for the personal benefit of, an individual who works for your organisation, or a close relative or partner of that individual, and the role is unrelated to your organisation’s wider activities.
Section L1.8 of the same guidance confirms that existing licence holders must not use their licence to sponsor workers as described above, going forward. If the Home Office finds you have sponsored workers in a personal capacity, they will normally revoke your licence. Annex C2: "circumstances in which we will normally revoke your licence" of Part 3: Sponsor Duties and Compliance has similarly been updated to reflect this new guidance.
There is a real lack of clarity on transitional provisions, in this instance. Whilst on the face of the guidance this prohibition does not apply retrospectively, it does appear to mean that if an existing sponsored worker working in a personal capacity requires a further Certificate of Sponsorship to continue working for the same employer in the future, they would not be able to obtain one. There is therefore now uncertainty as to whether those employed as sponsored domestic workers in the UK will be able to settle in the UK. It also raises questions over whether a sponsor who was granted their licence explicitly for the purpose of sponsoring workers in a personal capacity, is at risk of revocation.
If you currently sponsor domestic workers, please contact our Immigration Team who will be able to provide further advice.
Potential fee increases
Of further note is the fact that legislation is being laid before Parliament today, which would increase the CoS fee on work routes to £525 from £239. This will be debated in Parliament and is subject to approval by both houses.