Guidance for Employers on Recovering Sponsor Costs From Sponsored Workers
When companies are struggling to meet increased national insurance costs for employees and maintain profit margins, many are questioning whether they can recover sponsor costs from their sponsored workers.
In this article, our UK Immigration Solicitors examine the latest immigration rules and Home Office guidance on recoupments for sponsors.
Contact OTS Solicitors Today for Immigration and Employment Law Advice– Speak to our Expert Lawyers.
Sponsorship of overseas workers
Many Work Visas require sponsorship from an employer with a sponsorship licence. These Work Visas include:
- The Skilled Worker Visa.
- The Health and Care Worker Visa.
- The Global Business Mobility Visa.
The UK government has increased the minimum income threshold for Work Visas, heaping pressure on UK employers who have the options of passing on wage rises to their customers with increased prices or absorbing the cost with all the other rises, such as employer NI contributions or fuel costs.
In September 2025, the Home Office released its latest statistics on Work Visa applications. The graphs map the fall in Work Visa applications following the path of:
- The February 2024 increase in the immigration health surcharge.
- The March 2024 date after which dependants could no longer accompany carers and senior carers on the Health and Care Worker Visa by applying for a Dependant Visa.
- The April 2024 increase in the minimum salary thresholds for Skilled Worker Visas and the reduction in the number of eligible jobs.
Ban on recouping sponsor costs from sponsored employees
At one point, employers were able to recoup some of the sponsor fees from their overseas workers. The rules have tightened.
Employers with sponsor licences cannot recoup the following expenses from their sponsored employees:
- The £525 certificate of sponsorship fee.
- The immigration skills charge.
- The sponsor licence application fee.
- The sponsor licence administrative costs of sponsoring workers, such as the cost of employing key personnel over a large sponsored workforce or the cost of employing Immigration Solicitors to provide a Sponsor Licence Management Service on retainer.
- Immigration Lawyers' legal costs if the Work Visa applicant did not get a choice of Work Visa Solicitor but was obliged to use one nominated by their employer.
Consequences of recouping sponsored costs
If an employer attempts to recoup any of the costs prohibited from recoupment, they place their sponsor licence at risk.
The consequences of a sponsor licence revocation are:
- The employer loses the right to sponsor overseas workers.
- The sponsor will not be able to reapply for another sponsor licence during a cooling-off period imposed by the Home Office.
- Sponsored workers will need to leave the UK, secure employment with a new employer with a sponsor licence or switch from the sponsored Work Visa to a different route.
The minimum salary threshold for the Skilled Worker Visa and the impact of deducting sponsor costs
Since April 2025, HR staff and key personnel should be wary that their recoupment policies do not result in them paying their sponsored employee less than the minimum salary threshold for their Work Visa.
When calculating the salary for a Skilled Worker Visa applicant, a sponsoring employer cannot include the following when calculating the worker’s salary:
- Salary deductions.
- Employee loan repayment for visa expenses, such as the repayment of the certificate of sponsorship, the immigration skills charge or Dependant Visa fees for family members.
The minimum salary threshold is usually the higher of:
- £41,700 gross per year, or
- The government set going rate for the specific skilled occupation.
Clawbacks and the rules on sponsors recovering sponsor costs from employees
Many employers use clawback provisions in employment contracts to prevent Skilled Worker Visa applicants from using the employer to pay the visa fees for themselves and even dependents, and then leaving the sponsored employment before the end of the Skilled Worker Visa. With a clawback contract, the employer can claw back a percentage of the fees spent, depending on the sponsored employee’s resignation and departure date. The Home Office does not prohibit this type of recoupment; however, employers should seek employment law advice on employment contracts that contain a clawback provision.
Speak to the Immigration Lawyers at OTS Solicitors
It's apparent that the UK is experiencing rapid political and economic change, and with that comes the need for employers to keep pace with evolving legislation and regulations.
At OTS Solicitors, our expert Sponsorship Licence Lawyers provide specialist immigration and employment law advice to help businesses stay compliant with their sponsor licence requirements. We also offer bespoke training and a full Sponsor Licence Management Service for those who find it beneficial to outsource their sponsor licence management.
Whether your company needs answers to licence queries, sponsor licence troubleshooting, or bespoke training, our award-winning business immigration solicitors can help.
Contact OTS Solicitors Today for Immigration and Employment Law Advice– Speak to our Expert Lawyers.
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