Key Changes in Employer Responsibility
Under the revised regulations, employers are now prohibited from transferring certain immigration expenses to their employees. The restricted costs include:
- Sponsor Licence Fees for obtaining or renewing the right to sponsor visas.
- Certificate of Sponsorship (CoS) Fees required for assigning work to foreign nationals.
- Immigration Skills Charge (ISC), a fee used to fund domestic workforce development.
Failure to comply with these restrictions risks severe consequences, including the revocation of the company’s sponsorship licence.
Sharp Fee Increases
The new laws also include a significant rise in government fees related to hiring foreign workers. Fees for Certificates of Sponsorship have surged by 120%, increasing from £239 to £525. Likewise, Skilled Worker Visa Fees have risen as follows:
- Applications for durations of up to three years now cost £769, a 7% increase from £719.
- For visas exceeding three years, fees have jumped to £1,519, up 7% from the previous £1,420.
Effects on Businesses
These changes pose significant challenges for British employers, particularly those in sectors such as healthcare, technology, and hospitality that heavily depend on international talent. Businesses now face increased operational costs, a greater need for financial planning, and additional administrative burdens to ensure compliance with the new rules.
To mitigate the immediate and long-term effects of these changes, employers are encouraged to take proactive measures:
- Review Budgets Thoroughly
Factoring in higher fees is essential. Allocate sufficient funds specifically for sponsorship and visa costs and be prepared for potential future increases. - Adjust Workforce Planning
Greater investment in training and upskilling domestic workers could help reduce reliance on overseas talent. Employers might also consider exploring lower-cost immigration routes where applicable. The “new entrant” salary reduction rule, for instance, allows lower thresholds for early-career foreign workers. - Stay Legally Compliant
Review employment contracts and company policies to ensure they comply with the strict prohibition on cost-sharing for prohibited fees. Regular audits can prevent unintentional breaches. - Consult Experts
Engaging immigration consultants or legal advisors will aid in navigating the complexities of these changes and ensuring compliance, while identifying potential cost-saving opportunities.
Looking Ahead
As the UK government seeks to reduce taxpayer funding of the immigration system through these heightened fees and employer responsibilities, businesses must adopt a strategic approach to absorbing the new costs. Despite the challenges, compliant and well-prepared employers can align their recruitment models to manage these changes and continue to attract global talent effectively.
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