How will the latest changes to immigration rules affect my business?

Changes have been made to immigration rules, some of which with the potential to affect you and your business.

The Home Office recently published the latest update to their guidance, effective from 9 April. Sponsor licence holders, as well as those applying for a sponsor licence, should review the most recent version to ensure ongoing compliance.

We have put together a brief summary of the key changes that may directly impact your business and the sponsorship of migrant workers.

They include:

• since 9 April, employers seeking to recruit care/senior care workers now need to demonstrate that they have tried to recruit from the existing pool of sponsored workers from within the UK before setting sights on new workers overseas
• the UKVI guidance specifically prohibits sponsors from recouping sponsorship fees, including sponsor licence application fees (incl. fee for adding routes), Certificate of Sponsorship fees, immigration skills charge or associated administrative costs (incl. priority services fees or legal fees). Sponsors found to have recouped – or attempted to recoup – such fees will normally have their licence revoked
• the minimum ‘floor’ salary for certain applicants for a skilled worker visa has increased to £25,000 per year. The general salary threshold for the skilled worker route remains at £37,800 per year
• a loophole that previously permitted applicants to invest in their sponsor’s business to contribute towards their own salary has now been closed. When determining whether a salary meets the requirements, UKVI will now subtract any deductions related to business and immigration costs, investments, any related loan repayments or investments in the sponsoring organisation or related entities
• certain changes to the ‘new entrant’ discount were introduced
• on 2 April, the requirement to obtain electronic travel authorisation (ETA) was extended to all visitors coming to the UK who currently do not require a short stay visa/those who do not have immigration status in the UK. As of 9 April, the fee for ETA increased to £16.

Please note that this list is non-exhaustive.

Increase in Home Office fees

The Home Office recently increased several UK immigration and nationality fees. The increase – effective since 9 April – impacts almost everyone, including visa holders, sponsors and those applying for settlement and citizenship. The range is wide, with increases from as little as £8.50 to a substantial £286.

The most notable change for sponsor licence holders is the increase in the Certificate of Sponsorship fee. Previously set at £239, the fee has increased by almost 120% to £525, impacting the nominal costs required to sponsor each migrant worker.

We have put together a table of the key immigration fees increases below:

Please note that this table contains a non-exhaustive list.

If you require further information on any of the new changes that came into effect from 9 April, or any other business immigration-related matter, please do not hesitate to get in touch with our highly rated team of experts.

Our Legal 500-rated employment law & business immigration team are experts in guiding businesses of all sizes and backgrounds through a range of issues that may arise.