UK Immigration round-up: January 2025

Welcome to our regular immigration round-up, providing a helpful summary of what's new and in the pipeline for UK immigration, along with links to a wealth of detailed resources and courses at your disposal.

In this edition, you can find:

• UK Immigration updates
• Alerts, Webinars & Resources
• Upcoming Public Courses
• Round-up Live

UK Immigration Updates

Prohibition on Reclaiming Certain Sponsorship Fees from Employees

The Sponsor Guidance has been updated to reflect a commitment made by the Home Office on 28 November 2024, prohibiting the passing on of Skilled Worker sponsor licence or Certificate of Sponsorship fees to sponsored workers. The changes align with the existing prohibition that prevents a sponsor from passing on the Immigration Skills Charge (ISC) to workers.

Employers may have historically attempted to recoup some costs from their sponsored worker using clawback clauses within their employment contracts or passing on some of the initial cost at the point of recruitment for sponsoring them. However, the government has raised concern with this practice which has led to the exploitation and unfair treatment of staff, particularly within the care sector.

A new paragraph has been added to the guidance to rectify this, expressly stating that sponsors are responsible for sponsorship fees listed within the guidance.

Annex 2 of Part 3: sponsor duties and compliance states the Home Office will usually revoke your sponsor licence if you recoup, or attempt to recoup, by any means the following fees:

• The Skilled Worker sponsor licence fee (including the fee for adding that route to your existing licence) and any associated administrative costs (including premium services) where you recoup, or attempt to recoup, that fee or those costs on or after 31 December 2024
• The Certificate of Sponsorship fee for a Skilled Worker, where that Certificate was assigned on or after 31 December 2024.
• The Immigration Skills Charge for a Skilled Worker or a Senior or Specialist Worker, where you are required to pay this

This change means employers are now fully responsible for paying such fees; none of these costs can be included within any clawback clause or requested upfront from a prospective sponsored employee.

It is still permissible for an employer to recoup other immigration-related costs, e.g. any immigration application fees, Home Office commercial partner service charges and/or Immigration Health Surcharges it has paid on behalf of a sponsored worker or their dependants. 

• If a sponsor is found to have recouped or attempted to recoup these costs, their sponsor licence will "normally" be revoked. Revocation of a sponsor licence usually results in reputation damage, financial loss and a significant upheaval for existing sponsored workers.

A a sponsor, you must review and update any documents, such as employment contracts or side letters, that refer to passing on sponsorship and other immigration-related costs to workers (including ‘clawback’ agreements). Employers should also consider how their budget for immigration is impacted and if this has consequences for the future recruitment of international talent and continued sponsorship of existing Skilled Workers.

Ban on Personal Sponsorship of Employees

The guidance now contains a new refusal ground where prospective sponsors intend to sponsor workers in a ‘personal capacity’. This is sometimes referred to as ‘self-sponsorship’.

Guidance for sponsors now explicitly states a sponsor licence will not be granted if you intend to sponsor workers in a personal capacity, as in either of the following circumstances:

• 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.

Existing sponsors must not use their licence to sponsor workers in a personal capacity, as defined above. The Home Office will usually revoke your licence if they do find you have done so.

 Changes to Key Personnel Requirements

‘Key Personnel’ refers to those people you may nominate to manage your sponsor licence when you first apply. Ensuring people who are nominated as your Key Personnel are suitable and eligible to perform their assigned roles is a crucial aspect of your compliance obligations as a licenced sponsor.

The section of the sponsor guidance which covers Key Personnel has been completely redrafted and restructured for clarity, including the following new requirements:

• Sponsors must not nominate Key Personnel who are prohibited from being a company director (for any reason, including bankruptcy), unless a court has given permission for that individual to act as a director or to promote or form a business and acting as Key Personnel would not contravene that permission.
• New sponsors must have at least Level 1 User who in their own right meets the following requirements:

(a) is an employee, a partner or a director within the sponsoring organisation; and

(b) is a settled worker

• Government Authorised Exchange sponsors are advised they should no longer appoint Level 2 Users from host employers. As such, users will not be given access to the new sponsorship service (Sponsor UK).

UK Government Compliance Crackdown

The Labour Government consistently indicates their wish to create a link between the ability to sponsor foreign workers and the upskilling of the domestic workforce, consolidated with the reference to workforce training plans. This is referenced within their 2024 Election manifesto.

Plans for reform include:

• All sponsor licence holders are ensuring that working conditions and pay meet the required standards.
• Avoiding labour shortages by speeding up visa delays, over concerns of damage to the economy.
• Training and plans to be introduced for improvement of pay and conditions for roles requiring international recruitment.
• Reforming the Migration Advisory Committee (MAC) to project future trends with more accuracy.

This crackdown is aimed to disrupt rogue employers hiring migrants to work illegally and exploiting vulnerable people. Particular focus has been on ‘high risk’ categorised businesses such as, car washes, nail bars and convenience stores. These targeted businesses have been subject to unannounced enforcement visits from the Home Office, resulting in a number of arrests and civil penalty notice referrals. Other actions may include downgrading/suspending/revoking the sponsor licence, or cancelling the permission of a sponsored worker to remain in the UK.

Under the UK’s Immigration Rules, employers play a crucial part in the prevention of illegal working and abuse of work visa routes. The government has emphasised employers who do not comply with sponsorship duties, and exploit migrant workers, will not be tolerated, with the consequence of non-compliance being severe.

Global Mobility Trends & Statistics

The Office for National Statistics recently reported a significant 20% reduction in long-term migration to the UK, with numbers falling from 906,000 in June 2023 to 728,000 in June 2024. This decline is primarily due to decreased long-term migration among dependents on study visas. Contributing factors include recent policy changes, such as the restrictions on international students bringing family members, effective from January 2024, and modifications to work visas implemented in April 2024. Early signs of decreasing work-related immigration have also been revealed, seemingly consistent with the Home Office’s most recent visa findings.

The Home Office has also released new statistics showing a significant decrease in work-related immigration. In the year ending September 2024, only 241,719 visas were granted to main applicants in all work categories, a 28% decrease from the previous year. Health and Care worker visas also saw a substantial drop, with only 50,591 granted, 65% fewer than the previous year.

Additionally, 392,969 sponsored study visas were issued to foreign students, a 19% decrease from the previous year. In the first nine months of 2024, visas issued to dependants of students fell by 84% to 17,978 compared to the same period in 2023, while there were 16% fewer main applicants.

This decline in sponsored work and study visas is creating significant challenges for employers, leading to shortages of skilled labour and impacting their ability to fill critical positions.

Despite these declines, there were 147,053 grants of settlement in the UK in the year ending September 2024, almost a third more than the previous year and the highest level in 11 years. Since the EU Settlement Scheme (EUSS) launched, there have been 8.2 million applications made by 6.3 million people up to 30 September 2024. In the year ending September 2024, 14,477 EUSS family permits were granted, around two-thirds the number granted in the previous year.

Electronic Travel Authorisation scheme

The Electronic Travel Authorisation (ETA) scheme is one of the UK’s new systems, requiring certain visitors to the UK to obtain before boarding a plane, train or ferry to the UK. The scheme aims to improve security and efficiency at the border, whilst simultaneously reducing the need for physical stamps and vignettes in passports.

From 27 November 2024, nationals of many countries across the Americas, Asia and Oceania were able to apply for an ETA on the gov.uk website. Implementation of the requirement for an ETA for these nationals to visit the UK has been in place since 8 January 2025.

From 5 March 2025, nationals of EU/EEA countries plus Switzerland will be able to apply for an ETA on the gov.uk website and will need an ETA to visit the UK from 2 April 2025.

The ETA application process is simple and quick, costs £9 per person and is valid for multiple entries to the UK for up to two years, or until the passport or identity document expires, whichever is sooner. This scheme does not guarantee entry to the UK: travellers will still need to meet the eligibility and suitability criteria for their visit, such as having sufficient funds and a valid reason.

The ETA does not replace the need for a visa or a work permit for those who intend to work, study or settle in the UK. If your employees are nationals of a country that requires an ETA, we recommend you ensure they apply for one well in advance of their planned travel date, and that they have a valid passport or identity document linked to their ETA.

From 16 January 2025, the Government announced they will now proceed with a temporary exemption for passengers who transit airside, and therefore do not pass through UK border control. This will primarily impact passengers travelling via Heathrow and Manchester airports and the Government have confirmed this exemption will be kept under review.

Businesses should also keep in mind that Europe will introduce a similar system affecting British nationals travelling to the EU. The European Travel Information and Authorization System (ETIAS) is a travel authorisation that will soon become mandatory for travellers entering Schengen Area countries. The ETIAS will impact travellers from over 60 visa-exempt countries, including the United States, Canada, and the United Kingdom. An individual holding valid Schengen visas will not need this authorisation.

Suspension in Investigation on nil-pay

Following a recent judgment handed down in Patrick Arthur-Badoo v Guy’s & St Thomas’ NHS Foundation Trust, employers may want to consider including a clause in employment contracts giving the employer the right to suspend a sponsored worker on nil pay while a right to work check is being completed. Section 13(1)(a) and (b) of the Employment Rights Act 1996 authorises a deduction in wages by virtue of a relevant provision in the employee’s contract, or agreed in writing.

In this case, the employee claimed that his wages were unlawfully deducted when he was suspended without pay whilst the employer carried out an ECS check. The employee said this was unnecessary because he had the right to work in the UK. The employee also alleged that the requirement for the ECS amounted to race discrimination. The Tribunal dismissed the claims. However, on appeal, the EAT has remitted the case for reconsideration. One of the issues to be reconsidered is whether the suspension without pay was an unlawful deduction from wages.

This case shows that it is sensible for employers to include an additional clause in employment contracts allowing for them to lawfully immediately suspend a migrant worker on nil pay if they are concerned they may not have a right to work.

For employers with sponsor licences, this judgment also underscores the importance of thoroughly verifying and respecting the immigration status of employees. It highlights the need to ensure that any suspension or employment decisions based on immigration status are well-founded and compliant with legal requirements.

Expired BRPs Remain Valid up to 31 March 2025

Previously, the UK Government had planned to phase out BRP and BRC cards by 1 January 2025, most cards have received an expired date of 31 December 2024, with BRPs no longer being issued from October 2024.

On 4 December 2024, the Government announced that BRPs expiring on 31 December 2024 will continue to be accepted for the purpose of travelling to the UK, provided the individual’s permission is still valid on the date they seek to re-enter the UK. The current guidance states that applicants should keep their expired BRP cards and can use them until at least 31 March 2025 to enter the UK, generate a share code, access an eVisa or apply for an extension/switch using the IDV app.

We recommend the following actions:

1. If employees do have an eVisa already, they will also have a UKVI account. We suggest employees check their UKVI account to ensure their personal information is up-to-date. This includes linking all passports they hold, including any new passports. They should also ensure that changes to their name, nationality, date of birth or sex marker, are done while they are in the UK. This is because it is not currently possible to update these details and add a new passport while outside the UK. If the employee needs to re-enter the UK using a new passport with any of these details changed, they would have to apply through a Visa Application Centre for a ‘temporary visa’, which would significantly complicate their return. If their eVisa details show an incorrect name, sponsor reference, photo, National Insurance number, immigration status, immigration conditions or permission expiry date, this should be reported at Report an error with your eVisa. Within 10 working days, the Home Office should contact the employee to confirm the error has been corrected, or ask for more information

2. Make sure email addresses and telephone numbers are correct. These should be personal details rather than the details of anyone who may have assisted the employee with their last visa application

3. Employees should keep a print-out of their eVisa or an electronic copy

4. If any employee recently obtained an eVisa and they have not provided HR with a share code to confirm their ongoing right to work, we suggest they are asked to generate and send one to HR as soon as possible

5. Before travelling, employees should login to their UKVI account, check the details and update them/ask for them to be corrected if necessary. It is also suggested to generate a share code(valid for 90 days) and travel with a print-out or electronic copy of their immigration status in case they are asked to prove their status on check-in or at the UK border

If employees do not have an eVisa, they can apply for an eVisa using an expired BRP card. Alternative acceptable ID documents are also accepted to create an eVisa. This could be a passport and their last visa application reference number.

Sponsor Licence Priority Service Guidance and CoS Updates

Guidance on the priority change of circumstances service for Worker or Temporary Worker sponsors was updated on 21 November 2024, the updated guidance now sets out:

"The priority service is open from 7am to 5pm Monday to Friday. Any requests made outside of this time will not be considered...A maximum of 100 priority service requests will be accepted each day. Any amendments to the limit will be communicated through the SMS message board."

This update is beneficial to Skilled Worker sponsor holders, as it has increased the possibility of a request being accepted nationally.

On 22 November 2024, the pre-licence priority service guidance was also updated. If successfully obtained, the pre-licence priority service aims to reduce the processing time for sponsor licence applications from eight weeks to ten working days. The £500 slots have traditionally not been easily attainable, so this is a welcome change to the service meaning sponsors should be able to access priority services more easily.

A new bulletin appeared on 22 November 2024 for all Skilled Worker sponsor licence holders. This announcement explains that the 'Tier 4/Student graduate switching to Skilled Worker' category has now been removed from the CoS categories. The new category of 'Skilled Worker (Student course complete switching to Skilled Worker)' should be used for Students who wish to switch into the Skilled Worker visa route. Individuals who are currently on the Graduate route, and wish to switch into the Skilled Worker visa route, should use the 'Skilled Worker (Switching immigration category - ISC liable)' category. This is another welcomed change as many sponsors could mistakenly choose the incorrect category when trying to sponsor Graduates.

Settled Status Automation under the EU Settlement Scheme

The Home Office have announced a new process for pre-settled status holders under the EU Settlement Scheme (EUSS). From January 2025, the Home Office will automatically convert eligible pre-settled status holders to settled status, without migrants needing to make any further EUSS applications.

Pre-settled status holders approaching the expiry of their status will be informed by email that their case may soon be considered for conversion to settled status. The Home Office anticipates that the first grants of settled status will be issued in late January 2025 under the new automation process. Therefore, pre-settled status holders do not need to take any action and instead they will be informed if they cannot be converted to settled status.

The automated checks of pre-settled status holders will be completed using government-held information, such as a holders continuous residence in the UK. Therefore, employees need to ensure their digital status is updated via their UKVI accounts with their latest passport/national identity card information and contact details.

The Home Office have outlined that this will be a phased rollout. This will then expand later in 2025 to enable more eligible pre-settled status holders to convert to settled status without the holder needing to make an application.

Additionally, the Home Office announced that further information will soon be provided regarding cases where a pre-settled status holder has ceased to meet the conditions of their pre-settled status, by not maintaining continuous residence in the UK. The Home Office is currently considering the next steps for these circumstances.

Potential Fee Changes

On 16 January 2025, proposed changes were laid before Parliament to potentially increase the maximum fee that can be charged on certain immigration and nationality services and products, including:

1. Electronic Travel Authorisation (ETA) fee rising to £16
2. Certificate of Sponsorship (CoS) fee rising to £525
3. Naturalisation as a British citizen rising to £1,605
4. Naturalisation as a British citizen overseas territories citizen rising to £1,070

The proposed CoS fee increase from £239 to £525 is particularly substantial, especially for high volume sponsor licence holders. If the proposed changes to fees are approved by both Houses, the proposed new fees will be introduced as soon as Parliamentary time allows.

We hope you find these updates useful.

Alerts, Webinars & Resources 

Global employment and labor law update - We’ve recently published our first edition of our quarterly Global Employment and Labor Law update for 2023. In this edition, we highlight some of the key developments that have featured globally during the last quarter, including new laws and case law developments around discrimination, working time and terms of employment. Also featured is the US Federal Trade Commission’s proposed new rule to prohibit the use of non-compete agreements in employment, as well as ongoing global developments around the prevention of workplace harassment and protections for whistleblowers.

Read our latest update on legal employment and labor law developments. 

Read here 

Upcoming public courses

• Immigration UK Business – sponsor licensing course – 29/04/2025 & 01/05/2025

• Cross border working – international remote working and international assignments – 15/05/2025

• Right to work in 2025 – 20/05/2025 & 22/05/2025

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For Immigration updates select: Preferences - Service lines - Employment & Labor Law - Immigration and Global Mobility

Round-up Live 

Our Round-up Live will be held on Tuesday 11 February 11:30am – 12:30pm (UK time). This session gives you an opportunity to discuss the recent changes within the immigration landscape and to raise any questions about the issues that are currently affecting your business.

The login details to the Teams meeting room can be found below: 

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