Positive Changes for UK Work Sponsors

The UKVI has updated its latest guidance, including helpful changes that businesses sponsoring overseas workers should be aware of. Two noteworthy changes are outlined below.

1. A new exemption has been added from paying the Immigration Skills Charge; where workers are assigned to the UK for no more than 36 months by a linked EU business beginning 1 January 2023 (as set out in the Immigration Skills Charge (Amendment) Regulations 2022); and
2. Notifications are no longer required where a work start date is delayed for less than 28 days, which will be a welcome change for employers. Employers will still need to notify—where the start date is delayed by more than 28 days listed on the CoS or the visa approval date (whichever is later) and may need to stop sponsoring—unless there is a good reason. The full guidance is set out here.

The new exemption: Immigration Skills Charge to be waived for certain EU-Linked Workers

Currently, employers must pay a fee of either GBP 1,000 or GBP 364, depending on the size and revenue of the employer, regardless of the assignment period, for each year the sponsored worker remains in the United Kingdom.

Effective 1 January 2023, UK employers will be exempt from paying the Immigration Skills Surcharge (ISC) to the Home Office when sponsoring EU-Linked Workers, and where the assignment is less than a three-year period.

EU-Linked Workers include:

• if the worker is a national of an EU country (Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain or Sweden) or is a Latvian non-citizen – (this does not apply to nationals of Iceland, Norway, Liechtenstein or Switzerland); and
• if the worker is being assigned to the UK:
  • by a business established in the EU;
  • which forms part of the same ‘sponsor group’ - this means the sponsor and any business or organisation that is linked by common ownership or control, or by a joint venture on which the worker is sponsored to work; and
  • using the Senior or Specialist Worker route or the Graduate Trainee route.

This reduction in employment costs favours the employment of EU workers from EU-based companies, positively impacting UK sponsors.

Changes to Start Date Delay Notification Process

Previously, employers had little flexibility around start dates, and workers were required to commence employment on either the date listed on their CoS or the visa approval date (whichever is later), or within 28 days of the later date. If the start date was delayed by more than 28 days, then sponsors were required to stop sponsoring the worker and inform the Home Office, and then a fresh application would need to be made by the assignee.

However, the guidance has now been updated, effective immediately, to provide greater flexibility on start dates for sponsored workers.

The first amendment that has been made is to allow workers to start work earlier than the start date listed on their CoS. The guidance now states: 

“A worker can start working in their sponsored employment as soon as they have permission to enter or stay in the UK, even if this is before the start date recorded on their CoS. You do not have [to] tell us if the worker’s start date has been brought forward after they have been granted permission.”

In addition, UK employers are no longer required to notify the Home Office of delayed start dates for foreign nationals, unless the delay is more than 28 days.

A concession has also been added to allow sponsors to delay start dates beyond the 28-day period if there is a good reason. The guidance states the acceptable reasons may include:

• travel disruption due to a natural disaster, military conflict or pandemic
• the worker is required to work out a contractual notice period for their previous employer – if the worker is in the UK, their conditions of stay must allow them to do this
• the worker requires an exit visa from their home country and there have been administrative delays in processing this
• illness, bereavement or other compelling family or personal circumstances.

If the delay is more than 28 days and there is a good reason, employers must notify the UK government via the Sponsor Management System, as they previously had.

This revision is intended to reduce administrative burdens and process requirements businesses and is a welcome change.

Need to know more?

For further information, please contact Associate Tayyaba Karim at [email protected].

This blog was published on 19 December 2022, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please visit our dedicated COVID-19 site, subscribe to our alerts and follow us on LinkedIn, Twitter, Facebook and Instagram.