• Insights

United Kingdom: Clarification on Costs That Can be Recouped from Sponsored Workers

September 4, 2025

insight-news-default

Country / Territory

  • United KingdomUnited Kingdom

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • The UK Home Office has recently provided clarity on costs that can and cannot be recouped from sponsored workers.
  • It has also clarified the meaning of rules introduced in April 2025 on costs that can be claimed back but that will reduce the salary of Skilled Workers for the purposes of the minimum salary calculation.
  • Sponsors of foreign workers in the United Kingdom should ensure that they comply with policies on recoupment of fees, as failing to comply with these requirements could lead to refused or curtailed visa applications, and/or adverse action being taken against a sponsor’s licence.

The situation

The UK Home Office has recently provided clarity on costs that can and cannot be recouped from sponsored workers. Due to increasing sponsorship costs, it is important that sponsors understand what they can lawfully recoup from workers and what costs need to be covered by sponsors in order to remain compliant with the law.

A closer look

  • Examples of costs that can never be reclaimed from any sponsored worker:
      • Licence fees (and associated legal costs for applying for or maintaining the licence);
      • Certificate of Sponsorship (CoS) fees;
      • Immigration Skills Charges; and
      • Legal fees that relate to assigning a CoS.
  • Skilled Worker costs that can be reclaimed. The following are examples of costs that can be reclaimed from Skilled Workers, but are deemed ‘business costs, immigration costs or investment’ and therefore reduce the salary for the purposes of minimum salary level (MSL) calculation include:
      • Visa fees;
      • Immigration Health Surcharge (IHS);
      • Priority fees (only where the worker had a genuine choice);
      • Legal fees relating to a visa application (only where the worker had a genuine choice); and
      • Dependant fees.

  • Clawback clauses which are conditional (where repayments only need to be made if the worker leaves their employment early) are not considered to be deductions from salary for the purpose of the rule. However, they must be reasonable and not in place to prevent sponsored employees from leaving their employment.
  • Loans. Genuine loan arrangements should not impact MSL calculations. However, where a sponsor is paying directly for items or costs (such as IHS) and then recouping from the applicant, this is not considered a loan and will impact the MSL.
  • Implementation. The rule on MSL calculations sets out how salaries will be considered at the application stage for Skilled Worker visas submitted on or after April 9, 2025. The Home Office is not reassessing salaries set out in past applications. However, the prohibition on passing on associated legal fees for Skilled Worker CoS issuance is applied from December 31, 2024, and not when the guidance was clarified in April.
  • Calculation. Deductions will be averaged over the duration of the visa for the purpose of salary confirmation, rather than calculated at the actual repayment rate.

Background

On April 9, 2025, a new salary deduction rule came into force for Skilled Workers, as reported in our alert, updated March 12, 2025. This rule affects how the Home Office calculates whether a worker’s salary meets the minimum threshold. This rule is designed to prevent salary thresholds from being met through certain payments made by employees themselves.

The changes in April also clarified a change in December 2024 that legal fees in relation to assigning a Skilled Worker CoS cannot be reclaimed and extended this to other sponsorship.

Impact

Employers should ensure that their policies on recoupment of fees comply with these rules and that permitted recoupments are factored into salary calculations.

Failure to comply with these requirements could lead to refused or curtailed visa applications, and/or adverse action being taken against a sponsor’s licence.

Looking ahead

The clarification demonstrates the UK Home Office’s intention to restrict the practice of recovering sponsorship costs from sponsored workers and to ensure that Skilled Workers receive the salary offered to them.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

Country / Territory

  • United KingdomUnited Kingdom

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Blog post

Healthcare Horizons: What Healthcare Employers Should Watch in the 2026 Immigration Regulatory Agenda

Counsel Christopher Wendt looks at the 2026 immigration regulatory agenda and three developments that could have a significant impact on healthcare organizations, from hospitals to research institutions and other clinical employers. 

Learn more

Podcast

Immigration in South Africa

Partner Lunga Mani and Director Johannes Kgotso Tiba discuss South Africa’s evolving immigration landscape and key considerations for employers, foreign nationals and global mobility teams.

Learn more

Blog post

Recouping Immigration Costs: Are Supportive Employers at Risk of Non-Compliance?

In this blog, Director Shanaz Haque explores what sponsors should consider when recouping immigration costs — including prohibited costs, salary implications and repayment arrangements.

Learn more

Media mentions

Human Resources Director: Migrant Worker Exploitation: Why It Persists and How HR Can Act

Senior Counsel Dr. Anna Boucher discusses factors that can affect migrant workers and how HR teams can support ongoing immigration and employment compliance.

Learn more

Blog post

Europe’s New Mobility Equation: More Talent, More Oversight, More Complexity

Partner Raj Naik explores how geopolitical change, increasingly data-driven compliance and evolving talent strategies are reshaping workforce mobility across Europe.

Learn more

Awards

Partner F. Joseph Paldino and Counsel Clark Cannon Named to Utah Business’ 2026 Legal Elite

Partner F. Joseph Paldino and Counsel Clark Cannon are named to Utah Business’s 2026 Legal Elite for their contributions to immigration law.

Learn more

Blog post

A More Purposeful UK Immigration System: What Expanded Access to the Global Talent Visa Means for UK Immigration Policy

In our latest blog, UK Government Affairs Strategy Lead @Shuyeb Muquit examines the expanded access to the Global Talent visa and what it signals about the direction of UK immigration policy

Learn more

Video

Polish Citizenship by Descent: Do You Qualify?

Poland Immigration Strategy Director Tomasz Rogala and Senior Associate Tomasz Rdzanek discuss how Polish citizenship by descent works, who may qualify, the documentation typically required and common eligibility challenges.

Learn more

Media mentions

Times of India: Trump Admin Restores USCIS Power to Deny Immigration Requests Outright Without Seeking More Proof

Senior Counsel Mitch Wexler discusses USCIS’ restored authority to deny certain immigration benefit requests without first issuing a Request for Evidence and the importance of complete initial filings.

Learn more

Fragomen news

Comment on DHS Proposed Rule on Discretionary Employment AuthorizationLearn more

Blog post

How the Middle East Is Building Workforce Mobility Resilience Amid Regional Disruption

Partner Shayan Sultan discusses how geopolitical disruption, intensifying talent competition and digital transformation are reshaping workforce mobility and compliance across the Middle East.

Learn more

Awards

Partner Karolina Schiffter Recognised in Lexology Index: Thought Leaders Global Elite 2027

Partner Karolina Schiffter is recognised in the Lexology Index: Thought Leaders Global Elite 2027 report.

Learn more

Blog post

Healthcare Horizons: What Healthcare Employers Should Watch in the 2026 Immigration Regulatory Agenda

Counsel Christopher Wendt looks at the 2026 immigration regulatory agenda and three developments that could have a significant impact on healthcare organizations, from hospitals to research institutions and other clinical employers. 

Learn more

Podcast

Immigration in South Africa

Partner Lunga Mani and Director Johannes Kgotso Tiba discuss South Africa’s evolving immigration landscape and key considerations for employers, foreign nationals and global mobility teams.

Learn more

Blog post

Recouping Immigration Costs: Are Supportive Employers at Risk of Non-Compliance?

In this blog, Director Shanaz Haque explores what sponsors should consider when recouping immigration costs — including prohibited costs, salary implications and repayment arrangements.

Learn more

Media mentions

Human Resources Director: Migrant Worker Exploitation: Why It Persists and How HR Can Act

Senior Counsel Dr. Anna Boucher discusses factors that can affect migrant workers and how HR teams can support ongoing immigration and employment compliance.

Learn more

Blog post

Europe’s New Mobility Equation: More Talent, More Oversight, More Complexity

Partner Raj Naik explores how geopolitical change, increasingly data-driven compliance and evolving talent strategies are reshaping workforce mobility across Europe.

Learn more

Awards

Partner F. Joseph Paldino and Counsel Clark Cannon Named to Utah Business’ 2026 Legal Elite

Partner F. Joseph Paldino and Counsel Clark Cannon are named to Utah Business’s 2026 Legal Elite for their contributions to immigration law.

Learn more

Blog post

A More Purposeful UK Immigration System: What Expanded Access to the Global Talent Visa Means for UK Immigration Policy

In our latest blog, UK Government Affairs Strategy Lead @Shuyeb Muquit examines the expanded access to the Global Talent visa and what it signals about the direction of UK immigration policy

Learn more

Video

Polish Citizenship by Descent: Do You Qualify?

Poland Immigration Strategy Director Tomasz Rogala and Senior Associate Tomasz Rdzanek discuss how Polish citizenship by descent works, who may qualify, the documentation typically required and common eligibility challenges.

Learn more

Media mentions

Times of India: Trump Admin Restores USCIS Power to Deny Immigration Requests Outright Without Seeking More Proof

Senior Counsel Mitch Wexler discusses USCIS’ restored authority to deny certain immigration benefit requests without first issuing a Request for Evidence and the importance of complete initial filings.

Learn more

Fragomen news

Comment on DHS Proposed Rule on Discretionary Employment AuthorizationLearn more

Blog post

How the Middle East Is Building Workforce Mobility Resilience Amid Regional Disruption

Partner Shayan Sultan discusses how geopolitical disruption, intensifying talent competition and digital transformation are reshaping workforce mobility and compliance across the Middle East.

Learn more

Awards

Partner Karolina Schiffter Recognised in Lexology Index: Thought Leaders Global Elite 2027

Partner Karolina Schiffter is recognised in the Lexology Index: Thought Leaders Global Elite 2027 report.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
August 14, 2026 | AustraliaHuman Resources Director: Migrant Worker Exploitation: Why It Persists and How HR Can Act
August 17, 2026 | CanadaCanada: Remote Work Requirements for Ontario Immigrant Nominee Program Clarified
August 17, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
August 17, 2026 | United StatesUnited States: Appeals Court Allows USCIS to Re-Review Certain Approved Immigration Benefits While Litigation Continues
August 14, 2026 | ColombiaColombia: In-Person Immigration Services Suspended at Seven Locations Following Earthquake
August 14, 2026 | AustraliaHuman Resources Director: Migrant Worker Exploitation: Why It Persists and How HR Can Act
August 17, 2026 | CanadaCanada: Remote Work Requirements for Ontario Immigrant Nominee Program Clarified
August 17, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
August 17, 2026 | United StatesUnited States: Appeals Court Allows USCIS to Re-Review Certain Approved Immigration Benefits While Litigation Continues
August 14, 2026 | ColombiaColombia: In-Person Immigration Services Suspended at Seven Locations Following Earthquake
August 14, 2026 | AustraliaHuman Resources Director: Migrant Worker Exploitation: Why It Persists and How HR Can Act
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.