Legal News Alert: Changes to Sponsor Licence Application Guidance

Westbridge Business Immigration brings you the latest updates regarding recent changes to the UK Sponsor Licence application guidance.

While many of these “changes” appear to restate existing rules for clarity, some additions and amendments are noteworthy. Below is a summary of the key points:

Restating Established Rules

1. Level 1 User Requirements: The guidance emphasises that a Level 1 user must be:

   • Settled in the UK; and

   • An employee, partner, or director of the business when applying for the licence.

2. Prohibited Personal Sponsorship: The guidance now explicitly bans sponsoring individuals to work for:

   • A business owner, director, or employee in a personal capacity (e.g., using a migrant as a nanny).

   • A family member or their partner where the work is unrelated to the business’s normal services.

3. Labour Supply to Third Parties: The rule prohibiting businesses from supplying sponsored workers as labour to third parties has been added to the mandatory grounds for refusal in Appendix L1. While this was previously enforced, it is now explicitly codified.

Notable New Additions

1. Prohibition on Passing Costs to Employees: Sponsors must not pass the costs associated with the sponsor licence application, including administrative costs (e.g., premium fees and legal fees), onto employees. Breaching this rule will typically result in licence revocation. But note the Immigration Skills Charge prohibition on recouping the Immigration Skills Charge was preexisting and therefore applies to sponsorship before 31st December 2024.

2. Expanded Definition of ‘You’: The term “you” now explicitly includes individuals with significant control listed on Companies House. This extension presumably aims to capture non-owners under the application requirements.

3. Additional Documentation for Care Providers:

   • The guidance introduces further supporting documentary requirements for care providers. Some of these requirements have been added to the Workers and Temporary Workers: Sponsor a Skilled Worker Guidance.

   • While many of these details (e.g., work locations and regulated activities) were often submitted previously, they are now formalised as explicit requirements.

What This Means for Sponsors

Westbridge Business Immigration has already been advising clients—particularly in the care sector—to exceed the documentation requirements outlined in Appendix D. The updates reinforce the importance of meticulous compliance with sponsor obligations and documentation standards.

If you have any questions about how these changes may affect your sponsorship licence application or compliance obligations, please don’t hesitate to contact our team.