Understand the 2024 Sponsor Licence updates: a guide for employers

Key changes in 2024

The following costs have risen:

• Higher Immigration Health Surcharge: The surcharge has increased by 66%. This adds extra costs for both employers and their international worker. 
• Higher minimum salary: The lowest salary needed to sponsor a non-UK worker has gone up by 48%. This makes it more expensive to hire international staff. 

Positive changes for employers

Despite the challenges, there are some updates that benefit employers. The Sponsor Licence is now valid for longer.  As of April 2024, the sponsor licence is valid for 10 years instead of four years. This means you won’t need to renew your licence as often. This saves you time and money.

This is how the new rules work:

• Automatic extension: If you already have a sponsor licence, it’s automatically extended to 10 years
• New applicants: If you apply for a sponsor licence after April 2024, it will be valid for 10 years

It’s not yet clear if these licences will be extended beyond 10 years. However, this change lets you focus on other important parts of managing your sponsored workers.

More focus on compliance

Even with these positive changes, making sure you comply with the rules is still important. The fines for hiring someone without the right to work in the UK have increased.

• The fine for hiring a worker without the correct legal status has jumped by 200%. It has gone up from £20,000 to £60,000 per worker.

This increase shows how important it is to do proper right-to-work checks and comply with UK Visas and Immigration (UKVI) guidelines.

Earlier, employers often checked they were following the rules when renewing their sponsor licence every four years.

Now, with the 10-year validity, it’s important to regularly review your sponsor licence.

You should do this kind of health check on your own or with help from a legal expert. They can help you make sure all the information you need to have on file is accurate and up to date.

UKVI Audits

 The UKVI has said they will do audits during the licence’s 10-year period. These audits can happen at any time. It’s important to be prepared, have the right policies in place, and keep your licence information up to date.

Conclusion

It’s important to stay on top of managing your sponsor licence. This is regardless of the size of your business or how many sponsored workers you have.

Regularly reviewing and updating your records can help you avoid fines and make sure your business follows UK immigration laws.

By understanding these updates and taking steps to prepare, you can better handle the changing rules around UK immigration. This will help you manage your international staff successfully.

For more detailed guidance on these changes book an appointment with Scotland’s Migration Service.