‍Ban on personal capacity sponsorship

The updated guidance introduces a new refusal ground that applies to prospective sponsors intending to sponsor workers in a “personal capacity,” often referred to as “self-sponsorship.”

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Previously, the sponsor guidance already made it clear that individual persons generally cannot act as sponsors, except for sole traders sponsoring someone to work in their business.

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Now, the rules explicitly state that a sponsor licence will be denied if the intention is to sponsor workers in a personal capacity. This includes scenarios such as:

• An individual or household seeking to employ or engage workers for personal purposes, without conducting a business or providing a service in the UK.
• Situations where the worker will be employed for the personal benefit of someone within the organisation, such as a staff member, their close relative, or partner, if the role has no connection to the organisation’s core activities.

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Employers must cover sponsorship fees

Employers are now fully responsible for all sponsorship costs, including licence fees, Certificates of Sponsorship, and Immigration Skills Charges. Passing these costs to workers through clawback clauses or upfront charges is prohibited.

Stricter key personnel rules

Key Personnel must meet stricter criteria, including not being prohibited directors and being employees, partners, or directors of the organisation.

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Should you have any queries regarding the above information or if you require assistance with your corporate, employment or immigration matter, please get in touch with a legal professional at Hudson McKenzie via email at londoninfo@hudsonmckenzie.com or by telephone +44 (0) 20 3318 5794.

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The information provided does not amount to legal advice.