A Guide to Sponsoring Migrant Workers in the UK: Navigating Policy Changes and Hiring Foreign Talent

Migrant workers contribute significantly to the UK’s economy. Their skills, expertise, and diverse perspectives have helped many sectors thrive over the years. However, recent changes in the UK's immigration policies have made it challenging for employers to hire foreign talent, demanding that they have proper knowledge of the new changes. That is why we are here!

In this comprehensive guide, we will discuss the process of sponsoring migrant workers in the UK. We will examine the current immigration policies and recent changes and their implications for employers and graduates. We will also discuss some practical strategies for employers regarding how to hire foreign talent.

Importance of Migrant Workers in the UK Economy

Migrant workers play a vital role in the UK economy. They fill critical labour gaps and contribute to economic growth. The skills and expertise they bring to the table have greatly benefited the healthcare, technology, engineering, and hospitality sectors.

Their presence drives innovation, productivity, and competitiveness, making the UK a global hub for talent and investment. However, the 2024 immigration policy reforms have made it significantly more difficult for foreign graduates to find work in the UK. Let’s examine these changes.

Recent Changes in Immigration Policies

The UK has introduced the following changes to its immigration policies:

Care Worker Visa Changes: The new guideline demands employers in the care sector to recruit domestic migrant employees before considering foreign candidates, beginning April 9, 2025.

Skilled Worker Visa Salary Increase: From April 2025, the minimum required salary will rise to £25,000 per annum, equivalent to £12.82 per hour.

Student Visa Restrictions: Stricter rules on student visas have been introduced, which limit the bringing of dependents and introduce more restrictive post-study work opportunities. For example, international students can only bring dependents if enrolled in specific postgraduate STEM courses.

Graduate Visa Proposals: The government is considering requiring international graduates to secure graduate-level jobs to remain in the UK, potentially with a minimum salary threshold. This would affect graduates transitioning from the Student visa to the Graduate route.

The Rationale Behind These Policy Changes

There are various logics behind these changes, such as:

Reducing Net Migration: The UK aims to decrease net migration by focusing on high-skilled workers and reducing reliance on overseas recruitment across sectors.

Prioritising Domestic Workers: Policies encourage employers to invest in the domestic workforce. They aim to reduce the undercutting of British workers by cheaper foreign labour.

Addressing Abuse and Shortages: Changes in the care sector aim to address concerns about visa route abuse and ensure that migrant workers already in the UK are utilised effectively.

Economic Growth: The government hopes to boost economic growth while managing immigration levels by attracting high-skilled workers and reducing low-skilled migration.

Impact of These Policy Changes on Migrant Workers

Due to these policy changes, employers are more reluctant when it comes to sponsoring migrant workers, which poses significant challenges, such as:

Increased Competition for Sponsorship

With higher salary thresholds and stricter rules, migrant workers face increased competition for employer sponsorship. This can lead to fewer opportunities for those not meeting the new criteria.

Sector-Specific Challenges

The care sector, in particular, faces challenges due to restrictions on bringing dependents and increased regulatory requirements for employers. This may reduce the appeal of the UK for care workers.

Personal and Family Implications

The inability to bring dependents can deter migrant workers from choosing the UK, as it can affect their personal lives and family planning.

Now, look at the existing visa categories available for migrant workers…

Existing Visa Categories Relevant to Migrant Workers

Here are the existing visa categories that migrant workers can choose from:

Skilled Worker Visa

Purpose: Enables skilled workers to work in the UK in a wide range of eligible occupations.

Requirements:

• Job offer from a licenced sponsor
• Job at RQF Level 3 or above
• Minimum salary threshold (currently £25,000 per year or £12.82 per hour as of April 2025)
• English language proficiency
• Maintenance requirements

Duration: Up to five years. It can be extended on completion of five years.

Health and Care Worker Visa

Purpose: Allows healthcare professionals to work in the NHS or adult social care.

Requirements:

• Job offer from a licensed healthcare employer
• Eligible health or social care role
• Meet minimum salary threshold
• English language proficiency

Duration: Up to five years, after which they can be extended.

Global Talent Visa

Purpose: Caters to leaders or emerging leaders in fields such as science, technology, arts, and academia.

Requirements:

• Endorsement from a recognised body
• No job offer required

Duration: Up to five years, can be extended after that.

Innovator Founder Visa

Purpose: Designed for entrepreneurs with innovative and viable business ideas.

Requirements:

• Endorsement from an approved UK body
• Sufficient funds
• English language proficiency

Duration: Up to three years, can be extended thereafter.

Impact of Recent Policy Changes on Employers

Recent changes in UK immigration policies have introduced significant challenges for employers, particularly regarding sponsoring migrant workers and ensuring compliance.

Challenges Faced by Employers in Adapting to New Immigration Policies:

Increased Scrutiny and Penalties: The Home Office has intensified its enforcement efforts, with more frequent audits and stricter penalties for employers for non-compliance.

Enhanced Documentation and Reporting: Employers now must maintain thorough records and report changes promptly, which can strain administrative resources, especially for smaller businesses.

Prohibition of Unethical Practices: Employers are prohibited from distributing sponsorship costs to workers. This ensures that employers bear the entire financial burden of sponsoring migrant workers.

Sector-Specific Restrictions: In the care sector, employers must prioritise hiring migrant workers already in the UK.

Strategies for Compliance with Updated Regulations

Here are some strategies employers can employ while sponsoring migrant workers to ensure compliance with updated policies:

Regular Policy Updates: Employers should regularly review and update their internal policies to align with the latest sponsor duties and compliance requirements.

Training and Awareness: Key personnel should be trained on compliance requirements to ensure all staff understand their roles in maintaining a compliant sponsorship process.

Comprehensive Record Keeping: Employers must maintain accurate and detailed records to avoid penalties and licence revocation. They should invest in robust systems for tracking and reporting.

Financial Planning: Employers must consider the increased costs of sponsoring migrant workers, such as licence fees and the Immigration Skills Charge, and explore available rebates or incentives.

Process of Obtaining a Sponsor Licence and the Responsibilities Involved

The Skilled Worker or Health and Care Worker visas require employers to hold a specific sponsor licence for recruiting migrant workers. The following steps outline the procedure for sponsoring migrant workers:

Confirm Business Eligibility

Employers must ensure that their business meets all sponsorship requirements set by the Home Office. This includes being a genuine and lawfully operating entity in the UK.

Appoint Key Personnel

Employers then must select personnel to fulfil the roles of Authorising Officer, Key Contact, and Level 1 User. The appointed staff members will operate the Sponsorship Management System (SMS) while ensuring the fulfilment of sponsorship responsibilities.

Gather Required Documents

Once roles are assigned, employers must gather all financial reports, HR papers, and other essential business records that prove their business is legitimate and capable of sponsoring migrant workers. This includes providing audited accounts, employer liability insurance, and VAT registration certificates.

Complete Online Application Form

After collecting all documents, employers must submit their applications through the UK Home Office’s website. During this step, they must specify the type of licence they are applying for and nominate key personnel.

Pay Application Fee

The fee employers have to pay will depend on the size of their business. If they are a small business or charitable sponsor, they must pay £536, while medium or large businesses must pay £1,476.

Submit Supporting Documents

After payment, they must send the submission sheet and supporting documents via email or post within five days of submitting the online application. All documents must be in PDF, JPEG, or PNG format and include certified translations if necessary.

Compliance Visit

The Home Office will conduct a site inspection to verify the genuineness of the documents and assess the employer's HR system's ability to manage sponsored workers.

Final decision

If the Home Office is satisfied with the employer, it will process the application within eight weeks. However, employers must pay an additional fee to expedite the process.

Responsibilities Involved:

• Employers have to maintain detailed records of sponsored workers, which include contact details and employment status
• They have to keep the Home Office informed regarding any changes in the circumstances or employment status of the sponsored worker
• They must be prepared for audits and show compliance with sponsorship duties
• They must train their HR team on sponsorship responsibilities and compliance requirements

Step-by-Step Guide on Hiring Foreign Talent in Compliance with Current Regulations

Apply for a Sponsor Licence

Go through the process mentioned in the above section and obtain a sponsor licence from the Home Office.

Assign a Certificate of Sponsorship (CoS)

After obtaining the licence, assign a Certificate of Sponsorship to each foreign worker with a detailed description of the job role and salary. Maintain accurate records and report any changes in the circumstances of the worker being sponsored to the Home Office to maintain the licence.

Visa Application Assistance

Provide the worker with all required documents and guide them through the application process to ensure they meet all eligibility criteria. Monitor their application status and address any issues that might arise quickly.

Maintain Compliance

Conduct regular internal audits to ensure ongoing compliance with the Home Office's assigned duties for sponsoring migrant workers. Train the HR team regarding immigration compliance and regulatory changes.

Available Support Services for Employers

Employers in the UK can make sure the following support services to simplify the process of sponsoring migrant workers:

Sponsor Licence Assistance: UK legal advisors can help employers obtain and maintain sponsor licences in compliance with Home Office regulations.

Corporate Immigration Advisors: Corporate immigration advisors (like us) can guide employers through complex immigration laws. They can help employers with their workforce strategies and hire foreign workers.

Immigration Compliance Training: Employers can also hire immigration firms to train their HR teams on the latest immigration rules and compliance requirements for sponsoring migrant workers.

Impact of Policy Changes on Foreign Graduates & Their Employment Prospects:

Restrictive Post-Study Work Opportunities: The UK has introduced more restrictive post-study work options, which limits the ability of international graduates to transition seamlessly into the workforce.

Increased Competition for Sponsorship: Stricter rules on student visas and post-study work mean that foreign graduates face increased competition for employer sponsorship under the Skilled Worker Visa.

Impact on the Labour Market: Restrictions on post-study work visas may result in the loss of skilled talent as graduates choose countries with more favourable immigration policies.

Pathways Available for Foreign Graduates to Remain and Work in the UK:

Graduate Route Visa: This visa allows international graduates to stay in the UK for up to two years (three for PhD holders) without needing employer sponsorship. It allows them to work at any skill level or start their own business.

Skilled Worker Visa: Graduates can transition to a Skilled Worker Visa if they secure a job that meets the minimum salary threshold and skill requirements, which could lead to long-term residency.

Entrepreneurial Routes: Some graduates may explore entrepreneurial visas, such as the Innovator Founder Visa, to establish innovative businesses in the UK.

Role of Student Visa Services in the UK in Facilitating Transitions from Study to Work

Student visa services in the UK are crucial in guiding international students through the complex transition process from study to work. They can provide:

Visa Application Support: These services can assist students in completing the application process for post-study work visas and ensure compliance with updated regulations and requirements.

Employment Guidance: Student visa experts can advise on job opportunities and sectors that offer visa sponsorship. This can help graduates secure employment that aligns with their skills and career goals.

Compliance and Documentation: Student visa services can ensure that graduates understand and comply with all documentation and reporting requirements associated with their visa status.

Future Impact of Immigration Policy Changes

The recent immigration policy changes will likely impact the UK's labour market. The stricter rules aim to reduce net migration and prioritise domestic workers, but they also present economic challenges and opportunities.

Key Policy Changes and Their Implications:

Increased Salary Thresholds

The rise in minimum salary thresholds for Skilled Worker visas from £26,200 to £38,700 will limit the number of eligible workers, potentially reducing the pool of skilled migrants entering the UK. This could lead to skill shortages in sectors that rely heavily on international talent.

Abolition of Cheap Labour

Employers can no longer pay migrant workers less than UK workers in shortage occupations. This change aims to prevent undercutting British workers but may increase business recruitment costs.

Prioritisation of Domestic Workers

The emphasis on hiring domestic workers first, especially in sectors like care, could lead to increased training and upskilling programmes for British workers. However, if the domestic supply cannot meet demand immediately, it may result in short-term labour shortages.

Future Labour Market Dynamics

Skill Gaps and Shortages

Stricter immigration rules might exacerbate skill gaps in high-demand sectors like technology and healthcare. This could lead to increased wages and better working conditions for domestic workers but may also hinder economic growth if not addressed through alternative means like training programmes.

Economic Growth and Innovation

These immigration policies target a reduction in workforce migration, yet they might deter skilled professionals required for innovation and economic expansion. The United Kingdom needs immigration regulations to control migration and attract skilled international talent.

Conclusion

Dealing with the UK's immigration policies can be complex. That is why, to sponsor migrant workers and build a diverse, skilled workforce, employers must understand the current regulations, stay updated with recent changes, and use available support. For foreign graduates, exploring the available pathways and seeking guidance from student visa services can help them achieve their career aspirations in the UK.

Contact UK Visas for Immigration Support

Here at UK Visas, we are a team of the Office of the Immigration Service Commissioner (OISC) registered and IAA-accredited level 1 advisors. Our experienced immigration advisors in the UK can help employers employ overseas workers, ensure compliance with recent changes, and guide their employees' visa application process. We can also help foreign graduates find the best possible visa route for their unique situation. Schedule a consultation with us to receive immigration and sponsor licence assistance.

Frequently Asked Questions

1. What are the requirements for sponsoring skilled migrant workers in the UK?

To sponsor skilled migrant workers, an employer must:

Obtain a Sponsor Licence: Employers must apply to and get their sponsor licence from the Home Office. To do that, businesses must demonstrate their genuineness, financial stability, and ability to complete sponsorship responsibilities.

Meet Job and Salary Criteria: An employer must provide jobs at an RQF Level 3 or above skill level with salaries meeting or exceeding £38,700 per year starting from 2025. However, some positions on the Shortage Occupation List allow employers to employ workers with salaries below minimum requirements.

Issue Certificate of Sponsorship (CoS): After obtaining the sponsor licence, employers must issue a Certificate of Sponsorship containing job descriptions and payment details for workers.

Comply with Sponsorship Duties: Employers must maintain accurate records of their sponsored workers and promptly report any status changes to the home office.

2. How long does getting a sponsor licence in the UK take?

Sponsor licence applications typically take 8 weeks to process from the day of submission. However, employers in the UK can choose a priority service for an additional £ 500 to have their application reviewed within 10 working days.

3. Can a skilled worker switch employers in the UK?

UK Skilled Worker visa holders may switch employers if they meet the following conditions:

• The new employer needs to hold an active sponsor licence and must provide a fresh Certificate of Sponsorship (CoS) to the worker
• The new position needs to fulfil both skill-based requirements and salary standards permitted under the Skilled Worker visa programme
• The worker must apply for a new visa before starting their new role

4. What are the costs involved in sponsoring a migrant worker?

The costs associated with sponsoring a migrant worker include:

Sponsor Licence Application Fee:

• £536 for small businesses or charities
• £1,476 for medium or large businesses

Immigration Skills Charge:

• £364 per year per worker for small businesses or charities
• £1,000 per year per worker for medium or large businesses

Certificate of Sponsorship (CoS): £199 per certificate.

If employers choose legal advice and priority processing, that would cost them extra.

5. What happens if a sponsor fails to meet compliance requirements?

If an employer fails to meet their sponsorship duties, the Home Office may take the following enforcement actions against them:

Licence Suspension or Revocation: Failing to comply with the Home Office’s regulations can result in suspension or permanent revocation of the sponsor licence.

Financial Penalties: Employers may face fines for not fulfilling their record-keeping or reporting duties.

Cooling-Off Period: If a licence is revoked, the Home Office may bar employers from reapplying for six months.

If an employer's licence is revoked, they cannot sponsor workers from outside the UK. To maintain their licence, employers must conduct regular audits and establish a solid HR management system.

Need help with a sponsor licence? Contact UK Visas today for expert guidance!

Laura Charge

Laura, is a Level 1 IAA acccredited adviser with over 20 years experience of working within the Home Office and the UK Immigration Service. She brings a unique advantage to our team. Her expertise in Immigration law and writing skills are an asset.