Which Immigration Costs Can Employers Recover? 2026 Rules

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Key Takeaways

 

  • Not every immigration cost can be passed to a sponsored worker.
  • Certificate of Sponsorship and Immigration Skills Charge costs should not be charged to sponsored workers.
  • A signed repayment clause does not guarantee recovery.
  • Incorrect deductions can create employment law, payroll and sponsor licence risks.
  • Cost recovery arrangements are receiving increasing Home Office scrutiny.

 

Immigration-related costs are not automatically recoverable from sponsored workers simply because there is a contractual agreement. In practice, the position is more complicated.

Some costs can potentially be recovered, while others should remain the responsibility of the sponsor, and the method of recovery can create separate immigration, employment law and payroll risks.

This guide explains which costs employers may and may not recover, together with the practical compliance issues that frequently arise in this area.

For advice on your specific circumstances, including repayment clauses, payroll deductions, sponsor licence compliance or employment law risks, contact DavidsonMorris for a fixed-fee telephone consultation.

SECTION GUIDE

 

Section A: Recovering Immigration Costs from Workers

 

Questions about recovering immigration-related costs arise regularly in the sponsorship context. Employers may fund visa application fees, Immigration Health Surcharge payments, relocation expenses, training costs and other expenditure associated with recruiting workers from overseas. Where significant costs have been incurred, attention often turns to whether those sums can be recovered from the worker.

The legal position is not straightforward. Some costs may potentially be recovered, while others should remain the responsibility of the sponsor. Recovery rights may also be affected by employment contracts, National Minimum Wage requirements, payroll arrangements and Home Office sponsor guidance.

As a result, assessing cost recovery is no longer simply a question of contractual entitlement. Employers need to consider how immigration rules, employment law, payroll obligations and sponsorship salary requirements interact before seeking reimbursement from a sponsored worker.

 

1. Immigration Compliance Is No Longer Limited to the Visa Application

 

Modern sponsor compliance extends well beyond assigning a Certificate of Sponsorship and supporting a visa application. Home Office compliance activity increasingly focuses on what happens after a worker arrives in the UK, including payroll practices, salary payments, contractual arrangements and financial obligations imposed on sponsored workers.

During a compliance visit, UKVI may review employment contracts, payroll records, bank statements, repayment agreements, training agreements and other documentation relevant to sponsorship duties. The objective is not simply to verify immigration status but to assess whether sponsored workers are receiving the pay and conditions associated with the role for which sponsorship was granted.

Where workers are required to repay substantial sums to their employer, UKVI may examine the nature of those payments and their effect on sponsorship compliance.

 

2. Different Types of Costs Are Treated Differently

 

One of the most important distinctions in this area is the difference between sponsorship costs and personal immigration costs.

Certain expenses, including the Immigration Skills Charge and Certificate of Sponsorship costs, are treated by current Home Office sponsor guidance as sponsorship costs that should remain with the employer. Other expenses, such as visa application fees, Immigration Health Surcharge payments and certain relocation costs, may potentially be recoverable depending on the circumstances.

The category into which a cost falls is often more important than the amount involved. Different rules apply to different types of expenditure and there is no single approach that applies to every immigration-related cost.

 

Cost TypeGeneral PositionKey Considerations
Immigration Skills Charge (ISC)Not recoverable from sponsored workerCurrent sponsor guidance prohibits recovery from sponsored workers.
Certificate of Sponsorship (CoS) feeNot recoverable from sponsored workerCurrent sponsor guidance treats CoS costs as sponsorship costs that should be borne by the sponsor.
Sponsor licence application feeNot recoverable from sponsored workerCost associated with obtaining sponsor status.
Sponsor licence administration costsNot recoverable from sponsored workerIncludes costs associated with operating and maintaining the licence.
Visa application feesMay potentially be recoverableContractual enforceability, payroll arrangements and employment law considerations remain important.
Immigration Health Surcharge (IHS)May potentially be recoverableRecovery arrangements should be clearly documented and proportionate.
English language testsMay potentially be recoverableGenerally treated as personal immigration costs.
Ecctis assessmentsMay potentially be recoverableUsually regarded as a personal immigration expense.
Tuberculosis testsMay potentially be recoverableGenerally linked to the individual’s visa application.
Dependant visa costsMay potentially be recoverableOften treated as personal family immigration expenses.
Relocation expensesMay potentially be recoverableRepayment arrangements commonly used where workers leave shortly after arrival.
Professional qualifications and specialist trainingRequires case-by-case assessmentEnforceability depends on the nature of the training and the repayment arrangement.
Mandatory workplace trainingRequires case-by-case assessmentRecovery may be harder to justify where training primarily benefits the employer.
Cultural awareness and integration programmesRequires case-by-case assessmentPosition depends on the nature and purpose of the expenditure.

 

 

3. The Risks Extend Beyond Repayment Disputes

 

Cost recovery issues can affect far more than the employer’s ability to recover money from a departing worker.

Repayment arrangements may raise questions about sponsor licence compliance, unlawful deductions from wages, National Minimum Wage compliance and the enforceability of contractual provisions. Worker complaints, tribunal proceedings and Home Office compliance activity can also bring repayment arrangements under scrutiny.

A repayment clause that appears commercially sensible can therefore create wider legal and compliance risks if it has not been drafted and implemented carefully.

 

4. Why Employers Need a Joined-Up Approach

 

Cost recovery arrangements sit at the point where immigration compliance, employment law and payroll management overlap.

Employers should therefore have clear policies governing which costs the organisation will bear, which costs may potentially be recovered and how any repayment arrangements will operate in practice. Consistency is particularly important where multiple sponsored workers are recruited across different roles and business units.

The sections that follow examine the categories of costs employers cannot recover, the costs that may potentially be recoverable and the wider compliance considerations that should be assessed before implementing any repayment arrangement.

 

DMS Perspective

 

The most common drafting mistake is treating all immigration-related costs as a single category. Current sponsor guidance draws important distinctions between sponsorship costs, personal immigration costs and wider employment-related expenditure. Identifying the category of cost at the outset usually determines whether recovery discussions start from a position of compliance or risk.

 

 

 

Section B: Costs Employers Cannot Recover From Sponsored Workers

 

Current Home Office sponsor guidance draws a clear distinction between sponsorship costs that should be borne by the employer and immigration-related costs that may potentially be recovered from a worker. Sponsors should therefore identify the nature of each cost before attempting to introduce any repayment arrangement.

Some costs are treated as part of the employer’s responsibility for participating in the sponsorship system. These costs should remain with the sponsor and should not be recovered through repayment agreements, payroll deductions, loans or other arrangements that transfer the financial burden to the worker.

 

1. Immigration Skills Charge

 

The Immigration Skills Charge (ISC) cannot be passed to a sponsored worker.

The charge is payable by sponsors when assigning a Certificate of Sponsorship for most Skilled Worker applications and certain Global Business Mobility routes. Home Office sponsor guidance prohibits sponsors from seeking reimbursement of the ISC from sponsored workers.

This applies regardless of the recovery mechanism used. Employers should not seek repayment through contractual agreements, salary deductions, loans or indirect charging arrangements.

 

2. Certificate of Sponsorship Costs

 

Current Home Office sponsor guidance treats the cost of assigning a Certificate of Sponsorship as a sponsorship cost that should remain with the sponsor.

Employers should not seek reimbursement of Certificate of Sponsorship costs from sponsored workers. Attempts to recover these costs can create sponsor licence compliance concerns in the same way as attempts to recover the Immigration Skills Charge.

Particular caution is required where repayment agreements refer broadly to sponsorship costs without identifying the individual expenses being recovered.

 

3. Sponsor Licence Application and Administration Costs

 

The costs associated with obtaining, maintaining and operating a sponsor licence should remain the responsibility of the sponsoring organisation.

This includes sponsor licence application fees and costs incurred in meeting sponsor compliance obligations. These expenses arise because the employer has chosen to participate in the sponsorship system and obtain the benefits associated with holding a sponsor licence.

Attempts to transfer these costs to sponsored workers are likely to attract Home Office scrutiny.

 

4. Disguised Sponsorship Cost Recovery

 

Compliance risks do not arise only where sponsors openly seek reimbursement of sponsorship costs.

UKVI may also examine arrangements that indirectly transfer sponsorship costs to workers. Examples can include administration charges, sponsorship contributions, recruitment fees, compliance charges or similar payments linked to obtaining or retaining sponsored employment.

The Home Office is likely to focus on the substance of the arrangement rather than the terminology used to describe it.

 

5. Why These Costs Create Elevated Compliance Risk

 

Attempts to recover prohibited sponsorship costs can create consequences beyond the immediate repayment dispute.

Information about repayment arrangements may come to UKVI through compliance visits, worker complaints, whistleblowing reports, tribunal proceedings or other investigations. Once identified, Home Office caseworkers may examine wider recruitment practices, payroll arrangements and sponsorship processes.

The issue is not simply the amount recovered. Current sponsor guidance is increasingly concerned with who ultimately bears the cost of sponsorship. Where costs that should remain with the sponsor are transferred to workers, broader compliance concerns can arise.

 

 

DMS Perspective

 

The key question is not how much a sponsor is seeking to recover. The more important question is who should bear the cost in the first place. Home Office scrutiny increasingly focuses on sponsorship costs that have been transferred to workers, even where the sums involved are relatively modest.

 

 

 

Section C: Costs Employers May Recover From Sponsored Workers

 

Not all immigration-related costs are treated as sponsorship costs. Certain expenses arise because an individual is seeking permission to enter or remain in the UK, rather than because an employer holds a sponsor licence. As a result, some costs may potentially be recovered from a worker, provided the recovery arrangement is lawful and properly implemented.

However, recoverability is only part of the analysis. Employers also need to consider contractual enforceability, payroll arrangements, National Minimum Wage requirements and the practical operation of any repayment agreement.

Sponsors should also consider the effect of any recovery arrangement on salary compliance obligations. A cost that may potentially be recoverable can still create sponsor compliance concerns if the recovery mechanism affects remuneration in a way that attracts Home Office scrutiny.

 

1. Visa Application Fees

 

Visa application fees are generally regarded as personal immigration costs rather than sponsorship costs.

Where an employer chooses to fund a worker’s visa application, a repayment arrangement may potentially be used if the worker leaves employment within a specified period. Such arrangements are commonly used where the employer has incurred substantial recruitment costs and wishes to protect that investment.

Any recovery provision should be clearly documented and should form part of a wider assessment of contractual and payroll implications.

 

2. Immigration Health Surcharge

 

The Immigration Health Surcharge (IHS) is another cost that is commonly treated as a personal immigration expense rather than a sponsorship cost.

Employers sometimes choose to fund the IHS as part of a recruitment package, particularly where international recruitment forms a significant part of workforce planning. Repayment provisions may potentially be used where the worker leaves employment within an agreed period.

Because IHS costs can be substantial, particularly where family members are included in the application, repayment arrangements should be carefully drafted and implemented.

 

3. English Language, Qualification and Immigration Testing Costs

 

Immigration applications frequently require expenditure before a visa application can be submitted.

Examples include English language tests, Ecctis assessments, qualification recognition processes, tuberculosis screening and similar immigration-related requirements. These costs are generally viewed as personal application expenses rather than sponsorship costs.

Employers who choose to fund these items may potentially seek reimbursement through an appropriately drafted agreement.

 

4. Dependant Immigration Costs

 

Where a sponsored worker is accompanied by a partner or children, the associated visa fees, Immigration Health Surcharge payments and application costs are generally treated as personal family expenses.

Employers sometimes cover these costs for senior hires, specialist workers or key personnel. Where the employer funds these expenses, repayment arrangements may potentially be used to protect that investment.

Any agreement should clearly identify the costs covered and the circumstances in which repayment may arise.

 

5. Relocation and Settlement Expenses

 

Relocation packages commonly include flights, temporary accommodation, shipping costs, travel expenses and other support associated with moving to the UK.

These expenses are often the subject of repayment or clawback provisions where the worker leaves shortly after arrival. Reducing repayment schedules are commonly used, with the amount repayable decreasing as the worker remains employed.

The strongest arrangements are usually linked to actual expenditure incurred by the employer rather than fixed sums designed to discourage resignation.

 

6. Recovery Rights Are Not Unlimited

 

The fact that a cost is not treated as a prohibited sponsorship cost does not mean recovery will automatically be lawful or enforceable.

Employers still need to consider the wording of any repayment provision, the worker’s agreement to the arrangement, payroll implementation and National Minimum Wage compliance. A repayment clause that appears reasonable on paper can create difficulties if deductions are applied incorrectly or the arrangement is implemented inconsistently. Sponsors should also consider how any deduction or repayment arrangement interacts with salary obligations under the relevant immigration route.

For that reason, employers should assess the entire recovery mechanism rather than focusing solely on the underlying cost.

 

 

DMS Perspective

 

A cost can be capable of recovery without creating an automatic right to repayment. The legal analysis does not end once a cost falls outside the category of prohibited sponsorship expenses. Contractual drafting, payroll implementation and National Minimum Wage compliance often determine whether recovery can be achieved in practice.

 

 

 

Section D: Training Costs, Repayment Clauses & Employment Law Risks

 

Training costs create some of the most difficult cost recovery questions because there is no single rule that applies in every case. Unlike the Immigration Skills Charge and Certificate of Sponsorship costs, training expenses are not automatically classified as sponsorship costs. The recoverability of training-related expenditure is therefore primarily determined by employment law principles, contractual drafting and the circumstances in which the cost was incurred.

For sponsors, this is often the point at which immigration compliance and employment law begin to overlap. A repayment arrangement may appear reasonable from a sponsorship perspective but still encounter difficulties if the clause is poorly drafted, disproportionate or implemented incorrectly.

 

1. Professional Training Costs

 

Employers frequently invest in professional qualifications, technical certifications and specialist training designed to enhance a worker’s skills and long-term value to the business.

Repayment provisions linked to these costs are generally more likely to be enforceable where they reflect genuine expenditure incurred by the employer and provide a measurable benefit to the worker. The strongest arrangements typically use a reducing repayment schedule, with the amount repayable decreasing as the worker remains employed.

The closer the repayment obligation is to the employer’s actual expenditure, the easier it is to justify if challenged.

 

2. Mandatory Workplace Training

 

A different analysis may apply where training is required to perform the role or to satisfy legal, regulatory or operational obligations.

Examples may include health and safety training, safeguarding training, mandatory compliance programmes and employer-mandated induction training. Recovery arrangements relating to these types of costs may be more difficult to justify because the expenditure is closely connected to the employer’s own operational requirements.

The more closely training is linked to the employer’s regulatory responsibilities, the more carefully any repayment arrangement should be assessed.

 

3. Cultural Awareness and Integration Programmes

 

Sponsors often provide cultural awareness training, language support and workplace integration programmes to assist overseas recruits settling into employment in the UK.

These costs do not fit neatly into a single category. Recovery may be easier to justify where substantial external expenditure has been incurred specifically for the worker’s benefit. Recovery may be more difficult where the programme forms part of the employer’s wider onboarding and workforce integration process.

Describing expenditure as training does not automatically make it recoverable.

 

4. Drafting Effective Repayment Clauses

 

The success of a repayment arrangement often depends as much on the drafting as on the underlying cost itself.

Repayment provisions should clearly identify the costs covered, the circumstances triggering repayment and the method used to calculate the amount due. Ambiguous wording can create uncertainty and increase the risk of dispute.

Employers should also avoid combining recoverable and non-recoverable costs within a single repayment provision. Separate treatment of different categories of expenditure generally provides greater clarity and reduces compliance risk.

 

5. Retention Clauses, Penalties and Employee Mobility

 

Employers often use repayment provisions to protect investment in recruitment and training. However, a repayment clause should compensate for genuine expenditure rather than operate as a financial deterrent to resignation.

Where the amount repayable bears little relationship to the employer’s actual expenditure, there is a greater risk that the provision will be challenged. Similar concerns can arise where repayment periods are unusually long or where the financial consequences of resignation become disproportionate.

Repayment provisions are generally strongest where they reflect identifiable costs and reduce over time as the employer receives the benefit of its investment.

 

6. Why Sponsors Need to Review Existing Agreements

 

Many repayment agreements currently in use were drafted before recent changes in Home Office guidance and increased scrutiny of sponsorship arrangements.

Older agreements often combine sponsorship costs, visa costs, training expenditure and recruitment expenses within a single repayment schedule. That approach can create unnecessary legal and compliance risks, particularly where prohibited sponsorship costs are mixed with costs that may potentially be recoverable.

Regular review of repayment clauses is therefore becoming an important part of sponsor compliance governance. Agreements should be assessed not only for contractual enforceability but also for consistency with current sponsorship, payroll and employment law obligations.

 

 

DMS Perspective

 

Repayment disputes rarely arise because an employer funded training. Difficulties usually emerge because different categories of cost have been combined within a single clawback provision. Separating sponsorship costs, immigration costs and training expenditure at the drafting stage often prevents far more expensive disputes later.

 

 

 

Section E: Payroll Deductions & Home Office Scrutiny

 

Identifying a recoverable cost is only part of the exercise. Employers also need to consider how repayment will be implemented in practice. In many cases, the greatest risks arise not from the underlying expense itself but from the payroll deductions, repayment mechanisms and compliance issues associated with recovering it.

This is particularly important for sponsors because the same repayment arrangement may engage sponsor licence duties, sponsor licence duties, sponsorship salary requirements, employment law obligations and National Minimum Wage requirements simultaneously.

 

1. Payroll Deductions Are Subject to Separate Legal Rules

 

A repayment clause does not automatically give an employer the right to deduct money from wages.

Employment law generally requires a contractual right, statutory authority or the worker’s prior written agreement before deductions can be made from pay. A contractual obligation to repay a cost and a lawful right to deduct wages are not necessarily the same thing.

Employers should therefore ensure that repayment agreements, employment contracts and payroll processes operate consistently. A cost may be recoverable in principle, yet deductions may still be challenged if the legal basis for making them is unclear.

 

2. National Minimum Wage Risks

 

National Minimum Wage compliance is one of the most important considerations when recovering costs from sponsored workers.

Certain deductions made for the employer’s own use and benefit can reduce pay for National Minimum Wage purposes. Where deductions reduce pay below the applicable minimum wage rate, employers may face enforcement action even where the worker agreed to the arrangement.

This issue commonly arises where costs are recovered through payroll deductions over a short period, particularly where the worker’s salary is already close to minimum wage levels.

 

3. Salary Compliance Under the Sponsorship System

 

Sponsors are required to ensure that sponsored workers continue to receive pay that remains consistent with sponsorship requirements.

Where deductions affect the salary received by a sponsored worker, UKVI may examine whether sponsorship salary requirements continue to be met and whether the remuneration received remains consistent with the basis on which sponsorship was granted.

Payroll records, payslips and payment evidence are frequently reviewed during compliance activity. Sponsors should therefore be able to explain the legal basis for any deduction and the nature of the cost being recovered.

 

4. Home Office Compliance Visits and Investigations

 

Repayment arrangements can come to UKVI’s attention through compliance visits, worker complaints, whistleblowing reports, tribunal proceedings or wider investigations.

Once an issue has been identified, Home Office scrutiny rarely focuses solely on the repayment arrangement itself. Caseworkers may examine recruitment practices, sponsorship processes, payroll records, salary calculations and wider workforce management arrangements.

A relatively small deduction can therefore trigger a much broader compliance review.

 

 

5. Common Cost Recovery Scenarios

 

In practice, cost recovery disputes rarely arise from straightforward reimbursement arrangements. More commonly, issues emerge where employers seek to recover recruitment, onboarding or training costs through payroll deductions or repayment agreements after sponsorship has already commenced.

 

a. Cultural awareness and onboarding programmes

Cultural awareness training, workplace integration programmes and onboarding support are increasingly common where employers recruit workers from overseas. Recovery is not automatically permitted simply because expenditure is described as training. The nature of the programme, who benefits from it and the method of recovery may all be relevant when assessing legal and compliance risk.

 

b. Payroll deductions for recruitment and training costs

Employers sometimes seek to recover visa-related expenditure, onboarding costs or training expenses through payroll deductions spread over several months. Even where a repayment agreement exists, deductions can create separate employment law, National Minimum Wage and sponsor compliance concerns. The existence of a signed agreement does not automatically make a deduction lawful.

 

c. Recovery from final salary payments

Repayment obligations frequently come into focus when a worker resigns. Employers often assume that outstanding costs can simply be deducted from final salary payments. However, deductions still require a lawful basis and should be assessed carefully against employment law and wage deduction rules.

 

d. Care sector sponsorship arrangements

Cost recovery practices have received particular attention in the care sector. Home Office enforcement activity has increasingly examined recruitment practices, payroll arrangements, training charges and payments linked to sponsorship. Where workers are required to bear substantial costs associated with obtaining or retaining sponsored employment, wider compliance concerns may arise.

 

 

 

DMS Perspective

 

Salary compliance is becoming one of the most heavily scrutinised aspects of sponsorship. UKVI increasingly examines how payroll deductions, repayment arrangements and other financial obligations affect remuneration in practice. Sponsors should assess cost recovery arrangements through the lens of salary compliance as well as employment law and National Minimum Wage requirements.

 

 

 

Summary

 

Recovering immigration-related costs from sponsored workers is not always straightforward. While some expenses, such as visa application fees, Immigration Health Surcharge payments and certain relocation costs, may potentially be recoverable, others, including the Immigration Skills Charge and Certificate of Sponsorship fees, should remain the responsibility of the sponsoring employer.

Employers also need to consider more than just the immigration rules. Repayment arrangements can raise wider issues relating to employment contracts, payroll deductions, National Minimum Wage compliance and sponsor licence duties. A cost that may be recoverable in principle can still create legal and compliance risks if the recovery mechanism is poorly drafted or implemented incorrectly.

 

Need Assistance?

 

DavidsonMorris advises UK employers on sponsor licence compliance, immigration risk, employment law and workforce governance. For advice on sponsorship cost recovery, repayment clauses, payroll deductions or Home Office compliance obligations, contact our specialists for guidance tailored to your organisation’s circumstances, or book a fixed-fee telephone consultation to discuss your specific queries with one of our experts.

 

FAQs

 

Can an employer recover visa fees from a sponsored worker?

Potentially, yes. Visa application fees are generally regarded as personal immigration costs rather than sponsorship costs. However, any repayment arrangement should be clearly documented and employers should consider employment law, payroll and National Minimum Wage implications before seeking recovery.

 

Can an employer recover the Immigration Health Surcharge?

In some circumstances, yes. Many employers choose to fund the Immigration Health Surcharge as part of a recruitment package and may include repayment provisions if the worker leaves within a specified period. Any recovery arrangement should be proportionate and clearly documented.

 

Can employers recover the Immigration Skills Charge?

No. Home Office guidance prohibits sponsors from passing the Immigration Skills Charge to sponsored workers, whether through direct repayment, salary deductions or other arrangements.

 

Can employers recover Certificate of Sponsorship fees?

Current Home Office sponsor guidance treats Certificate of Sponsorship costs as sponsorship costs that should be borne by the sponsor rather than passed to the worker. Employers should not seek reimbursement of Certificate of Sponsorship costs from sponsored workers.

 

Can training costs be recovered from sponsored workers?

Some training costs may be recoverable, particularly where they relate to professional qualifications or specialist training funded by the employer. The position depends on the nature of the training, the terms of any repayment agreement and wider employment law considerations.

 

Can employers deduct immigration costs directly from salary?

Not automatically. Employers generally need a contractual right, statutory authority or the worker’s prior written agreement before making deductions from wages. National Minimum Wage rules may also restrict how deductions are made.

 

What happens if a sponsored worker leaves shortly after arrival in the UK?

Employers may be able to recover certain costs where a valid repayment agreement exists. Whether recovery is lawful will depend on the type of expense involved, the wording of the agreement and how repayment is implemented.

 

Can repayment clauses affect sponsor licence compliance?

Yes. UKVI increasingly scrutinises repayment arrangements, payroll deductions and sponsorship-related charges during compliance activity. Recovery arrangements that conflict with sponsor guidance may place a sponsor licence at risk.

 

Can a worker challenge a repayment clause?

Yes. Workers may challenge repayment provisions on a number of grounds, including contractual enforceability, unlawful deductions from wages and National Minimum Wage compliance. The outcome will depend on the facts of each case.

 

What is the biggest mistake employers make when recovering immigration costs?

The most common mistake is assuming that a signed agreement automatically makes recovery lawful. Employers should consider sponsorship rules, employment law, payroll requirements and National Minimum Wage obligations together before implementing any repayment arrangement.

 

Glossary

 

 

TermDefinition
Certificate of Sponsorship (CoS)An electronic record assigned by a licensed sponsor to support a worker’s immigration application under a sponsored work route.
Clawback ClauseA contractual provision requiring an employee to repay specified costs if certain conditions are met, such as leaving employment within a defined period.
Employment TribunalA specialist tribunal that hears disputes relating to employment rights, including unlawful deductions from wages and breach of contract claims.
Immigration Health Surcharge (IHS)A charge paid by most visa applicants to access NHS services during their period of immigration permission.
Immigration Skills Charge (ISC)A levy payable by sponsoring employers when sponsoring certain workers. The cost should be borne by the sponsor and cannot be passed to the worker.
National Minimum Wage (NMW)The minimum rate of pay employers are legally required to pay eligible workers in the UK.
Payroll DeductionAn amount deducted from an employee’s wages, usually under a contractual provision, statutory requirement or written agreement.
Repayment AgreementA contractual arrangement setting out when an employee may be required to reimburse specified costs incurred by the employer.
Sponsor LicenceHome Office permission allowing a UK organisation to sponsor eligible overseas workers under the immigration system.
Sponsor ComplianceThe ongoing obligations sponsors are required to meet, including record-keeping, reporting duties and ensuring sponsored workers meet immigration requirements.
Sponsored WorkerAn individual granted immigration permission based on sponsorship by a licensed UK employer.
UK Visas and Immigration (UKVI)The Home Office department responsible for administering the UK’s immigration system and enforcing sponsor compliance requirements.
Unlawful Deduction from WagesA deduction made from an employee’s pay without lawful authority, contractual entitlement or the employee’s agreement.
Visa Application FeeThe fee paid to the Home Office when applying for entry clearance, permission to stay or permission to remain in the UK.

 

 

Additional Resources & Links

 

 

ResourceURL
UKVI Sponsor Guidance Part 1: Apply for a Licencehttps://www.gov.uk/government/publications/workers-and-temporary-workers-guidance-for-sponsors-part-1-apply-for-a-licence
UKVI Sponsor Guidance Part 2: Sponsor a Workerhttps://www.gov.uk/government/publications/workers-and-temporary-workers-guidance-for-sponsors-part-2-sponsor-a-worker
UKVI Sponsor Guidance Part 3: Sponsor Duties and Compliancehttps://www.gov.uk/government/publications/workers-and-temporary-workers-guidance-for-sponsors-part-3-sponsor-duties-and-compliance
Appendix Skilled Workerhttps://www.gov.uk/guidance/immigration-rules/immigration-rules-appendix-skilled-worker
Immigration Skills Charge Guidancehttps://www.gov.uk/uk-visa-sponsorship-employers/immigration-skills-charge
National Minimum Wage Guidance for Employershttps://www.gov.uk/national-minimum-wage-employers-and-overview
Employment Rights Act 1996https://www.legislation.gov.uk/ukpga/1996/18/contents
ACAS Guidance on Deductions from Wageshttps://www.acas.org.uk/deductions-from-pay-and-wages
HMRC National Minimum Wage Manualhttps://www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual
UKVI Sponsor Licence Compliance Guidancehttps://www.gov.uk/government/collections/sponsorship-information-for-employers-and-educators

 

About our Expert

Picture of Anne Morris

Anne Morris

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.
Picture of Anne Morris

Anne Morris

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.

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The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.