Legal News

Recent changes to the UK immigration system has forced employers to consider the practicalities of sponsoring visas via the Skilled Worker route. As of 4 April 2024, the required salary rates for new Skilled Worker visa applications have seen a substantial increase. Employers must now ensure that the salary offered meets or exceeds the highest of the three newly established thresholds, as detailed below:

In order for an employer to sponsor someone’s application under this route, they must pay at, or over, the new threshold for whichever of the three rates, outlined below, is higher.

*based on the 2021 Annual Survey of Hours and Earnings (ASHE) for the old threshold and the 2023 survey for the new threshold

The New Entrant salary discount remains available for those under 26 on the date of application and those moving from a student or graduate visa. This discount sets the new general minimum salary threshold at £30,960, with a discount of 30% on the ‘going rate’ for the role’s Standard Occupational Classification code.

Employers sponsoring Skilled Worker visa applications must be aware of these changes, as any decisions not to sponsor an existing or new employee could lead to claims against them. Below, we outline some potential pitfalls that employers should be aware of under the new rules:

Existing Jobs

An employer may have hired people on the promise of sponsoring them for a visa, only to find their salary no longer meets the eligibility threshold. In such cases, the employee would need to find an alternative sponsor before their current visa ends. If they are unable to do so, the employer may be forced to terminate their contract. To avoid potential claims for unfair dismissal, employers must follow a fair process, give notice of termination, and allow for an appeal.

Job Offers

If an employer has offered a job to a candidate requiring visa sponsorship, but the offer no longer meets the required salary threshold, the employer may look to retract the job offer. To avoid a claim of indirect race discrimination against overseas workers, the decision must be legitimately justified, based on the fact that the role does not meet the salary requirements for sponsorship. In case of a claim, the employers should ensure that the decision follows a fair process and is well-documented to provide evidence that the decision is justified.

Selective Sponsorship

With the increased salary thresholds, some employers may only be able to offer sponsorship to higher paid roles. In this scenario, employers must take care to apply their sponsorship policies consistently and clearly communicating the reasons for their decision. While the cost of obtaining a visa may factor into this decision, it is not enough to justify a decision on its own, and may expose the employer to claims of indirect race discrimination.

Meeting the Threshold

Employers may be tempted to raise the salary for certain roles to meet the required threshold for sponsorship, but this brings its own risks. The Immigration Rules and Home Office guidance indicates that raising a salary to make a role eligible for sponsorship, without any other justification, is a breach of license duties. As such, an employer may risk losing their sponsorship license and action could be brought against those involved in making the decision. Employers should exercise caution when considering salary increases for visa sponsorship, ensuring that any adjustments are consistent with those for non-sponsored employees.

For expert guidance on sponsoring Skilled Worker visas and other employment law matters, please contact Ian Hurst via email at IanHu@duncanlewis.com or by telephone at 02072752872.

About the Author

This article was written by Alex Morgan, currently completing work experience at Duncan Lewis Solicitors.

Duncan Lewis Solicitors

Duncan Lewis employment lawyers act on behalf of claimants and respondents in all employment tribunal related matters in a variety of areas including unfair dismissal, redundancy, breach of contract, equal pay, maternity and paternity/adoption rights, whistleblowing and minimum wage.  Our employment law specialists can represent all types of employers, large and small – as well as individual employees and groups of employees