Navigating Migrant Sponsorship in 2025: What UK Employers Need to Know

The UK labour market has undergone significant transformation in recent years, and for many employers, especially in care, hospitality, logistics, and manufacturing, the role of overseas talent is now more crucial than ever. But as the rules surrounding migrant sponsorship tighten again in 2025, it's critical that businesses stay both compliant and strategically agile.

The government’s most recent changes to the immigration rules, which came into effect in spring 2024 and continue into 2025, mark one of the most significant recalibrations of the Skilled Worker visa route since the post-Brexit overhaul.

This blog explores the implications of the latest changes, the compliance burden on employers, and how HR and Payroll professionals can respond with confidence.

A Recap: What Has Changed?

In December 2023, the UK Government announced a 5-point plan to reduce net migration. The measures, most of which came into force in early 2024 and continue to shape 2025 policy, include:

1. Increase to the Skilled Worker Minimum Salary Threshold

The general salary threshold for Skilled Worker visas rose from £26,200 to £38,700 per year (or £15.88 per hour). Certain exceptions exist—for example, roles on the Shortage Occupation List or those within the Health and Care Visa route.

Note: The Health and Care Visa route continues to have lower thresholds, but this may be under review in future.

2. Changes to the Shortage Occupation List

Now renamed the Immigration Salary List, the number of roles qualifying for salary reductions and relaxed criteria has been narrowed. Employers can no longer rely on widespread exemptions.

3. Ban on Care Workers Bringing Dependants

As of 2024, care workers (under SOC code 6145) can no longer bring dependants on their visa. This has already begun to affect international recruitment strategies across the social care sector.

4. Raising the Minimum Income for Family Visas

The minimum income requirement for sponsoring a spouse or partner rose to £29,000 in April 2024 and is set to increase again to £38,700 by early 2025.

5. Stricter Sponsorship Licence Scrutiny

The Home Office has increased audits and revocations of sponsorship licences—especially where businesses fail to maintain accurate records or allow sponsored workers to breach visa conditions.

The Compliance Challenge

Migrant sponsorship is a privilege, not a right. Sponsoring employers must take on extensive compliance responsibilities. These include:

• Maintaining up-to-date records of job roles, salaries, absences, and working hours

• Reporting changes (e.g. role, location, resignation) via the Sponsorship Management System (SMS) within 10 working days

• Proving that roles meet skill and salary thresholds

• Cooperating with unannounced Home Office audits

Penalties for non-compliance range from sponsorship licence suspension to civil penalties of up to £60,000 per illegal worker.

It’s no longer just an immigration matter—it’s a corporate risk.

The Payroll and Workforce Management Perspective

Payroll and HR professionals are at the heart of sponsor compliance, often without realising it. The smallest oversight—such as recording the wrong job code or failing to log absences—can create a compliance gap.

Here’s how to protect your business:

1. Align Payroll Data with Sponsored Role Criteria

Ensure every sponsored worker’s pay matches the exact amount declared on their Certificate of Sponsorship (CoS). Any variation, even for unpaid leave or bonuses, must be documented and justifiable.

2. Audit Role Codes and Job Descriptions

SOC (Standard Occupational Classification) codes used for sponsorship must accurately reflect the worker’s duties. HR teams should periodically cross-check these with evolving job descriptions and HMRC coding.

3. Track Absences with Precision

The Home Office expects detailed absence records. Any leave over 4 weeks (excluding statutory exceptions) must be reported—and could affect the visa’s validity.

4. Be Prepared for a Home Office Audit

Keep electronic and physical records accessible. This includes:

• Contracts of employment

• Right to Work documentation

• Attendance logs

• Absence records

• Correspondence with sponsored employees

Strategic Advice: Beyond Compliance

While compliance is essential, smart employers use migrant sponsorship as a long-term talent strategy—not just a quick fix.

🔹 Review Your Workforce Planning

Are you overly reliant on sponsored roles in areas likely to face regulatory tightening? Diversify where possible and plan recruitment cycles 12–18 months in advance.

🔹 Invest in Retention

Visa sponsorship is costly and time-consuming. Reducing churn among sponsored workers saves on fees and protects your licence rating.

🔹 Budget for Sponsorship Costs

Each sponsored worker entails costs, including:

• Immigration Skills Charge (up to £1,000/year)

• Certificate of Sponsorship fees

• Visa fees and possible relocation costs

Ensure these are factored into salary packages and recruitment budgeting.

🔹 Communicate Clearly

Many sponsored employees are deeply affected by changes to family visa rules or minimum thresholds. Keep communication open, and consider offering immigration advice through accredited third parties.

Looking Ahead

The UK’s immigration policy will continue to evolve in response to economic and political pressures. Employers must balance their immediate workforce needs with long-term compliance and cost resilience.

For Payroll, HR, and Compliance teams, migrant sponsorship in 2025 is no longer a niche process—it’s a strategic and reputational issue.

Final Thought:

While the legislation may feel burdensome, it’s also an opportunity to refine your internal systems, tighten your data accuracy, and build a more informed, resilient business model.

If you'd like a printable checklist of sponsorship compliance essentials or a sample internal audit framework, just let me know—I’d be happy to provide it.