Navigating Sponsorship Expenses and Electronic Travel Authorisation: An In-Depth Guide

The UK Home Office has revealed revised guidelines pertaining to sponsorship expenses for Skilled Workers, which will greatly impact employers who are hiring or sponsoring international professionals.

As of January 8, 2025, the next stage of the Electronic Travel Authorisation (ETA) program becomes obligatory for non-European citizens, signifying a notable transformation in how individuals visit the United Kingdom. This advancement marks a significant alteration in the entry procedure and will change how people arrange their travels.

The ETA program underlines the importance of thorough organization and adherence, alongside the introduction of new administrative obligations that businesses must fulfill to prevent disruptions to their operations.

ADJUSTMENTS TO SPONSORSHIP EXPENSES FOR SKILLED WORKERS

The UK government has executed a substantial policy alteration regarding sponsorship costs for Skilled Workers. Starting December 31, 2024, sponsors are banned from transferring certain sponsorship expenses to Skilled Workers. This modification is designed to tackle worries surrounding employment-related debt and exploitation.

FORBIDDEN EXPENSES

The subsequent expenses are now forbidden from being transferred to Skilled Workers:

• Sponsor Licence Fee: This encompasses the fee for new sponsor licence applications or the addition of the Skilled Worker route to an existing licence, submitted from December 31, 2024, onward.
• Certificate of Sponsorship Fee: The fee for a Certificate of Sponsorship issued on or after December 31, 2024, is likewise prohibited.

These prohibitions correlate with the current regulation against assigning the Immigration Skills Charge to workers. Other immigration-associated expenses, such as visa application fees, Home Office commercial partner service fees, and Immigration Health Surcharges, can still be recovered by the employer.

PENALTIES FOR NON-COMPLIANCE

Failing to comply with these new regulations can result in the cancellation of the sponsor licence. This may lead to reputational harm, financial setbacks, and considerable disruptions for currently sponsored workers.

STEPS FOR EMPLOYERS

Employers should undertake the following measures to guarantee compliance:

• Evaluate and Revise Policies: Examine and revise internal immigration policies and employment policies concerning sponsorship costs.
• Assess and Revise Agreements: Examine and alter employment contracts, side letters, and “clawback” agreements concerning sponsorship costs.
• Financial Considerations: Evaluate the effect of these adjustments on the organization’s budget for immigration and its potential impact on future recruitment and sponsorship.

ELECTRONIC TRAVEL AUTHORISATION PROGRAM

As detailed in our prior LawFlash, the ETA provides authorization to travel to the United Kingdom—akin to the US Electronic System for Travel Authorization. The ETA is applicable for UK visitors who do not require a visa for tourism, transit, visiting family and friends, business, or short-term studies. It also pertains to individuals coming to the United Kingdom for up to three months under the Creative Worker visa concession and for those on permitted paid engagements.

It does not pertain to those holding a UK visa, individuals with authorization to reside for living, working, or studying in the United Kingdom, or British or Irish nationals.

IMPORTANT DATES AND ELIGIBILITY

The program will be mandatory for non-European citizens, including US nationals, starting January 8, 2025.

The program has been operational since October 2023. The rollout schedule is as follows:

• Non-European Nationals: From November 27, 2024, eligible non-European nationals can submit an ETA application for travel to or transit through the United Kingdom from January 8, 2025.
• European Nationals: Eligible European nationals can apply from March 5, 2025, and will be required to have an ETA by April 2, 2025.
• Universal Requirement: From April 2025, all travelers to the United Kingdom (aside from British and Irish citizens) will need either an ETA or an eVisa.

ETA VS. VISA

The ETA is not a visa and does not confer the right to live or work in the United Kingdom. Visitors remain subject to visitor visa regulations and must adhere to these rules. Those aimed at working in the United Kingdom must secure the appropriate visa prior to travel.

BUSINESS IMPLICATIONS

Employers should evaluate their travel necessities for the upcoming six to eight months to ensure that impacted overseas employees possess the required ETAs. Neglecting to acquire an ETA may result in delays or entry refusals to the United Kingdom.

Employers may also wish to keep their employees informed about the implementation of the scheme.

Employees should verify that they possess adequate passport validity and ensure prompt submission of their ETA application. Employees should alert any concerns they may have regarding the application as soon as possible.

EUROPEAN TRAVEL INFORMATION AND AUTHORISATION SYSTEM

Businesses should also take note of the forthcoming European Travel Information and Authorisation System, a parallel system being introduced by the European Union. This will influence British nationals traveling to the Schengen Area. Travelers from over 60 visa-exempt nations, including the United Kingdom, United States, and Canada, will be affected. Holders of valid Schengen visas will not need European Travel Information and Authorisation System authorization.