UK Sponsor Licence Rules Changed: What Employers Need to Know
Three important updates for businesses employing overseas workers: salary monitoring, settlement requirements, and secondment rules.
On 5 March 2026, several changes to UK immigration rules came into force that directly affect employers holding a Sponsor Licence.
If you employ overseas workers on Skilled Worker visas or use the Global Business Mobility routes, here's what you need to know.
1. Salary Monitoring: Per Pay Period Requirement
Salary thresholds for sponsored workers must now be met in each individual pay period, not just annually.
If you sponsor a worker on £38,700 per year, their salary in every single pay period must reflect that amount (adjusted pro-rata for the pay period).
For example:
Monthly pay: £3,225 per month minimum
Weekly pay: £744.23 per week minimum
Fortnightly pay: £1,488.46 per fortnight minimum
Why this change was made:
UKVI will now monitor salaries throughout the year to identify underpayments. Previously, sponsors could meet the threshold on an annual basis, which sometimes masked irregular pay patterns or temporary salary reductions.
What could go wrong:
The following situations could now trigger compliance issues:
Annual bonuses that bring total compensation above the threshold but result in lower monthly base pay
Irregular pay patterns where some months fall below the pro-rata threshold
Temporary salary reductions (even if later corrected)
Commission-based pay structures where monthly income fluctuates
What you should do:
Review your payroll records for all sponsored workers
Ensure salary is consistent across all pay periods
If you use bonuses or commission to meet thresholds, restructure compensation to ensure base salary meets requirements
Update your HR and payroll systems to flag any pay periods that fall below required thresholds
Exemptions:
The change is subject to "any variations already permitted under the Immigration Rules." This means existing provisions for things like maternity leave, sick pay, or other permitted variations still apply but these must be properly documented and reported.
2. English Language Requirement for Settlement: B1 to B2
What changed:
From 26 March 2027, the minimum English language requirement for settlement (Indefinite Leave to Remain) increases from B1 to B2.
Who this affects:
Workers applying for settlement on multiple routes, including:
Skilled Worker
Global Talent
Global Business Mobility routes
Other routes leading to ILR
What's the difference between B1 and B2?
Under the Common European Framework of Reference for Languages (CEFR):
B1 (Intermediate): Can deal with most situations while travelling, describe experiences and events, and give brief explanations.
B2 (Upper Intermediate): Can interact with a degree of fluency, produce clear and detailed text on a wide range of subjects, and explain viewpoints on topical issues.
B2 is a noticeable step up from B1. It requires more advanced grammar, wider vocabulary, and stronger comprehension skills.
When does this take effect?
26 March 2027, just over a year from now.
What you should do:
Inform your sponsored employees now so they have time to prepare
Employees may need to take English language tests (IELTS, PTE, etc.) at B2 level
This will require advance booking, preparation time, and cost
Some employees may need language courses to reach B2 level
Why this matters for employers:
If your sponsored employees are unable to meet the new B2 requirement, they may be unable to settle in the UK. This could mean:
Loss of experienced staff after 5+ years
Need to re-sponsor under a new visa
Employees choosing to leave the UK
Giving employees advance notice now allows them to prepare properly.
3. Global Business Mobility - Secondment Worker Route: 12 to 6 Months
What changed:
The required period of qualifying overseas employment for the Secondment Worker route has been reduced from 12 months to 6 months.
What this means:
You can now bring overseas employees to the UK on secondment after just 6 months of employment with your overseas entity (previously 12 months).
Who this benefits:
Multinational companies with UK operations
Businesses needing to transfer staff for specific projects
Companies wanting faster deployment of international talent
Why this change was made:
This change makes the UK more competitive with other countries and provides greater flexibility for businesses needing to move staff internationally.
What you should do:
Review your global mobility needs
Consider whether 6-month secondments could benefit your business
Ensure your Sponsor Licence covers Global Business Mobility routes
Understanding Sponsor Compliance
These changes are a reminder that immigration compliance is not a one-time task.
Sponsor duties are ongoing:
When you hold a Sponsor Licence, you have continuous obligations to:
Keep accurate records
Report changes to the Home Office within specified timeframes
Monitor employee attendance and activity
Ensure salary and working conditions meet requirements
Maintain HR systems and policies
The consequences of non-compliance:
Failing to meet sponsor duties can result in:
Compliance visits from UKVI
Action plans requiring immediate correction
Suspension of your Sponsor Licence (preventing new sponsorships)
Revocation of your Sponsor Licence (unable to sponsor anyone)
Sponsored employees losing their visa status
What Employers Should Do Now
Immediate actions:
Audit payroll for sponsored workers - ensure salaries meet thresholds in every pay period
Notify employees about B2 requirement - give them time to prepare for 26 March 2027
Review your HR systems - ensure they can flag compliance issues automatically
Ongoing actions:
Stay informed - immigration rules change regularly
Maintain accurate records - UKVI can request these at any time
Report changes promptly - late reporting can trigger compliance action
Review your processes - ensure your HR team understands sponsor duties
How We Can Help
At Point B Legal, we support UK employers with:
Sponsor Licence applications: From eligibility assessment through to approval and beyond.
Compliance management: Ensuring you meet ongoing sponsor duties and avoid compliance issues.
Immigration strategy: Helping you navigate rule changes and plan for business needs.
Employee support: Guiding your sponsored workers through visa applications, extensions, and settlement.
Training: Educating your HR team on sponsor duties and compliance requirements.
Immigration compliance is not static. Rules change regularly, and sponsors are expected to stay informed and compliant.
The 5 March 2026 changes affect:
How you pay sponsored workers (every pay period matters)
When your employees can settle (B2 English from March 2027)
How quickly you can bring overseas staff (6 months for secondments)
If you need support navigating these changes or managing your Sponsor Licence obligations, we are here to help.
📱 WhatsApp: +44 07340799913
Point B Legal is authorised and regulated by the Immigration Advice Authority.
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