Avoiding Prohibited Salary Cuts for Sponsored Staff

Obtaining a UK sponsor licence obligates employers to maintain specific minimum salary levels for every sponsored role. The Home Office monitors these payments through regular checks with HMRC records. Paying below the agreed rate is a serious breach of sponsor duties. You must ensure all payroll adjustments comply with the latest immigration rules. Failure to maintain the correct salary level will result in the refusal of future applications for permission.

The general salary threshold for most new applicants has increased significantly under the regulations effective from July 2025. This amount is calculated based on gross earnings up to 48 hours. Employers cannot simply reduce wages to cut costs without considering the impact on the worker's visa validity. Any reduction must fall within specific permitted exceptions to remain lawful. Unauthorized cuts often lead to immediate curtailment of the worker's leave.

Most sponsored staff must receive the higher of the general or going rate. The going rate is determined by the specific occupation code assigned to the role during the application. These rates prevent overseas workers from undercutting the resident labour market. Sponsors must review these figures annually to ensure ongoing compliance with the updated Home Office salary tables.

Salary reductions are generally forbidden if they drop below the minimum requirement. The Home Office explicitly states that if a sponsor stops paying the required rate, action will be taken. This enforcement can include the total revocation of the sponsor licence which impacts all current sponsored staff members. You must pay at least the salary stated on the Certificate of Sponsorship or any subsequent notification. Exceptions only apply in very specific circumstances outlined in the immigration rules.

A sponsor can temporarily reduce salary if the reduction coincides with a permitted absence like statutory maternity leave. Sick leave also qualifies as a permitted reason for temporary pay reduction. These exceptions allow sponsors to pay statutory payments instead of full salary. Documentation must be retained to prove the absence was legally authorized.

Absences from work without pay are permitted for up to four weeks in total during any calendar year. This calculation follows the calendar year from January 1st to December 31st. Exceeding this four-week limit usually requires you to stop sponsoring the worker. The only exceptions involve statutory leave or assisting in national humanitarian crises. Industrial action and jury service are also considered valid reasons for absence.

Identifying compliant CoS validity period UK is essential for professionals seeking secure employment. Many employers fail to realize that reducing hours also requires a proportional assessment of the salary threshold. If the hourly rate drops below the requirement, the sponsorship becomes invalid regardless of the total annual salary. Compliance checks are rigorous and often triggered by changes in payroll data.

You must report any salary change within ten working days via SMS. This notification is mandatory even if the new salary remains above the minimum threshold for the role. Failure to report changes is a common reason for compliance action. The Home Office uses these reports to verify that the worker continues to meet the points requirement. Transparency with the authorities is the best defense against potential allegations of non-compliance during an audit.

Some reductions require assigning a new Certificate of Sponsorship to the worker. This applies if the new salary falls under a different points option. A new application for permission to stay must be submitted before the reduced salary payment actually begins. Workers cannot legally accept the lower rate until the Home Office approves the new visa application request.

Transitional arrangements may protect workers who were sponsored under previous rules before the July 2025 changes took effect. These workers might be eligible for lower thresholds based on historical data. Legal advice is recommended when dealing with complex transitional cases to ensure you apply the correct rates. Incorrectly applying a transitional rate to a new hire will result in an immediate visa refusal decision.