At a Glance

• Paying the Skilled Worker minimum salary does not automatically justify paying sponsored workers more than others in equivalent roles.
• Pay structures that appear neutral can still create indirect discrimination risk, particularly where they disadvantage non-sponsored workers.
• Failures in areas such as pay structures and worker treatment can expose sponsors not only to discrimination claims, but also serious regulatory consequences, including licence suspension or revocation.

A recent England and Wales Employment Tribunal decision has highlighted a growing risk for UK sponsor licence holders: pay disparities between sponsored and non-sponsored workers performing the same role.

The Case

In Mrs G Gharabli v Cedar Hope Care Services, a support worker discovered that colleagues sponsored under the Skilled Worker route were paid 12.31 per hour, while non-sponsored workers in the same role received 10.50 per hour.

The employer argued that the higher pay rate was necessary to comply with Home Office minimum salary requirements for sponsored workers.

Based on the evidence presented to the tribunal, approximately 80% of the workforce comprised overseas workers who were paid at the higher rate.

Cedar Hope Care Services maintained that these overseas workers undertook additional duties, including community-based work and the preparation of social reports for court proceedings.

The claimant brought several claims, including discrimination and whistleblowing. The tribunal...

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