Recent changes to UK immigration rules have significantly increased minimum salary thresholds for Skilled Workers. While designed to reduce net migration, these changes are creating real challenges for employers, particularly where existing sponsored employees no longer meet the revised requirements for visa extension.
A recent Employment Tribunal decision, Surya Dhakal v Fintru Limited, offers helpful guidance on how employers can manage this difficult situation lawfully and fairly.
The Background
Mr Dhakal was employed by Fintru Limited from December 2021 to April 2025. After initially holding a graduate visa, he was sponsored under the Skilled Worker route.
In April 2024, substantial increases to salary thresholds came into force. As a result, Mr Dhakal’s salary fell below the required “going rate” for his role, meaning the company could not continue to sponsor him.
Before making any decision, the employer:
- Held several meetings with Mr Dhakal to explain the issue
- Sought external immigration advice
- Explored alternatives, including relocation within the group
Mr Dhakal declined relocation. Following a formal process, his employment was terminated ahead of the expiry of his right to work.
The Tribunal’s Decision
The Employment Tribunal found in favour of the employer, confirming that:
- The dismissal was for a potentially fair reason (loss of right to work)
- The employer had acted reasonably in all the circumstances
- The issue arose due to government policy changes, not employer fault
Key Takeaways for Employers
This case reinforces that dismissal in these circumstances can be fair, but only where a robust and well-documented process is followed.
A fair process remains essential
Even where the outcome seems inevitable, employers must follow a proper procedure.
Engage early and communicate clearly
Employers should:
- Audit sponsored workers against new thresholds
- Explain changes and their impact as early as possible
- Give employees time to consider their options
Meaningful consultation is critical
Consultation should involve genuine dialogue, including:
- Inviting the employee’s input
- Exploring alternatives (salary increases, redeployment, relocation)
- Allowing time for consideration
Take specialist advice
Immigration rules are complex and evolving. Professional advice can help identify:
- Alternative visa routes
- Compliance risks (including artificial salary inflation concerns)
Follow a structured dismissal process
Employers should ensure:
- Formal meetings are held
- Decisions are clearly communicated
- Employees have the opportunity to respond and appeal
Keep clear records
Documentation is crucial in defending any subsequent claims. Employers should retain:
- Meeting notes
- Evidence of consultation
- Records of alternatives considered
While this is a first instance decision, it provides reassurance for employers navigating immigration-driven dismissals. The key message is clear: although external factors may drive the need for dismissal, fairness in process remains paramount.
If your organisation sponsors Skilled Workers, now is the time to review your workforce and prepare for upcoming extension points.
