18/05/2026

Since Brexit, many employers have sought to fill skill gaps by recruiting from abroad and sponsoring workers. Before April 2024, the visa salary threshold for a Skilled Worker was £26,200 and in April 2024 that dramatically increased to £38,700 and increased again to £41,700 in July 2025.

These significant increases have created real issues for employers when considering if they can renew and/or continue sponsoring the skilled worker. As a result, some employees risk losing their jobs because employers cannot meet the Home Office’s much higher salary levels.

Employers cannot employ these workers under the old, lower salary thresholds. Raising salaries to satisfy the eligibility criteria is not usually an option as to comply with the Home Office rules employers must pay the ‘standard’ salary rate, or the ‘going rate’ for the job, whichever is higher. It could also create other difficulties including potential litigation from colleagues performing similar roles at lower pay.

This was the issue considered in the recent case Surya Dhakal v FinTrU Limited. In that case, we successfully represented the employer in demonstrating that the dismissal was fair when he was dismissed as his job no longer met the higher salary threshold.

Background

Mr Dhakal, was employed by FinTrU on a skilled worker visa following the expiration of his graduate visa. FinTrU assisted him throughout the visa transition process and supported his family’s relocation to the UK.

When the Home Office increased the salary thresholds for skilled worker visas in 2024, Mr Dhakal’s existing salary no longer met the new requirements. FinTrU used an automatic notification system to alert sponsored workers whose visas were set to expire within six months. Mr Dhakal

received this notification but did not take action to review his status. FinTrU also met with Mr Dhakal to assess if his circumstances had changed and explored if he could continue working in another way for example if his partner’s job qualified for sponsorship. The company also gave Mr Dhakal access to specialist immigration advice.

Mr Dhakal made suggestions such as increasing his salary solely to meet the new threshold and extending his visa for five months to give him additional time to seek alternative employment.

After careful consideration, FinTrU declined these proposals and started a formal process, resulting in the termination of his employment, which was upheld on appeal.

Subsequently, Mr Dhakal submitted a complaint to the employment tribunal, alleging unfair dismissal and seeking £250,000 in compensation.

Decision

The Tribunal found that:

•  FinTru had a fair and lawful reason for dismissal: the expiry of the Mr Dhakal’s right to work in the UK, and the inability to continue sponsorship under the new salary thresholds.
•  The process adopted by FinTru was reasonable, thorough, and in line with best practice. The company’s efforts to seek expert advice, consult with the employee, and explore alternatives were commended.
•  The options proposed by Mr Dhakalwere found to be either unlawful, unethical, or unreasonable in the circumstances.
•  The decision to dismiss was not only fair but also proportionate, and the claim of unfair dismissal was dismissed in its entirety.

Key Takeaways for Employers

This case offers several important lessons for employers in similar circumstances:

1. Monitor Legal and Regulatory Changes Closely: Stay abreast of developments that may impact your employees’ right to work, and seek expert advice as soon as changes are announced.

2. Engage Early and Transparently: Open communication with affected employees is essential. Involve them in discussions, explain the situation clearly, and document all interactions.

3. Explore All Reasonable Alternatives: Consider every viable option, but ensure that any proposals are lawful, ethical, and fair to all employees.

4. Consult External Experts: Where the law is complex or evolving, seek advice from specialists to ensure your decisions are robust and defensible.

5. Follow a Fair Process: a fair procedure must still be followed and for Northern Ireland employers that includes the 3 step statutory dismissal and disciplinary procedures.

6. Document Everything: Keep clear records of all advice received, meetings held, and decisions made. This will be invaluable if your actions are ever scrutinised.