UK Sponsorship Licensing for Employers: Attract the Best Global Talent
The ability to attract top international talent is more critical than ever for your UK businesses striving to stay ahead in a competitive, global market. Sponsorship licensing lies at the heart of the UK's immigration points-based system (PBS), giving employers, like you, the authority to sponsor skilled workers from overseas. If your company is aiming to innovate and grow, hiring talent from beyond the UK is a powerful way to expand your capabilities—but only if you can navigate the complexities of immigration law. Let us make it easier for you.
Even if you are not a registered sponsor, it is essential to be aware that you must not hire any non-British or settled workers, including students or temporary workers, who do not have the right to work in the UK.
The concept of sponsorship licensing is at the heart of the points-based system. If you want to employ a migrant or enrol a migrant as a student, you must be their sponsor during their stay in the UK (unless they are coming here for 6 months or less, or in certain other circumstances, such as already holding valid sponsorship through another party). Before you can sponsor a migrant, you must obtain a sponsor licence and ensure that your business complies fully with UK immigration rules.
Let's break it down together, making the process as smooth as possible for you and your business.
Why Get a Sponsor Licence?
In today's business landscape, accessing the world's talent is crucial. UK employers need a sponsor licence to hire non-UK residents, including for unpaid roles in charitable organisations. However, certain individuals are exempt from this requirement, such as Irish citizens or those with settled status under the EU Settlement Scheme. With our expert guidance, as UK immigration lawyers, your business can confidently navigate the sponsor licensing process, enabling you to focus on what's important—growth and innovation.
Employers will be required to sponsor the prospective non EEA migrant employee. Before that employee can obtain a Work Permit Visa (usually a Skilled Worker Visa), the employer will need to issue the candidate a Certificate of Sponsorship.
How to Obtain a Sponsor Licence: A Step-by-Step Guide
With the constantly changing immigration rules, getting to grips with securing a sponsor license becomes essential for any business eager to tap into the global talent pool.
This guide simplifies things, offering a step-by-step walkthrough on snagging that all-important sponsor license, learning your duties, and complying with UK immigration laws.
The first stage is that employers must obtain a Sponsorship Licence to enable you to issue Certificates of Sponsorship. Essentially, this is what was previously known as a ‘Work Permit' in simpler terms. To hire someone, you must issue a Certificate of Sponsorship (CoS), which is a reference number linked to an electronic record in the UKVI (Home Office) system.
The employee will use this CoS to make their visa application, allowing them to move to or stay in the UK and work with you. To do this, you must first demonstrate that your business is legitimate, that you have or will hire for a genuine position, and that you are capable of handling your duties as a registered sponsor, including record-keeping and reporting requirements.
Employers are awarded either an A rating or B rating level Sponsorship Licence, depending on the Home Office’s risk assessment. Employers will be awarded an A rating in most cases. B rated employers have issues, outlined by the Home Office, that need to be first addressed before they can be A rated.
Where employers do not fulfil their responsibilities, they will be downgraded to a B rating, or even have their Sponsorship Licence withdrawn. You do not want this to happen, as it can lead to severe consequences, including losing the ability to hire international workers, disruption to business operations, and potential reputational damage. Ensuring full compliance at all times is crucial to maintaining your ability to hire individuals who require permission to stay and work in the UK… it means that your employees' futures are in your hands, and maintaining compliance is essential to ensure stability for them and for your business.
You are responsible for ensuring that candidates are eligible and suitable to fill the positions being offered, and accountable when the system is abused. You will undergo immigration compliance checks.
Your Sponsorship Licensing Checklist
Get your quick checklist and tool for obtaining and maintaining a sponsor licence. This checklist includes verifying eligibility, appointing key personnel, ensuring job suitability, managing compliance, and preparing for UKVI inspections. Accessing this resource will help you stay organised and consistently meet all necessary requirements.
Access the Sponsorship Licence Checklist here and sign up to be added to our list for regular updates, exclusive access to free resources, and discounted access to our online workshops.
- Check Your Eligibility
- Lawful Operation: Your business must be legitimate, operating lawfully in the UK. You, the Key Personnel or the business shouldn't have any unspent criminal convictions, particularly in areas like immigration or fraud. Additionally, a revoked sponsor licence in the past 12 months may affect your eligibility.
- Staffing for Sponsorship: Ensure you have a robust HR system in place to monitor the status of sponsored workers and keep accurate records, including their right to work. This step is crucial to prove to the Home Office that you can manage your sponsorship duties effectively.
- Lawful Operation: Your business must be legitimate, operating lawfully in the UK. You, the Key Personnel or the business shouldn't have any unspent criminal convictions, particularly in areas like immigration or fraud. Additionally, a revoked sponsor licence in the past 12 months may affect your eligibility.
- Ensure Job Suitability for Sponsorship Not all jobs qualify for sponsorship. To qualify, the position should typically be at or above a certain skill level and meet the minimum salary threshold outlined by UK immigration law. This ensures that the roles you seek sponsorship align with the government's requirements for non-UK resident workers. Resources like the UK Tier 1 Visa and UK Tier 2 Visa guidelines can help determine if your job fits the sponsorship criteria. The role must meet specific criteria:Skill Level: Typically, the position should be skilled at RQF Level 3 (A-level) or above.
- Salary Requirement: Minimum salary thresholds must be met—just under £39,000 per annum, but this may vary based on the role, the candidate's attributes, or “immigration salary list” (previously referred to as the “shortage occupation”) listing.
- Other Factors: Depending on the route, other factors that may need to be taken into account are:
- The candidate was employed with an overseas branch of the employer for the last six months.
- The candidate is a religious worker.
- The candidate is a sportsperson.
- The candidate is transferring under an intra-company transfer scheme (the new Global Business Mobility route).
- The candidate is applying under a government-authorised exchange scheme.Check Whether an ATAS Certificate is Needed from Your WorkerAn Academic Technology Approval Scheme (ATAS) certificate may be required for some roles, particularly those in research or academia. The certificate is intended to ensure that individuals working on sensitive topics do not pose a security risk to the UK. Ensuring your employees have the necessary clearance is part of your sponsorship duties.
- The Skilled Work Permit candidate is then assessed with a points test based upon their attributes, including an English language level requirement.It's essential to verify that the positions you wish to fill meet the UK government's criteria for sponsorship. This includes ensuring the roles are of the required skill level and meet the appropriate salary threshold. Issuing a CoS will be detrimental to your licence. A lot of employers struggle with ensuring the right CoS is issued. Help is at hand from our team.
- Choose the Type of Sponsor Licence Depending on the job and the worker, you'll need to choose between a Skilled Worker Licence (formerly Tier 2) for long-term roles and a Temporary Worker Licence (formerly Tier 5) for short-term positions or the Global Business Mobility. Choosing the correct licence type is essential, as it determines your obligations as a sponsor and the length of stay permitted for the worker. Your choice will depend on the nature of the jobs you offer and the qualifications of the employees you wish to sponsor.Appoint Key Personnel for Sponsorship Management Effective sponsorship requires assigning the following roles within your company:
- Authorising Officer: Senior and responsible for the sponsorship management.
- Key Contact: The main point of contact with UK Visas and Immigration (UKVI).
- Level 1 User: Responsible for day-to-day management of the licence.
- Level 2 Users: Assist with routine administrative duties, such as updating worker records and assigning Certificates of Sponsorship, ensuring smooth management of day-to-day sponsorship activities.
- Legal Representatives: To help manage your sponsorship duties effectively. A legal representative can assist with ensuring compliance, managing communications with the UKVI, and handling other critical functions related to your sponsor licence. This is usually where we come in to support you through your management requirements and ensuring you are compliant.
- Apply Online and Pay the Fee Once these steps are completed, apply for your licence online via the UKVI portal. You will need to provide supporting documents, demonstrating your eligibility. UKVI may also visit your business to ensure compliance, which is why it's important to have your HR and systems ready.
Your Licence Rating: A or B?
Successful applicants receive either an A or B rating for their sponsorship licence:
- A Rating: Reflects full compliance, allowing the business to issue Certificates of Sponsorship.
- B Rating: Indicates issues that need addressing. Businesses will receive an action plan and must pay a fee to upgrade their rating to A.
Compliance and Your Responsibilities as a Sponsor
As a sponsor, you must:
- Ensure Eligibility: Confirm that your sponsored employees are qualified for their roles and have the right to work in the UK.
- Report Activities: Notify UKVI of any significant changes, such as changes in the employee's employment status.
- Record-Keeping: Maintain accurate records for all sponsored employees.
- Compliance Visits: Be prepared for a compliance visit from UKVI to assess adherence to immigration laws.
Failure to comply with these duties can result in licence suspension or revocation, which could impact your ability to hire international talent in the future.
Sponsorship Licence Processing Time and Priority Service
The standard processing time for a sponsorship licence is up to 8 weeks, but businesses can opt for a priority service for a faster decision, typically within 10 working days. This fast-track option is, however, subject to availability and an additional fee.
Immigration Skills Charge
Most employers must pay an Immigration Skills Charge for each sponsored worker, which is aimed at incentivising UK businesses to invest in resident workers first. This charge varies depending on the size and type of business, and your potential employee's circumstances.
Maintaining Your Sponsor Licence
Maintaining your licence involves regular checks and proactive management. You must keep up-to-date with Home Office requirements and regularly audit your HR practices. If UKVI finds issues during a compliance check, your licence could be downgraded or even revoked, resulting in significant disruptions to your hiring plans.
If compliance issues are identified, you are generally given an opportunity to rectify these problems. However, severe breaches can lead to immediate suspension or revocation, meaning it's critical to ensure all processes are robust.
In today's global economy, attracting international talent is essential for businesses seeking to innovate and grow.
The UK government requires you to obtain a sponsor license to employ non-UK residents. This requirement extends to unpaid positions, such as those in charitable organisations.
However, Irish citizens, individuals with settled or pre-settled status under the EU Settlement Scheme, and those with Indefinite Leave to Remain in the UK are exempt from this requirement.
Benefits of Sponsorship Licence:
Holding a sponsorship licence provides numerous advantages to employers seeking to grow and innovate by tapping into the global talent market. Some of the key benefits include:
- Access to a Wider Talent Pool: With a sponsorship licence, you are no longer limited to local talent; you can hire the best candidates from around the world. This allows you to fill skill gaps that might be hard to address within the UK labour market, ensuring your business has the expertise needed to thrive. It's the reason why the Shortage Occupations List was created in the first place as the UK government have identified a lot of skills gaps in the UK workforce.
- Strategic Workforce Planning: Sponsoring skilled workers gives your business the ability to plan strategically, especially in sectors experiencing labour shortages. By sponsoring international talent, you can address skill deficiencies, expand your workforce capacity, and adapt more effectively to market demands.
- Competitive Advantage: Access to a global talent pool gives businesses a significant competitive advantage. By recruiting diverse talent from different cultures and backgrounds, you can foster innovation, gain different perspectives, create a more dynamic workplace, and gain a strategic advantage.
- Business Continuity: Having access to international talent helps ensure business continuity in the face of local skill shortages or industry downturns. Being able to bring in the right talent from outside the UK can be a key factor in maintaining productivity during challenging times.
- Employee Loyalty and Retention: Employees sponsored for work visas tend to show increased loyalty, as their work and stay in the UK are directly linked to their employment with you. This can lead to lower turnover rates, saving costs associated with recruitment and training.
- Enhanced Brand Image: Having a sponsorship licence signals that your company is committed to global talent, diversity, and inclusion. This enhances your brand image and makes your company more attractive to top talent, both locally and internationally.
- Flexibility to Respond to Business Needs: A sponsorship licence gives your company the flexibility to hire international workers when needed, allowing you to respond to project demands, client requirements, or specific skills shortages without being hindered by geographical limitations.
- Sector-Specific Expertise: In sectors like healthcare, IT, engineering, and education, accessing overseas talent is crucial for specialised roles. Sponsorship licensing helps you bring in professionals with niche expertise that can be pivotal to your industry, ensuring your company remains at the cutting edge.
FAQs
What is the processing time for a Sponsor Licence application?
The processing time depends on the volume of applications received and the completeness and complexity of your application. Generally, applications are processed within eight weeks from the submission date.
However, for an additional fee, some businesses may be eligible for the priority service, which aims to process applications more quickly.
Can a sponsor licence be fast-tracked, and if so, how?
It's important to note that the fast-track option, known as the priority service, is subject to availability.
This service is designed for businesses that need their sponsor license application processed more quickly. Businesses must meet specific criteria and pay an additional fee for this service. Availability is limited and subject to current demand and UKVI's discretion.
How do I maintain compliance with my Sponsor Licence duties?
Maintaining compliance involves several vital responsibilities:
- Ensuring that sponsored employees are eligible and qualified for their roles.
- Report significant business changes or your sponsored employees' status to UKVI.
- Keeping accurate records of your employees.
Adhering to immigration laws.
Regularly reviewing UKVI guidance and potentially conducting internal audits or seeking legal advice can help ensure compliance.
What are the costs involved in obtaining a Sponsor Licence?
The costs for obtaining a sponsor licence depend on the size and type of your business. Generally, there are fees for applying, plus ongoing costs such as the Immigration Skills Charge for each sponsored worker. Additionally, legal advice and management services can add to the expenses.
What types of roles can be sponsored under a Skilled Worker Licence?
Roles that can be sponsored must meet certain criteria, such as skill level and salary thresholds. Generally, they should be at RQF Level 3 (A-level) or higher, and meet minimum salary requirements as set by UK immigration regulations. There is an Immigration Salary List (and a previously known Shortage Occupation List) that identifies roles that are in need in the UK. But most roles in your organisation are available for sponsorship.
How long does a Sponsor Licence last, and how can I renew it?
A sponsor licence is valid for four years. You must renew your licence before it expires if you wish to continue sponsoring international employees. Failing to renew in time can result in losing your ability to hire international talent.
What are my obligations after hiring a sponsored employee?
You must monitor your employee’s visa status, report any significant changes (like a change in job title or responsibilities), and maintain accurate records. You should also be monitoring any member of staff who is not a British or settled person. Non-compliance with these obligations could lead to penalties or licence suspension.
Can I switch from a Temporary Worker Licence to a Skilled Worker Licence?
Yes, it is possible for employees to switch from a Temporary Worker Licence to a Skilled Worker Licence under certain circumstances, provided that the role meets the requirements of a Skilled Worker Visa and they meet eligibility criteria.
How does the Global Business Mobility route differ from a Skilled Worker Licence?
The Global Business Mobility route is aimed at facilitating business expansion and talent movement within a corporate group, whereas the Skilled Worker Licence is for hiring overseas workers for long-term roles in skilled positions.
What happens if my business fails a UKVI compliance visit?
Non-compliance with Sponsor Licence duties can have serious consequences for your business. If your business fails a UKVI compliance visit, the outcomes can vary depending on the nature and severity of the non-compliance.
They may include a downgraded license, additional reporting duties, a temporary suspension while you make improvements, or, in severe cases, revocation of your sponsor license. UKVI typically guides rectifying the issues identified.
Can I appeal an adverse decision to revoke my Sponsor Licence?
If you are denied or your existing license is revoked, you do not have a formal right of appeal.
However, if a casework error has occurred, you may be able to challenge the decision by requesting an administrative review. For revocations, seeking legal advice to explore the best course of action is advisable.
How IaM Can Help You
Navigating the sponsorship landscape can feel overwhelming, especially with the constantly changing immigration rules. At IaM, we work alongside you to simplify the process, ensuring compliance and helping you make the most of your global recruitment strategy. Whether you're applying for a sponsor licence for the first time or need ongoing support to maintain compliance, our services are designed to suit your needs.
Dream Outcome for Our Clients: Imagine having a streamlined, compliant sponsorship system that allows you to bring in the best talent, without headaches or worries. That's what we help you achieve, so you can focus on driving innovation and growth.
Got Questions? Let's Connect For more information or personalised support on sponsorship licensing, please get in touch with us today. We offer tailored advice sessions to ensure you're fully prepared and compliant every step of the way.
Related Resources
Access the Sponsorship Licence Checklist Here and sign up to be added to our list for regular updates, exclusive access to free resources, and discounted access to our online workshops.
