UK Sponsor Licence Application Process
Application for Sponsor Licence
To hire non-UK resident workers, UK employers need a valid sponsor licence, essential for securing an employer sponsorship visa in the UK. This process involves demonstrating the ability to meet various compliance requirements set by the Home Office.
To lawfully employ a migrant worker in the UK, most employers will need a sponsor licence. This applies to hiring individuals on routes such as the Skilled Worker, Minister of Religion, and International Sportsperson routes, as well as the five Global Business Mobility and six other Temporary Worker routes.
For the Scale-up route, sponsorship is only required for the first 6 months of the initial 2-year grant. Afterward, the worker can continue with the same employer or switch employers without needing further sponsorship, provided they meet all requirements. They can also extend their visa without sponsorship.
Certain visas do not require sponsorship, such as the Graduate visa and the High Potential Individual (HPI) visa. The Graduate visa allows overseas graduates to work in the UK for at least 2 years after completing their studies. The HPI visa grants permission to stay for at least 2 years if the individual has a qualification from an eligible global university within the last 5 years.
The type of sponsor licence you need depends on the job you are offering and your ability to meet the specific requirements of the relevant immigration route.
For instance, to hire someone on the Skilled Worker route, you’ll need a Skilled Worker sponsor licence. This requires offering a genuine job that meets the required skill level and salary threshold. Once granted a Certificate of Sponsorship (CoS) by a licensed sponsor, the worker can apply for a Skilled Worker visa. This route allows UK employers to fill various skilled positions with overseas nationals.
Tier 2 / Skilled Worker Sponsorship Licence
The Skilled Worker Sponsorship Licence, allows UK employers to recruit skilled workers from outside the UK, including Europe. This licence is essential for businesses aiming to fill roles that require specific expertise not readily available within the UK. By obtaining this licence, employers can issue Certificates of Sponsorship to foreign workers, enabling them to apply for a work visa. The process involves demonstrating the legitimacy of the business, the necessity of hiring a foreign worker, and ensuring the role meets the required skill level and salary threshold. Compliance with the UK Visas and Immigration (UKVI) regulations is crucial, as employers must maintain accurate records, monitor employees’ immigration status, and report any significant changes. This licence is a valuable tool for businesses seeking to expand their talent pool and maintain a competitive edge in their industry.
Types of Sponsor Licences
Worker Sponsor Licence
Skilled Worker Route: For hiring employees in specific skilled occupations.
Global Business Mobility: Senior or Specialist Worker Route: For high-level positions within multinational firms.
Minister of Religion Route: For religious workers.
International Sportsperson Route: For athletes and coaches.
Temporary Worker Sponsor Licence
Scale-up Worker: For businesses undergoing rapid growth.
Creative Worker: For creative industries like film, television, and fashion.
Charity Worker: For voluntary workers in charitable organizations.
Others: Including routes like Government Authorised Exchange, International Agreement, Religious Worker, and Seasonal Worker.
What is Employer Sponsorship?
Employer sponsorship involves a UK business taking responsibility for a non-UK worker, ensuring they comply with immigration regulations and that their role is genuine and necessary.
Eligibility Criteria
To be eligible for a sponsor licence, employers must meet the following criteria:
Genuine Business: Must be a lawful operating UK business.
Compliance: Must have robust HR systems to monitor sponsored employees. Magrath Sheldrick can provide clients with a bespoke online tool, Global Reach to assist with the management, compliance and tracking of their migrant population.
No Criminal History: Key personnel should have no unspent criminal convictions for immigration offences or certain other crimes.
Proof of Need: Must show a genuine need for the role being filled by a non-UK worker.
Sponsor Licence Guidance
Step 1: Prepare Documentation
Compile necessary documents to prove the legitimacy of your business and your capability to comply with sponsorship duties. Common documents include:
– Proof of business registration
– Bank statements
– Evidence of business premises
– HR policies
Exact documentation will depend on the nature of the business applying for the licence.
Step 2: Online Application
Complete the online application form on the Home Office website. Submit all supporting documents within 5 working days of the online application.
Step 3: Compliance Check
The Home Office may conduct a compliance visit to ensure your business can meet sponsorship duties. This includes checking your HR systems and interviewing key personnel.
Step 4: Processing Time
The processing time is typically 8 weeks but may be extended if a compliance visit is required. Priority may be applied for reducing the processing time.
Costs
The current costs for applying for a sponsor licence include:
Temporary Worker Licence: £536
Worker Licence: £1,476 for large sponsors, £536 for small or charitable sponsors
Additional Fees apply for each sponsored worker including: Costs for Certificates of Sponsorship and the Immigration Skills Charge
How do I renew a sponsor licence
Sponsor licences typically last for four years. To continue sponsoring workers, businesses must renew their licence before it expires. Some routes, such as Scale-up and UK Expansion Worker, have specific renewal criteria.
Following a rule change, there is no longer a need to apply to extend your sponsor licence. The Home Office now automatically extends all existing licences by ten years, as noted in the company’s Sponsorship Management System (SMS).
However, there are exceptions. For instance, the UK Expansion Worker route does not allow licence renewal. This route is for overseas businesses to establish a UK presence within two years. After this period, you can’t sponsor new or existing workers under this route but can apply to add other routes, such as the Skilled Worker route, to your licence.
Similarly, the Scale-up sponsor licence cannot be renewed beyond four years. To continue sponsoring workers, you must apply for a licence under another route, such as the Skilled Worker route.
Compliance and Management
Once granted a sponsor licence, employers must:
Maintain Records: Keep detailed records of sponsored workers, including contact details, job descriptions, and copies of passports and visas.
Report Changes: Use the Sponsorship Management System (SMS) to report changes in the worker’s circumstances, such as changes in job role or salary, within specified timeframes.
Meet Duties: Ensure sponsored employees comply with their visa conditions and do not misuse their stay in the UK.
Penalties
Non-compliance with sponsorship duties can result in:
Downgrading of Licence: From A-rating to B-rating, limiting the ability to sponsor new workers.
Suspension: Temporary inability to sponsor new workers while issues are resolved.
Revocation: Permanent loss of the licence, affecting the ability to sponsor workers.
Sponsor Licence holder requirements
To obtain a Sponsor License in the UK, employers must meet several suitability requirements to ensure they are capable of fulfilling their sponsorship duties responsibly. These requirements include demonstrating a genuine need for the license to sponsor non-UK workers for specific job roles. Employers must provide evidence of their legitimacy, such as registration with the appropriate regulatory body, and show that they have appropriate HR systems in place to monitor sponsored employees effectively. Additionally, they must not have any history of immigration violations or unspent criminal convictions related to certain offenses. The organisation must also appoint key personnel for managing the sponsorship process, including an Authorising Officer, Key Contact, and Level 1 User. Meeting these requirements ensures that employers can uphold their responsibilities, preventing abuse of the immigration system and ensuring compliance with UK immigration laws.
Compliance
Compliance visits by the Home Office are a critical component of the UK’s sponsorship system, ensuring that Sponsor License holders adhere to their obligations. During these visits, which can be announced or unannounced, Home Office officials review the employer’s practices and records to verify compliance with sponsorship duties. This includes checking the accuracy of employee records, monitoring systems, and adherence to immigration rules. Employers must demonstrate that they are fulfilling their responsibilities, such as tracking employee attendance, updating the Home Office about significant changes, and conducting right-to-work checks. Non-compliance identified during these visits can lead to penalties, including downgrading, suspension, or revocation of the Sponsor License. These visits are essential for maintaining the integrity of the sponsorship system, preventing abuse, and ensuring that sponsored workers are genuinely contributing to the UK workforce.
How to apply for a Skilled Sponsor Licence
Applying for a Skilled Worker Sponsor License involves several key steps. First, the employer must ensure they meet the eligibility criteria, including being a legitimate organisation operating lawfully in the UK and having appropriate systems in place to manage the sponsorship process. The application is submitted online through the UK Visas and Immigration (UKVI) portal, accompanied by a fee and supporting documentation such as proof of business registration, evidence of need for the license, and details of the key personnel involved in the sponsorship process. The employer must also appoint an Authorising Officer, Key Contact, and Level 1 User who will manage the sponsorship duties. After submission, the UKVI will review the application and may conduct a compliance visit to verify the information provided. Successful applicants will receive a license rating and can then begin issuing Certificates of Sponsorship to eligible workers, enabling them to apply for a Skilled Worker Visa.
Responsibilities
As a sponsor licence holder, the Sponsorship Management System (SMS) will become an integral part of your daily HR activities. It’s crucial to keep your licence up to date, as the Home Office has the authority to downgrade, suspend, or revoke it, potentially affecting the status of your current sponsored migrant employees and your future ability to recruit and employ sponsored migrants. During the application process, the Home Office will verify your ability to comply with sponsor licence duties, which include:
Record Keeping: Your organization must maintain records of sponsored workers, such as their current Right to Work documentation, National Insurance numbers (if applicable), and up-to-date contact details.
Monitoring and Reporting: You must track and monitor sponsored employees, reporting within 10 working days if the individual fails to start work as expected, has 10 consecutive days of unauthorised absence, terminates their contract earlier than anticipated (e.g., resignation), or moves to another immigration category. Additionally, you must report any suspicions or evidence that an individual is breaching their stay conditions in the UK.
Absence Monitoring: Ensure all absences of sponsored employees are authorised, including those for sickness, annual leave, study leave, and overseas travel.
Duty to Notify: Inform the Home Office of any address changes. Unannounced site visits are common, requiring up-to-date addresses for inspections. You must have an Authorising Officer in place at all times. If the current officer leaves, relocates overseas, or goes on sabbatical or maternity leave, you must appoint a replacement and update this on the SMS.
Internal Records and Updates: While details of UK branches are not published on the SMS, you need to maintain internal records and update them whenever a branch opens or closes. It’s best practice to inform UKVI whenever a linked overseas entity is established or closed.
Reporting Significant Changes: Notify the Home Office of significant company changes, such as takeovers, acquisitions, mergers, and TUPE transfers, within 28 days, as these changes can have complex implications for your licence.
Home Office Inspection
A pre-licence Home Office site inspection is a crucial step in the process of obtaining a Sponsor Licence. During this inspection, Home Office officials visit the applicant’s business premises to verify the legitimacy and readiness of the organisation to meet sponsorship responsibilities. Inspectors will review HR systems, record-keeping practices, and procedures to ensure compliance with sponsorship duties, such as maintaining accurate records of sponsored employees, monitoring their immigration status, and reporting any changes or issues promptly. The officials may also interview key personnel to assess their understanding of their roles and responsibilities. Successfully passing this inspection is essential for demonstrating that the organisation has the necessary infrastructure and processes in place to effectively manage and support sponsored workers, thereby increasing the likelihood of being granted a Sponsor Licence.
Immigration Skills Charge
The Immigration Skills Charge (ISC) is a levy imposed on UK employers who sponsor migrant workers under the Skilled Worker route or certain other visa categories. Introduced to encourage investment in the domestic workforce, the ISC aims to mitigate the impact of hiring foreign workers on the UK job market. Employers are required to pay this charge when they assign a Certificate of Sponsorship to a worker, with the amount depending on the size and type of the organisation and the length of employment stated in the certificate. Small businesses and charities pay a reduced rate compared to larger organisations. The revenue generated from the ISC is used to fund training and development initiatives for UK residents, helping to address skill shortages and promote the upskilling of the local workforce. Failure to pay the ISC can result in penalties and impact the employer’s ability to sponsor workers in the future.