Sponsor Licence
Sponsor Licence Content Overview
- What is a UK Sponsor Licence?
- Why Do Employers Need a Sponsor Licence?
- Types of Sponsor Licences
- Eligibility Criteria for a Sponsor Licence
- Sponsor Licence Application Process
- Sponsor Licence Fees and Costs
- Duties and Responsibilities of a Sponsor Licence Holder
- Sponsor Licence Compliance and Monitoring
- How to Renew or Upgrade a Sponsor Licence
- Common Challenges in the Sponsor Licence Process
- Conclusion: How We Can Help
- Frequently Asked Questions (FAQs)
- Visa Glossary
- Visa Resources
UK Sponsor Licence
A UK Sponsor Licence grants UK employers the legal permission to recruit non-UK nationals to work in roles that meet specific immigration criteria. Issued by UK Visas and Immigration (UKVI), this licence is required for businesses that need to sponsor skilled workers from overseas under various visa categories. These include Skilled Worker visas, Temporary Worker visas, and others. Employers without a sponsor licence cannot legally employ workers from outside the UK who need a visa.
Why Do Employers Need a Sponsor Licence?
The demand for skilled international workers in sectors such as IT, engineering, healthcare, and construction often exceeds the available talent pool within the UK. A sponsor licence allows businesses to fill these skills gaps by hiring non-UK talent. With the ability to sponsor workers under routes like the Skilled Worker Visa, businesses can attract global talent to fill roles that are critical for operational success. Without this licence, businesses may face severe penalties if they employ workers illegally.
Types of Sponsor Licences
The Home Office offers two primary types of sponsor licences based on the type of workers businesses wish to sponsor:
- Worker Sponsor Licence: This covers long-term roles under visa categories like the Skilled Worker or Scale-up Worker visas. Businesses looking to hire for permanent or long-term roles that require skilled expertise should apply for this type.
- Temporary Worker Sponsor Licence: This is designed for short-term employment, including seasonal work, volunteering, and other temporary roles. Common visas in this category include Charity Worker and Seasonal Worker visas.
Eligibility Criteria
General Business Requirements
To obtain a UK Sponsor Licence, your business must be able to prove that it is both genuine and financially stable. This includes having a clear presence in the UK with sufficient resources to manage sponsored workers. Additionally, your business must be in good standing with UK employment laws. For example, companies must ensure compliance with minimum wage, working hours, and health and safety regulations. Key documents that demonstrate these requirements include financial statements, tax filings, and proof of active business operations.
Key Personnel Roles
A critical part of your application involves designating key personnel to manage your Sponsorship Management System (SMS). These roles include:
- Authorising Officer: This person is responsible for ensuring that your business complies with sponsorship duties and is usually a senior figure within the organisation.
- Key Contact: This is the main point of communication between your business and the Home Office.
- Level 1 & 2 Users: These individuals manage the day-to-day tasks related to the Sponsorship Management System (SMS), such as issuing Certificates of Sponsorship (CoS) and updating employee details.
Each of these individuals must pass a UKVI background check to ensure they have no unspent criminal convictions, especially those related to immigration offences.
The Sponsor Licence Application Process
Step 1: Preparing Your Business for the Application
Before starting the application process, it’s crucial that your business prepares thoroughly. This includes appointing key personnel and ensuring your HR systems can handle the responsibilities of managing sponsored workers. Businesses should conduct an internal audit to ensure they can manage visa expirations, employee absences, and compliance with immigration law.
Step 2: Collate Required Documents
The documentation required varies depending on the type of licence and the size of the business. The minimum is typically four documents, but you may need more based on your operations. Commonly requested documents include:
- Company’s certificate of incorporation
- Financial records and tax returns
- Proof of business premises
- VAT registration certificate Gathering these documents in advance will streamline the application process and prevent delays.
- Employer’s lability Insurance
Step 3: Complete the Online Application Form
The application is submitted through the Sponsorship Management System (SMS) on the Home Office portal. You will need to provide detailed information about your business, including:
- The visa categories you intend to sponsor
- Information about your key personnel
- Number of Certificates of Sponsorship you need.
Make sure all sections are completed carefully, as mistakes or omissions can result in delays or rejections.
Step 4: Pay the Sponsor Licence Application Fee
The fee depends on the size of your business:
- Small businesses and charities: £536
- Medium or large businesses: £1,476 Choosing the correct fee category is critical to avoid processing delays.
Step 5: Submit Supporting Documents
Your supporting documents must be submitted within five working days of submitting the online application. This must be done by sending an email to (sponsorshipvalidations@homeoffice.gov.uk) with signed submission sheet. Failure to do so may result in the application being delayed or rejected.
Step 6: Prepare for a UKVI Compliance Visit
Most businesses will receive a compliance visit from the Home Office, during which inspectors will verify your HR systems. This visit is to ensure you can meet the requirements for tracking employee visas and report any changes. Businesses must have efficient systems in place for record-keeping and monitoring employee activity.
Step 7: Receive a Decision from the Home Office
The processing time for most sponsor licence applications is up to eight weeks. However, using priority services can reduce this to as little as 10 working days for an additional fee of £500. Once approved, your business will receive a licence, allowing you to issue Certificates of Sponsorship.
To discuss your UK Sponsor Licence application with one of our immigration experts, please contact X Law Lawyers.
Sponsor Licence Fees and Associated Costs
Sponsor Licence Application Fees
The application fees vary based on the type of business:
- Small or charitable businesses: £536
- Medium or large businesses: £1,476.
Additional Sponsorship Costs
Besides the application fee, businesses must also budget for:
- Immigration Skills Charge: £364 per year for small businesses and £1,000 per year for large businesses.
- Certificate of Sponsorship (CoS) Fee: £239 for each sponsored worker.
Optional Costs
If you need a faster decision on your sponsor licence, the priority service (£500) and super-priority service (£1,000) can expedite the application. There are also costs associated with maintaining a compliant HR system and, potentially, legal fees.
Duties and Responsibilities of a Sponsor Licence Holder
Record-Keeping Requirements
As a licence holder, you must maintain accurate and up-to-date records for each sponsored employee. This includes copies of their passport, visa, employment contract, salary records, right to work checks for both sponsored and non-sponsored employees, attendance, rota, address history and any changes in their employment status. The UKVI may request these documents during audits or compliance checks.
Reporting Obligations
Key reporting duties include notifying the Home Office of any significant changes, such as:
- If a sponsored worker fails to start their job
- If a worker’s contract is terminated
- If the business undergoes significant changes, such as a merger or name change Failure to report within the specified timeframes can lead to severe penalties.
Ongoing Compliance
Maintaining compliance is critical for retaining your sponsor licence. This includes conducting right-to-work checks, monitoring visa expiration dates, and ensuring that employees only perform the job roles specified on their visa.
Sponsor Licence Compliance and Monitoring
Home Office Compliance Visits
The Home Office conducts both pre-licence and post-licence compliance visits to ensure businesses are adhering to their sponsorship duties. These visits can be announced or unannounced, so it is essential to maintain compliance at all times. During these visits, the Home Office will assess your HR systems, how you monitor employee compliance, and your record-keeping processes. Being unprepared for these checks can lead to severe consequences.
Consequences of Non-Compliance
Non-compliance can result in a variety of penalties, including a downgrade to a B-rating, suspension, or even revocation of your licence. With a B-rating, you will be unable to sponsor new workers until the issues are resolved and the licence is restored to an A-rating, which often requires completing an action plan provided by the Home Office.
How to Renew or Upgrade Your Sponsor Licence
Licence Renewal Process
A Sponsor Licence is valid for ten years. In the light of recent changes the renewal after 4 years has been removed.
Upgrading from a B-rating to an A-rating
If your licence is downgraded to a B-rating, you will be required to follow an action plan to address any issues identified by the Home Office. Once you have successfully met the conditions of the action plan, you can apply for an upgrade back to A-rating, allowing you to resume sponsoring new workers.
Common Challenges in the Sponsor Licence Process
Common Reasons for Application Rejection
Common reasons for rejection include incomplete applications, failure to provide sufficient supporting documents, and the presence of unsuitable key personnel. Ensuring that all criteria are met, and that the documentation is accurate, can prevent delays or rejections.
Solutions for Difficult Sponsorship Cases
In complex cases, such as business mergers, ownership changes, or global expansion, the sponsorship process can become more complicated. In these instances, businesses are advised to seek legal assistance to avoid the compliance issues.
Conclusion: How We Can Help
There are complexities of applying for a UK Sponsor Licence which can be challenging. Our team of legal experts provides support at every stage—from the initial application through compliance and renewal. Whether you’re applying for your first licence or managing ongoing sponsorship duties, we offer tailored services to ensure your business remains compliant with all Home Office requirements. Get in touch with us to discuss how we can assist with your sponsor licence application.
To discuss your UK Sponsor Licence application with one of our immigration experts, please contact X Law Lawyers.
Sponsor Licence Frequently Asked Questions (FAQs)
What is a UK Sponsor Licence?
A UK Sponsor Licence is an approval issued by UK Visas and Immigration (UKVI), allowing UK businesses to legally hire and sponsor skilled non-UK workers. It applies to both long-term and temporary workers under specific visa categories.
Why do I need a Sponsor Licence?
Without a Sponsor Licence, your business cannot legally hire workers from outside the UK who require a visa. A Sponsor Licence gives you access to a global talent pool, essential for filling roles in skilled sectors.
What types of Sponsor Licences are available?
There are two primary types of licences: Worker Sponsor Licence (for long-term, skilled roles such as the Skilled Worker visa) and Temporary Worker Sponsor Licence (for short-term or seasonal roles).
How long is a Sponsor Licence valid for?
A Sponsor Licence is valid for 10 years. After that, you must apply to renew it if you wish to continue sponsoring foreign workers.
What is a Certificate of Sponsorship (CoS)?
A Certificate of Sponsorship (CoS) is an electronic document issued by the sponsoring business to the foreign worker. It contains information about the job offer and allows the worker to apply for their visa.
How do I apply for a UK Sponsor Licence?
The application is submitted online via the Home Office’s Sponsorship Management System (SMS). It involves providing detailed information about your business, appointing key personnel, submitting supporting documents, and paying the applicable fee.
How long does it take to get a Sponsor Licence?
The standard processing time for a Sponsor Licence application is up to 8 weeks. However, there is a priority service available for an additional £500, which can expedite the decision to within 10 working days.
How much does a Sponsor Licence cost?
For small businesses and charities, the application fee is £536. For medium and large businesses, the fee is £1,476. Additional costs apply for each sponsored worker, such as the Certificate of Sponsorship fee (£239) and the Immigration Skills Charge (£364 per year).
What is the Immigration Skills Charge?
The Immigration Skills Charge is a fee that employers must pay when sponsoring a worker. It is used to fund UK training and employment initiatives. The fee is £364 per year for small businesses and £1,000 per year for larger businesses.
Can I sponsor any job role?
No, only jobs that meet the minimum skill and salary requirements outlined by UKVI are eligible for sponsorship. For example, roles under the Skilled Worker visa must meet a salary threshold of £38,700 per year (general threshold) or the “going rate” for the role. There are exception for new entrants occupations in immigration salary list.
Can I sponsor a temporary worker for a short-term project?
Yes, you can apply for a Temporary Worker Sponsor Licence, which allows you to hire workers for short-term roles, such as those under the Seasonal Worker or Charity Worker visa categories.
Can I sponsor an international sports coach or athlete?
Yes, the International Sportsperson visa is designed for sportspeople and coaches who meet specific skill and performance criteria. You’ll need to obtain an endorsement from the relevant governing body before applying.
How can I sponsor a skilled worker in healthcare?
The Health and Care Worker visa is available for roles within the healthcare sector. To sponsor healthcare professionals, you need to apply for a Worker Sponsor Licence, ensuring that the roles meet salary and skill thresholds.
What are the key personnel roles required for a Sponsor Licence?
The key roles are:
- Authorising Officer: Responsible for managing the recruitment of sponsored workers.
- Key Contact: Liaises with the Home Office.
- Level 1 User: Manages day-to-day sponsorship activities via the Sponsorship Management System (SMS).
What are my duties as a Sponsor Licence holder?
As a licence holder, you must comply with several duties, including:
- Keeping accurate records of your sponsored workers.
- Reporting significant changes to the Home Office (e.g., if a worker’s employment ends early).
- Monitoring employee visa status and ensuring compliance with UK employment law.
What happens if I fail to meet my sponsor duties?
Failure to meet your duties can result in penalties, such as:
- Downgrading your licence to a B-rating, preventing you from sponsoring new workers.
- Suspension or revocation of your licence, requiring you to wait 12 months to reapply.
What should I do if a sponsored worker leaves or does not show up for work?
You must notify the Home Office via the Sponsorship Management System (SMS) within 10 working days if a sponsored worker fails to turn up for their job or their employment ends early.
What is a compliance visit, and how can I prepare for it?
A compliance visit is when the Home Office visits your business to check that you have the proper systems in place to manage sponsored workers. To prepare, ensure your HR records are up-to-date and demonstrate that you are complying with all sponsor duties.
How do I report changes in my business (e.g., merger, relocation)?
You must report any major changes to your business within 20 working days, such as a change in business address, name, ownership, or key personnel.
Can I lose my Sponsor Licence?
Yes, if you do not comply with the Home Office’s requirements, your licence can be downgraded, suspended, or revoked, which may prevent you from sponsoring new workers.
How many Certificates of Sponsorship (CoS) can I issue?
The number of CoS you can issue depends on the quota set by the Home Office when you apply. You can apply to increase this quota through the SMS if needed.
Can I sponsor a worker if I have a B-rating licence?
A B-rating prevents you from sponsoring new workers. However, you can continue to sponsor existing employees and work to upgrade your licence by following an action plan provided by the Home Office.
How do I upgrade from a B-rating to an A-rating?
You must follow an action plan set out by the Home Office to address any compliance issues. Once the required changes have been made, you can apply to restore your A-rating.
Can I add more visa categories to my Sponsor Licence?
Yes, you can apply to add new routes to your licence if your business needs to sponsor workers under different visa categories, such as adding a Temporary Worker licence to an existing Worker licence.
How do I renew my Sponsor Licence?
You must apply to renew your Sponsor Licence before it expires. The renewal process is similar to the initial application, including providing updated documentation and paying the renewal fee.
What happens during a Home Office compliance visit?
During a compliance visit, the Home Office will inspect your records, check that you are monitoring visa expirations, and ensure you are compliant with your sponsorship duties. They may also interview key personnel.
Can I appeal a Sponsor Licence refusal or revocation?
If your licence is refused or revoked, you may appeal the decision if you believe there was an error. Alternatively, you may reapply after a cooling-off period of 12 months.
Do I need a licence to hire workers from the EU?
Yes, following Brexit, hiring workers from EU countries (except Ireland) requires a Sponsor Licence for roles that fall under the UK’s immigration system.
How do I track sponsored workers' visa status?
You must use the Sponsorship Management System (SMS) to track the visa status of your sponsored workers, including expiry dates and changes in immigration status.
To discuss your UK Sponsor Licence application with one of our immigration experts, please contact X Law Lawyers.
Visa Glossary
| Term | Definition |
|---|---|
| Sponsor Licence | A legal authorisation issued by UK Visas and Immigration (UKVI) that allows UK businesses to hire and sponsor non-UK workers for specific visa routes. |
| Certificate of Sponsorship (CoS) | An electronic document assigned by the sponsoring business to a foreign worker, containing job details, allowing them to apply for a visa. |
| Skilled Worker Visa | A visa for foreign nationals to work in the UK for an approved sponsor in a job meeting specific skill and salary requirements. |
| Temporary Worker Visa | A visa for workers coming to the UK for short-term employment, including seasonal work and volunteering. |
| Immigration Skills Charge (ISC) | A fee paid by UK employers when sponsoring foreign workers, aimed at funding UK training and employment initiatives. |
| Authorising Officer | A senior person responsible for managing the sponsorship licence and ensuring compliance with UK immigration law. |
| Right-to-Work Check | A legal requirement for employers to verify that a potential employee has the legal right to work in the UK. |
| Sponsorship Management System (SMS) | An online platform provided by UKVI that allows sponsors to manage their licence and fulfil their sponsorship duties. |
| Biometric Residence Permit (BRP) | A card issued to non-UK nationals proving their immigration status and right to work in the UK. |
| Cooling-Off Period | A mandatory waiting period after a visa holder's leave has expired or after their employment ends, during which they cannot reapply for the same visa category. |
| Tier System | A points-based immigration system in the UK that has been replaced by other visa categories, such as the Skilled Worker and Temporary Worker routes. |
| Appendix A | A document provided by the Home Office detailing the specific supporting documents that businesses must submit when applying for a Sponsor Licence. |
| Compliance Visit | An inspection conducted by UKVI to ensure that a sponsoring business adheres to their sponsorship duties. |
| Resident Labour Market Test (RLMT) | A now-defunct requirement that employers had to meet before hiring a foreign worker, proving that no suitable resident worker was available for the job. |
| Genuineness Test | A Home Office evaluation to confirm that the job offer and sponsorship request are legitimate and not fabricated for the purpose of immigration. |
Visa Resources
Sponsor Licence Official Page – UK Visas and Immigration (UKVI)
Website: https://www.gov.uk/uk-visa-sponsorship-employers
Register of Licensed Sponsors: Workers
Website: https://www.gov.uk/government/publications/register-of-licensed-sponsors-workers
Right to Work Check: Employer Guidance
Website: https://www.gov.uk/check-job-applicant-right-to-work
UK Visas and Immigration (UKVI)
Website: https://www.gov.uk/government/organisations/uk-visas-and-immigration
Visa Processing Times
Website: https://www.gov.uk/visa-processing-times
Approved English Language Tests and Providers
Website: https://www.gov.uk/guidance/prove-your-english-language-abilities-with-a-secure-english-language-test-selt
Immigration Health Surcharge (IHS)
Website: https://www.gov.uk/healthcare-immigration-application
Sponsor a Skilled Worker Guidance
Website: https://www.gov.uk/government/publications/sponsor-a-skilled-worker
Home Office Immigration Rules and Policies
Website: UK Immigration Rules