As one of the UK’s leading immigration law firms, we are dedicated to guiding employers through the complexities of the UK immigration system. Sponsoring overseas talent can be a game-changer for businesses, allowing them to bridge critical skills gaps and access a global pool of expertise. However, understanding the nuances of sponsor licences is essential for success and compliance. This guide addresses the most pressing questions and challenges employers face when navigating the sponsorship licence process.
What is a Sponsorship Licence?
A sponsorship licence is a formal approval from UK Visas and Immigration (UKVI) that allows UK businesses to hire skilled workers from outside the UK. Without this licence, companies cannot employ workers under key visa categories like the Skilled Worker visa or Global Business Mobility routes.
To secure a licence, employers must demonstrate their ability to meet strict compliance duties from day one, including:
- Ensuring robust HR and recruitment systems are in place.
- Keeping accurate records of sponsored workers.
- Staying up-to-date with immigration regulations.
Failure to meet these responsibilities can result in the refusal of your application or, if you already hold a licence, penalties such as suspension or revocation.
Who Needs a Sponsorship Licence?
If you’re planning to recruit migrant workers under most UK work visas, a sponsorship licence is a must. Common visa routes requiring sponsorship include:
- Skilled Worker visa: For long-term skilled employment across various industries.
- Global Business Mobility (GBM) routes: For international assignments or company expansions.
- Temporary Worker routes: For specific short-term employment needs.
Notably, some visa routes, like the Graduate visa and High Potential Individual (HPI) visa, do not require employer sponsorship. However, these routes may have limited duration and conditions compared to sponsored routes.
Types of Sponsorship Licences
There are two main types of licences, each tailored to different business needs:
- Worker Sponsorship Licence
This is ideal for recruiting long-term or permanent skilled workers and includes subcategories such as:- Skilled Worker: The most common route for high-demand roles.
- Senior or Specialist Worker: For internal company transfers.
- Minister of Religion and International Sportsperson.
- Temporary Worker Sponsorship Licence
This applies to short-term or temporary roles, including:- Seasonal Worker: For agricultural work.
- Creative Worker: For those in the arts and entertainment industries.
- Charity Worker and Religious Worker.
Key Sponsor Licence Requirements
To qualify for a sponsorship licence, your organisation must:
- Be a genuine, legally operating UK business.
- Demonstrate a robust ability to meet sponsorship responsibilities.
- Nominate trustworthy personnel to manage sponsorship duties using the Sponsorship Management System (SMS).
Additionally, you must ensure compliance with route-specific criteria. For example, hiring under the Skilled Worker visa requires offering a role that meets minimum salary thresholds and skill levels.
Step-by-Step: How to Apply for a Sponsor Licence
- Prepare Your Application
Gather all necessary documentation to prove your business’s legitimacy, such as registration certificates, VAT details, and evidence of trading activity. If applying for specific routes, ensure you meet all additional criteria. - Submit Your Online Application
The application form must be completed with accurate information and submitted alongside your supporting documents within five days. - Undergo UKVI Scrutiny
UKVI may conduct compliance visits to verify your HR practices and sponsorship capability. - Await a Decision
Processing times are typically 8-12 weeks, but priority services can shorten this to 10 working days for an additional £500 fee.
Common Challenges with Sponsor Licences
- Demonstrating Compliance Readiness: Employers must show they can meet their sponsorship duties from the outset.
- Passing the UKVI Genuineness Test: Proving that roles offered are legitimate and meet immigration route requirements.
- Ongoing Compliance: Sponsorship responsibilities don’t end with licence approval. Maintaining accurate records, reporting changes, and adhering to visa conditions are vital.
Costs of a Sponsor Licence
The cost depends on the type of licence and your organisation’s size:
- Small/Charitable Sponsors: £536
- Medium/Large Sponsors: £1,476
- Certificate of Sponsorship (CoS) Fee: £25-£239 per worker
- Immigration Skills Charge: £364-£1,000 annually, depending on company size
Key Duties for Licence Holders
As a licence holder, compliance is non-negotiable. You must:
- Keep detailed records of all sponsored workers, including employment contracts, absences, and visa-related documents.
- Update the SMS with any changes, such as worker absences or changes to your business structure.
- Report significant events, such as a worker failing to start or complete their employment.
Penalties for Non-Compliance
Failure to meet your sponsorship duties can lead to severe consequences, including:
- Licence downgrading, suspension, or revocation.
- Fines or legal action for employing illegal workers.
- Reputational damage that affects future applications.
Renewing or Upgrading Your Licence
Licences are now automatically extended for 10 years, but some routes, like the Scale-Up and UK Expansion Worker visas, have specific renewal limitations.
Scale-Up Route: Licences for Scale-Up Workers cannot be renewed beyond 4 years, requiring sponsors to transition to other routes like the Skilled Worker route.
UK Expansion Worker Route: Licences under this route cannot be renewed after 2 years, as businesses are expected to establish a trading presence within that time.
How We Can Help
Navigating the sponsorship licence process can be daunting, but you don’t have to do it alone. Our team of immigration law experts offers end-to-end support, including:
- Pre-application Audits: Ensuring your HR systems and processes are compliant.
- Licence Applications: Drafting and submitting applications tailored to your business needs.
- Compliance Training: Equipping your team to manage ongoing sponsorship duties.
- Dealing with UKVI Investigations: Responding to licence downgrades or revocations.
Ready to Start? Let’s Talk
Whether you’re applying for your first licence, managing compliance, or addressing challenges, we’re here to support you at every step. Contact us today to schedule a consultation and unlock the full potential of hiring overseas talent for your business.
How Aristone Solicitors Can Support You
At Aristone Solicitors, we are leaders in immigration law, offering expert guidance for businesses navigating the complexities of UK sponsor licences. Whether you’re applying for your first licence, renewing an existing one, or managing compliance duties, our experienced team is here to provide tailored legal solutions.
We specialiSe in helping businesses streamline the process of hiring overseas talent while ensuring full compliance with Home Office regulations. From drafting applications and advising on compliance to responding to audits and managing sponsorship duties, we’re with you every step of the way.
For strategic legal support, get in touch with us today:
Luton: +441582 383 888
London: +442034 393 888
St Albans: +441727 519 888
Alternatively, complete our contact form, and we’ll respond promptly to discuss your needs. Let Aristone Solicitors help you unlock the potential of global talent for your business.
