Sponsor Licence

Sponsorship Licence for UK Employers: A Comprehensive Guide

Sponsoring overseas nationals can help UK businesses fill crucial skill gaps with talented migrant workers. However, applying for a sponsor licence can be complex, and it involves several responsibilities.

What is a Sponsorship Licence?

A sponsorship licence is a permission granted by the Home Office to UK employers, allowing them to hire non-UK resident workers under work visa routes such as the Skilled Worker visa, Scale-Up visa, and Global Business Mobility (GBM) routes. Without a valid licence, UK employers cannot legally sponsor migrant workers.
Employers must be fully aware of their immigration duties and maintain robust systems to comply with these responsibilities. Failure to comply can result in severe consequences, including the suspension, downgrading, or revocation of the sponsor licence, which can affect both the business and its sponsored workers.

Types of Sponsorship Licences

There are two primary categories of sponsorship licences for work visas in the UK:

Licence Type Description
Worker Sponsor Licence Allows recruitment of overseas nationals for skilled jobs, including long-term or permanent employment.
Temporary Worker Sponsor Licence Allows recruitment of overseas nationals for temporary work under specific visa routes.

Subcategories of Worker Sponsor Licence:

  • Skilled Worker Route
  • Senior or Specialist Worker Route
  • Minister of Religion Route
  • International Sportsperson Route

Subcategories of Temporary Worker Sponsor Licence:

  • Scale-Up Worker Route
  • Creative Worker Route
  • Charity Worker Route
  • Religious Worker Route
  • Government Authorised Exchange Route
  • International Agreement Route
  • Seasonal Worker Route

Under the GBM umbrella, the following routes are also considered Temporary Worker routes:

  • Graduate Trainee Route (GBM)
  • Service Supplier Route (GBM)
  • UK Expansion Worker Route (GBM)
  • Secondment Worker Route (GBM)

Which UK Work Visas Require a Sponsorship Licence?

A sponsor licence is needed for most work visas, including:

  • Skilled Worker visa
  • Minister of Religion visa
  • International Sportsperson visa
  • GBM routes and Temporary Worker routes

However, some visas do not require sponsorship, such as the Graduate visa and the High Potential Individual (HPI) visa.

Which Sponsorship Licence Should I Apply For?

The type of sponsorship licence required depends on the kind of work you’re offering and the immigration route your prospective employees will follow. For example, if you want to hire a skilled migrant worker, you will need a Skilled Worker sponsor licence, which requires the job to meet specific skill and salary thresholds.

Eligibility for a Sponsorship Licence

To be eligible for a sponsor licence, your organisation must meet the following general criteria:

  • Genuine and lawful operation in the UK
  • Appropriate HR systems to monitor sponsored employees
  • Key personnel with no unspent criminal convictions
  • Capable of fulfilling sponsorship duties

Sponsorship Licence Application Process

Steps to Apply:

  • Prepare Supporting Documentation:
Employers must provide evidence of their operations and HR systems. This includes proof of business registration, financial statements, payroll, and recruitment documentation.

  • Complete the Application:
The application is submitted online along with the supporting documents within five days. Employers must also name honest and reliable key personnel responsible for managing the licence.

  • Compliance Visit:
A Home Office visit may be conducted to verify your HR and recruitment systems and assess your eligibility for the licence.

However, some visas do not require sponsorship, such as the Graduate visa and the High Potential Individual (HPI) visa.

Processing Time:

  • Standard Processing: Up to 8 weeks

  • Priority Processing: 10 working days for an additional £500

Cost of a Sponsorship Licence

The cost of a sponsor licence depends on your organisation’s size and the type of licence required:

Sponsor Type Worker Licence Fee Temporary Worker Licence Fee CoS Fee (Per Worker)
Small/Charitable Sponsors £536 £536 £239
Medium/Large Sponsors £1,476 £536 £239

There may also be an Immigration Skills Charge (ISC), which varies by company size:

Sponsor Type First 12 Months Each Additional 6
Medium/Large Sponsors £1,000 £500
Small/Charitable Sponsors £364 £182

Sponsorship Licence Ratings

New sponsor licences are usually granted an A-rating, allowing the sponsor to issue Certificates of Sponsorship (CoS) to workers. However, if the employer fails to meet their duties, the licence may be downgraded to a B-rating, limiting the ability to sponsor new workers.

FAQs

Can my licence be revoked?

Yes. If your organisation fails to comply with the sponsor duties, the Home Office can downgrade, suspend, or revoke the licence.

The process typically takes up to 8 weeks, but priority processing may be available for an additional fee.

If downgraded, you cannot sponsor new workers until you upgrade to an A-rating, which requires following an action plan and paying a £1,476 fee.

How to Renew a Sponsor Licence

Sponsor licences are automatically extended by the Home Office for 10 years. However, some routes, such as the UK Expansion Worker route, have specific time limitations, after which the employer must switch to another route like the Skilled Worker visa.

Sponsorship Licence Compliance

Employers holding a sponsorship licence must continuously comply with their duties, including maintaining records, updating the Sponsorship Management System (SMS), and reporting changes to the Home Office. Failure to do so could result in penalties, including licence revocation.

Why Choose Shams Britvisa Lawyers Ltd?

Shams Britvisa Lawyers Ltd, based in Manchester, UK, is a team of immigration experts specializing in sponsor licence applications and compliance. We assist businesses through every step of the sponsor licence process, from initial application to ongoing management and compliance.

Our Services Include:

  • Assistance with sponsor licence applications
  • Guidance on assigning Certificates of Sponsorship
  • Auditing HR and recruitment processes
  • Training staff on compliance duties
  • Advice on visa and sponsorship-related fees

Ready to Get Started?

Ready to apply for a sponsor licence or need assistance managing your sponsorship duties? Contact Shams Britvisa Lawyers Ltd at 0330 133 8857 or email: info@shamsbvlawyers.com for expert legal guidance and support.