Sponsor Licence Guide 2024
UK employers wishing to hire skilled migrant workers must obtain a Sponsor Licence under the points-based system.
Sponsors are required to ensure they have efficient procedures and reliable HR practices in place, and the Home Office carefully examines all sponsorship applications in line with UK immigration rules and guidance.
To ensure your organisation is fully compliant with the requirements and to help you build a strong and persuasive case, our experienced advisers are available to support you throughout the entire Sponsor Licence application process.
In this article, we will detail the Sponsor Licence requirements, eligibility and sponsor responsibilities from the point of Skilled Worker Visa. However, if you would like to explore Sponsor Licence for other routes, you can find the links and some details of other types of routes such as Scale-up Licence or GBM Licence at the end of this article.
What is a Sponsor Licence?
Before hiring temporary or permanent foreign workers, UK businesses must obtain the appropriate Sponsor Licence from UK Visas & Immigration (UKVI). Without one, businesses cannot hire new workers, extend an existing work visa, or sponsor the worker at the ILR (Indefinite Leave to Remain) stage.
After receiving a Sponsor Licence, the business will be given a licence rating, enabling them to issue Certificates of Sponsorship (CoS), which are necessary for each applicant’s immigration application under the points-based system’s Skilled Worker route.
A Sponsor Licence comes with important obligations. The business must demonstrate that it recognises and fulfils all the obligations and responsibilities expected of a sponsor. The Sponsor Licence is granted for an initial period of 4 years and may be extended if the company wishes to continue sponsoring migrant workers.
Alternatively, a sponsor’s licence may be downgraded, suspended, or revoked if the sponsor fails to fulfil its responsibilities. UKVI may also conduct a compliance visit to assess whether your organisation qualifies for a Sponsor Licence.
Why Do You Need a Sponsor Licence?
Following Brexit, freedom of movement between the UK and EU countries has ended. As a result, businesses now require a sponsor licence to hire most non-UK workers, including EEA and Swiss nationals, unless they hold the relevant residency status. Acquiring a sponsor licence gives businesses access to a global talent pool, allowing them to meet their staffing needs and expand their workforce.
With the changing economic landscape and increasing demand for skilled professionals in fields like technology, healthcare, and engineering, holding a sponsor licence offers a strategic advantage for many UK companies.
Sponsor Licence Eligibility Requirements
To apply for a sponsor licence, a business must:
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Have a presence in the UK and be operating or trading lawfully.
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Provide evidence of company registration with statutory bodies (if required).
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Submit proof of planning permissions (if necessary) for its business premises.
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Demonstrate that the company is offering genuine employment in a skilled occupation with the correct salary level.
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Agree to accept all sponsor licence duties and responsibilities.
Private individuals typically cannot hold a sponsor licence unless they are sole traders intending to sponsor someone for employment within their business.
What are the Employer’s Responsibilities?
Businesses must meet the requirements outlined in the immigration rules to be eligible for a Sponsor Licence. These requirements ensure that the immigration system is not abused and that employers with reliable systems in place fulfil their obligations.
Companies must be legitimate businesses operating legally in the UK, assign CoS only when the position qualifies for sponsorship, and have HR processes in place to monitor the immigration status and attendance of migrant workers. Additional responsibilities include updating the Home Office on any significant changes. Employers should also ensure that they can offer employment paid in line with the salary rates for the Skilled Worker route, as set out in the Immigration Rules and sponsor guidance.
Get in touch now for a free consultation via email, phone or live chat or fill in our inquiry form.
Key Steps in the Sponsor Licence Application Process
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Identify Sponsorship Needs
Before applying for a sponsor licence, businesses should assess whether they need foreign talent and which visa categories apply to their roles. For example, the Skilled Worker route applies to long-term employment, while the Intra-Company Transfer (ICT) route is designed for temporary assignments from overseas. -
Prepare the Necessary Documents
To apply for a sponsor licence, businesses must submit a minimum of four supporting documents to demonstrate they are genuine UK-based operations. These documents vary depending on the type and size of the business, with additional documents required for public bodies, charities, franchises, or start-ups. -
Submit the Application
The application for a sponsor licence is completed online. Businesses must pay the relevant application fee, which varies depending on their size. Small businesses and charities are charged £536, while medium and large businesses pay £1,476. Along with the application, a detailed covering letter should be submitted, outlining the company’s business model and staffing needs. -
Compliance Visits
During the assessment process, the Home Office may conduct a compliance visit to ensure the organisation meets its sponsorship duties. This includes having robust HR systems to monitor sponsored employees, ensuring they comply with visa conditions, and maintaining proper records. -
Assigning Certificates of Sponsorship (CoS)
Once approved, the sponsor can issue CoS through the Sponsor Management System (SMS). There are two types of CoS:-
Defined CoS: For overseas workers applying for a Skilled Worker visa before entering the UK.
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Undefined CoS: For individuals switching visas within the UK or extending their existing leave.
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The CoS provides a unique reference number, which the prospective employee must include in their Skilled Worker visa application.
Appointing Key Personnel to Your Sponsorship Management System
Once you are satisfied that you will be able to meet the above-mentioned sponsorship requirements of the Skilled Worker route, you should appoint an Authorising Officer to manage your Sponsor Licence, a Key Contact to act as the main contact between your business and the Home Office, and nominate at least one Level 1 User to carry out day-to-day sponsorship activities using the Sponsorship Management System (SMS).
- Authorising Officer: Usually someone senior within the organisation who is involved with recruitment or HR. This person will be responsible for ensuring that the sponsorship duties are met.
- Key Contact: The main point of contact for the Home Office. A legal representative may undertake this role.
- Level 1 User: Responsible for day-to-day management of the Sponsor Licence through the SMS. This person must be an employee at the time of application; however, after the Sponsor Licence is assigned, others, including legal representatives, can be set up as Level 1 or Level 2 Users.
Each of your Key Personnel must be based in the UK, must not have any unspent criminal convictions, civil penalties, or other adverse history, and must be a paid member of your staff or an ‘office holder.’
Benefits of a Sponsor Licence
With a sponsor licence, businesses can hire skilled talent from overseas, which is crucial for growth, particularly after the end of freedom of movement following Brexit. Immigration Connection helps businesses obtain and maintain sponsor licences, ensuring compliance and a smooth process.
Skilled Worker Certificate of Sponsorship (CoS)
Once the Certificate of Sponsorship (CoS) has been issued, the prospective employee can apply for a visa to join the company or for leave to remain if they are already in the UK. A defined or undefined Certificate of Sponsorship must be obtained to allow employees to start immediately after the business has been registered as a licenced sponsor:
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Defined Certificates
Defined certificates are for individuals applying for a Skilled Worker visa from outside the UK. You must request these certificates through the Sponsorship Management System (SMS), which you’ll gain access to once your sponsor licence is approved. Once approved, the certificates will appear in your SMS account, allowing you to assign them to workers.
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Undefined Certificates
Undefined certificates are required for Skilled Workers applying from within the UK or for applicants on other visa types. When you apply for your sponsor licence, you will be asked to estimate how many undefined certificates you’ll need for Skilled Workers and Temporary Workers during your first year.
What Happens if Your Application is Refused?
If a sponsor licence application is refused, a six-month “cooling off” period applies, during which a new application cannot be submitted. In some cases, errors can be challenged, and a judicial review may be an option if a mistake occurred.
Cooling Off Periods
If the application is refused due to missing information, a six-month cooling-off period typically applies. For more serious breaches, such as employing illegal workers, the cooling-off period may extend to 12 months.
Why Work With an Immigration Adviser for Your Sponsor Licence Application?
We assess your business’s eligibility and provide consultancy on the requirements before submitting your application. Providing the necessary information and documentation when applying can save you time and help the Home Office process your case more quickly.
Our experienced advisers ensure you understand the relevant guidance and procedures and provide all the required information at once. Working with a licenced immigration adviser for your Sponsor Licence application offers numerous advantages, ensuring a smooth and successful process for our clients. We offer expertise in preparing and managing the application.
When choosing an immigration adviser, it’s important to select a licenced and reputable professional or firm. We are proud to offer reliable and top-tier assistance, making the Sponsor Licence application process as smooth and efficient as possible.
Get in touch now for a free consultation via email, phone or live chat or fill in our inquiry form.
Application Process Highlights
Application Process
An online application form must be completed with details about your business, the reason you require a licence, and key personnel, including the Authorising Officer, Level 1 user, and Key Contact. The appropriate application fee, depending on the size of your business, must also be paid. To complete the application, all supporting documents should be prepared and submitted for evaluation.
After submission, the Home Office may conduct further checks to verify the information provided, ensure compliance, and confirm that the vacancy you intend to fill is genuine. These checks could involve requests for additional evidence or arranging a meeting. Simply providing the required documents is not enough to guarantee that the licence will be granted. Each application must be prepared with diligent care, clearly explaining your company’s circumstances and the need for the Sponsor Licence.
Application Cost
The current application fee for small or charitable sponsors is £536. Small or charitable sponsors include those whose annual turnover is £10.2 million or less, with total assets worth £5.1 million or less, and fewer than 50 employees. For medium or large sponsors, the current fee is £1,476.
Application Waiting Times
Most applications are processed in under 8 weeks. UKVI may need to visit your business as part of the process. You may be able to pay an extra £500 to receive a decision within 10 working days. This fast-track service is limited to a small number of applications each day, allocated on a first-come, first-served basis.
Sponsor Licence for Other Routes
A UK Sponsor Licence allows businesses to sponsor skilled or temporary workers, depending on their needs. You can find the subcategories of the licence type for different temporary and permanent worker routes.
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Worker Licence: For skilled workers in both short- and long-term roles. Categories include:
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Skilled Worker: For jobs meeting specific skill requirements.
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Senior or Specialist Worker (Global Business Mobility): For multinational companies transferring employees.
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Minister of Religion: For religious workers.
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International Sportsperson: For elite athletes and coaches.
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Temporary Worker Licence: For short-term employment or volunteering. Categories include:
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Scale-up Worker: For employees at fast-growing UK businesses.
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Creative Worker: For artists and entertainers.
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Charity Worker: For unpaid charity workers.
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Graduate Trainee, Service Supplier, UK Expansion Worker, Secondment Worker (Global Business Mobility): For workers in international roles or transfers.
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Seasonal Worker: For horticulture or poultry sectors.
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Each licence type allows businesses to legally sponsor employees, tailored to the specific nature of employment.
Whether you’re certain about your Sponsor Licence needs or still deciding which type is best for your business, we’re here to guide you. Get in touch for a free initial consultation to explore your options. Our team will help you determine the right licence, explain the procedures and processes, and ensure you’re fully prepared for a smooth and efficient hiring process.
You can reach us via email at info@immigrationconnection.co.uk, WhatsApp or by filling out our contact. We look forward to assisting you!
Frequently Asked Questions
What is the Sponsor Licence rating?
If your application for a Skilled Worker sponsor licence is accepted, you will be given an “A” rating on the register of licensed sponsors. The Home Office may downgrade your rating to a “B” if they believe you are failing to meet your sponsor obligations. In such cases, you will need to follow a time-limited sponsorship action plan to regain your “A” rating. Failure to meet the guidelines in the action plan could result in your sponsor licence being revoked.
How long does a Sponsor Licence last?
For the Skilled Worker Visa, the sponsor licence remains valid as long as the employer continues to meet all sponsorship requirements. In April 2024, the Home Office removed the time limit on Skilled Worker sponsor licences but now conducts regular checks to ensure compliance. However, for the Scale-up Sponsor Licence, the licence is valid for 4 years.
What happens if the Sponsor Licence application is refused?
The Home Office may impose a “cooling-off period,” preventing you from applying for or holding a licence for the duration specified in the decision letter. The cooling-off period typically lasts between six and twelve months, but in more serious cases, such as a violation of immigration laws, it can last up to five years.
What are Certificates of Sponsorship (CoS), and how do they work?
A CoS is a digital reference number assigned to a foreign worker applying for a visa. There are two types of CoS:
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Defined CoS: For workers applying from overseas.
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Undefined CoS: For workers already in the UK or switching to a different visa.
The CoS contains important information about the job, salary, and working conditions.
What are the key compliance duties as a licensed sponsor?
Licensed sponsors must monitor the immigration status of their workers, maintain up-to-date records, report any changes to the employee’s role or visa conditions, and ensure that employees comply with their visa terms. Failure to meet these duties can result in a downgrade or revocation of your licence.
Can I challenge a Sponsor Licence refusal?
No, there is no right to appeal or request an administrative review for a Sponsor Licence refusal. However, you can challenge the decision by submitting an ‘Error Correction Request’ or pursuing a ‘Judicial Review’.
Can I Switch From Another Visa Type to a Skilled Worker Visa Using a Sponsor Licence?
Yes, individuals on certain visa types, such as a Tier 4 Student visa, Graduate Visa or Spouse Visa, can switch to a Skilled Worker visa if they meet the eligibility requirements and have a valid Certificate of Sponsorship from an approved sponsor.
