Now that the Work Permits regime has been entirely replaced by Tier 2 of the Points Based System, employers who wish to employ workers from outside the European Economic Area (EEA) must first obtain a Sponsorship Licence. Only then can they issue a Certificate of Sponsorship to those they wish to employ. Armed with such a certificate the potential employee can then apply for entry clearance to the UK as a Tier 2 Migrant in whichever of the subcategories (General, Intra Company Transfer, Sportsperson or Minister of Religion) applies to their circumstances.  

The requirements employers must meet in order to obtain a licence are set out in the United Kingdom Border Agency (UKBA)'s  Guidance for Sponsor Applications.

The UKBA requests that specified documents are produced by employers to show that they are a responsible organisation operating lawfully within the UK and that they are capable of carrying out their duties as a Sponsor.    

In order to issue a Certificate of Sponsorship to a skilled worker (who will be "Tier 2 (General) Migrants)" employers wishing to employ skilled workers must ensure that they will provide the same package of salary plus allowances which they would provide to a "settled worker" – (i.e. "A person who is a national of the European Economic Area  (the "EEA") or is legally settled in the United Kingdom with permission to work here")

These conditions must continue to be met after the employee has begun the job in order for the Sponsor to keep his or her Sponsorship Licence.  

Against this set of existing obligations the prospect of new and potentially expensive commitments for those employers whose businesses require skilled workers from outside the EEA is likely to be unwelcome.  

The Pensions Act 2008 requires that by October of 2012 all "eligible workers" in the UK who are not already in a good quality workplace scheme are to be automatically enrolled into either their employers' pension scheme or a new savings vehicle, known as a "personal account scheme". Eligible workers constitute anyone aged between 22 and 65 and who earns over £5,035 per year.  

Employees will contribute to their personal accounts, although they can opt out, and employers must contribute at the rate of 1% from October 2012 rising by 1% each year to a ceiling of 3 %.

While complicity with the obligations in the Pensions Act is as yet only implicit for Tier 2 Sponsors it is difficult to see how they could be exempt from those requirements since they are required to demonstrate that they are operating lawfully within the UK.   

Those employers seeking to obtain Sponsor Licences and to issue Certificates of Sponsorship should other than for employment of less than the next three and a half years will, it appears, have to satisfy the UKBA as to their ability to meet the requirements of the Pension Act which are summarised above.  

Employers who are concerned as to their abilities to meet the requirements of the Pensions Act, or any other requirement of the Tier 2 regime should seek professional legal advice.