Five mistakes HR teams make when applying for a UK Sponsor Licence — and how to avoid them

Avoid common pitfalls when applying for a UK Sponsor Licence. Learn the most effective strategies to meet eligibility criteria and maintain compliance prior to a submission of an application. Streamline the process and secure your ability to hire skilled overseas workers successfully.

Challenges of Sponsor Licence applications

The UK immigration system is designed to facilitate the recruitment of skilled workers from overseas, offering businesses opportunities to fill critical roles. However, organisations that wish to employ non-UK nationals are required to obtain a Sponsor Licence, and this process may prove to be complex and challenging for HR teams. Application mistakes can lead to delays, refusals or severe compliance penalties.

A successful Sponsor Licence application requires careful preparation, an understanding of the Home Office’s expectations and robust HR systems for ongoing compliance. This guide explores the top five mistakes HR teams often make when applying for a Sponsor Licence and provides actionable advice on how to avoid them.

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1. Failing to meet eligibility criteria

Eligibility is the foundation of a successful Sponsor Licence application. However, HR teams often underestimate the importance of demonstrating their business’ legitimacy and its ability to meet sponsorship obligations.

Common mistakes:

• Failing to provide evidence that the business is genuine and operational.
• Overlooking the need to show the ability to manage sponsorship duties effectively.
• Submitting incomplete or irrelevant financial records.

How to avoid these mistakes:

• Conduct a pre-application review: Assess your company’s operations, finances and HR systems to ensure that you meet all the requirements outlined in the Home Office guidelines.
• Prepare supporting documents: Typical documents include proof of VAT registration, recent bank statements, audited accounts and evidence of your business’s physical premises.
• Demonstrate your capacity for sponsorship: Outline how your HR team is equipped to manage sponsorship responsibilities, such as record-keeping and compliance monitoring.

Example:

A small tech company applied for a Sponsor Licence but was refused because they failed to include evidence of a corporate bank account which is regulated by the Prudential Regulation Authority and the Financial Conduct Authority. They successfully reapplied after satisfying this requirement by gathering all required documents.

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2. Poor record-keeping practices

Effective record-keeping is critical not only during the application process but also for ongoing compliance. Many HR teams fail to establish systems for managing employee data and sponsorship records, which can lead to compliance breaches.

Common mistakes:

• Mismanaging employee records and right-to-work checks.
• Failing to track visa expiration dates.
• Not maintaining a detailed log of all sponsored employees.

How to avoid these mistakes:

• Set up a centralised HR system: Use software to manage employee records, track visa expiration dates and log all sponsorship activities.
• Implement compliance tools: Invest in digital compliance solutions to streamline the management of right-to-work checks and alert you to upcoming deadlines.
• Regular internal audits: Schedule regular reviews of your HR processes to ensure compliance with Home Office requirements.

Example:

An HR team relied on manual spreadsheets to track visa statuses, leading to missed expiration dates and a compliance breach. This was discovered during a Home Office compliance audit. By switching to an automated HR system and disclosing this new change to the Home Office, they avoided further penalties.

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3. Submitting incomplete or incorrect documentation

The application process involves submitting a range of documents to prove eligibility. Errors or omissions can result in delays, additional scrutiny or outright refusals.

Common mistakes:

• Submitting outdated financial statements or business registrations.
• Providing incomplete documentation for key personnel.
• Failing to tailor documents to meet specific industry requirements.

How to avoid these mistakes:

• Create a document checklist: Refer to the Home Office guidance to ensure all required documents are included, tailored to your industry.
• Double-check accuracy: Review all documents for accuracy and consistency before submission.
• Engage expert review: Consider hiring an immigration solicitor to review your application and documentation.

Example:

A manufacturing company was subjected to additional scrutiny from the Home Office because they provided a lease agreement, which had already expired on the date of submission of their Sponsor Licence application. Supplying the correct and up-to-date document resolved the issue.

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4. Overlooking ongoing compliance obligations

Many businesses mistakenly believe that their responsibilities end once the Sponsor Licence is granted. However, ongoing compliance is crucial to maintaining the Licence.

Common mistakes:

• Failing to report changes in employee circumstances (e.g. resignation, promotions or significant changes in salary).
• Neglecting to conduct regular right-to-work checks.
• Not keeping up with changes to immigration rules.

How to avoid these mistakes:

• Train HR staff: Provide training on sponsorship duties, including reporting obligations and compliance audits.
• Create a compliance calendar: Schedule key dates for reporting changes, renewing Licences and conducting audits.
• Stay informed: Regularly review updates from the Home Office to ensure you are meeting current requirements.

Example:

An HR team failed to report a sponsored employee’s promotion and significant change in her salary, leading to a Home Office investigation. By implementing a reporting checklist, they prevented future issues.

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5. Mismanaging Certificate of Sponsorship (CoS) assignment

Issuing Certificates of Sponsorship (CoS) is a critical step in hiring overseas workers, but errors in this process can lead to visa refusals.

Common mistakes:

• Assigning CoS to roles that do not meet skill or salary thresholds.
• Using incorrect job codes for the Skilled Worker route.
• Over-assigning CoS without justification.

How to avoid these mistakes:

• Use the CASCOT tool: Familiarise yourself with the CASCOT occupational coding tool to select the correct job codes.
• Review salary thresholds: Ensure that the roles meet the minimum salary requirements for the Skilled Worker route.
• Monitor CoS allocations: Keep track of your CoS allocations to avoid exceeding limits or having to justify unused allocations.

Example:

A software development company issued multiple CoSs for junior developer roles that did not meet the required salary threshold for the Skilled Worker route. As a result, the Home Office refused the visa applications, and the company faced scrutiny over the mismanagement of CoS. To resolve this, the company adjusted the salary levels to meet the requirements and improved its internal procedures to ensure future CoS assignments were compliant. After making these changes, they successfully retained their Sponsor Licence.

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Conclusion

Applying for a Sponsor Licence is a meticulous and detail-oriented process. By avoiding these common pitfalls, you can ensure a smoother application experience and maintain compliance in the long term. If you are unsure about any stage of the application process, seeking advice from experienced immigration solicitors can save your business time, money and help you avoid frustration.

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For HR teams applying for a Sponsor Licence: Why choose Gherson LLP?

When it comes to securing a Sponsor Licence, precision and compliance are key. Choosing Gherson LLP ensures you have a trusted partner to guide you through this complex process. Here is what sets us apart:

• Expertise you can trust
  Our seasoned lawyers bring extensive experience in handling UK immigration cases, including Sponsor Licence applications for businesses of all sizes. Whether you are a small business or a multinational corporation, we have got you covered.

• Tailored, personalised advice
  At Gherson LLP, we understand that every business is unique. We provide bespoke guidance, aligning our approach with your specific needs, industry requirements and long-term goals.

• Efficiency at every step
  Time is of the essence when navigating UK immigration. Our dedicated team works diligently to streamline your Sponsor Licence application, ensuring a swift and straightforward process to meet your hiring goals.

Whether you are securing a Sponsor Licence to hire skilled workers or pursuing family immigration, Gherson LLP is here to provide the expertise and support you need.

Contact Gherson LLP today for a confidential consultation.

• Phone: +44 (0)20 7724 4488
• Email: enquiries@gherson.com
• Website: www.gherson.com

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Updated: December 2024

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The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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