Guide to UK Sponsor Licences: How to Apply and Comply with Immigration Laws

25 Oct 2024, 11 mins ago

For organisations that want to hire non-UK nationals, it’s necessary to have a UK sponsor licence in place before you can do so. The application for a sponsor licence should not be taken lightly, as the Home Office is strict on the requirements.

If your business is successful in obtaining a sponsor licence, staying compliant and up to date throughout the life of the licence is an essential and ongoing responsibility.

Our expert UK immigration lawyers in London work alongside our clients in preparing and submitting sponsor licence applications, as well as providing ongoing advice and assistance with the sponsor’s compliance and monitoring obligations.


Table of Contents

  1. What Is a UK Sponsor Licence?
  2. Types of UK Sponsor Licences
  3. What Is a ‘Worker’ Sponsor Licence?
  4. What Is a ‘Temporary Worker’ Sponsor Licence?
  5. Is My Organisation Eligible for a Sponsor Licence?
  6. What Is an A-Rating for a Sponsor Licence?
  7. Do Sponsor Licences Have to Be Renewed?
  8. Sponsor Licence Compliance Requirements
  9. Penalties for Non-Compliance with Sponsor Licence Duties
  10. How Much Does a UK Sponsor Licence Cost?
  11. Who Can Obtain a UK Sponsor Licence?
  12. What Is a Certificate of Sponsorship?
  13. How Do I Apply for a UK Sponsor Licence?
  14. FAQs About UK Sponsor Licences
  15. How Gherson Can Help with Your Sponsor Licence Application
  16. Contact Gherson Immigration Lawyers in London


1. What Is a UK Sponsor Licence?

All UK companies must hold a valid sponsor licence to either hire non-UK resident workers from overseas or have access to UK applicants who need sponsorship following the end of their previous sponsored employment, study, or graduate visa period. The most common visa routes are the Skilled Worker visa, Temporary Worker visa, and Global Business Mobility routes. Think of a sponsor licence as permission granted by the UK Home Office for a business to recruit employees from anywhere in the world.


2. Types of UK Sponsor Licences

The type of sponsor licence your business needs depends on whether the workers you want to hire are:

  • Workers: For those with long-term job offers.
  • Temporary Workers: For those on temporary assignments.

Your business can apply for a licence covering one or both types of workers.


3. What Is a ‘Worker’ Sponsor Licence?

A Worker sponsor licence allows you to employ people long-term or permanently. It is split into:

  • Skilled Worker: The role must meet the job suitability requirements.
  • Global Business Mobility (GBM):
    • Senior or Specialist Worker: For multinational companies transferring established employees to the UK.
    • Graduate Trainee: For multinational companies transferring recent graduate trainees to the UK.
    • UK Expansion Worker: For businesses expanding into the UK.
    • Service Supplier: For contractual service suppliers or self-employed professionals based overseas.
    • Secondment Worker: For workers seconded to the UK as part of a high-value contract or investment.
  • Minister of Religion: For people coming to work for a religious organisation.
  • International Sportsperson: For elite sportspeople and coaches who will be based in the UK.


4. What Is a ‘Temporary Worker’ Sponsor Licence?

A Temporary Worker sponsor licence allows you to employ people on a temporary basis. It is split into:

  • Creative Worker: Entertainers or artists (up to 2 years).
  • Charity Worker: For unpaid workers at a charity (up to 1 year).
  • Religious Worker: For those working in a religious order or organisation (up to 2 years).
  • Government Authorised Exchange Worker: For work experience (up to 1 year), research projects, or training (up to 2 years) to enable a short-term exchange of knowledge.
  • International Agreement Worker: Where the worker is coming to do a job covered by international law, for example, employees of overseas governments.
  • Seasonal Worker: For those coming to the UK for up to 6 months to do farm work.


5. Is My Organisation Eligible for a Sponsor Licence?

To be eligible for a sponsor licence, your company must:

  • Be a genuine, active, and trading business with a fixed address and operating lawfully in the UK.
  • For the UK Expansion Worker (GBM) route, businesses must not already have an existing active trading presence in the UK but are required to show a “UK footprint.”
  • Ensure that those responsible for the day-to-day running of the business and anyone nominated as key personnel on the sponsor licence application do not have any unspent criminal convictions for immigration offences or certain other crimes.


6. What Is an A-Rating for a Sponsor Licence?

A company will receive an A-rated sponsor licence if the sponsor licence application is approved. An A-rated sponsor licence allows the business to request and assign Certificates of Sponsorship to workers.

However, if a company is applying to sponsor a UK Expansion Worker, it will receive a ‘provisional’ rating instead of an A-rating if the Authorising Officer is based outside the UK. The business will only be able to assign one Certificate of Sponsorship, which must be assigned to the Authorising Officer so they can enter the UK. Once they have obtained their visa, the company can upgrade the licence to an A-rating and request additional Certificates of Sponsorship.

Furthermore, the UK Expansion sponsor licence would need to be upgraded with the Skilled Worker tier should the Authorising Officer wish to remain beyond the two-year UK Expansion Worker visa permission.


7. Do Sponsor Licences Have to Be Renewed?

In early 2024, the Home Office announced that sponsors are no longer required to renew their sponsor licences. This means that if a sponsor licence was due to expire on or after 6 April 2024, the company is no longer required to apply for renewal of their licence nor pay the renewal fee. The Sponsor Management System for all sponsor licence holders has been updated to reflect this change in process.


Sponsor licence compliance can be broken down into four areas:

  1. Record Keeping: Maintaining up-to-date records for each sponsored worker.
  2. Reporting: Submitting specified information to the Home Office through the Sponsor Management System within required time frames.
  3. Compliance with Immigration Rules: Adhering to all relevant immigration laws and regulations.
  4. Compliance with UK Laws and Acting in the Public Good: Sponsors must abide by UK laws and act in the public good. This means your company must behave in a way that is compatible with core societal values and must not harm the greater benefit of society. The full government guidance can be found here.


9. Penalties for Non-Compliance with Sponsor Licence Duties

Complying with your sponsor licence duties is crucial. Failure to comply can lead to your licence being downgraded, suspended, or withdrawn, meaning you will no longer be able to hire employees from abroad. Additionally, there may be fines and legal consequences.


10. How Much Does a UK Sponsor Licence Cost?

The cost of a UK sponsor licence can vary depending on the type of licence you need and the size of your organisation. Current pricing can be found on the official UK government website here.


11. Who Can Obtain a UK Sponsor Licence?

A company can obtain a UK sponsor licence if it is a genuine organisation trading lawfully in the UK, is capable of meeting its sponsorship responsibilities, and can offer genuine employment meeting any relevant skills and salary requirements.


12. What Is a Certificate of Sponsorship?

A Certificate of Sponsorship (CoS) is a reference number assigned to a worker by their UK sponsor. The Certificate of Sponsorship allows them to make an application for their visa to work in the UK. It is an electronic record, not a physical document.


13. How Do I Apply for a UK Sponsor Licence?

To make a sponsor licence application, you must:

  1. Complete the Online Application Form: Available on the UK government website.
  2. Provide Supporting Documentation: Send the required documents within 5 working days of the application. Failure to submit the correct documentation will result in delays or your application may be rejected, resulting in further costs for re-applying.
  3. Appoint Key Personnel: An employee must be appointed by the company to oversee the sponsorship process. The chosen employee should be the most senior person in charge of the company’s HR or business operations.
  4. Prepare for a Compliance Visit: Following receipt of the documentation, your business may receive notice of a compliance visit by UK Visas and Immigration. Being well-prepared for this visit reduces the chance that your application will be rejected.

Processing Times: Sponsor licence application processing times can vary; however, current processing times are approximately 8–12 weeks.


14. FAQs About UK Sponsor Licences

Q1: How long does it take to get a sponsor licence in the UK?

A1: Processing times are typically between 8–12 weeks, but can vary depending on the Home Office’s workload and whether they require additional information.

Q2: Can a small business apply for a sponsor licence?

A2: Yes, any genuine organisation trading lawfully in the UK can apply for a sponsor licence, regardless of its size.

Q3: What are the costs involved in sponsoring a worker?

A3: Costs include the sponsor licence application fee, the Immigration Skills Charge, and fees for assigning Certificates of Sponsorship. Exact fees depend on the size of your organisation and can be found here.


15. How Gherson Can Help with Your Sponsor Licence Application

Ensuring accuracy in your first application is essential. Mistakes can cost your organisation time and money. Gherson’s corporate immigration specialists in London can work alongside your HR and legal teams on all aspects of applying for, and staying compliant with, a UK sponsor licence.

Whatever stage you’re currently at in the sponsor licence process—looking to apply for your first licence, have been refused a licence application, or are looking for ongoing support with managing the compliance duties—Gherson’s expert corporate immigration solicitors can help.

Learn more about our UK Immigration Services.

More details on the UK sponsor licence application process can be found on the UK government website here.

16. Contact the Gherson Immigration Solicitors in London

Need assistance with your sponsor licence application?

Contact our London office today:

Visit our website for more information: Gherson LLP


Disclaimer: This guide is for informational purposes only and does not constitute legal advice. For legal advice specific to your situation, please contact a qualified solicitor.


Glossary

  • Authorising Officer: A senior and competent person responsible for the actions of staff and representatives who use the Sponsor Management System.
  • Certificate of Sponsorship (CoS): A unique reference number assigned to a worker by a licensed sponsor, allowing the worker to apply for a visa.
  • GBM (Global Business Mobility): A category of visa routes for businesses wishing to transfer workers to the UK.
  • Sponsor Licence: Permission granted by the UK Home Office for a business to recruit employees from abroad.
  • Sponsor Management System: An online platform used by sponsors to manage their licence and report relevant information to the Home Office.


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Last Updated: October 2024

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