On 1 January 2024 significant changes were introduced to the rules surrounding the key personnel requirements for sponsor licences, particularly regarding Level One Users.
Previously, sponsors could have two separate individuals fulfilling the roles of a Level One User, one being an employee and the other a settled worker. However, from 2025, at least one Level One User must meet both criteria: they must be an employee, director or partner of the sponsor and a settled worker. This is an important shift that will affect both new applicants and current sponsors.
Who is affected?
From January 2025, Level One Users must meet the new requirements for any new sponsor licence applications.
If you are an existing sponsor and currently have two Level One Users who each meet one of the criteria, you can continue operating under the existing rules for now. However, eventually, you may be required to have one individual who meets both requirements.
If the Authorising Officer on the licence holds a specific immigration status (e.g. Innovator Founder or UK Expansion Worker), the settled worker requirement for Level One Users will not be met. This will primarily impact start-ups and overseas companies looking to establish a UK office without local employees. If they lack someone who meets these criteria, alternative UK immigration routes may be available for the initial stages of setting up the business. Options include applying for an Expansion Worker sponsor licence or Innovator Founder visa, however, a sponsor licence may still be necessary to hire additional workers at a later date.
What does “settled” mean?
The term “settled” for this new guidance goes beyond British citizens or those on Indefinite Leave to Remain (ILR). It also includes Commonwealth citizens holding UK Ancestry visas or individuals with pe-settled status under the EU Settlement Scheme.
Additional key personnel rules
The guidance has been updated to state that anyone legally prohibited from being a company director cannot be a key personnel member for a sponsor licence, unless a court has given them permission to act as a director. This is particularly relevant for those with certain legal restrictions.
National Insurance requirement
Nominated key personnel must have a valid National Insurance number unless exempt.
New “Sponsor UK” system
A trial version of the UK’s new “Sponsor UK” system is being rolled out for sponsors of the Government Authorised Exchange (GAE) visa. This system will eventually replace the old sponsor management system. Under the new system, all sponsors will be required to have only Level One Users. GAE sponsors will be the first to make the transition, and in future, all sponsors will need to meet these Level One User requirements to manage their sponsorship roles.
What should sponsors do now?
If you are a sponsor, it’s important to:
- Review the composition of your key personnel to ensure you comply with the new rules implemented in January 2025.
- Ensure your Level One Users meet the settled worker requirement and hold valid National Insurance numbers where applicable.
- Stay updated on the Sponsor UK system rollout and prepare for the transition.
For businesses, especially start-ups or overseas companies planning to establish a UK office, it’s crucial to understand these changes early. If you’re unsure about how these new rules may affect your sponsor licence or need help navigating the process, it’s advisable to consult an immigration expert to ensure compliance.
Updated: 04 February 2025
How Gherson can assist
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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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