Sponsor Licence

From January 2021, employers in the UK will need to have a sponsor licence to employ most workers from outside the UK. Employers will not need to sponsor an EEA or Swiss national, or their eligible family members provided that these nationals applied for status on the EU Settlement Scheme by 30 June 2021, and they have been granted pre-settled or settled status. You do not need to sponsor Irish citizen (with very limited exceptions) and people with settlement status.

The advantages of a Sponsor Licence

With the end of freedom of movement following UK’s departure from the EU (Brexit), the need to become a sponsor licence holder is even more vital now than before. As a result of Brexit, individuals from the European Union will now be required to be sponsored in line with migrants from outside the Europe. By becoming a sponsor licence holder, companies will be able to employ migrant workers with specialised skills and experience globally. The advantages may not be immediately apparent but over time, organisations will reap the benefits of:

A global recruitment pool – the ability to recruit talents globally
A competitive advantage – having an edge over your competitors where you have a wider range of specialist workers. Also, the opportunity for your business to open up to new markets as migrants’ high-level skills can also result in new direction for your firm
Staff loyalty and retention – a sponsored worker cannot leave the current employment unless they are switching to another licenced employer or leaving the UK. Due to the costs and complexities of a Skilled Worker application, the likelihood of the migrants’ changing job is slim. Moreover, it is every migrant’s aspiration to settle in the UK lawfully after having lived and work in the UK for at least 5 years, so this aspect will command strong loyalty and will also lead to better staff retention.

Key Contact:

Steph Revelle

Director

Steph Revelle

Hi everyone, and welcome. I’m the Founder and Director of Your Immigration Solutions. Whether you’re an individual or a corporate company, I’m here to help you with your entire visa application process.

Connect with Steph Revelle

Frequently Asked Questions

How can I apply for a sponsor licence? Cross Icon

UK employers will have to meet the following steps to qualify for a sponsor licence:

Ascertaining that your company is eligible (for example, you can provide documents to demonstrate that your firm is genuine and actively trading)
Establish if the job offered is eligible for sponsorship
Selecting the type of licence your business requires
Determining who will be managing the sponsorship within the company. These people are known as ‘Key Personnel’ and there are four roles to fulfil:

Authorising Officer (a senior member of staff who will be responsible for overseeing the Sponsorship Management System [SMS] and for ensuring sponsorship duties are met)
Key Contact (the primary point of contact with UKVI)
Level 1 user (the person with access to the SMS where it involves duties such as requesting and assigning Certificate of Sponsorship [CoS] and for reporting any changes within the organisation)
Level 2 user (a person with a similar role as a level 1 user but will have limited access where a level 2 user cannot revoke a CoS for instance)

Each of your key personnel must be based in the UK for the period they fill the role (some exceptions), not have any unspent criminal convictions, must be a paid member of your staff unless one the following exceptions applies:

a level 1 or level 2 user can be an employee of a third party to whom you have contracted some of your Human Resource function, but you must at least have one level 1 user who is an employee from your own organisation. Once the sponsor licence is approved, you can request for an additional level 1 user to be added on such as a legal representative
a level 2 user can be an employee supplied to you but employed by an employment agency

What are the associated fees for sponsor licence? Cross Icon

The application fees are determined by the size and nature of your organisation. If you are small or charitable organisation, the sponsor licence fee is £536 and if you are a medium or large size organisation, the fee is £1,476.

You are usually a small sponsor if the following apply:

Your annual turnover is £10.2 million or less
Your total assets are less than £5.1 million
You have 50 employees or fewer

You are a charitable organisation if you are one of the following:

A registered charity in England and Wales and Scotland
A registered charity in Northern Ireland
An excluded charity or an exempt charity or a charitable ecclesiastical corporation

Other additional fees are:

Certificate of Sponsorship (CoS) – the issuing of each CoS is £239 for Skilled Worker or Senior or Specialist Worker visa.

Immigration Skills Charge (ISC) – there may be an additional charge when assigning a Certificate of Sponsorship (CoS) in a Skilled Worker or Senior or Specialist Worker visa. This will usually apply if the visa is from outside the UK to work in the UK for more than 6 months, and inside the UK for any length of time. However, this fee is exempted if the job falls under a certain occupation code.

The amount payable for the ISC is based on:

Small or charitable sponsor (first 12 months –£364 and each additional 6 months -£182)
Medium or large sponsor (first 12 months –£1,000 and each additional 6 months -£500)

What documents do I need to provide for a sponsor licence application? Cross Icon

The supporting documents required vary depending on the type of licence, the type of industry your organisation operates in, and the job type which will be filled by the foreign migrant. The list is extensive and usually, you will need to submit four specified primary documents with the Skilled Worker licence application alongside with other secondary documents.

Examples of required documents include the following:

Unaudited or audited accounts
Employers liability insurance certificate
Inland revenue registration document for PAYE
Certificate of registration for VAT
A letter from the bank
Evidence of regulatory body registration if you belong to one
Proof of ownership or lease of business premises
Evidence of common ownership between the company in the UK and the company overseas (for Senior or Specialist Worker visa – formerly Intra-Company Transfer) sponsor licence subcategory

What is the validity period of the sponsor licence? Cross Icon

The sponsor licence is valid for ten years with a renewal option at the end of the ten year. You will be contacted by the Home Office closer to the expiry period if your company continues to qualify being a sponsor licence holder. If your organisation fails to comply with your sponsorship duties, the Home Office has every right to suspend or revoke your licence.

How long does it take to process the sponsor licence application? Cross Icon

The processing timeline for sponsorship applications depends on whether your organisation has opted for the standard or priority service. The standard processing time is 8 weeks and often than not it is processed quicker than that. The priority service will usually take up to 10 working days to be processed and this is a ‘service request’ subject to the eligibility criteria. You can only submit the request through the sponsor application account. If your company is being selected by the Home Office to use this service there will be a £500 fee payment.

During the processing time UKVI may carry out an inspection of your organisation. Your application may be refused if your company has failed to comply with all the sponsorship duties during the visit. Therefore, it is crucial that you seek YI Solutions’ advice to ensure that your HR system complies with the Home Office’s requirements before the submission of your application.

What is a Certificate of Sponsorship (CoS)? Cross Icon

A Certificate of Sponsorship, more commonly known as CoS, is an electronic document issued by a UK licensed employer to hire genuine and suitable migrant workers. Before an employer can sponsor a migrant worker the company must first request a CoS in the SMS. Once granted, the company will need to assign it to the migrant worker, which will then be used to make the sponsored visa application. There are two different classes of CoS (defined and undefined), and it is crucial that the employer is using the correct type of CoS. Issuing the incorrect CoS will result in the worker’s visa application being refused, or worst enforcement action against the employer such as a licence sponsor downgrade, suspension or even revocation.