If your business wishes to hire an overseas national, you must first have permission to do so from the Home Office, unless certain exceptions apply. We have put together a detailed Sponsor Licence Guidance and Q&A based on recurring questions from our clients.
Who can sponsor a person to work in the UK?
To sponsor an overseas national, an organisation or business must hold a valid sponsor licence for the route on which you intend to sponsor the person. Sponsor Licence are issued by UK Visas and Immigration (UKVI), a part of the Home Office.
What is a sponsor licence?
A sponsor licence confers permission upon a business, the sponsor, to hire a person from outside of the United Kingdom (UK) to undertake a skilled role. This includes citizens of the European Union (EU), Iceland, Liechtenstein, Norway, and Switzerland who arrived in the UK after 31 December 2020.
Once held, the business may sponsor individuals to work in the UK under the ‘Worker’ or ‘Temporary Worker’ route, as follows:
Worker routes:
- Senior or Specialist Worker under the Global Business Mobility category.
Temporary Worker routes:
Other Global Business Mobility including:
- Graduate Trainee
- Secondment Worker
- UK Expansion Worker
- Service Supplier
- Scale-up
- Creative Worker
- International Sportsperson
- Seasonal Worker
How can a business obtain a sponsor licence?
A business may apply to UKVI for a sponsor licence. As part of the application process, you must demonstrate that nominated individuals will fulfil a number of duties and obligations as the sponsor of an overseas worker. This includes, maintaining clear records related to the individuals as well as reporting specific data to UKVI in a timely manner.
The functions are meant to assist UKVI with keeping oversight of the individuals compliance with UK immigration laws and maintaining immigrations controls.
Therefore, UKVI will take the following into account whether:
- The business is genuine and operating lawfully in the UK.
- The business and key personnel engaged in the business are honest and dependable and are not engaging and have not engaged in behaviour or actions that are not conducive to the public good.
- Key personnel are capable of carrying out their sponsor duties and evidencing compliance in a time and manner as set out by UKVI.
- The business meets any relevant route-specific requirements.
- The eligibility and suitability criteria are met.
- The application must be supported by prescribed documentary evidence. Failure to sufficiently show this within an application for a sponsor licence will lead to a rejection of the application. If already granted, the sponsor licence may be revoked if UKVI conclude that the business is not complying with is duties and obligations.
If you require assistance applying for, contact us on +44 (0) 203 488 1061 for details of how we can help.
What is meant by ‘key personnel’?
Within the sponsor application form, you must assign specific responsibilities to members of staff known as ‘key personnel.’ Once the licence is granted, the named individuals must carry out their roles and responsibilities.
The specified key personnel roles are as follows:
- Authorising Officer – The Authorising Officer must be the most senior person in the business that will take responsibility for the recruitment of all overseas nationals, as defined above, and who will ensure that the business meets its sponsorship duties.
- Key Contact – The Key Contact will act as a conduit between the business and UKVI.
- Level 1 User – The Level 1 User is a partner, director, or an employee who will take responsibility for carrying out day-to-day sponsorship activities on behalf of the business. Activities will be carried out using the SMS. Activities include assign a CoS and reporting changes of circumstances to the business or workers. The authorising Officer may act as a Level 1 User. The business may appoint more than 1 Level User, one of may be the business’s legal adviser.
- Level 2 User – Like the Level 1 User, the Level 2 User will have access to SMS, though limited. They may create and assign a CoS and report some worker activity to UKVI.
Key Personnel must meet the following criteria:
- Be based in the UK for the duration of the role. Separate rules apply to the UK Expansion Worker route.
- Not have any unspent criminal convictions.
- Be a paid member of the business or engaged by the business to act, subject to specific exceptions.
- Must not be subject to a Bankruptcy Restrictions Order or Bankruptcy Restrictions Undertaking.
- Not be subject to a Debt Relief Restrictions Order or Debt Relief Restrictions Undertaking.
- Must not be legally prohibited from acting as a company director.
What types of businesses may apply for a sponsor licence?
There are no restrictions regarding the types of businesses that may apply for a licence to sponsor an overseas national. A consultancy, restaurant, construction, or care home may apply for a licence. This is applicable to new and existing businesses, irrespective of size.
Are charities excluded from this requirement?
A charitable organisation will require a sponsor licence, even if the person from outside of the UK will be working on a part-time basis.
What is the sponsor licence number?
On approval of the application by UKVI, you will be issued with a unique reference or sponsor licence number (SLN) on behalf of the business. You must quote the unique SLN in all communications with UKVI.
You will also be granted access to the Sponsor Management System or SMS, which is a portal between the business and UKVI.
What is a Certificate of Sponsorship?
To sponsor an overseas national, you must assign a Certificate of Sponsorship (CoS) under their unique reference. The CoS will form part of their individual visa application for leave to enter, or limited leave to remain in the UK.
A CoS summary document may be generated by the business on SMS to confirm the information held.
Upon receipt of the individual’s visa application, UKVI will check the records visa the unique sponsor licence and CoS reference to assure themselves that the Immigration Rules are met in full.
SMS users may not assign a CoS a family member. This includes, a spouse or civil partner, an unmarried or a same-sex partner, a parent or stepparent, and child or stepchild, a parent.
Can a business hire an overseas national without requiring a sponsor licence?
Yes. A business will not require a licence to sponsor some groups, including, but not limited to:
- Citizens of Ireland.
- EU nationals and their family members that hold settled or pre-settled status under the EU Settlement Scheme.
- Individuals that hold indefinite leave to enter or indefinite leave to remain status in the UK
- Individuals that were granted leave to enter or remain in the UK as the partner of a British citizen, settled, or other eligible person, under Appendix FM: family members to the Immigration Rules.
- Dependent partners of a Skilled Worker visa holder, subject to certain restrictions.
- Student visa holders, subject to certain restrictions.
- Graduate visa holders.
- Holders of a valid application registration card (ARC), subject to certain restrictions.
Are sponsor licence application refused?
An application may be refused or invalidated if you:
- Fail to demonstrate that the requirements are met or previous record of non compliance.
- Fail to provide details of the key personnel.
- Your key personnel have an unspent conviction for a relevant offence.
- Fail to provide the requisite documents in the prescribed manner.
- Fail to provide the requisite supporting documents within 5 working days of the date of your application.
- Unable to demonstrate that you are seeking to hire an overseas national to fill a genuine vacancy at the required salary and skill-level.
- Fail to disclose pertinent information, regarding prior suspensions, removal from the sponsor register within the last 5 years and of any pending prosecutions, nonpayment of VAT.
- Unsatisfactory pre-compliance checks or visits.
- Submit false or inconclusive information.
- Fail to meet the suitability grounds.
- Do not have a trading presence in the UK, with the exception to the UK Expansion Worker visa category for which different rules apply.
- You are currently or had previously hired an undocumented worker or workers.
How long is the sponsor licence valid for?
If your licence application is granted, UKVI will communicate this by way of a decision letter, detailing your sponsor licence number and the maximum number of CoS that you will be allowed to assign.
The sponsor licence is valid for 4 years and can be renewed.
However, the sponsor licence can be prematurely ended if you fail to meet your ongoing immigration obligations.
Can the licence be renewed?
The sponsor licence renewal process is possible. If the business wishes to continue sponsoring overseas workers, the business should initiate a new application 3 to 4 months prior to expiry of the existing licence. Sponsors will receive a reminder from the UKVI, subject to the information on SMS being up to date.
The process for a licence to hire overseas nationals under the UK Expansion Worker category differs. This is because, the business will be required to establish a UK trading presence within 2 years.
What is a Home Office audit?
Prior to approval of an application for a licence, UKVI may conduct a pre-compliance check to assure themselves that the business will meet its immigration obligations. UKVI may also carry out compliance audits, as they deem necessary, during the duration of the sponsor licence.
As part of the visit, UKVI’s officers may review the business’ current human resource records and recruitment practices by visiting the premises and interviewing you and any relevant personnel. The interview will take place at your main office address and any other physical addresses where the sponsored individuals carry out their employment duties (including their home address, if they normally work from home), or by remote video conferencing facilities, if suitable.
If you require assistance with a Home Office audit, contact us on +44 (0) 203 488 1061 for details of how we can help.
Under what circumstances can UKVI revoke a sponsor licence?
UKVI will cancel or revoke a sponsor licence if the business has not complied with its duties or if the business is considered to have abused the sponsorship arrangements. This includes behaving in a manner that is not conducive to the public good. UKVI will investigate the matter, inform the police and/or appropriate bodies, and act against the business. This will have severe consequences to the business including reputations damage.
If the business is found not to, UKVI may instead:
- Downgrade the licence rating.
- Reduce the number of CoS that the business can assign, thereby restricting the ability of the business to expand or carry out core functions.
- Temporarily suspend the licence during a UKVI investigation.
What are the sponsor licence fees?
The sponsor licence fee will differ depending on the licence type and the size of the business.
| Type of licence | Fee for small or charitable sponsors | Fee for medium or large sponsors |
| Worker | £611 | £1,682 |
| Temporary Worker | £5611 | £611 |
| Worker and Temporary Worker | £5611 | £ 1,682 |
| Add a Worker licence to an existing Temporary Worker licence | No fee | £1,071 |
| Add a Temporary Worker licence to an existing Worker licence | No fee | No fee |
The application must be supported by the correct fee. If not, the application will be deemed to be invalid or may be reject without further consideration.
If refused, you must wait for a specified period before applying again.
Conclusion
If you would like advice or assistance regarding a sponsor licence application for your business, or ongoing advice and support, you can contact us at info@thomaschaseimmigration.com. Our Sponsor Licence Guidance and Q&A offers a snapshot but cannot replace personalised immigration advice.
We offer professional timely assistance with applications for a sponsor licence, sponsor licence management, and work visa applications.
Written by Carla Thomas – Managing Director at Thomas Chase immigration.
Thomas Chase Immigration offer immigration assistance to individuals and families.
Call to action
If you have questions or concerns or you would like straightforward immigration advice, or help with applying for a sponsor licence, Thomas Chase Immigration can help. Our processes are tried and tested. We offer an individual touch when assisting you and presenting the matter to UKVI.
