SPONSOR LICENCE APPLICATIONS
As you must be aware, the entry of migrant workers to the United Kingdom is strictly regulated by the British government. Companies must get a sponsor licence before they can sponsor non-EU employees as part of the country’s immigration procedure.
To sponsor foreign workers or students to come and work or study in the UK, you must first obtain a sponsor licence. From January 1, 2021, you’ll also require a sponsor licence to hire EEA and Swiss individuals coming to work in the UK.
Here are the answers to your questions about sponsor licence:
- What is a sponsor licence?
A sponsor licence is an authorization granted by the UK Home Office that allows employers to hire foreign workers through certain immigration routes, such as the Skilled Worker visa. By obtaining a sponsor licence, the employer can assign a Certificate of Sponsorship (CoS) to a foreign worker, which is a necessary step for the worker to apply for a visa. The employer must meet various legal, skill, and salary requirements to maintain the licence and ensure compliance with UK immigration law.
- How much does it cost to get a sponsorship licence?
The fee for sponsor licence differs in the type of licence you will apply and the size of your business, but it will be between £536 to £1,476.
- How long does it take to get a sponsor licence?
The standard process for applications takes 8 weeks. A priority service is available for an additional £500, which guarantees a decision within 10 working days. Please be aware that during your assessment process, UK Visas and Immigration may visit your business premises in order to check if it satisfies the criteria.
- How long does a sponsor licence last?
Skilled Worker sponsor licence will be valid for 10 years. UK Home Office has officially announced the abolition of the requirement for UK sponsors to renew their sponsor licence every four years, effective from April 2024. Sponsor licenses that expire on or after April 6, 2024, will be automatically extended for 10 years.
- What is certificate of sponsorship (CoS)?
A Certificate of Sponsorship is a self-certifying electronic document that the sponsoring employer issues to the employee so that they can apply for a Skilled Worker visa and come to the UK to work in that company. Every overseas national hired by a sponsor must be given a Certificate of Sponsorship.
Following the approval of your application, you will be issued an A-rated sponsor licence, allowing you to begin allocating CoS to migrants whom you wish to employ.
When you assign a CoS, you will need to pay a fee of:
- £239 for a Worker
- £25 for a Temporary Worker
- What is the difference between Undefined CoS and Defined CoS?
Undefined CoS are for in-country applications and defined CoS are for overseas applications.
While undefined CoS can be assigned by a sponsor immediately, defined CoS must be requested and allocated by the Home Office on each applicant, usually 2 weeks after the sponsor’s request.
- What is the SMS UKVI?
The Sponsor Management System (SMS) is an online portal where you can apply for a sponsor licence and where you can manage your licence after being granted. You must also use this system to report certain events and changes in your immigrant employee’s details or employment period.
- What are the general requirements to obtain a Skilled Worker sponsor licence?
To obtain a Skilled Worker sponsor licence, employers must meet several key requirements:
- Genuine Organisation Operating Lawfully in the UK: Employers must provide at least four specified documents from Appendix A of the sponsor guidance to demonstrate that their business is genuine and lawfully operating in the UK. The required documents depend on the type of organisation.
- Honest, Dependable, and Reliable: The Home Office will assess the history and background of your business and the key personnel to ensure the organisation is trustworthy and not engaged in actions contrary to the public good.
- Capable of Carrying Out Sponsor Duties: Employers must demonstrate they have adequate HR and recruitment procedures in place to fulfil sponsorship duties, including reporting, record-keeping, and compliance with immigration laws.
- What documents are required to prove the business is genuine?
Employers must submit documents as specified in Appendix A of the sponsor guidance. The type of documents varies, such as:
- Public authorities and companies listed on the London Stock Exchange don’t need to submit extra documents.
- Start-ups, franchises, and charities need to follow guidance from Table 2 of Appendix A.
- One required document is the latest set of audited accounts if the organisation is legally required to submit them.
- How does the Home Office assess whether the employer can fulfil sponsorship duties?
The Home Office reviews the employer’s current HR and recruitment procedures to ensure they can meet sponsorship duties. These duties include:
- Reporting events such as changes in sponsored worker’s start dates or work locations within 10-20 working days.
- Keeping records of employment, salaries, and vacancy authenticity.
The Home Office may also conduct visits, announced or unannounced, to check if the employer is meeting their obligations.
- What is the skill-level requirement for a Skilled Worker visa?
The job for which the worker is being sponsored must meet the skill level of at least Level 3 (A-level equivalent) on the Regulated Qualifications Framework. The worker does not need to have A-levels, but the job must meet this skill level.
Eligible occupations are listed in Appendix Skilled Occupations and Appendix Immigration Salary List. The employer must choose the correct SOC 2020 occupation code to sponsor a worker.
- What are the salary requirements for a Skilled Worker visa?
To sponsor a Skilled Worker, the salary offered must meet or exceed:
- £38,700 per year as the general salary threshold (for most jobs).
- Lower thresholds of £34,830 or £30,960 may apply if the worker qualifies for tradable points.
- What exceptions are there to the salary thresholds?
The following exceptions apply:
- Workers with permission granted before 4 April 2024 and applying before 4 April 2030: Salary threshold of £29,000 or lower if tradable points apply.
- Workers in Health and Care ASHE roles or in Health and Education SOC codes: Threshold of £29,000 or £23,200 for certain national pay scales.
- What are tradable points, and how do they affect salary?
Tradable points allow workers to qualify with lower salaries based on specific attributes. Examples include:
- A PhD relevant to the job: Salary of £34,830 and 90% of the going rate.
- A PhD in a STEM field: Salary of £30,960 and 80% of the going rate.
- Workers in roles on the Immigration Salary List or new entrants to the market: Salary of £30,960 and 70% of the going rate.
- How is the going rate calculated, and when does it apply?
The going rate is calculated based on a 37.5-hour workweek and must be prorated if the weekly hours differ. Employers must meet either the general salary threshold or the going rate—whichever is higher for the job.
- What is the minimum hourly rate for sponsored workers?
Depending on the occupation, the minimum hourly rates are:
- £15.88 per hour for jobs in Table 1 of Appendix Skilled Occupations.
- £11.90 per hour for jobs in Table 2.
These rates do not apply to Health and Education SOC codes listed in Table 3.
- What happens if the salary or job does not meet the requirements?
If the job or salary does not meet the required thresholds (general salary, going rate, or hourly rates), the worker will not qualify for a Skilled Worker visa, and the sponsor licence application will not be appropriate.
- What are the key personnel roles for a sponsor licence?
Employers applying for a sponsor licence must appoint:
- An Authorising Officer responsible for the licence and compliance.
- A Key Contact to act as the main point of communication with the Home Office.
- A Level 1 User to manage daily sponsorship activities through the Sponsorship Management System (SMS).
These individuals must be based in the UK and have no unspent convictions or immigration violations.
- How do you apply for a Skilled Worker sponsor licence?
To apply for a sponsor licence, employers must:
- Complete an online application form.
- Pay the relevant application fee: £536 for small companies or charities, and £1,476 for medium or large companies.
- Submit supporting documents within five working days of the application.
- What are the consequences of non-compliance with sponsor duties?
Failure to meet sponsorship duties (e.g., reporting, record-keeping) can result in the revocation or suspension of the licence and the curtailment of any sponsored workers’ visas. This includes missing the required timeframes for reporting events such as changes to a worker’s employment details.
- What is the sponsor licence rating system?
If your Skilled Worker sponsor licence application is approved, your business will be rated as A on the Register of Licensed Sponsors. If, during the validity period of your licence, the Home Office finds that you are not complying with your duties, you may be downgraded to a B-rating.
To regain an A-rating, you must follow a sponsorship action plan within a specified time frame. If you fail to meet the requirements of the action plan, your licence may be revoked.
- What are the immigration requirements for a Skilled Worker visa?
In addition to ensuring the job meets the appropriate skill level and salary thresholds, employers must verify that the worker:
- Has English language skills at B1 or higher in speaking, listening, reading, and writing (according to the CEFR standards).
- Meets any financial requirements.
For workers in health, care, welfare, and education sectors, a criminal record certificate may be required for any country they have resided in for 12 months or more in the last 10 years, since the age of 18.
- Is there an Immigration Skills Charge?
Yes, employers may need to pay the Immigration Skills Charge each time they assign a Certificate of Sponsorship (CoS) to a worker on the Skilled Worker route.
- How can Kaya Legal help with the Skilled Worker sponsor licence process?
At Kaya Legal, our experienced immigration lawyers assist UK employers in obtaining and maintaining their sponsor licences. We ensure compliance with sponsorship duties and help businesses navigate the complex Home Office requirements.
We provide tailored advice and support throughout the application process, from preparing the necessary documents to building a compelling business case for your Skilled Worker sponsor licence. Our dedicated team offers clear and reliable guidance, making the process smoother and stress-free for your business.