A UK sponsor licence is crucial for employers that aim to recruit skilled foreign workforces to fill skills gaps that the domestic workforce cannot meet. This licence allows businesses to operate within the immigration framework of the UK, providing a guarantee of compliance with strict legal demands, and it helps in filling effective skill gaps. However, obtaining and maintaining a sponsor licence is a very demanding process requiring preparation and a deep understanding of the responsibilities involved.

This article is a detailed analysis of what a sponsor licence permits UK employers to do, its benefits, and the compliance duties that must be met to avoid complications such as a suspended sponsor licence.

What is Sponsor Licence?

A sponsor licence from UK Visas and Immigration (UKVI) is official permission for businesses to sponsor workers from other countries to enter the UK to work. This licence is integral to the UK's points-based system, particularly for categories such as the Skilled Worker Visa and Global Business Mobility Visa.

Understanding a sponsor licence essentially requires that it have two purposes: it allows international recruitment and ensures that immigration laws are complied with. An employer with a sponsor licence can provide eligible foreign nationals (s) with a CoS, allowing them to apply for work visas.

How a Sponsor Licence Helps UK Employers

Access to a Global Talent Pool

The sponsor licence enables businesses to recruit globally skilled people to mitigate some of the much-needed shortage conditions witnessed in the healthcare, IT, engineering, and education sectors. For instance, the Health and Care Worker Visa enables organisations to sponsor doctors, nurses, and other healthcare professionals.

Workforce Growth End

Sourcing talent from abroad will allow emerging businesses to grow scalable. With business expansion, employers can also ensure the availability of specialised skills with experts with diverse knowledge and experiences.

Addressing Seasonal or Sectorial Needs

Industrial sectors—like agriculture, hospitality, and the arts—generally have seasonal or sectorial needs. A Temporary Worker Visa sponsored by a licence ensures these needs are effectively addressed.

What a Sponsor Licence Does

Issue a CoS

A sponsor licence is an important tool for employers to facilitate the delivery of CoS. Each CoS contains specific details on a job position, salary, and period of employment to reflect that the position satisfies the conditions for eligibility under UKVI.

Employers are expected to apply for a number of CoS at the time of their licence application and are allowed to apply for supplementary CoS as the employer's needs change.

Sponsoring Skilled and Temporary Workers

A sponsor licence enables recruitment under various visa categories:

Skilled Worker Visa: intended for long-term jobs that are highly skilled, and the salary paid exceeds minimum amounts.

Temporary Worker Visa: meant for seasonal and short-term employment in the charity, arts, and agriculture sectors

Global Business Mobility Visa: This visa is suitable for those under an intra-company transfer or senior executives of a company due to an international operation.

Every type of visa qualification is distinct, with requirements that each employer must meet in sponsoring the worker.

Improving Business Performance

A sponsor licence also allows for the hiring of the best talent, thereby fostering innovation and productivity. A business will be at par with its competitors in the native market and international market.

Responsibilities for Sponsor Licence Holder

Although the benefits of a sponsor licence are immense, sponsors do enjoy stringent accountability. They need to prove their ability to handle sponsored workers safely and responsibly and within the parameters set by UKVI.

Staff Monitoring

Sponsors should monitor the work activities of sponsored workers, which include:

• Registers of attendance.

• Compliance with job descriptions and contractual requirements.

• Visa status and change in employment updates.

Failure to observe workers' work activity might result in penalties for employers, like the suspension of their sponsor licence.

Record Keeping

Employers are expected to maintain detailed records for each sponsored employee, which entails:

• Photocopies of right-to-work documents.

• Employment contracts.

• Details regarding payment of salary.

• Latest contact information

They must be presented upon audit or inspection by UKVI.

Reporting Changes to UKVI

Employment or organisational changes for which a sponsor is required to report to UKVI include the following:

• Termination of employment.

• Any change in job roles, salaries, or working hours.

• Long-term employee absences without permission.

• Relocation or reshaping of the organisation.

The report shall be made through SMS within the deadlines defined.

How to Avoid Sponsor Licence Suspension

Non-compliance with duties on sponsorship is the most common cause of suspending a sponsor licence. Common reasons include employing staff outside of the conditions of their visas, failing to declare changes, or inadequate HR systems. To avoid suspension, employers should:

• Carry out internal audits regularly to flag possible compliance issues.

• Train HR staff in managing sponsorship.

• Implement automated systems for tracking visa expiry and employee activity.

Soliciting issues proactively will alleviate some risks and ensure the licence is upheld.

This video is your ultimate guide for avoiding sponsor licence suspension. 

Financial Requirements to Obtain and Maintain a Sponsor Licence

The costs incurred by employers in obtaining and maintaining a sponsor licence are as follows:

• Application Fee: The application fee for small businesses and charities is £536, while that for medium and large organisations is £1,476.

• Certificates of Sponsorship: £199 for CoS of skilled worker visa and £25 for Cos of temporary worker visa.

• Immigration Skills Charge: It ranges from £364 to £1,000 per worker per year.

The costs are different for each organisation and the number of employees sponsored.

Application for a Sponsor Licence

Obtaining a sponsor licence requires:

Online Application: Submit the application form in the SMS by providing complete organisational information.

Supporting Documents: Attach documents showing your business's authenticity and capability to operate, such as financial records and copies of registration.

Compliance Visit: Anticipate a possible visit from UKVI to inspect HR systems and readiness for compliance.

Approval processing times vary, but standard processing times are up to eight weeks. For an additional fee, priority processing is available, which would speed up decisions to about ten working days.

Preparing for UKVI Audits

Once a licence is granted, employers remain under scrutiny through regular audits. UKVI inspectors evaluate compliance with sponsorship duties, including record-keeping, reporting, and employee monitoring. Failure to meet standards may result in penalties, licence suspension, or revocation.

Get professional assistance

A sponsor licence is critical for UK employers seeking to address skill shortages, expand operations, and remain competitive. Understanding a sponsor licence, its functions, and the associated compliance obligations can unlock the benefits of international recruitment while avoiding all the risks associated with its suspension. Organisations looking to apply for or manage a sponsor licence can utilise the legal guidance of A Y & J Solicitors to simplify the process.

A Y & J Solicitors is a specialist immigration law firm with extensive experience with sponsor licence applications. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!