SPONSOR LICENCE
A sponsor licence is permission from the UK Home Office which allows UK-based organisations to sponsor workers from outside the UK, including EU citizens who arrived after December 31, 2020, for both paid and unpaid work. While Irish citizens, those with settled or pre-settled status, and people with indefinite leave to remain don't require sponsorship, all other foreign workers need their employer to hold this licence if they wish to be sponsored. Licensed organisations can issue Certificates of Sponsorship (CoS) to sponsor eligible workers for visa applications.
WHAT IS A SPONSOR LICENCE?
Businesses and organisations need authorisation from the Home Office if they wish to sponsor someone who is not settled or does not otherwise have the right to work in the UK. This authorisation is known as a sponsor licence.
WHO NEEDS A SPONSOR LICENCE?
Any business or organisation that wants to sponsor someone to come to (or remain) in the UK for a specific employment position. Sponsorship is not required for employers who want to hire a person who already has permission to work in the UK (such as a student, graduate, or dependent). However, the employment terms of any such person will be limited by their visa conditions and length.
Example 1
An accounting business without a sponsor licence may hire a recent graduate from a UK university for a financial analyst position, but they will not be able to stay and continue working for that business beyond the expiry of their visa. In other words, if the graduate's visa expires 12 months after they started the position, their employer can only hire them for 12 months. The employer will require a sponsor licence if they wish to continue hiring that person for a longer period.
Example 2
A bakery without a sponsor licence may hire a person who is in the UK with permission as the dependant partner of someone who has a skilled worker visa. That person will be able to work for the business for the same length of time as their partner's visa is valid. If they wish to work for their employer beyond that time, their employer must acquire a licence and sponsor them. Alternatively, if the worker successfully applies for indefinite leave to remain before the end of their employment, they can continue working for their employer and their employer will not need a licence.
Example 3
A hotel without a sponsor licence wants to hire an overseas candidate for a managerial position. It must have a sponsor licence to enable the candidate to enter and work in the UK on an appropriate visa.
WHAT TYPE OF SPONSOR LICENCE DO I NEED?
There are two types of sponsor licence available.
Worker licence
This licence is for employers who want to sponsor a worker for skilled employment (short, medium or long-term).
Temporary Worker licence
This licence is for employers who want to sponsor a worker on a temporary basis.
Both licences are further split into categories or 'routes' which cover specific types of visas.
Worker licence
-
Skilled Worker
-
Minister of Religion
-
International Sportsperson
-
Global Business Mobility
-
Senior or Specialist Worker
-
Temporary Worker licence
-
Scale-up Worker
-
Creative Worker
-
Charity Worker
-
Religious Worker
-
Government Authorised Exchange
-
International Agreement
-
Global Business Mobility
-
Graduate Trainee
-
Service Supplier
-
UK Expansion Worker
-
Secondment Worker
-
Seasonal Worker
-
CAN MY BUSINESS APPLY FOR A SPONSOR LICENCE?
The Home Office will only grant a licence to businesses or organisations adequately capable of justifying their need for one. The exact requirements depend on the specific route the application is under.
Generally, businesses will have to show that they are legitimate and trading, have genuine vacancies for eligible positions, possess adequate human resources systems, and do not have a history of dishonesty or non-compliance. Those involved in the running of the business must not have any unspent criminal convictions.
TYPES OF CERTIFICATE OF SPONSORSHIP
Defined Certificate of Sponsorship (DCoS)
A DCoS is required for those who want to sponsor a migrant worker who is outside the UK. Requests for a DCoS must be made each time it is needed. You must wait for your request to be approved before you can assign it. There is no charge for a DCoS request.
There are two types of certificate an organisation can use to assign to a migrant worker.
Undefined Certificate of Sponsorship (CoS)
An undefined CoS must be used if you want to sponsor a migrant worker who is in the UK. If your application for a sponsor licence is successful, you will be granted an annual allocation of CoS' to use. This will usually be the amount requested in your application, but may be less if the Home Office is not satisfied enough information has been provided.
WHAT DUTIES COME WITH SPONSORSHIP?
The Home Office describes sponsorship as a privilege, not a right. For those who obtain it comes a set of responsibilities which must be respected at all times. Compliance with UK employment law and prevention of illegal working are the overarching duties, in addition to certain requirements for your business or organisation's Key Personnel.
Sponsoring migrant workers will require an efficient human resources system capable of monitoring migrant activity, recording working patterns and absences, and promptly notifying the Home Office of important changes to either your organisation's or your sponsored worker's circumstances. These changes are generally the obligation of the Level 1 User.
KEY PERSONNEL
The key personnel are positions held by one or more members of your business or organisation once the sponsor licence application is approved. You will need to specify which individuals will hold which positions when you apply. Each person will have a different responsibility.
Authorising Officer
The most senior person in your organisation responsible for the recruitment of migrant workers.
Key Contact
The person responsible for communicating with the Home Office about your licence.
Level 1 User
The person responsible for carrying out day to day activities on the Sponsor Management System (SMS).
Representative
A person based in the UK and authorised to give immigration advice or services.
There are very strict requirements for who can hold each of these positions. It is important that each key personnel fully understands their role and how to conduct their duties.
HOW TO APPLY FOR A SPONSOR LICENCE
When your business or organisation is ready to apply, you can do so by submitting the online application form. You will be asked to provide all of the relevant information, which you must ensure is accurate and true to the best of your knowledge.
You must specify the number of certificates of sponsorship you need for your first year as a licence holder. If you are intend to hire migrant workers who are outside the UK, you will need a different type of certificate.
You are permitted to seek help from a qualified legal representative, but it is your Authorising Officer who must submit the application.
WHAT ARE THE FEES FOR A SPONSOR LICENCE?
How much you must pay depends on the size of your business and the type of licence you need.
Small or charitable sponsors
Small sponsors are those for who at least 2 of the following 3 statements is true:
-
Your annual turnover is less than £15 million
-
Your total assets are worth less than £7.5 million
-
You have no more than 50 employees
Charitable sponsors are those who are:
-
registered as a charity in England, Scotland, Wales or Northern Ireland
-
an excepted charity
-
an exempt charity
-
an ecclesiastical corporation established for charitable purposes
Medium or large sponsors
All business or organisations which do not meet the criteria for a small sponsor will be considered a medium or large sponsor. All of the following organisations will automatically be considered a large sponsor:
-
Insurance companies
-
Public companies
-
Banking companies
-
E-Money issuers
The fee for small and charitable sponsors applying for a Worker or Temporary Worker licence is currently £574. There is no fee for adding either licence type to an existing licence.
The fee for medium and large sponsors applying for a Worker licence is currently £1,579, whereas the Temporary Worker licence fee is £574. For organisations applying for both licences at the same time, the fee is £1,579. For organisations adding a Worker licence to an existing Temporary Worker licence, the fee is £1,005. There is no fee for adding a Temporary Worker licence to an existing Worker licence.
SUPPORTING DOCUMENTS
Your specific licence type will determine which documents you must submit with your application. You must send a minimum of 4 documents, some of which will be mandatory for your business type or the route you are applying under. There are no route-specific documents for the skilled worker route, for example. However, the UK expansion worker route has 4 types of documents which must be submitted.
After you have submitted the application online, you will see which evidence is required on a document known as the submission sheet. You will normally have 5 working days to send your submission sheet and supporting documentation to the Home Office.
SPONSOR LICENCE PROCESSING TIME
The processing times for sponsor licence applications is currently 8 weeks.
You must bear in mind that any issues with your supporting documents or complexity of your circumstances could significantly delay the processing time, and may result in a request for additional documentation or a pre-licence compliance check.
The pre-licence priority service, currently available for an additional £500, ensures your application will be considered within ten working days. It does not guarantee your application will be approved.
OUTCOME
If your application for a sponsor licence is successful, the Home Office will notify your Authorising Officer by email. Your organisation will added to the licence database and will receive a licence number, rating, and an annual CoS allocation. The user ID for your Level 1 User will be confirmed, and they will receive their password separately.
If your application for a sponsor licence is refused, the Home Office will explain the reason(s) in the refusal letter. You may be prevented from re-applying for a certain period of time - known as a 'cooling off period'.
No cooling off period
If your application was refused because of a lack of information, failure to provide documents, or because your application was submitted by a representative, you will be allowed to re-apply immediately without a cooling-off period.
6-month cooling off period
If your application was refused (or would have been refused had you not withdrawn it) for any reason not otherwise specified below, you will face a 6-month cooling off period from the date of the refusal (or withdrawal confirmation).
12-month cooling off period
If any of the following circumstances apply, you will face a 12-month cooling off period:
-
You previously held a sponsor licence and it was revoked (or would have been revoked had you not surrendered it).
-
You were issued with a civil penalty for employing an illegal worker under s15 Immigration, Asylum and Nationality Act 2006 or regulation 11 of the Accession of Croatia (Worker Authorisation) Regulations 2013, and the penalty has been paid in full.
-
More than one civil penalty was issued to an owner, director or an Authorising Officer at your organisation under s23 or s25 Immigration Act 2014 for authorising occupation of premises under a residential tenancy agreement by an adult who is disqualified because of their immigration status, and those penalties have been paid in full.
5-year cooling off period
If any of the following circumstances apply, you will face a 5-year cooling off period:
-
You were issued with a civil penalty or charge under either s32 or s40 Immigration and Asylum Act 1999 (for carrying clandestine entrants or carrying passengers without proper documents) or s24 Counter-Terrorism and Security Act 2015 or the Authority to Carry (Civil Penalties) Regulations 2015 (for bringing a passenger to the UK in breach of an authority to carry scheme and that penalty or charge has been paid in full).
Indefinite cooling off period
If you, an owner, director or Authorising Officer has an unpaid civil penalty or charge for any offence mentioned above, and that person is still liable after their objection or appeal rights have been exhausted.
HOW WE CAN HELP
Applications for any type of sponsor licence are complex and refusals could have long-lasting consequences. This makes preparation fundamental to your plans, from choosing the correct route, completing the application form and submitting the right supporting documents all the way to ensuring compliance after you have your licence.
It is very important to have experts by your side who can make the whole process easier and give much needed confidence to make a strong application.
At Lace Law LLP, we offer comprehensive support throughout your sponsor licence journey. From your initial consultation to the final decision, you will have a dedicated expert who will meticulously prepare your application, maintain regular communication, and promptly respond to any concerns along the way. We pride ourselves on this personal approach, which we feel not only provides a greater experience to you, but also increases the likelihood of a successful outcome.
Don't let the process be more stressful than it needs to be. Contact us today to have a dedicated partner by your side on your sponsor licence journey.
