Switching from Graduate Visa to Skilled Worker Visa UK

Section A: Switching from the Graduate Visa to Skilled Worker Visa

The Graduate route was introduced in July 2021 to allow international students who have completed a qualifying UK degree to remain and work for a fixed period after their studies. It is an unsponsored route, meaning employers do not need a sponsor licence to hire a graduate visa holder, and the role does not need to meet a particular skill or salary threshold.

For many businesses, therefore, the route has provided access to capable early-career professionals without the regulatory burden of sponsorship.

However, the position changes once an employer wishes to retain that individual beyond the expiry of their Graduate permission. The Graduate visa cannot be extended.

If the employment relationship is to continue, the worker will need to switch into a sponsored category, most commonly the Skilled Worker visa.

Switching is permitted from inside the UK. A Graduate visa holder can apply at any point during their existing grant of leave, provided the application is submitted before their visa expires and all Skilled Worker requirements are met. Timing matters. If sponsorship is left until the final weeks of leave, employers can find themselves under pressure to secure the necessary approvals.

In practice, the switch involves two tages. First, the employer must hold a valid sponsor licence. If the organisation does not yet have one, it will need to apply for a sponsor licence and obtain approval from UK Visas and Immigration before it can sponsor the worker. Second, once a Certificate of Sponsorship has been assigned, the employee submits their Skilled Worker visa application.

Employers often underestimate this dual process. Retaining a graduate is not simply a matter of issuing a new contract. It requires regulatory approval on the employer side and a compliant immigration application on the employee side. Early planning reduces the risk of gaps in permission and disruption to ongoing employment.

Employers should also be aware of planned reforms to the Graduate route, including a reduction of the standard permission period from two years to 18 months. For businesses relying on Graduate visa holders as a pipeline into sponsored roles, this reduces the time available to assess suitability and plan a switch to the Skilled Worker route.

Section B: Employer Sponsor Licence Requirement

While UK employers don’t need a sponsor licence to hire a graduate visa holder, they have to have permission to sponsor a migrant under the skilled worker route. This means that if your organisation does not currently have a valid sponsor licence, you’ll need to apply for one before you can hire under the Skilled Worker route.

To be eligible to sponsor migrants under the skilled worker route, you’ll need to make an application for a sponsor licence. This involves registering your details online with UK Visas and Immigration (UKVI), completing an online application form and paying the relevant fee.

As part of the process, you will have to show that you’re a genuine organisation operating lawfully in the UK, and that you’re suitable for sponsorship. In assessing your suitability, UKVI will consider if:

• you can offer genuine employment that meets the minimum skills and salary threshold under the skilled worker route
• you’re capable of carrying out your sponsorship duties, with adequate HR systems and practices in place, plus suitable key personnel to operate the SMS, to manage the sponsorship process and discharge your duties as a licensed sponsor
• you’re honest, dependable and reliable, where evidence of immigration violations or any relevant unspent criminal convictions relating to either your key personnel or those involved in the day-to-day running of your business could impact your application.

In support of your application, you will have to provide certain documentation, as detailed in Appendix A, to demonstrate that your business is genuine, and that you have a trading or operating presence within the UK, together with any additional documents as may be requested by UKVI.

As part of its decision-making process, UKVI may also carry out a digital audit or conduct a visit your place of business, either before or after a licence is granted, to make sure you’ll be able to meet your ongoing obligations as a UK sponsor.

You’ll also need to nominate key personnel, including an authorising officer, key contact and level 1 user, who will be responsible for the licence. The key contact will be the main point of contact with UKVI, whilst the level 1 user will be responsible for the day-to-day management of your licence using the Home Office sponsorship management system (SMS). You can appoint optional level 2 users once you’re granted a licence, although they’ll have fewer permissions than a level 1 user.

The processing times for sponsorship applications is around 8 weeks. Once you’ve received notification from UKVI, and assuming your application is successful, you’ll be able to assign Certificates of Sponsorship (CoS) to visa applicants, such as graduate to skilled worker switchers. For graduates switching from within the UK, this will be an Undefined CoS. Defined CoS are only required for Skilled Worker applicants applying from overseas.

Section C: Applying for a Skilled Worker Visa

When applying to switch from a graduate visa to a skilled worker visa, the applicant has to complete an online application form and pay the relevant fee.

A key mandatory requirement for the application is a valid CoS issued by an approved UK sponsor, which has to be used for the application within 3 months. This will provide them with a unique reference number which will allow them to apply for a sponsored work visa.

To be eligible for a skilled worker visa, the applicant must be able to show that:

• they have a genuine offer of a job, evidenced by a valid CoS issued by a licensed sponsor
• that job is at the required skill level of RQF 6 or equivalent and above within an eligible occupation code (unless covered by specific transitional arrangements under the Immigration Rules)
• the job meets the relevant minimum salary threshold or the ‘going rate’ for the job, whichever is the higher
• they can speak English at level B2
• the financial maintenance requirement is met

The English language requirement will be automatically met where the applicant holds a UK degree, or an overseas degree confirmed by Ecctis as equivalent to a UK degree and taught in English.

The applicant will also be required to meet a maintenance requirement if, at the time that they apply to switch into the skilled worker route, they’ve been in the UK for less than 12 months. This will require proof of funds of at least £1,270 held for a 28-day period although, as their UK sponsor, you can certify that you will maintain and accommodate the applicant for at least that sum for the first month of their employment in their new job role.

When applying from inside the UK, as a ‘switcher’, a visa decision will usually be made by UKVI within around 8 weeks. During this period, the applicant must not travel outside of either the UK, Ireland, the Channel Islands or Isle of Man until they’ve received their decision. If they do travel outside these areas, their application to switch visa categories will be treated as withdrawn.

Section D: Graduates as Skilled Worker New Entrants

Graduate visa holders switching to a Skilled Worker visa may qualify as a ‘new entrant’, which means they may benefit from a lower salary threshold under the Skilled Worker route.

Under the Immigration Rules, a ‘new entrant’ includes a person who is under 26 at the date of application, switching from the Student or Graduate route, working towards a recognised professional qualification, or undertaking a postdoctoral role in an eligible occupation code.

The general salary threshold is the higher of £41,700 per year or the full going rate for the occupation code. Lower thresholds apply for new entrants, who have to be paid the higher of £30,960 per year or 70% of the going rate.

The new entrant rate only applies to jobs eligible for that lower threshold and the role must be at the appropriate skill level (generally RQF Level 6+).

Also, the new entrant discount can only be used for up to 4 years total under Skilled Worker, including any time already spent on the visa as a new entrant.

Section E: How much does it cost to switch from the Graduate to Skilled Worker Visa?

There are various costs involved to switch from the graduate route to skilled worker visas, both for the employer and for the applicant.

If as the employer you don’t currently hold a valid licence to sponsor skilled migrant workers, the cost of applying for sponsorship will depend on the size or status of your organisation. You’ll be eligible to pay a lower fee of £574 if you’re classed as a small or charitable sponsor. For medium or large sponsors, the licence application fee is £1,579.

You’ll also be liable to pay an Immigration Skills Charge — set at £364 for the first 12 months and £182 for each additional 6 months as a small or charitable employer, or £1000 and £500 respectively for a medium or large employer. There is also a fee of £525 for each certificate of sponsorship you assign to a Skilled Worker visa holder.

For the applicant, the costs comprise the visa application fee, ranging from £590 to £1,751, depending on the length of visa and if their job is on the Immigration Salary List. Most applicants also have to pay the Immigration Healthcare Surcharge for each year of leave granted, at a rate of £1,035 per applicant per year. This is payable in full and upfront, before the visa application will; be processed.

Applicants may need to pay an appointment fee depending on whether they enrol biometrics using the UK Immigration: ID Check app or attend a biometric appointment in person.

Most applicants under this route will also have to pay the Immigration Health Surcharge (IHS) to gain access to the UK’s National Health Service. This costs £1,035 per year of leave, and is payable in full when making the visa application. For example, for a 3-year Skilled Worker visa, the immigration health surcharge will be payable at £3,105.

Section F: Need assistance?

We are specialist UK immigration lawyers, with substantial experience and recognised expertise in advising employers on the UK sponsorship rules and retaining international talent through the Skilled Worker visa. For specialist immigration advice for your organisation, contact us.

Section G: Graduate Visa to Skilled Worker Visa FAQs

What is the Graduate Visa to Skilled Worker Visa route?

It allows international graduates in the UK to switch from a Graduate Visa to a Skilled Worker Visa if they secure a job offer from a licensed sponsor.

Do I need a job offer to switch to a Skilled Worker Visa?

You must have a job offer from a UK employer with a valid sponsor licence. The role must meet the required skill level and salary threshold.

What is the minimum salary requirement for the Skilled Worker Visa?

The general salary threshold is the higher of either £41,700 per year or the relevant percentage of the role’s going rate. Lower thresholds may apply in certain circumstances, such as for new entrants or for roles on the Immigration Salary List.

When should I apply to switch to a Skilled Worker Visa?

You must apply before your Graduate Visa expires to maintain lawful residence in the UK.

Can I switch to a Skilled Worker Visa from within the UK?

Switching is allowed from a Graduate Visa while you are still in the UK.

What documents do I need for the application?

You will need a valid CoS from your employer, proof of salary, and other supporting documents such as your passport and visa details.

Can the Skilled Worker Visa lead to settlement in the UK?

The Skilled Worker Visa offers a route to settlement (ILR) after five years, provided you meet the eligibility criteria.

Do I need to pay the Immigration Health Surcharge again?

The Immigration Health Surcharge must be paid as part of the Skilled Worker Visa application.

What happens if my job offer does not meet the requirements?

If the role does not meet the salary or skill level criteria, your application is likely to be refused, so ensure your employer checks all requirements before issuing a CoS.

Can my dependants switch to the Skilled Worker route with me?

Dependants can switch with you, provided they meet the eligibility requirements and you include them in your application.

Section H: Glossary

Section I: Useful Links