How to Apply for a UK Sponsor Licence

A sponsor licence is the permission granted by the UK Home Office to an employer allowing them to hire skilled foreign nationals under certain sponsored visa routes.

To apply for a sponsor licence, employers must make an application evidencing their eligibility and proving that they meet the sponsorship compliance requirements.

With skills and labour shortages persisting, sponsor licences have become operationally critical for employers across all areas of the UK economy. For those who are unfamiliar with the UK sponsorship system, the sponsor licence process can quickly become daunting, with strict and extensive eligibility and procedural requirements, as well as ongoing compliance and management obligations.

Failure to meet your obligations as a licensed sponsor can result in Home Office scrutiny and enforcement action.

If you are applying for a sponsor licence, you will want to improve the prospects of the Home Office approving your application to avoid a refused application, which means losing time, the application fee, and potentially the job candidate you were looking to employ.

You can read our extensive guide to making a Sponsor Licence Application here >>

This guide provides a detailed overview for employers on the sponsor licence application and management rules, taking an in-depth look at how to apply for a sponsor licence and how to comply with the sponsorship duties. We also cover common mistakes to avoid, to help ensure that your application is successful and your business remains compliant with the Home Office’s regulations.

DavidsonMorris are UK sponsor licence experts. If you have a question about a sponsor licence application, or need specialist guidance with managing your licence, contact us.

 

Section A: What is a Sponsor Licence?

 

A sponsor licence is a legal requirement for UK organisations that want to hire non-UK resident skilled workers.

UK Visas and Immigration (UKVI), a division of the Home Office, oversees the sponsor licence process, ensuring that organisations meet strict requirements to hire foreign workers legally.

Through the sponsor licence application process, UKVI is looking for proof that:

 

a. You are a genuine organisation operating lawfully in the UK.

b. You have effective HR and recruitment systems and practices in place.

c. You are offering genuine employment that meets the Tier 2 skill level and appropriate rates of pay.

d. Your appointed key personnel, as identified in your application, are honest, dependable and reliable.

 

The licence allows the sponsor to assign Certificates of Sponsorship, which foreign workers need to apply for relevant work visas.

Without this licence, UK employers cannot legally sponsor foreign workers to come to the UK for employment.

You can read our extensive guide to the Certificate of Sponsorship here >>

 

1. Types of Sponsor Licence

 

UK sponsor licences are divided into two main categories, depending on the type of workers the business intends to hire:

 

Table: Types of Sponsor Licences

Licence Type	Visa Categories	Description
Worker Licence	Skilled Worker	The role must meet job suitability requirements.
	Senior or Specialist Worker (Global Business Mobility)	For multinational companies transferring established employees to the UK (formerly Intra-Company Transfer visa).
	Minister of Religion	For people coming to work for a religious organisation.
	International Sportsperson	For elite sportspeople and coaches based in the UK.
Temporary Worker Licence	Scale-up Worker	For people coming to work for a fast-growing UK business.
	Creative Worker	To work in the creative industry, such as an entertainer or artist (up to 2 years).
	Charity Worker	For unpaid workers at a charity (up to 1 year).
	Religious Worker	For those working in a religious order or organisation (up to 2 years).
	Government Authorised Exchange	For work experience (1 year), research projects, or training (up to 2 years).
	International Agreement	For jobs covered by international law, such as employees of overseas governments.
	Graduate Trainee (Global Business Mobility)	For workers transferring to a UK branch as part of a graduate training programme.
	Service Supplier (Global Business Mobility)	For workers providing services to a UK company under contract (6 to 12 months).
	UK Expansion Worker (Global Business Mobility)	For workers sent to the UK to set up a new branch or subsidiary of an overseas business.
	Secondment Worker (Global Business Mobility)	For workers transferring from overseas to a UK business as part of a high-value contract.
	Seasonal Worker	For workers in horticulture (up to 6 months) or poultry work (between 18 October and 31 December annually).

 

a. Worker Licence

This licence is for businesses that want to hire skilled workers for long-term or permanent roles. Workers hired under this licence typically fill positions that require specific skills, such as healthcare professionals, engineers, IT specialists, or roles on the UK’s Immigration Salary List (previously the Shortage Occupation List). The Worker Licence is required to sponsor workers under the following visa categories:

 

i. Skilled Worker visa

ii. Senior or Specialist Worker visa

iii. Minister of Religion visa

iv. International Sportsperson visa

 

b. Temporary Worker Licence (formerly Tier 5)

This licence is for businesses looking to sponsor individuals for short-term roles. It covers a range of temporary work categories (previously known as Tier 5 visas):

 

i. Scale-up Worker

ii. Creative Worker

iii. Charity Worker

iv. Religious Worker

v. Government Authorised Exchange

vi. International Agreement

vii. Graduate Trainee (Global Business Mobility)

viii. Service Supplier (Global Business Mobility)

ix. UK Expansion Worker (Global Business Mobility)

x. Secondment Worker (Global Business Mobility)

xi. Seasonal Worker

 

Each licence type comes with specific obligations and responsibilities for the employer, which ensures they maintain compliance with UKVI regulations.

 

2. Who Needs a Sponsor Licence?

 

Any UK organisation that plans to hire workers from outside the UK, including citizens of the European Economic Area (EEA) and Switzerland (post-Brexit), requires a sponsor licence. The sponsor licence is mandatory in order to lawfully employ foreign nationals who do not have an automatic right to work in the UK. Without it, organisations are unable to sponsor skilled employees on the necessary work visas.

A sponsor licence is required for any UK-based organisation looking to hire individuals who:

 

a. Do not hold UK citizenship or a visa granting automatic work rights.

b. Are coming from outside the UK, including the EU, to work for the business.

c. Need a visa to live and work in the UK under specific skilled or temporary worker categories.

 

This includes organisations of all sizes and sectors that intend to sponsor non-UK nationals in skilled or temporary roles, including charitable organisations, religious institutions, and creative industries.

You can read our extensive guide to the Principles of Sponsorship here >>

 

3. Types of Jobs That Require Sponsorship

 

To sponsor a worker, the job must meet certain skill and salary criteria set by the UK government. Typically, this applies to roles that are:

 

a. Skilled Worker Jobs

These are positions that require a specific level of expertise, training, or education. Examples include roles in healthcare (doctors, nurses), engineering (civil, mechanical, software engineers), IT (developers, data scientists), finance (accountants, financial analysts), and other specialised fields.

 

b. Jobs on the Immigration Salary List (previously the Shortage Occupation List)

These are roles where the salary must meet a stated minimum that is lower than the general Skilled Worker salary threshold.

 

c. Temporary Jobs

Organisations hiring workers for short-term projects or seasonal roles may also need a sponsor licence. These positions typically fall under categories like charity work, religious work, sports, or entertainment and often require specific visa types (e.g., Temporary Worker Visa).

 

Section B: Sponsor Licence Eligibility Requirements

 

To apply for a sponsor licence, UK employers must meet specific eligibility criteria set by the Home Office. These requirements are in place to ensure that only legitimate, reliable, and capable employers are granted the responsibility of hiring non-UK workers.

Through the application process, UKVI assesses whether the organisation can fulfil its duties as a sponsor and comply with ongoing immigration regulations. As such, employers must ensure they have the HR systems in place to monitor and maintain compliance with the regulations.

Key eligibility criteria for sponsor licence applicants include:

 

1. Registered and Operating in the UK

 

The organisation must be a legitimate UK entity that is registered with Companies House (if applicable) or an equivalent governing body for sole traders, partnerships, or other legal structures. The company must demonstrate that it operates and trades lawfully within the UK. This includes being able to provide proof of registration, financial records, and tax returns.

 

2. Genuine Need to Hire Non-UK Workers

 

The organisation must prove that it has a genuine need to sponsor foreign workers, meaning the roles it seeks to fill require skills that are not readily available in the UK workforce. Jobs must meet the minimum skill level and salary thresholds (e.g., the role typically requires RQF level 3, equivalent to A-levels, or higher).

If the role is suspected to have been created solely for the purposes of immigration, the Home Office can refuse the application.

 

3. Suitability of the organisation

 

UKVI will assess the business to ensure it is reliable and capable of sponsoring workers. This involves background checks to verify that the business and its key personnel, such as directors and senior managers, have no history of immigration offences, criminal activity, or breaches of employment law. Businesses must provide documentation to demonstrate their compliance with UK law and ability to fulfil sponsor duties.

 

4. Appropriate HR and Recruitment Systems

 

A key element of eligibility is having appropriate human resources and recruitment processes in place. UKVI requires employers to have strong systems for:

 

a. Monitoring sponsored workers: Employers must track the immigration status of their employees, ensuring that they are legally allowed to work in the UK and that their visa conditions are being adhered to.

 

b. Maintaining accurate records: This includes keeping copies of employees’ passports, visas, contact details, and up-to-date information on their work duties and salary.

 

c. Reporting to UKVI: Sponsors must inform UKVI of any significant changes, such as if a sponsored worker does not attend work, changes roles, or leaves the company.

 

5. Appointment of Key Personnel

 

As part of the application, you are required to nominate individuals within your organisation who will be responsible for carrying out particular administrative functions – so-called ‘key personnel’.

These roles include:

 

a. Authorising Officer: A senior person responsible for ensuring the organisation meets its sponsorship duties.

b. Key Contact: A point of contact for UKVI.

c. Level 1 User: Someone who manages the sponsor licence online, including issuing Certificates of Sponsorship (CoS).

 

Table: Key Personnel Roles for Sponsor Licence

Role	Responsibilities
Authorising Officer	Overall responsibility for managing the sponsor licence and ensuring compliance.
Key Contact	Primary contact between the business and UKVI.
Level 1 User	Manages the Sponsor Management System (SMS) on a daily basis, including issuing CoS.
Level 2 User	May assist Level 1 User with limited functions in the SMS.

 

Once you have been granted a licence, you can also nominate individuals as Level 2 users to help with the day-to-day administration of the SMS.

All key personnel must pass suitability checks and must not have any unspent criminal convictions related to immigration or work practices.

When applying for a sponsor licence, it is important to understand the purpose of each of these roles and who you can – and critically cannot – appoint. Those nominated and identified within the application will be subject to a background check by UKVI.

You must also ensure there is an appointed Authorising Officer and at least one Level 1 user in place at all times. If the appointed personnel leave the organisation and there is a failure to appoint someone else to the role, UKVI has the power to downgrade your licence and charge for the opportunity to upgrade it again or even revoke your licence.

 

6. Compliance with UK Employment Law

 

Employers must also show that they comply with all UK employment laws, including ensuring that sponsored workers are paid the correct salary and that their working conditions meet UK standards. Any history of legal or employment breaches could affect the business’s ability to obtain a sponsor licence.

 

7. Proof of Finances and Operations

 

In addition to proving their HR systems and key personnel suitability, businesses may need to demonstrate financial stability. UKVI might request financial records such as recent bank statements, audited accounts, or tax filings to ensure that the business can support the employment of foreign workers and pay their salaries as required under UK immigration law.

 

Section C: How to Apply for a Sponsor Licence

 

To apply for a sponsor licence, you will need to compile and submit an online application with supporting documents to show that you meet the necessary evidentiary requirements.

 

1. Step-by-Step Guide to Applying for a Sponsor Licence

 

The key steps in the sponsor licence application process involve the following:

 

Step 1: Determine Your Licence Type

Before starting the application process, identify the type of licence your business needs. There are two main types: a Worker Licence (formerly Tier 2) for hiring skilled workers in long-term roles or a Temporary Worker Licence (formerly Tier 5) for short-term or temporary positions.
You can apply for both.

Ensure the roles you plan to sponsor meet the skill and salary requirements set by UKVI.

 

Step 2: Check Your Eligibility

Review the eligibility requirements, ensuring that your business meets the necessary criteria, including having proper HR systems in place, having key personnel appointed, and having the ability to comply with sponsor duties. It’s essential to ensure your company and its directors do not have any previous immigration breaches or criminal offences that could affect the application.

 

Step 3: Complete the Online Application

Submit your application online via the UK Home Office portal. You will need to provide detailed information about your business, key personnel, and the types of roles you plan to sponsor.

 

Step 4: Prepare Supporting Documents

As part of the application process, you will need to submit several supporting documents that prove your business is genuine, legally operating, and capable of sponsoring foreign workers.

The documents you will need to provide, as a minimum, to prove your eligibility are detailed in the Home Office’s Appendix A. While some documents will be mandatory, in most cases, we recommend providing further documents to evidence comprehensively that the organisation meets all of the requirements under the sponsor licence.

The relevant supporting documents must be supplied within five days of the initial application. Failure to submit all required documents will result in your application being delayed or rejected and further costs being incurred. As such, it will be important to have prepared all of the necessary evidence and documentation by the time you make your application online.

 

Step 5: Pay the Application Fee

The application fee depends on the size of your business and the type of licence you are applying for. Small or charitable businesses pay £536 to apply, while medium or large businesses pay £1,476.

Ensure you select the correct fee category to avoid delays in processing.

 

Step 6: Submit the Application

Once you have completed the online application and prepared your supporting documents, you can submit the application electronically. You will need to upload the required documents through the sponsor licence application portal.

After submission, UKVI will review your application and may visit your business premises to verify that you have the necessary HR systems and processes in place.

 

Step 7: Prepare for a UKVI Compliance Visit

Following receipt of your application, you may be subject to a pre-licence compliance visit from UK Visas and Immigration. The purpose of a Home Office inspection is to ascertain whether you have adequate HR systems in place to meet the sponsor licence requirements and to assess whether or not to grant the licence.

During this visit, they will check your HR and recruitment systems, how you will monitor sponsored employees, and that you understand your duties as a sponsor and can remain compliant with immigration laws.

Be prepared to demonstrate how you will track visa statuses, maintain employee records, and report any changes or issues to UKVI.

An audit of your HR operations will be key in preparing for a site visit to identify process weaknesses or omissions that could impact your licence application.

 

Step 8: Wait for UKVI Decision

UKVI typically processes applications within 8 weeks, but it can take longer if additional checks or a compliance visit is required. You will receive a decision by post confirming whether your application has been approved or rejected.

 

Step 9: Receive Your Sponsor Licence

If your application is successful, you will be issued a sponsor licence number and added to the Register of Licensed Sponsors, allowing you to hire non-UK workers.

You will then be able to start issuing Certificates of Sponsorship (CoS) to foreign workers, enabling them to apply for the appropriate work visa.

 

Section D: Sponsor Licence Application Fees

 

The cost of applying for a sponsor licence in the UK varies depending on the size and type of your organisation. You will need to ensure you pay the correct fee, or your application can be rejected.

In addition to the initial application fee, businesses should also be aware of potential ongoing costs related to sponsoring workers, such as the immigration skills charge.

 

1. Sponsor Licence Application Fees

 

Table: Sponsor Licence Application Fees

Business Type	Application Fee	Immigration Skills Charge (Per Year)	Certificate of Sponsorship Fee
Small or Charitable Organisation	£536	£364	£239 (Skilled Worker)
Medium or Large Organisation	£1,476	£1,000	£239 (Skilled Worker)
Temporary Worker (All Businesses)	£536/£1,476	N/A	£25 (Temporary Worker)

 

A lower sponsor licence application fee of £536 applies for small businesses or charitable organisations that meet specific criteria. A small business is defined by the following conditions:

 

a. An annual turnover of £10.2 million or less.

b. Total assets worth £5.1 million or less.

c. 50 employees or fewer.

 

Charitable organisations, regardless of size, are also eligible for this reduced fee. To qualify, businesses must be recognised as charities by the Charity Commission or an equivalent body.

Medium and large businesses, which are those that exceed the thresholds of small businesses (e.g., a turnover greater than £10.2 million or more than 50 employees), are required to pay the standards application fee of £1,476. This category typically includes well-established businesses or those operating at a larger scale.

 

2. Additional Costs of Visa Sponsorship

 

In addition to the sponsor licence application fee, there are several other potential costs that businesses may incur throughout the sponsorship process:

 

a. Immigration Skills Charge (ISC)

The Immigration Skills Charge is a fee that must be paid by employers when sponsoring workers. This charge is designed to encourage businesses to invest in the domestic workforce while still allowing them to bring in overseas talent.

For Small or Charitable Sponsors, the fee is £364 per sponsored worker per year, while for Medium or Large Sponsors, it is £1,000 per sponsored worker per year.

This fee applies for each year of the worker’s visa duration, meaning if you sponsor a worker for a 3-year visa, you will need to pay £1,092 (for small businesses) or £3,000 (for large businesses).

 

b. Certificate of Sponsorship (CoS)

A Certificate of Sponsorship (CoS) is required for each individual you sponsor. It is an electronic record that assigns a unique number to the sponsored worker, which they need when applying for a visa.

It costs £239 per CoS for a Worker visa or £25 for a Temporary Worker visa.

 

c. Visa Application Fees

While not directly the responsibility of the sponsoring business, it is important to note that sponsored workers will need to pay for their visa application. The cost varies depending on the visa type and duration. Some employers may choose to assist with these fees as part of their employment offer.

 

Section E: Common Mistakes to Avoid When Applying for a Sponsor Licence

 

Mistakes in the application process can lead to delays, refusals, or even future penalties that could affect the organisation’s ability to hire non-UK workers.

 

1. Failing to Provide Sufficient Supporting Documentation

 

One of the most common errors is not submitting the correct supporting documents or failing to provide enough documentation to prove the legitimacy of the business. UKVI requires at least four documents to confirm the company’s trading presence in the UK, its structure, and its ability to sponsor foreign workers.

Review the official list of required documents found in Appendix A of the sponsor licence guidance. Ensure all documents are up-to-date, accurately reflect your business operations, and meet the UKVI standards.

Commonly required documents include the certificate of incorporation, VAT registration certificate, employer’s liability insurance, bank statements, or audited financial reports.

Incomplete applications can lead to delays or outright refusal, meaning your business would have to start the application process over again.

 

2. Appointing Unsuitable Key Personnel

 

Appointing key personnel (Authorising Officer, Key Contact, or Level 1 User) who do not meet UKVI’s suitability requirements or have prior immigration breaches or criminal convictions can lead to the rejection of the application.

Ensure that the people you appoint to these roles are responsible, have a good understanding of UKVI’s regulations, and do not have any disqualifying convictions. Conduct internal checks on their backgrounds before submitting the application to avoid complications.

Failure to appoint suitable personnel can result in refusal of the application and additional scrutiny from UKVI on any future attempts.

 

3. Inaccurately Describing Job Roles and Salaries

 

Providing inaccurate information about the roles for which you intend to sponsor workers is a common error. This includes misrepresenting job titles and duties or failing to meet the salary and skill requirements for the visa category.

Ensure that the job roles you plan to sponsor align with UKVI’s Skilled Worker Visa requirements, including the appropriate job codes, skill levels, and salary thresholds. Use the Standard Occupational Classification (SOC) codes to accurately categorise roles.

Misrepresenting roles can lead to application refusals, or worse if discovered after approval, it can result in licence suspension or revocation, as well as fines for misuse of the system.

 

4. Inadequate HR and Recruitment Systems

 

Employers that do not have sufficient HR processes in place to manage the sponsor duties may find their application refused. UKVI needs to be confident that sponsors can track and report on their sponsored workers properly.

Before applying, set up robust HR and recruitment systems to monitor sponsored workers. This includes being able to track visa expiration dates, keep accurate employment records, and report changes to UKVI. You may want to invest in dedicated HR software to assist with compliance management.

If UKVI believes your HR systems are inadequate, they may refuse your application or revoke your licence after a compliance visit.

 

5. Not Meeting the Genuine Business Test

 

UKVI requires proof that a business is genuinely operating and has a legitimate need to sponsor foreign workers. If the application fails to demonstrate this, it can be refused.

Provide clear evidence of business operations, including proof of trading, financial viability, and genuine need for the specific roles to be filled by non-UK workers. This may involve submitting business contracts, financial statements, or evidence of efforts to recruit domestically.

Failing the genuine business test can lead to an application refusal and increased scrutiny of any future applications.

 

6. Errors in Payment of Fees

 

Submitting incorrect payments, whether for the wrong fee category (e.g., small business vs. large business) or failing to pay the application fee in full, can delay or invalidate the application.

Carefully review your business size classification based on annual turnover, employee numbers, and asset value to ensure you are paying the correct application fee. Double-check that the payment has been processed successfully.

Incorrect payment can result in delays or rejection of the application.

 

7. Failing to Report Significant Changes Post-Application

 

After receiving a sponsor licence, some businesses fail to keep UKVI informed of significant changes, such as changes in the company structure, key personnel, or sponsored workers’ status.

Stay diligent in reporting any significant changes to UKVI within the required timeframe (usually 10 working days). Ensure your HR systems and key personnel are aware of their reporting duties.

Failing to report significant changes can result in penalties, including licence suspension, revocation, or financial fines.

 

Section F: What Happens After You Apply for a Sponsor Licence?

 

After your application is submitted, along with all supporting documentation and fees, UKVI will review your case to ensure you meet all eligibility requirements.

 

1. How Long Does Sponsor Licence Processing Take?

 

UKVI typically processes sponsor licence applications within 8 weeks from the date of submission. However, the processing time can vary depending on the complexity of the application and the current workload at UKVI. During this period, UKVI will review the information and supporting documents you provided to ensure you meet the eligibility requirements.

If your organisation requires a quicker decision, UKVI offers a priority service for an additional fee of £500. This service aims to provide a decision within 10 working days. Availability for the priority service is limited and must be requested during the application process. Keep in mind that even with the priority service, UKVI may still take longer if they require additional checks or a compliance visit.

 

2. Compliance Visit

 

During the processing period, UKVI may choose to conduct a pre-licence compliance visit to your business premises. This visit ensures that your HR systems, recruitment processes, and ability to comply with sponsorship duties are satisfactory. A UKVI officer may check that you are capable of:

 

a. Monitoring sponsored workers.
b. Keeping accurate records (e.g., visa documentation, contact information).
c. Reporting changes to UKVI in a timely manner.

 

If the Home Office conducts a compliance visit, they will assess whether you are fully prepared to meet the ongoing responsibilities of a sponsor. Your licence approval may depend on the results of this visit.

 

3. If Your Application is Approved

 

If your sponsor licence application is successful, you will receive an A-rated sponsor licence, which means you are fully approved to sponsor foreign workers. Your organisation will also be added to the Register of Licensed Sponsors, which is publicly available.

Once your licence is approved, you will be able to issue Certificates of Sponsorship (CoS) to foreign workers. Each CoS is an electronic record with a unique reference number that the sponsored worker will need when applying for their visa.

You can issue CoS based on the specific visa categories you are approved for (e.g., Skilled Worker, Temporary Worker).

You will also receive access to the Sponsor Management System (SMS), a secure online platform where you manage your sponsor licence. Through the SMS, you can assign CoS, report changes to workers’ statuses, and update your organisation’s details.

After approval, you must continue to comply with all sponsor duties, such as monitoring sponsored workers’ visa status, keeping accurate records, and reporting any changes to UKVI (e.g., if a worker changes roles or leaves the company).

UKVI may conduct post-approval compliance visits to ensure you are fulfilling your sponsor duties.

 

4. If Your Application is Rejected

 

If UKVI rejects your application, it means your organisation has not met the requirements for a sponsor licence.

You will receive a refusal notice from UKVI explaining why your application was rejected. The reasons could range from inadequate documentation, insufficient HR systems, or unsuitable key personnel.

In most cases, if your application is refused, you will face a cooling-off period of 6 months before you can apply again. This cooling-off period gives businesses time to address the issues that led to the refusal.

There is generally no right to appeal a sponsor licence refusal. However, if you believe there was a genuine error made in the decision, you may request an administrative review. An administrative review is a formal process where UKVI will reassess the decision, but it is only available in limited circumstances.

If you want to reapply after the cooling-off period, it’s essential to address the issues that caused the refusal. This may involve improving your HR systems, providing the correct supporting documents, or ensuring that the key personnel you appoint meet UKVI’s suitability criteria.

If your application was refused due to compliance concerns, such as inadequate monitoring systems or poor record-keeping, you must demonstrate in any future application that you have implemented stronger compliance measures.

Even if your application is approved, failure to comply with your sponsor duties can result in serious penalties:

 

a. Downgrading of Sponsor Licence: If you fail to meet compliance requirements post-approval, your licence may be downgraded to a B-rating. This restricts your ability to issue CoS until you improve your processes and regain an A-rating by following a compliance action plan.

b. Suspension or Revocation: Continued non-compliance or serious violations of sponsorship rules can result in your sponsor licence being suspended or revoked. If your licence is revoked, you will no longer be able to sponsor workers, and your current sponsored workers may have their visas curtailed, requiring them to leave the UK.

c. Fines and Penalties: Misuse of the sponsor licence, such as issuing CoS for non-existent roles or failing to monitor workers, can result in fines.

 

Section G: Ongoing Sponsor Duties and Responsibilities

 

Applying for a sponsor licence is only the first hurdle for employers in accessing the global talent market. If you are successful in your application, there is no room for complacency as your HR processes must remain compliant and support ongoing compliance with your duties as a sponsor licence holder.

UK immigration rules are also subject to constant change and revision, making it critical that sponsor licence holders stay up-to-date and compliant with their duties.

Sponsor licence holders are required to meet a number of compliance duties for the duration of their licence. These duties require internal HR processes, policies and procedures to meet the required standards.

Penalties for failing to comply with sponsor licence duties are designed to impact operations and deter employers from falling short of their obligations. Failure to comply with your licence compliance duties can result in a downgrade in user rating, a licence suspension or revocation – putting the jobs of existing migrants at risk and impacting your organisation’s operations.

Key areas of compliance include:

 

1. Keeping up-to-date records of all sponsored workers

 

Sponsors must keep accurate and up-to-date records of all sponsored workers, including:

 

a. Copies of passports, biometric residence permits, and right-to-work documentation.

b. Contact details (address, phone numbers).

c. Evidence of qualifications and professional registrations required for the role.

 

These records must be readily accessible for UKVI inspection at any time.

 

2. Monitoring Sponsored Workers

 

Sponsors are required to monitor and report the status and activities of their sponsored workers to UKVI. This includes:

 

a. Keeping records of a worker’s right to work in the UK.

b. Tracking visa expiry dates and ensuring that sponsored workers do not continue to work after their visa has expired or if they no longer have the right to work.

 

Sponsors must report to UKVI if a worker is not complying with the terms of their visa, such as not attending work, changing roles without permission, or leaving the company.

 

3. Reporting Duties

 

Sponsors are legally required to report certain changes to UKVI within specific timeframes, usually within 10 working days of the event. This includes:

 

a. If a sponsored worker does not show up for their first day of work.

b. If the worker is absent from work for more than 10 consecutive working days without permission.

c. If the worker’s employment is terminated or if they resign.

d. Any changes to the worker’s job title, duties, or salary (unless it is a salary increase due to annual increments or performance bonuses).

e. Changes to the organisation itself, such as changes in ownership, office address, or business structure.

 

Table: Key Sponsor Duties and Reporting Deadlines

Duty	Reporting Deadline
Report a sponsored worker’s start date	Within 10 working days
Report a worker’s absence for 10+ days	Within 10 working days
Change of job title, duties, or salary	Within 10 working days
Changes to key personnel (e.g., Authorising Officer)	Within 10 working days
Report a sponsored worker’s termination	Within 10 working days

 

Failure to report these changes promptly can result in compliance action, including fines or the suspension of the sponsor licence.

 

4. Notifying of Changes

 

Some duties appear more widely understood than others. The duty to notify a change in circumstances is, for example, often overlooked in practice, particularly where wider organisational concerns demand attention and focus, such as a merger or acquisition or other organisational change.

 

5. Cooperating with the Home Office

 

Employers should engage with the Home Office in a cooperative manner, responding to any requests in full and on time.

 

6. Complying with UK Immigration Laws

 

In addition to the new administrative burdens of the sponsor licence, you will also continue to be required to meet your illegal working duties under the Right to Work regime.

As such, sponsors must ensure that their recruitment practices are in line with UK employment and immigration laws. This includes conducting right-to-work checks before employment starts and ensuring that any job role offered to a foreign worker meets the required skill level and salary thresholds.

Sponsors must also ensure that they do not hire individuals who are not allowed to work in the UK or do not have the correct visa for the role.

 

7. Certificates of Sponsorship (CoS) Duties

 

Sponsors must issue Certificates of Sponsorship (CoS) to workers in a responsible manner, ensuring that each CoS is only issued to individuals for genuine roles that meet the required skill and salary levels.

CoS should not be issued unless the business genuinely intends to employ the worker in the specified role. Issuing CoS fraudulently or for roles that do not exist can lead to serious penalties, including the cancellation of the licence.

Each CoS must accurately reflect the worker’s role, salary, and duties, and any changes must be reported to UKVI.

 

Section H: Importance of Sponsor Licence Compliance

 

To stay compliant, sponsors must have robust HR systems that allow them to monitor and report on the status of their sponsored workers. This includes having processes in place for tracking visa renewals, reporting absences, and keeping detailed records. Automated systems for tracking visa expiration dates and ensuring all necessary documents are up-to-date can help businesses stay on top of their responsibilities.

Ensuring that key personnel, such as the Authorising Officer, are equipped and trained to carry out their responsibilities is also critical to maintaining compliance.

UKVI may conduct both scheduled and unannounced compliance visits to ensure that sponsors are meeting their duties. During these audits, UKVI may review record-keeping systems, interview key personnel, and check sponsored workers’ files to ensure compliance with all legal requirements.

Sponsors must be prepared to demonstrate that they have systems in place to manage their duties effectively. Non-compliance discovered during a visit can lead to serious penalties, including suspension or revocation of the sponsor’s licence.

If a sponsor fails to meet their obligations, UKVI may suspend or revoke their licence, meaning they will no longer be able to sponsor foreign workers. In the event of revocation, sponsored workers’ visas may be curtailed, and they may have to leave the UK.

Sponsors who breach immigration rules or employment laws can face civil penalties, including fines of up to £45,000 per illegal worker for a first breach or £60,000 for repeat breaches.

Businesses found to be non-compliant risk damaging their reputation, both with regulators and within their industry, potentially affecting their ability to attract talent and work with partners.

 

Section I: Summary

 

UK employers who wish to hire non-UK workers must apply for a sponsor licence. The application process begins by determining the type of licence needed, such as a Worker licence for long-term skilled roles or a Temporary Worker licence for short-term roles. Employers must then complete an online application and submit supporting documentation, which includes proof of business registration, recent bank statements, and insurance certificates.

Key personnel, such as the Authorising Officer and Level 1 User, need to be appointed to manage the licence and handle communications with UKVI. It’s essential for employers to demonstrate that they have the necessary HR systems in place to monitor sponsored workers, ensuring compliance with visa conditions and employment laws.

Once the application is submitted, UKVI will review the business’s suitability and may conduct a compliance visit to assess HR processes and ensure adherence to sponsor duties. The application can take up to 8 weeks to process, though a priority service is available for faster results.

Failure to provide accurate information or comply with sponsorship duties can lead to delays, refusals, or even penalties. Preparing thoroughly and ensuring all requirements are met can significantly increase the chances of a successful application.

 

Section J: Need Assistance?

 

UK immigration rules are demanding on employers looking to bring talent to the UK, and through increasingly protectionist immigration policies designed to favour UK-resident labour, the rules have become more onerous (and costly) for employers.

DavidsonMorris offers a complete employer sponsorship licence application and management service, with our team of UK immigration specialists highly experienced in all the documentary and evidentiary requirements vital to a prompt and stress-free process when applying for a sponsor licence.

It may also be that a sponsor licence is not the best option for your business and its needs. We can advise on the most suitable work entry routes for your specific requirements.

For guidance on applying for a sponsor licence or any aspect of licence compliance, management or penalties, contact us.

 

Section K: Sponsor Licence Application and Maintenance FAQs

 

What is a sponsor licence?
A sponsor licence is a legal requirement for UK businesses that want to hire non-UK nationals, including those from the EU, under work visa categories. It allows employers to issue Certificates of Sponsorship (CoS) to workers, enabling them to apply for work visas.

 

Who needs a sponsor licence?
Any UK business that intends to hire workers from outside the UK, including from the EU post-Brexit, must obtain a sponsor licence. This applies to both skilled worker roles and temporary jobs that require specific visas.

 

How do I apply for a sponsor licence?
You can apply for a sponsor licence online via the UK government’s portal. You must provide supporting documents, appoint key personnel, and pay the required fee. The application typically takes up to 8 weeks to process.

 

What types of sponsor licences are available?
There are two main types of sponsor licences. The Worker Licence (formerly Tier 2) is for skilled long-term positions like healthcare professionals, engineers, and IT specialists. The Temporary Worker Licence (formerly Tier 5) is for short-term or seasonal roles, such as charity workers, entertainers, and religious workers.

 

How long does it take for UKVI to process the sponsor licence application?
The standard processing time is around 8 weeks. However, UKVI offers a priority service for an additional fee, which can reduce the processing time to 10 working days, subject to availability.

 

What are the key responsibilities of a sponsor licence holder?
Sponsors must monitor their sponsored workers, keep accurate records, report certain changes to UKVI (such as a worker leaving), and ensure compliance with immigration laws. They must also use the Sponsor Management System (SMS) to manage and report on their licence.

 

How do I renew my sponsor licence?
You can renew your sponsor licence through the SMS up to 3 months before it expires. The renewal process involves confirming that you continue to meet sponsor duties, and it carries the same fee as the initial application.

 

What happens if my sponsor licence is downgraded or revoked?
If UKVI finds that you have failed to meet your sponsor duties, your licence can be downgraded to a B-rating, restricting your ability to issue new Certificates of Sponsorship. If issues are not resolved, your licence may be suspended or revoked, preventing you from sponsoring workers and potentially curtailing existing sponsored workers’ visas.

 

Can I appeal if my sponsor licence application is refused?
There is no formal right to appeal a refusal. However, you can reapply after a 6-month cooling-off period or request an administrative review if you believe there was an error in the decision.

 

How often will UKVI audit my business after receiving a sponsor licence?
UKVI can conduct both scheduled and unannounced compliance visits at any time to ensure you are meeting your sponsor duties. It is essential to have robust HR systems and documentation in place to manage compliance.

 

Can I hire someone from the EU without a sponsor licence?
Since Brexit, EU citizens moving to the UK for work need a valid visa. Therefore, unless the individual has pre-settled or settled status under the EU Settlement Scheme, you will need a sponsor licence to hire them.

 

What happens if I fail to comply with my sponsor duties?
Failure to comply can lead to penalties such as fines, downgrading of your licence, suspension, or revocation. Sponsored workers may also have their visas curtailed if your licence is revoked.

 

Do I need to pay the Immigration Skills Charge for all sponsored workers?
The Immigration Skills Charge (ISC) is required for each sponsored worker under the Skilled Worker and Intra-Company Transfer visas. However, some exemptions may apply, such as for PhD-level roles or workers transferring to a UK branch from a company within the same multinational group.

 

Can I sponsor part-time or temporary workers?
Yes, you can sponsor temporary workers under the Temporary Worker Licence category for specific types of roles, such as seasonal work, charity work, or creative and sporting roles. However, the job must meet the requirements of the visa category, and you must have the correct licence to sponsor temporary workers.

 

Section L: Glossary

Term	Definition
Sponsor Licence	Permission granted by UKVI allowing UK businesses to hire non-UK workers under certain visa categories.
UK Visas and Immigration (UKVI)	The division of the Home Office responsible for overseeing visas, immigration, and the sponsor licence system.
Worker Licence	A sponsor licence allowing businesses to hire non-UK workers for skilled, long-term, or permanent roles.
Temporary Worker Licence	A sponsor licence for businesses hiring non-UK workers for short-term or temporary roles.
Authorising Officer	A senior staff member responsible for ensuring the business complies with sponsor duties and UKVI regulations.
Level 1 User	The person who manages the day-to-day operation of the Sponsor Management System (SMS) and issues CoS.
Certificate of Sponsorship (CoS)	A virtual document issued by sponsors to foreign workers, enabling them to apply for a work visa.
Compliance Visit	A visit by UKVI to ensure a business meets sponsor licence obligations, such as maintaining accurate records.
Priority Service	An optional service for faster processing of sponsor licence applications, typically within 10 working days.
Skilled Worker	A visa category for workers filling roles that meet specific skill and salary requirements.
Sponsor Duties	The legal responsibilities businesses must fulfil as licence holders, including monitoring sponsored workers.

 

Section M: Additional Resources

 

UK Visa Sponsorship for Employers
https://www.gov.uk/uk-visa-sponsorship-employers
Official UK government guidance on how to apply for a sponsor licence, sponsor duties, and maintaining compliance.

 

Apply for a Sponsor Licence
https://www.gov.uk/apply-sponsor-licence
The official portal for submitting your sponsor licence application and required supporting documents.

 

Immigration Skills Charge Information
https://www.gov.uk/uk-visa-sponsorship-employers/immigration-skills-charge
Details about the Immigration Skills Charge, including when and how much to pay for sponsored workers.

 

Sponsor Licence Supporting Documents
https://www.gov.uk/government/publications/supporting-documents-for-sponsor-licence-applications-appendix-a
A comprehensive list of the supporting documents required for sponsor licence applications.

 

Standard Occupational Classification (SOC) Codes
https://www.gov.uk/government/collections/migration-advisory-committee-reports
A detailed list of job roles and skill levels to ensure compliance with Skilled Worker visa requirements.

 

Right to Work Checks: Employer’s Guide
https://www.gov.uk/check-job-applicant-right-to-work
Guidance on conducting right-to-work checks to ensure employees are eligible to work in the UK legally.