How to Perform a Sponsor Licence Check in the UK

Sponsor licence checks should be carried out regularly by employers to ensure they continue to comply with their Home Office regulations. Foreign nationals may also want to perform a sponsor licence check to verify an organisation’s permission to sponsor them for a work visa.

This article will guide you through the process of conducting a sponsor licence check, highlight the reasons why it’s important, and offer practical tips on how to stay compliant with UK immigration laws.

 

Section A: What is a Sponsor Licence?

 

A sponsor licence is a legal requirement for UK organisations seeking to hire non-UK resident workers under certain work visa routes, such as the Skilled Worker visa.

 

Licence Type	Visa Route	Purpose	Duration
Worker Licence	Skilled Worker	For skilled roles that meet job suitability requirements.	Long-term or permanent
	Senior or Specialist Worker (Global Business Mobility)	For established employees transferring to the UK from a multinational company.	Short-term or long-term
	Minister of Religion	For individuals working for religious organisations in the UK.	Long-term or permanent
	International Sportsperson	For elite athletes or coaches based in the UK.	Long-term or permanent
Temporary Worker Licence	Scale-up Worker	For individuals working in a fast-growing UK business.	Initial 2 years
	Creative Worker	For entertainers, artists, and those in the creative industry.	Up to 2 years
	Charity Worker	For unpaid workers in UK charities.	Up to 1 year
	Religious Worker	For individuals working within a religious order or organisation.	Up to 2 years
	Government Authorised Exchange	For work experience, research projects, or training, including medical or scientific knowledge exchange.	1 year (work experience) or 2 years (research/training)
	International Agreement	For jobs covered by international law, such as employees of overseas governments.	Varies (up to 2 years)
	Graduate Trainee (Global Business Mobility)	For workers transferring as part of a graduate training programme.	Up to 12 months
	Service Supplier (Global Business Mobility)	For workers providing services to a UK company under a contract.	6 or 12 months
	UK Expansion Worker (Global Business Mobility)	For workers setting up a UK branch or subsidiary of an overseas company.	Up to 12 months, extendable
	Secondment Worker (Global Business Mobility)	For workers transferring to a UK business as part of a high-value contract.	Up to 12 months, extendable
	Seasonal Worker	For workers in horticulture or poultry, working seasonally (e.g., fruit picking or poultry work).	Up to 6 months

 

The sponsor licence forms part of the UK’s points-based immigration system, which replaced free movement post-Brexit and applies to all international workers coming to the UK, excluding Irish citizens.

The sponsor licence ensures that businesses have the legal authority to bring in non-UK employees and meet immigration requirements set by the UK government. It also signifies that the business is trustworthy, capable of meeting legal obligations, and has systems in place to ensure ongoing compliance.

With a sponsor licence, an organisation must follow compliance rules, including maintaining accurate records, reporting changes to the Home Office, and conducting appropriate Right to Work checks. Regular checks by the Home Office ensure that businesses remain compliant and continue to operate within UK immigration laws.

 

1. Who Needs a Sponsor Licence?

 

UK organisations looking to hire workers from outside the UK, including the European Economic Area (EEA) and Switzerland, need a sponsor licence. This includes businesses across various sectors, from large corporations to small and medium-sized enterprises (SMEs), that require skilled foreign talent to meet business demands.

Without this licence, companies are unable to issue Certificates of Sponsorship (CoS), which are necessary for employees to apply for a visa.

 

2. How to Apply for a Sponsor Licence

 

Sponsor licence applications are made online to the Home Office. You will need to compile extensive supporting documents to evidence that the organisation meets the requirements, which include:

 

a. The organisation is registered in the UK and operating legally.

b. There are nominated key personnel in place to manage the sponsor licence (e.g., an Authorising Officer and Level 1 user).

c. The organisation has appropriate HR systems in place to monitor and manage sponsored employees effectively.

d. The organisation and its key personnel do not have any unspent criminal convictions related to immigration offences, fraud, or similar crimes.

 

Table: Sponsor Licence Application Checklist

Requirement	Details	Documents Needed
Business Eligibility	Must be registered and operating legally in the UK	Company registration, VAT, bank statement
Key Personnel	Appoint Authorising Officer, Level 1 user, and Key Contact	Personal details, proof of eligibility
HR Systems	Adequate systems to manage sponsored employees	HR records, employment contracts
Licence Type	Choose appropriate licence (Worker/Temporary Worker)	N/A
Application Fee	Pay fee based on business size	Proof of payment

 

If the licence is approved, the organisation will be given access to the Sponsorship Management (SMS), which is used to assign Certificates of Sponsorship to sponsored workers, and to manage the licence in accordance with its ongoing compliance duties.

 

Section B: How to Carry Out a Sponsor Licence Check

 

While sponsor licence holders gain access to the global talent market, they also take on certain immigration compliance obligations.

Failure to meet these requirements and to keep the licence in good standing can result in severe penalties, including losing the right to sponsor workers, substantial fines, and reputational damage.

Regular sponsor licence checks should be standard compliance practice for organisations employing sponsored workers, to help maintain compliance with Home Office regulations.

 

1. Why Conduct a Sponsor Licence Check?

 

Complying with the Home Office regulations requires the organisation to monitor their licence status to ensure they are meeting all legal obligations.

Licence compliance breaches can result in Home Office scrutiny and enforcement action. The Home Office has the authority to impose fines, suspend your licence and ability to sponsor foreign workers, or even revoke the licence altogether in severe cases of non-compliance.

Regularly conducting a sponsor licence check helps you avoid these risks by ensuring that your business remains compliant with immigration laws and up-to-date on any reporting requirements. This also allows you to quickly address any changes, such as updates to your company’s address, staff, or visa holders’ status, that could otherwise lead to penalties.

By making sponsor licence checks a routine part of your business operations, you can safeguard your ability to hire international talent and remain compliant with UK immigration law.

 

2. How to Check Your Sponsor Licence: Step-By-Step Guide

 

Employers should check their sponsor licence status and details regularly using the SMS. They can do this as follows:

 

Step 1: Log in to the Sponsorship Management System (SMS)

The first step in checking your sponsor licence status is accessing the SMS. This is the UK government’s online platform for managing sponsor licences. You can log in using your username and password provided during the application process.

 

Step 2: Access the Licence Summary Page

Once logged in, navigate to the “Licence Summary” section within the SMS. This page provides an overview of your business’s sponsor licence, including its status, expiry date, and tier rating. It is essential to regularly review this page to ensure your licence is in good standing.

 

Step 3: Review Licence Rating

On the Licence Summary page, check your licence rating. The Home Office assigns ratings such as “A-rated” (full licence) or “B-rated” (requires improvements). If your licence has been downgraded to a B-rating, this indicates non-compliance, and your business will need to take corrective actions as outlined in the Home Office’s compliance plan to restore an A-rating.

[Insert table 5: Licence Rating Overview]

 

Step 4: Check Licence Expiry Date

Confirm the expiry date of your sponsor licence. Licences are typically valid for four years, and it’s crucial to apply for renewal before it expires to avoid losing your ability to sponsor workers. Set reminders well in advance to ensure timely renewal and to avoid any disruptions to your hiring processes.

 

Step 5: Review Alerts and Notifications

The SMS platform will display any alerts or notifications about your sponsor licence, including reminders about upcoming compliance checks or the need to update information. Review these notifications regularly and take action as required, such as reporting changes to your business structure, job roles, or sponsored workers.

 

Step 6: Check for Assigned and Unassigned Certificates of Sponsorship (CoS)

Within the SMS, you can also review how many Certificates of Sponsorship (CoS) your business has been allocated, how many are assigned to employees, and how many remain unassigned. This is crucial for ensuring you have sufficient CoS available for new hires. If you are running low, you may need to request additional CoS from the Home Office.

 

Step 7: Update Information or Report Changes

If your business has undergone changes, such as a change in address, company directors, or the employment status of sponsored workers, you must report these changes promptly through the SMS. Failing to update information can lead to compliance issues during an audit.

 

Step 8: Download Licence History

The SMS allows you to download a history of your sponsor licence activity, which can be useful for tracking compliance and ensuring that all reporting obligations have been met. This record can also be helpful during internal audits or in preparing for a Home Office inspection.

 

Section C: Sponsor Licence Compliance

 

Compliance involves more than simply obtaining the licence; it requires ongoing diligence in meeting legal obligations, such as maintaining accurate records, promptly reporting any changes in your business or sponsored employees, and staying up-to-date with evolving immigration laws. Non-compliance can lead to penalties, licence suspension, or even revocation, potentially disrupting your ability to hire foreign workers.

Best practices for maintaining sponsor licence compliance include:

 

Table: Sponsor Licence Compliance Checklist

Compliance Obligation	Action Required	Timeframe
Reporting Employee Changes	Report changes to job role, salary, work location, or if they leave	Within 10 working days
Right to Work Checks	Verify and keep records of employee’s right to work in the UK	Before employment begins
Record-Keeping	Maintain employee records including visa details, job role, and salary	Ongoing
Licence Renewal	Submit renewal application before licence expiry	3-4 months before expiry
Report Company Changes	Notify Home Office of company address or structure changes	Within 20 working days

 

1. Accurate and Consistent Record-Keeping

 

One of the key responsibilities of a sponsor licence holder is maintaining accurate and up-to-date records for all sponsored employees. The Home Office may conduct audits at any time, and having poor records can result in fines or licence revocation.

Keep detailed records of all sponsored employees, including:

 

a. Copies of passports and visas.

b. Right-to-work documentation.

c. Records of job titles, salaries, and work locations.

d. Attendance records and any reports of unauthorised absences.

 

Ensure records are securely stored and easily accessible for internal audits or Home Office inspections.

 

2. Timely Reporting of Changes to the Home Office

 

Businesses are required to report certain changes to both the organisation and the sponsored workers to the Home Office within specific timeframes.

Notify the Home Office within 20 working days of any significant changes to your business, such as:

 

a. Change of business address.

b. Change in company directors or ownership.

c. Changes in key personnel responsible for managing the sponsor licence (e.g., Authorising Officer or Level 1 user).

 

Report any changes in sponsored employees’ circumstances within 10 working days, such as:

 

a. Changes to their job role, salary, or work location.

b. If an employee’s contract is terminated or they leave the organisation.

c. If a sponsored worker has been absent for more than 10 consecutive days without authorisation.

 

3. Regular Use of the Sponsorship Management System

 

The Sponsorship Management System (SMS) is the primary tool for managing your sponsor licence and reporting changes to the Home Office. Staying actively engaged with the SMS ensures that your licence status, employee records, and certificates of sponsorship are always up to date.

Regularly log in to the SMS to check for alerts or notifications from the Home Office. Ensure all changes to company details and sponsored workers are updated promptly, and review and track your Certificates of Sponsorship (CoS) allocation and request additional CoS if necessary to avoid recruitment delays.

 

4. Conduct Regular Internal Audits

 

The Home Office can conduct unannounced audits to assess compliance with sponsor licence requirements. Conducting regular internal audits ensures that your records, processes, and reporting obligations are in line with Home Office regulations and ready for inspection at any time.

Carry out periodic internal audits of your HR and compliance processes to ensure that all employee records are accurate and complete. Review your procedures for right-to-work checks, reporting obligations, and record-keeping to identify any gaps.

Ensure your business’s internal systems can easily generate reports or documents required for an audit, such as attendance records and employee visa details.

 

5. Stay Updated on Legal and Policy Changes

 

Immigration laws and sponsor licence requirements can change over time. Keeping up with these changes ensures that your business remains compliant and can adapt quickly to new regulations.

Regularly review updates from the Home Office, especially changes to the Immigration Rules that may affect your responsibilities as a sponsor.

Subscribe to government or legal alerts that provide updates on UK immigration laws and sponsor licence policies.

Engage with immigration law specialists for guidance and support on any upcoming changes and how they may impact your business.

 

6. Training for Key Personnel

 

Key personnel, such as the Authorising Officer, Level 1 user, and HR managers, are central to sponsor licence management. They must be fully aware of their responsibilities to ensure compliance with Home Office regulations.

 

Table: Key Personnel Roles and Responsibilities

Role	Responsibilities	Access Level
Authorising Officer	Overall responsibility for compliance and sponsor licence management	Highest
Key Contact	Main point of communication with the Home Office	Mid
Level 1 User	Day-to-day management of the Sponsorship Management System (SMS)	High
Level 2 User	Limited SMS access, usually for assigning Certificates of Sponsorship (CoS)	Limited

 

Provide ongoing training for key personnel on sponsor licence duties, including record-keeping, reporting obligations, and using the SMS.

Ensure that key personnel are aware of the consequences of non-compliance and the importance of timely action.

Assign a backup Level 1 user or additional compliance officers to avoid any disruptions in case of staff turnover or absence.

 

7. Monitor Employee Visa Expiry and Right to Work

 

Employers must ensure that all sponsored workers have valid visas and the right to work in the UK. Overlooking visa expiration dates can lead to serious legal and financial penalties.

Implement a system for tracking the visa expiration dates of all sponsored employees. Notify employees well in advance of their visa expiration date and provide support for visa renewals if applicable. Ensure right to work checks are conducted properly for all new hires and that documentation is kept on file.

 

Section D: Using the SMS for Sponsor Licence Checks & Compliance

 

The Sponsorship Management System (SMS) is used by employers to manage and administer their sponsor licence.

Managing a sponsor licence involves meeting a range of compliance requirements set by the UK Home Office. Regularly checking your licence status through the SMS allows you to meet your compliance duties and manage compliance risks.

Businesses may encounter several common issues when checking or maintaining their licence, which, if unresolved, can lead to penalties, suspension, or even revocation of the licence.

 

1. Outdated Company Information

One of the most frequent issues businesses face is failing to update company information on the Sponsorship Management System (SMS). This includes changes to the company’s address, directors, or key personnel, such as the Authorising Officer or Level 1 user.

Businesses must promptly update any changes to their organisation through the SMS. This ensures that the Home Office has accurate records and prevents potential compliance issues. Failure to update details within 20 working days could result in penalties or licence suspension.

 

2. Failure to Report Changes in Sponsored Workers’ Employment

Another common issue is the failure to report changes to the employment status of sponsored workers. This includes changes in job role, salary, or work location, as well as situations where a worker leaves the company or switches to a different visa category.

Businesses are required to report any significant changes in a sponsored worker’s circumstances within 10 working days through the SMS. Ensure that HR or the responsible staff are well-informed about this requirement to prevent lapses in reporting, which could lead to fines or a downgraded licence.

 

3. Non-Compliance with Record-Keeping Obligations

Many businesses fall short of maintaining proper records for sponsored workers, including right-to-work documentation, visa expiration dates, and proof of salary payments. These records are essential for passing a Home Office audit.

Implement a robust internal system for maintaining all necessary documentation, including digital copies. Regular internal audits should be conducted to ensure that all required information is up-to-date and readily available in case of a Home Office inspection.

 

4. Insufficient Monitoring of Sponsored Workers

Failure to properly monitor sponsored workers, particularly in terms of attendance and reporting unauthorised absences, is a common issue that can lead to non-compliance.

Ensure that your business has a system in place for tracking employee attendance and reporting absences of more than 10 consecutive working days to the Home Office. This is required under the sponsor licence conditions and helps maintain your compliance status.

 

5. Downgraded Licence Rating

The Home Office can downgrade a sponsor licence from an A-rating to a B-rating if compliance issues are identified, such as failure to meet reporting obligations or maintain proper records.

If your licence is downgraded, the Home Office will provide a compliance action plan outlining the steps you need to take to restore your A-rating. Address these issues promptly, follow the plan carefully, and work with an immigration lawyer if needed to ensure that your business meets all compliance standards.

 

6. Insufficient Allocation of Certificates of Sponsorship (CoS)

Businesses sometimes run out of Certificates of Sponsorship (CoS), which are essential for sponsoring new workers, or fail to request additional allocations in time.

Regularly review your CoS allocation via the SMS and request additional certificates if you anticipate needing more. Requests can take several weeks for approval, so plan ahead to ensure you can meet recruitment timelines.

 

7. Unannounced Home Office Audits

Businesses may face unannounced audits from the Home Office to check sponsor compliance. Unprepared businesses could fail to meet record-keeping or reporting standards, risking penalties or licence suspension.

Conduct regular internal audits of your HR processes and sponsor licence compliance. Ensure that all records are up-to-date and easily accessible for any potential Home Office audit. Having a dedicated compliance officer or legal adviser on hand can help manage this process effectively.

 

Section E: Consequences of a Revoked Licence

 

Non-compliance with the UK Home Office’s stringent rules could result in the revocation of your sponsor licence. The impact of losing your sponsor licence extends beyond the inability to hire international talent—it can also lead to fines, legal action, and long-term damage to your company’s standing with regulatory authorities.

 

1. Loss of the Right to Sponsor Foreign Workers

 

One of the most immediate and severe consequences of a lapsed or revoked sponsor licence is the loss of your company’s right to sponsor skilled foreign workers. This means:

 

a. Inability to Issue New Certificates of Sponsorship (CoS)

You will no longer be able to issue Certificates of Sponsorship (CoS), which are required for foreign workers to apply for work visas. This will halt any ongoing or planned recruitment of international talent.

 

b. Impact on Existing Sponsored Employees

If your licence is revoked, your existing sponsored employees may have their visas curtailed, meaning they will need to find alternative employment or leave the UK within 60 days (or earlier if their visa expires sooner). This could lead to the loss of valuable staff and disrupt business operations.

 

2. Financial Penalties

 

Businesses that allow their sponsor licence to lapse or are found to be in breach of Home Office regulations can face significant financial penalties:

If you fail to comply with your sponsor licence obligations, such as reporting changes in employees’ circumstances or maintaining proper records, the Home Office may impose fines. These fines can be substantial, with penalties of up to £45,000 per breach for a first offence or £65,000 for repeat offences.

In the case of a downgraded licence rating (from A to B), businesses are often required to implement a compliance action plan, which comes with additional costs. These plans are designed to help businesses restore compliance but can involve fees, time, and effort to execute.

 

3. Legal Action and Criminal Liability

 

In more serious cases of non-compliance, businesses may face legal consequences, including:

 

a. Criminal Prosecution: In cases where businesses are found to have knowingly employed workers without the legal right to work, or if they fail to meet serious compliance obligations, criminal prosecution may follow. Directors and managers could face personal liability if found to be complicit in these breaches.

 

b. Immigration Enforcement Action: The Home Office may carry out immigration enforcement visits and investigations, particularly if non-compliance is suspected. This could result in public scrutiny and reputational damage.

 

4. Damage to Reputation and Future Opportunities

 

A lapsed or revoked sponsor licence can have long-term repercussions on your business’s reputation:

 

a. Loss of Trust with Clients and Partners: Losing your sponsor licence may signal to clients, partners, and other stakeholders that your business is not in compliance with legal regulations. This could erode trust and affect future business opportunities.

 

b. Difficulty in Reapplying for a Licence: Once your licence has been revoked, reapplying for a new licence can be challenging. The Home Office may be less likely to approve a new application if there is a history of non-compliance or previous revocation. Businesses will have to demonstrate significant changes and improvements in their processes to regain their licence.

 

5. Operational Disruption

 

The revocation of a sponsor licence can disrupt not only your recruitment efforts but also your overall business operations.

Without the ability to hire skilled foreign workers, your business may struggle to fill key roles, which could lead to increased recruitment costs or delays in finding qualified talent.

If you rely on skilled foreign workers for essential business functions, losing your sponsor licence could cause delays in ongoing projects or even lead to cancellations if critical roles remain unfilled.

 

Section F: How to Check an Employer’s Sponsor Licence

 

Workers may want to check an organisation’s sponsor licence to ensure the company can legally sponsor them.

 

1. Reasons to Check an Employer’s Sponsor Licence

 

As a worker, you may need to verify whether your potential or current employer in the UK holds a valid sponsor licence, either in preparation for your visa application or if you are an existing sponsored worker.

Only employers with a valid licence can issue the Certificate of Sponsorship (CoS) needed for workers to apply for a UK visa.

If the employer does not have a valid sponsor licence, your visa application will not be accepted, and you won’t be able to legally work in the UK.

Checking the licence rating is also important, as a B-rating could indicate compliance problems that may lead to your visa application being refused or losing your visa sponsorship if the employer’s licence is revoked.

 

2. Step-by-Step Guide to Checking an Employer’s Sponsor Licence

 

The sponsor licence checking process is relatively straightforward. Complications can arise, however, if you are unable to find the employer or if their licence is not the correct type or rating to sponsor you.

 

Step 1: Access the UK Government’s Official Sponsor Licence Register

The UK Home Office maintains a public register of licensed sponsors, which is regularly updated. This register contains the names of all employers in the UK who hold a valid sponsor licence, allowing them to sponsor foreign workers under different visa routes.

 

Step 2: Download or View the List

Once you access the page, you can either view it on the website or download the list as a PDF or a CSV file for more comprehensive use, allowing you to filter and search the data.

The list is organised alphabetically by the employer’s name and includes details such as the organisation’s name, their sponsor licence number, and the type of licence they hold (either for workers, temporary workers, or both).

 

Step 3: Search for Your Employer

To verify if your employer or potential employer has a sponsor licence,
use the search or “find” function in your document viewer (usually Ctrl + F on Windows or Cmd + F on Mac) to type in the name of the organisation.

Ensure you check the correct spelling of the company’s name, as it must match the name listed on the sponsor register exactly.

 

Step 4: Check the Type of Licence

If you find your employer on the list, confirm that they hold the correct type of licence based on the work you will be doing:

 

a. Worker Licence: This covers long-term, skilled employment under visa routes like the Skilled Worker Visa or Senior or Specialist Worker Visa (Global Business Mobility).

b. Temporary Worker Licence: This covers short-term employment or specific visa categories like Creative Worker or Charity Worker.

 

Some employers hold both licences, while others may only have one, depending on the type of work they typically sponsor.

If you are unsure about whether the employer holds the correct type of licence for your intended visa, ask the employer to check and confirm their status.

 

Step 5: Confirm the Licence Rating

The register also indicates the licence rating:

 

a. A-Rating

This means the sponsor is fully compliant with the Home Office’s regulations and can sponsor workers without restrictions.

 

b. B-Rating

A B-rated sponsor licence indicates that the employer has failed to fully comply with their sponsor duties and is currently under review by the UK Home Office. A B-rating also means that the licence is at risk and could be revoked if they don’t meet compliance requirements.

An employer with a B-rating would usually not be able to issue a new CoS to hire a new sponsored worker, but they may continue to employ existing sponsored workers with a valid CoS.

If you have been offered a job by a B-rated sponsor, ask the employer the following questions:

 

i. Why was the licence downgraded? Understanding the reason for the downgrade will help you assess whether the issue is likely to affect you as a sponsored worker.

ii. What steps are being taken to restore the A-rating? Confirm that the employer is actively working to comply with the Home Office’s action plan. A proactive employer will likely resolve the issues quickly, which can improve your situation as a sponsored worker.

iii. Will the B-rating affect my visa application? Ensure the employer is transparent about whether they can sponsor you while under the B-rating.

iv. Can the organisation still assign a Certificate of Sponsorship? While B-rated sponsors can still issue Certificates of Sponsorship (CoS) to current employees, there may be restrictions on issuing new CoS. Confirm that the employer can still sponsor you under their current rating. Without a valid CoS, your visa application will not be processed by the UK Home Office.

 

If you are uncertain about the organisation’s licence rating, take professional advice, since any issues with your CoS can result in your visa application being refused.

 

Step 6: Verify the Expiry Date of the Licence

The sponsor licence is valid for four years. Although the public register does not display the exact expiry date, you can inquire with the employer directly or ask for proof of their licence’s validity. It’s important to ensure that the licence will not expire before or shortly after your visa application, as this could affect your eligibility.

 

3. What to Do if the Employer is Not on the Register of Licensed Sponsors

 

If you cannot find the employer’s name on the sponsor register, your options could include:

 

a. Asking the Employer Directly

In some cases, the company may have applied for the licence but is not yet on the public register. Inquire whether they have applied and when they expect to receive their licence.

 

b. Consult an Immigration Advisor 

If you are unsure or concerned about the legitimacy of the employer’s licence, consult a qualified immigration adviser for guidance on your situation.

 

c. Avoid Applying for a Visa

Do not proceed with a visa application until you have verified that the employer holds a valid sponsor licence. Without a valid licence, the employer cannot issue a Certificate of Sponsorship (CoS), and your visa application will likely be refused.

 

Section G: Summary

 

A sponsor licence check is an important process, both for UK businesses that hire foreign workers and for workers to confirm an employer’s sponsorship permission.

Employers need a valid sponsor licence to legally sponsor skilled workers from outside the UK under the points-based immigration system. Regularly checking the status of a sponsor licence ensures that a business remains compliant with Home Office regulations, as non-compliance can result in penalties, suspension, or even revocation of the licence.

Key risks for businesses include missing important licence updates or failing to report changes to sponsored employees’ roles or circumstances. Non-compliance with sponsor duties could lead to the licence being downgraded to a B-rating, limiting the ability to sponsor new workers and requiring a compliance action plan to restore the A-rating. If the licence is revoked, existing sponsored employees could lose their visas and the business would lose the right to hire international staff.

Considerations for employers include keeping accurate records, regularly reviewing the sponsor licence status through the Sponsorship Management System (SMS), and ensuring any changes in business operations or employees are reported promptly. By maintaining proper oversight of the licence, employers can avoid penalties and continue sponsoring skilled foreign workers without disruption.

 

Section H: Need Assistance?

 

DavidsonMorris are leading sponsor licence lawyers. Our comprehensive, cost-certain sponsor licence services cover all areas of immigration and employment support you need to sponsor workers in full compliance with Home Office regulations, including guidance on sponsor licence checks and management. Contact us for expert support.

 

Section I: Sponsor Licence Check and Compliance FAQs

 

What is a sponsor licence?
A sponsor licence is an official permit issued by the UK Home Office that allows businesses to hire and sponsor foreign nationals for work visas under the UK’s points-based immigration system. It is essential for any business that wants to employ skilled workers from outside the UK.

 

Who needs a sponsor licence?
Any UK-based business or organisation that wishes to hire workers from outside the UK, including from the European Economic Area (EEA) and Switzerland, needs a sponsor licence to legally sponsor these workers for visas.

 

Why is it important to regularly check my sponsor licence status?
Regularly checking your sponsor licence status helps you maintain compliance with Home Office regulations, avoid penalties, and ensure your business can continue to sponsor foreign workers. It also helps avoid suspension or revocation of your licence, which could impact your ability to hire overseas talent.

 

How do I check my sponsor licence status?
You can check your sponsor licence status through the UK government’s Sponsorship Management System (SMS). Simply log in using your credentials to view your licence summary, expiry date, rating, and any alerts or notifications.

 

What happens if my sponsor licence expires or is revoked?
If your sponsor licence expires, you lose the ability to issue new Certificates of Sponsorship (CoS), which are required for foreign workers to apply for visas. If revoked, your current sponsored employees may lose their visas and have to leave the UK, and you won’t be able to sponsor any new employees until you reapply and are approved.

 

How often should I check my sponsor licence status?
You should check your sponsor licence status regularly—ideally, every few months or whenever there are significant changes to your business or sponsored employees. It’s also important to review it before the licence’s expiry date to ensure timely renewal.

 

What are the common reasons for a sponsor licence being downgraded or revoked?
Common reasons include failure to maintain accurate records, not reporting changes to your business or sponsored employees (such as job roles or absences), and non-compliance with Home Office requirements during an audit. Inconsistent right-to-work checks and failing to meet sponsor duties are also frequent causes.

 

How do I renew my sponsor licence?
Sponsor licences no longer need to be renewed. Unless your licence is withdrawn or revoked, it will remain valid and your organisation remains subject to the licence compliance requirements.

 

What are my record-keeping obligations as a sponsor?
As a sponsor, you are required to keep detailed records for all sponsored workers. This includes copies of their passports, visas, right-to-work documentation, employment contracts, attendance records, and reports on salary and job role changes. These records must be up-to-date and available for Home Office inspections.

 

Can I apply for a sponsor licence if my business is new?
Yes, new businesses can apply for a sponsor licence, but they must demonstrate that they are legitimate and have the necessary HR systems to meet sponsor duties. You’ll need to provide appropriate documentation, such as business registration, proof of premises, and financial records.

 

How long does it take to get a sponsor licence?
It typically takes up to 8 weeks for the Home Office to process a sponsor licence application. You can apply for priority processing for an additional fee to speed up the process.

 

What should I do if my sponsor licence is downgraded to a B-rating?
If your licence is downgraded to a B-rating, the Home Office will issue a compliance action plan outlining the steps you need to take to restore your A-rating. Follow the plan carefully and implement the required improvements to avoid further penalties or licence revocation.

 

Section J: Glossary

 

Term	Definition
Sponsor Licence	An official permit issued by the UK Home Office allowing employers to hire and sponsor foreign workers for specific visa categories.
B-Rated Sponsor Licence	A sponsor licence that has been downgraded due to non-compliance with Home Office regulations. Employers must follow a compliance action plan to restore their A-rating.
Certificate of Sponsorship (CoS)	A document issued by a licensed sponsor to a foreign worker, confirming that they have a job offer and allowing them to apply for a work visa.
Sponsorship Management System (SMS)	The online platform used by UK employers to manage their sponsor licence, report changes, and assign Certificates of Sponsorship (CoS).
Skilled Worker Visa	A visa for foreign nationals employed in skilled roles that meet specific criteria regarding job suitability, skill level, and salary.
Temporary Worker Licence	A licence that allows UK employers to sponsor workers for short-term employment, including voluntary work or specific industry roles.
Right-to-Work Checks	Legal checks employers must carry out to verify that a job applicant has the legal right to work in the UK.
Compliance Action Plan	A set of requirements issued by the Home Office that a B-rated sponsor must follow to restore their compliance and return to an A-rated licence status.
Global Business Mobility Visa	A visa category allowing multinational companies to transfer employees to the UK for specific roles, such as Senior or Specialist Workers and Graduate Trainees.
Scale-up Visa	A visa route for workers joining fast-growing UK businesses, offering more flexibility and minimal sponsorship requirements after the initial two years.
Minister of Religion Visa	A visa for individuals who are coming to the UK to take up pastoral work or roles within a religious organisation.
International Sportsperson Visa	A visa for elite athletes and coaches who will contribute significantly to UK sports, allowing them to work and train in the UK.
Graduate Trainee Visa (Global Business Mobility)	A visa for employees of multinational companies participating in a graduate training programme who are transferred to a UK branch.
Service Supplier Visa (Global Business Mobility)	A visa for workers coming to the UK under a contract to provide services to a UK company.
UK Expansion Worker Visa (Global Business Mobility)	A visa for workers coming to the UK to help establish a new branch or subsidiary of an overseas business.
Secondment Worker Visa (Global Business Mobility)	A visa for workers seconded to a UK company as part of a high-value contract or investment arrangement.
Seasonal Worker Visa	A visa allowing workers to come to the UK for seasonal work in industries such as horticulture or poultry farming, typically for up to six months.
A-Rated Sponsor Licence	The rating given to sponsors who are fully compliant with Home Office regulations, allowing them to freely sponsor foreign workers.
Licence Revocation	The cancellation of a sponsor licence due to serious non-compliance, preventing the employer from sponsoring any foreign workers.
Home Office	The UK government department responsible for immigration, security, and law and order, including overseeing sponsor licences and visa regulations.

 

Section K: Additional Resources

 

UK Government – Register of Licensed Sponsors (Workers)
https://www.gov.uk/government/publications/register-of-licensed-sponsors-workers
This official UK government resource allows you to search for companies that hold a sponsor licence to hire foreign workers. It provides a downloadable list of licensed sponsors and their status.

 

UK Visas and Immigration – Skilled Worker Visa
https://www.gov.uk/skilled-worker-visa
This page provides comprehensive guidance on the Skilled Worker visa, including eligibility criteria, application process, and employer sponsorship requirements.

 

UK Government – Sponsor a Visa Application
https://www.gov.uk/uk-visa-sponsorship-employers
This guide explains how employers can sponsor foreign workers, how to apply for a sponsor licence, and the duties associated with holding a sponsor licence.

 

UK Government – Right to Work Checks
https://www.gov.uk/check-job-applicant-right-to-work
This resource outlines how employers can conduct right-to-work checks to ensure foreign workers are legally able to work in the UK.

 

Immigration Law Practitioners’ Association (ILPA)
https://ilpa.org.uk/
ILPA is an authoritative source for immigration law professionals. It provides up-to-date information on immigration regulations, policy changes, and best practices for both employers and employees.

 

Home Office Sponsor Guidance
https://www.gov.uk/government/collections/sponsorship-information-for-employers-and-educators
This set of official documents offers detailed guidance for employers holding a sponsor licence, including compliance duties and how to manage sponsored workers.

 

UK Government – Global Business Mobility Visas
https://www.gov.uk/global-business-mobility
This resource covers the different visa routes under the Global Business Mobility category, including Senior or Specialist Workers, Graduate Trainees, and more.