Sponsorship Visa UK Guide for Employers 2024

A Sponsorship Visa in the UK is a specific type of visa that allows foreign nationals to work in the UK for an employer who has been licensed by the UK government to sponsor such workers. The primary purpose of this visa is to enable UK organisations to recruit non-UK resident skilled workers, filling roles that cannot be easily filled by the domestic labour market.

To be able to hire foreign nationals for a UK sponsorship visa, employers are required to hold a valid sponsor licence.

In this guide, we explain which UK sponsorship visas are currently open to overseas nationals, and what employers have to do to employ workers under a sponsored visa.

 

Section A: Understanding the UK Sponsorship Visa

 

Visa sponsorship plays an important role in the UK, enabling employers to access the global talent market through a structured system.

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

 

1. What is a Sponsorship Visa?

 

There is no actual sponsorship visa in the UK. Instead, this is a term often used to refer to UK immigration routes that allow non-UK residents to work in the UK for a licensed employer.

 

2. Types of UK Sponsorship Visas

 

Under current rules, the following work visas require sponsorship by a qualifying employer:

 

a. Skilled Worker visa

This is the most common type of sponsorship visa and is designed for skilled workers who have a job offer from a UK employer. The role must meet specific skill and salary criteria, and the worker must be fluent in English.

You can read our extensive guide to the Skilled Worker Visa here >>

 

b. Health & Care Worker visa

A specialist visa aimed at healthcare professionals, this visa supports the recruitment of doctors, nurses, and other health professionals to work within the UK’s National Health Service (NHS) or in other eligible health and care roles.

You can read our extensive guide to the Health and Care Visa here >>

 

c. Temporary Worker visas

These visas allow individuals to come to the UK for short-term work in a variety of roles, including creative, charity, and religious workers, or under youth mobility schemes.

You can read our extensive guide to Temporary Worker Visas here >>

 

d. Global Business Mobility visas

This category includes various sub-categories, such as the Senior and Specialist Worker visa, which is designed for employees of multinational companies who are being transferred to a UK branch.

You can read our extensive guide to Global Business Mobility Visas here >>

 

e. Scale Up worker (initial 6-month sponsorship)

This is a hybrid visa, allowing high-growth employers to hire skilled workers.

Each of these routes has its own requirements and eligibility criteria that the worker and the employer must meet.

You can read our extensive guide to Scale Up Visa here >>

 

3. Why Employers Need a Sponsorship Licence to Employer Migrant Workers

 

To sponsor a foreign worker for a visa, a UK employer must first obtain a sponsorship licence from the Home Office. The licence essentially enables the Home Office to ensure that employers meet specific standards in terms of eligibility, compliance, and the ability to fulfil their sponsorship duties. Without this licence, an organisation cannot legally employ non-UK resident workers under sponsored visa work routes.

The application process for a sponsorship licence involves providing detailed information about the organisation, demonstrating that it is operating legally in the UK, and showing that there is a genuine need to hire a foreign worker. Employers must also prove that they have appropriate systems in place to monitor sponsored employees and comply with all legal and regulatory obligations.

 

Section B: Eligibility Criteria for Employers

 

For UK employers looking to hire foreign nationals for a sponsorship visa, obtaining a sponsorship licence is a mandatory requirement. However, securing this licence involves meeting specific eligibility criteria and adhering to ongoing responsibilities as outlined by the Home Office in its official guidance for sponsors.

 

1. Requirements for Employers

 

To qualify for a sponsorship licence, UK employers must meet several key requirements that demonstrate their legitimacy and ability to sponsor foreign workers:

 

a. Proof of UK Presence & Trading

The organisation must be legally operating in the UK. This includes having a physical presence in the UK, such as an office, and being registered with Companies House or another relevant regulatory body. The business must also have appropriate insurance, such as employer’s liability insurance, and be able to demonstrate financial stability.

 

b. Genuine Need for Sponsorship

Employers must prove that there is a genuine need to hire a foreign worker, and overcome any potential objections that the role has been created solely for the purposes of immigration.

 

c. Compliance Systems

Employers must have robust HR systems in place to manage sponsored workers. This includes systems for monitoring employee attendance, keeping records up-to-date, and ensuring that the business can comply with all sponsorship duties. The Home Office may conduct site visits to assess these systems before granting a licence.

 

d. No Previous Immigration or Sponsorship Issues

The business must not have any history of non-compliance with UK immigration rules. If the employer has previously held a sponsorship licence, their history of compliance will be reviewed. Any history of violations or issues could impact the application’s success.

 

2. Sponsorship Compliance Duties

 

Once an employer secures a sponsor licence, maintaining compliance with Home Office regulations is crucial. This includes:

 

a. Regular Audits

The Home Office may conduct audits or site visits to ensure that the employer is complying with sponsorship duties. Failure to comply can result in penalties, including the suspension or revocation of the sponsorship licence.

 

b. Training and Awareness

Employers must ensure that all staff involved in the sponsorship process are adequately trained and aware of their responsibilities. This is particularly important for HR personnel who will be managing the compliance aspects of the sponsorship.

 

3. Key Responsibilities of Sponsoring Employers

 

One of the primary responsibilities of sponsoring employers is maintaining accurate records and reporting relevant changes to the Home Office. These responsibilities include:

 

a. Record-Keeping

Employers must keep detailed records of all sponsored workers, including copies of their passports, evidence of their right to work in the UK, and any other relevant documentation. Records must also be kept of the worker’s job description, salary, and employment contract.

Employers are required to retain records for a minimum of six years or for the duration of the sponsorship, whichever is longer. These records must be readily available for inspection by the Home Office.

 

b. Reporting Duties

Sponsoring employers are obligated to report certain changes to the Home Office within specific timeframes. This includes reporting if a sponsored worker does not turn up for their first day of work, if they are absent without permission for more than 10 consecutive days if their employment ends earlier than expected, or if there are significant changes to their job role or salary.

Employers must also report any changes to the business itself, such as changes in ownership, address, or key personnel involved in the sponsorship process.

 

c. Ensuring the Worker is Eligible for the Role

Sponsoring employers have a responsibility to ensure that the foreign national they intend to hire is eligible for the role they are being sponsored for.

The job must meet the criteria set by the Home Office for a skilled role, including being at the appropriate skill level (usually RQF Level 3 or above) and offering a salary that meets or exceeds the minimum threshold for the visa category. Employers must ensure that the job description, duties, and remuneration are consistent with these requirements.

Employers must verify that the foreign worker possesses the necessary qualifications, skills, and experience for the role. This may involve checking academic credentials, professional certifications, and references.

Before the worker starts their employment, the employer must conduct a right to work check. This involves verifying the worker’s visa status and ensuring they have the legal right to work in the UK for the duration of their employment.

 

Section C: Sponsor Licence Application Process

 

To obtain a UK sponsorship visa licence, the employer must submit the application online via the Sponsor Management System, the government’s web portal for sponsor licence holders. All supporting documentation required to validate the application will need to be submitted within five working days of the initial application.

The organisation will need to provide at least four supporting documents to verify their organisation. The documentary requirements will vary depending on the nature of the organisation and the vacancies it is looking to fill under the sponsored visa route.

Failure to provide the necessary documentation in support of the application for a UK sponsorship visa licence risks the application being significantly delayed or even refused.

The Home Office will write to the employer to inform as to whether the application for a sponsorship licence has been approved, or giving reasons where the application has been refused. If refused, the employer will, in most cases, have to wait at least a further six months before re-applying.

 

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

 

Step 1: Preparing Your Business

Before starting the application process, it is essential to ensure that your business is fully prepared.

Ensure that your business meets the basic eligibility criteria for a sponsorship licence, including legal operation in the UK, having a genuine need to hire foreign workers, and having no history of non-compliance with UK immigration rules.

 

a. Establishing HR Systems

Set up robust HR systems to manage and monitor sponsored employees. This includes systems for record-keeping, reporting to the Home Office, and ensuring compliance with all sponsorship duties. Having these systems in place before applying can prevent delays and issues during the application process.

 

b. Assigning Key Personnel

Identify and assign key personnel within your business who will be responsible for managing the sponsorship process. These roles include the Authorising Officer, who has to be a senior employee responsible for the sponsorship licence; the Key Contact, who is the main point of contact with the Home Office, and the Level 1 User, who is the person responsible for the day-to-day management of the sponsorship system, including issuing Certificates of Sponsorship.

 

c. Reviewing the Job Roles

Ensure that the job roles you intend to fill with foreign workers meet the relevant visa skill level and salary requirements. The roles should be clearly defined, and the need for a foreign worker should be justified.

 

Step 2: Online Application Process

Once your business is prepared, you can proceed with the online application process:

Visit the Home Office website and create an account on the Sponsorship Management System. This system will be used to manage your sponsorship licence, including issuing Certificates of Sponsorship and reporting changes.

Fill out the online application form. The form will require detailed information about your business, the types of visas you wish to sponsor, and the job roles you intend to fill. Be thorough and accurate in providing all required details.

To submit the form, you will need to pay the licence application fee. The fee for a sponsorship licence varies depending on the size of your business. Small businesses and charities typically pay a lower fee, while larger organisations are subject to a higher fee. The fee must be paid online as part of the application process.

 

Step 3: Submit Supporting Documents

Once the form is completed and the fee is paid, you will need to submit supporting documents. The following documents are typically required when applying for a sponsorship licence:

 

a. Proof of Business Registration: A copy of your business’s registration with Companies House or other relevant regulatory bodies.

b. Proof of Business Address: Documents proving your business’s physical address, such as utility bills, lease agreements, or official correspondence.

c. Employer’s Liability Insurance: A copy of your employer’s liability insurance certificate, showing coverage for at least £5 million.

d. Bank Statements: Recent bank statements demonstrating the financial stability of your business.

e. Corporate Structure: Documentation outlining your business’s corporate structure, including details of parent companies, subsidiaries, and key personnel.

f. HR Policies and Procedures: Copies of your HR policies and procedures, particularly those related to monitoring and managing sponsored employees.

g. Job Descriptions and Contracts: Detailed job descriptions for the roles you intend to sponsor, along with employment contracts that meet the Home Office requirements.

 

Table: Required Documents for Sponsorship Licence Application

Document Name	Description	Required For	Submission Format
Proof of Business Registration	Companies House registration or equivalent proof of legal operation	Small & Large Sponsors	Digital copy (PDF)
Proof of Business Address	Utility bill, lease agreement, or official correspondence	Small & Large Sponsors	Digital copy (PDF)
Employer’s Liability Insurance	Certificate showing coverage for at least £5 million	Small & Large Sponsors	Digital copy (PDF)
Bank Statements	Recent statements showing financial stability	Small & Large Sponsors	Digital copy (PDF)
Corporate Structure Document	Outline of parent companies, subsidiaries, and key personnel	Large Sponsors	Digital copy (PDF)
HR Policies and Procedures	Documents showing compliance with UKVI regulations	Small & Large Sponsors	Digital copy (PDF)
Job Descriptions	Detailed job descriptions for roles to be sponsored	Small & Large Sponsors	Digital copy (PDF)

 

The full list of required documents is set out in Appendix A, and will depend on factors such as the type of organisation that is applying. However, the mandatory documents will also need to be further supported by additional evidence to ensure the Home Office is given comprehensive proof of your organisation’s eligibility for the licence. Taking professional guidance will ensure your submission includes all necessary and additional documentation to meet the application requirements and the specific circumstances of your organisation.

 

Step 4: Await Decision

After submitting your application and supporting documents, the Home Office will review your application. The review process typically takes several weeks, during which the Home Office may conduct a site visit to verify your compliance systems. Once the review is complete, the Home Office will notify you of their decision.

If the application for a UK sponsorship visa licence is successful, the employer will be added to the list of UK sponsors and granted a licence with an “A” licence rating. This will allow them to assign certificates of sponsorship to each foreign worker they sponsor.

 

2. Sponsor Licence Application Tips

 

Errors or issues with your licence application can result in delayed processing and potentially a refusal. Avoid this by following these best practices:

 

a. Double-Check All Details

Ensure that all information provided in the application form and supporting documents is accurate and consistent. Discrepancies can lead to delays or rejection of your application.

 

b. Prepare for a Site Visit

Be ready for a potential site visit from the Home Office. Ensure that your HR systems are functioning correctly, your records are up-to-date, and your key personnel are prepared to demonstrate compliance.

 

c. Organise Your Documentation

Expect your supporting documentation bundle to be extensive. Compile all the required documents in an organised and accessible format to help both during the application process and in the event of any follow-up information requests.

 

d. Take Legal Advice

Contact our sponsor licence specialists for expert support and guidance on applying to become a licensed sponsor. We can help identify any potential issues and provide guidance on meeting the licence and visa sponsorship requirements.

You can read our extensive guide to Sponsor Licence Applications here >>

 

Section D: Sponsor Licence Costs and Fees

 

When applying for a sponsorship licence and hiring foreign workers under the UK Sponsorship Visa system, it will be important to understand the fees and costs you will need to meet – both in relation to the application and on an ongoing basis.

 

1. Sponsor Licence Application Fees

 

The level of fee for a UK sponsorship visa licence will depend on the size of the organisation. In some circumstances, the employer may be eligible to pay the small sponsor licence fee.

The fee for medium or large sponsors is currently £1,476, while the fee for small or charitable sponsors is £536. Employers will usually be classed as a small business if their annual turnover is £10.2 million or less and they have 50 employees or fewer.

 

Type of Sponsor	Sponsor Licence Application Fee
Small Sponsor or Charity	£536
Large Sponsor	£1,476

 

Employers also have the option to sign up for the premium sponsor scheme. The fee for the premium service can range from £8,000 for sponsors who qualify as a small or charitable organisation and have paid the lower licence application fee, to £25,000 for medium or large organisations. Under this scheme, the employer will receive an enhanced level of support with their own dedicated account manager.

In accordance with the reporting duties, the employer must let the Home Office know as soon as possible, and in any case within 10 working days, if the size or type of the business changes, as this will affect the amount payable for each certificate of sponsorship and skills charge.

Failure to inform the Home Office within this time limit can result in enforcement action, including downgrading, suspending or revoking the UK sponsorship visa licence.

 

2. Immigration Skills Charge

 

Under the Immigration Skills Charge Regulations 2017, sponsors are liable to pay the Immigration Skills Charge each time they sponsor a migrant worker under the points-based system. This is payable when assigning the Certificate of Sponsorship.

Small or charitable organisations will pay the ‘small’ charge, that is £364 for any stated period of employment up to 12 months, plus £182 for each subsequent 6-month period stated on the certificate.

In all other cases, employers must pay the ‘large’ charge, that is £1,000 for any stated period of employment up to 12 months, plus £500 for each subsequent 6-month period stated on the certificate.

Unless an exception applies, the employer must pay the charge each time it assigns a certificate of sponsorship to a sponsored worker who is either:

 

a. Applying from outside the UK for entry clearance to work in the UK for 6 months or more or

b. Applying from within the UK for leave to remain of any duration, including for less than 6 months.

 

3. Assigning Certificates of Sponsorship

 

The employer must assign a Certificate of Sponsorship to each foreign worker they sponsor. This is an electronic record, not a physical document, and contains a unique number that the worker can use to apply for a visa.

When assigning certificates of sponsorship under the UK sponsorship visa licence, the employer will need to pay a fee of £239 for any certificate issued to a Skilled Worker visa holder.

It costs £25 to assign a Certificate of Sponsorship under a temporary worker visa.

 

Table: Cost Breakdown for Sponsorship

Cost Type	Small Sponsor Fee	Large Sponsor Fee	Additional Notes
Sponsorship License Application	£536	£1,476	One-time fee, valid for 4 years
Immigration Skills Charge (ISC)	£364 per year	£1,000 per year	Per sponsored worker, exemptions apply
Certificate of Sponsorship (CoS) under Temporary Worker Licence	£25	£25	Per sponsored worker, payable for each CoS issued
Certificate of Sponsorship (CoS) under Worker Licence	£239	£239	Per sponsored worker, payable for each CoS issued

 

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

 

4. Visa Application Fees

 

Although this cost is typically borne by the employee, some employers choose to cover the visa application fee as part of a benefits package. The cost varies depending on the visa type and the duration of stay.

 

5. Legal Fees

 

Given what is at stake, many organisations opt to engage immigration lawyers to assist with the sponsorship licence application and compliance management. The fees for these services can vary depending on the complexity of the case and the level of support required.

 

6. Ongoing Sponsorship Costs

 

Beyond the initial costs of obtaining a sponsorship licence, employers must budget for ongoing expenses related to maintaining the sponsorship and ensuring compliance with UK immigration regulations.

Maintaining compliance with UK regulations requires ongoing investment in HR systems and training for staff involved in the sponsorship process. Regular audits and potential legal advice should also be considered in the budget.

Non-compliance with sponsorship duties can result in significant fines, legal costs, and even the loss of the sponsorship licence. Businesses should allocate funds for potential contingencies and ensure that their compliance systems are robust.

 

Section E: Sponsorship Visa Requirements for the Skilled Worker Route

 

The points-based system features a route for skilled workers who have a job offer from an approved sponsor and who attain the requisite points for attributes including language, skill and salary.

The job employees are offered will need to be at a required skill level of RQF3 or above (equivalent to A level), and employees need to be able to speak English.

They must be paid the relevant salary threshold by the sponsor. This will either be the general salary threshold of £38,700 or the relevant ‘going rate’ for the specific job, whichever is higher. If the salary is less than this, employees may still be able to apply by ‘trading’ points on specific characteristics against salary, for example, if a job offer is on the Immigration Salary List or if the individual has a PhD relevant to the job.

Key considerations for Skilled Worker sponsorship visa applications:

 

a. All UK businesses intending to sponsor a Skilled Worker are required to have a sponsor licence unless the individual has lawful status allowing them to carry out the work in question in the UK, such as holding settled or pre-settled status or status under a non-work restricting category, i.e. spouse visa.

 

b. Skilled migrants looking to work in the UK must achieve at least 70 points to be eligible for the visa. This includes demonstrating that they have a job offer from an approved sponsor and that they satisfy the English Language requirement.

 

c. Skilled worker applicants will need to meet the minimum salary threshold.

 

d. There is no cap on the number of skilled workers who can be sponsored under this route.

 

Section F: Managing Your Sponsor Licence

 

Once granted a sponsor licence, your organisation will be subject to ongoing compliance and management obligations.

 

1. Reporting Requirements

 

One of the most important aspects of managing a sponsorship licence is fulfilling the regular reporting requirements. These obligations ensure that the Home Office can monitor the activities of sponsors and the foreign workers they employ. Key reporting requirements include:

 

a. Changes to the Sponsored Worker’s Employment

Employers must report any significant changes to a sponsored worker’s employment within 10 working days. This includes changes in job title, duties, salary (outside of standard annual pay increases), work location, or working hours.

 

b. Absences and Non-Attendance

If a sponsored worker fails to start their employment, is absent without permission for more than 10 consecutive days, or their employment is terminated earlier than expected, the employer must report these events promptly on the Sponsorship Management System.

 

c. Changes to the Sponsoring Business

Any changes to the business itself, such as changes in ownership, company name, or key personnel involved in managing the sponsorship licence, must be reported. This includes changes to the address of the company or significant changes in business structure.

 

d. Reporting on Compliance

Periodically, the Home Office may request information or documentation to ensure ongoing compliance. Employers must respond to such requests promptly and accurately, providing all required information.

 

e. Annual Compliance Reports

Some sponsorship licence holders may be required to submit annual compliance reports to the Home Office, summarising their sponsorship activities and confirming their adherence to all sponsorship duties.

 

2. Staying Compliant with Home Office Rules

 

Maintaining compliance with UK Immigration Rules is a continuous responsibility that requires careful attention to detail and diligent management.

Non-compliance with the rules can result in serious consequences, including fines, the suspension or revocation of the sponsorship licence, and the potential barring of the employer from sponsoring workers in the future. Maintaining a proactive approach to compliance is essential to avoid these risks.

Key areas of focus include:

 

a. Record-Keeping

Employers must maintain detailed records of all sponsored workers for the duration of their sponsorship and for at least six years thereafter. These records include copies of the worker’s passport, right-to-work documentation, employment contracts, and evidence of their qualifications and skills.

 

b. Monitoring and Reporting Systems

Employers must have systems in place to monitor the whereabouts and activities of sponsored workers. This includes tracking absences, ensuring that the worker’s duties align with the role described in the Certificate of Sponsorship, and confirming that the worker continues to meet the conditions of their visa.

 

c. Conducting Right to Work Checks

Employers are legally required to conduct right to work checks before employing a foreign worker and periodically during their employment. Failure to conduct these checks properly can result in fines and legal penalties.

 

d. Preparing for Immigration Audits

The Home Office may conduct site visits or audits to assess an employer’s compliance with sponsorship duties. Employers should be prepared for these audits by ensuring that all records are up-to-date, key personnel are knowledgeable about compliance requirements, and that HR systems are functioning effectively.

 

Table: Compliance Checklist

Compliance Requirement	Frequency	Responsible Personnel	Reporting Method	Consequences of Non-Compliance
Report changes in sponsored worker’s status	Within 10 working days	HR Manager / Level 1 User	Through SMS	Fines, license suspension or revocation
Conduct right-to-work checks	At hiring, periodically	HR Manager	Physical/digital document verification	Fines, legal penalties
Maintain accurate records	Ongoing, for 6 years	HR Manager / Compliance Officer	Internal database	Issues during UKVI audits, potential fines
Annual CoS allocation request	Annually	Authorizing Officer	Through SMS	Delay in hiring if not submitted
Notify UKVI of business changes	Within 20 working days	Key Contact / Authorizing Officer	Through SMS	Fines, compliance issues

 

3. Changing Your Licence

 

As your organisation evolves, you may need to upgrade your sponsorship licence to a different type to meet new operational needs.

The licence you need depends on whether the workers you want to fill your jobs are ‘Workers’ – for skilled or long-term employment or ‘Temporary workers’ – for specific types of temporary employment.

You can apply for a licence covering one or both types of worker, or you can apply for a different type of licence to enable you to hire a different classification of sponsored worker.

You can action this by submitting an application for a change of circumstances through the Sponsorship Management System.

 

Section G: Common Sponsorship Challenges

 

The UK Sponsorship Visa system can be complex and challenging for employers, especially those new to the process and unfamiliar with the rules.

While obtaining a sponsorship licence is a significant achievement, maintaining compliance and managing sponsored employees is a mandatory obligation on sponsors and can present a range of difficulties in practice.

 

Table: Common Sponsorship Challenges and Solutions

Challenge	Description	Potential Impact	Recommended Solution	Resources Available
Delays in application processing	Slow UKVI processing due to incomplete or inaccurate applications	Delays in hiring, project setbacks	Double-check applications, use checklists	UKVI website, immigration consultants
Mistakes in compliance	Errors in reporting or record-keeping	Fines, suspension of licence	Implement robust HR systems, regular audits	Legal advisers, UKVI guides
Managing SMS	Difficulty in navigating the Sponsorship Management System	Errors in CoS issuance, reporting delays	Train key personnel, seek expert guidance	UKVI SMS manual, training workshops
Changing immigration policies	Adjusting to new rules or visa requirements	Compliance risks, legal issues	Stay informed, consult with legal experts	UKVI updates, immigration lawyers

 

1. Delays in Application Processing

 

One of the most common challenges employers face is delays in the processing of sponsorship licence applications or visa applications for sponsored workers. This can impact your recruitment process and, in cases of severe delays, can result in the job applicant withdrawing their interest in your organisation.

Delays can occur for several reasons. If the initial application for a sponsorship licence or visa is incomplete or contains errors, the Home Office may request additional information, which can significantly extend processing times.

At certain times of the year, such as after major policy changes or during peak hiring seasons, the Home Office may experience a high volume of applications, leading to longer processing times.

The Home Office may conduct site visits or request additional documentation to verify the employer’s compliance with sponsorship requirements. While these checks are essential, they can also cause delays in the approval.

Sudden changes in immigration policy or the introduction of new visa categories can lead to confusion and delays as employers and the Home Office adjust to the new rules.

 

2. Compliance Breaches

 

Maintaining compliance with Home Office regulations is crucial for keeping a sponsorship licence in good standing, but

Compliance mistakes are not uncommon, but employers have to be proactive in understanding and meeting their obligations.

Employers are required to report significant changes to a sponsored worker’s employment status or the business’s circumstances within strict timeframes. Failing to do so can lead to non-compliance penalties.

Poor record-keeping practices, such as missing or outdated documentation, can result in compliance issues during Home Office audits. Employers must keep detailed records of sponsored workers and ensure that these records are easily accessible.

Employers must conduct right to work checks before hiring a foreign worker and at regular intervals during their employment. Mistakes in this process, such as failing to verify a worker’s visa status, can lead to fines and legal penalties.

 

3. Failure to Update Sponsorship Management System

 

The Sponsorship Management System is used to manage sponsorship activities, including issuing Certificates of Sponsorship and reporting changes to the Home Office. The Home Office requires the Sponsorship Management System to be accurate and updated at all times.

Errors in managing the Sponsorship Management System, such as incorrect data entry or failure to update information, can cause compliance issues and penalties.

 

4. Failure to Train & Support Key Personnel

 

Employers with a sponsor licence should take proactive steps to ensure their key personnel are informed, trained and able to fulfil the compliance duties.

Key roles include the Authorising Officer, who oversees compliance, the Key Contact, who manages communication with UK Visas and Immigration, and the Level 1 User, responsible for day-to-day operations within the Sponsorship Management System.

 

Table: Roles and Responsibilities in Sponsorship Management

Role	Key Responsibilities	Training Required	Reporting Lines	Tools/Systems Used
Authorising Officer	Overall responsibility for the sponsorship licence	Comprehensive knowledge of UKVI rules	Reports to senior management	Sponsorship Management System (SMS)
Key Contact	Main communication link with UKVI	Understanding of visa processes and SMS	Reports to Authorizing Officer	SMS, email correspondence
Level 1 User	Day-to-day management of the SMS, issuing CoS	SMS system training, knowledge of compliance	Reports to Authorizing Officer	SMS, internal HR systems
Compliance Officer	Ensures adherence to sponsorship duties, conducts audits	In-depth knowledge of UKVI regulations	Reports to Authorizing Officer/HR Manager	Internal compliance tools
HR Manager	Conducts right-to-work checks, manages employee records	Right-to-work check procedures, HR software	Reports to senior management/Compliance Officer	HR software, document management systems

 

Training for these personnel should focus on understanding the legal responsibilities associated with the licence, such as conducting accurate Right to Work checks, maintaining up-to-date records, and reporting changes within the required timeframes. Regular training sessions, either in-house or through external immigration experts, can help keep staff informed of any changes in immigration law or Home Office requirements.

Employers should also consider implementing robust monitoring and auditing systems to ensure that all processes are followed correctly, providing additional support to key personnel and reducing the risk of compliance failures.

The risks of failing to train and support key personnel are significant. Non-compliance can lead to penalties, including fines and suspension or revocation of the sponsorship licence.

Any errors in managing the licence can also cause significant operational disruption to the organisation and its ability to employ foreign workers.

 

Section H: UK Sponsorship Visas for Different Sectors

 

The UK Sponsorship Visa system is open to organisations across all areas of the UK economy, however, each sector has unique requirements and challenges.

 

1. Healthcare

 

The healthcare sector in the UK is one of the largest users of the Sponsorship Visa system, particularly through the Health and Care Worker Visa, which is designed specifically for healthcare professionals.

This is because the healthcare sector often requires specialists who may not be readily available in the UK. Sponsorship visas allow employers to recruit internationally for these highly specialised roles.

Many healthcare roles, such as doctors, nurses, and certain allied health professionals, are on the UK’s Immigration Salary List, which means that these roles are given priority in the visa application process, and the salary threshold may be lower than for non-shortage roles.

Employers hiring under the Health and Care Worker Visa are also exempt from paying the Immigration Skills Charge, reducing the overall cost of sponsorship.

 

Healthcare sector case study

NHS Trusts across the UK have successfully used the Health and Care Worker Visa to sponsor thousands of nurses from the Philippines, addressing critical staffing shortages. By targeting countries with a surplus of qualified healthcare professionals, NHS Trusts have been able to recruit nurses who are already familiar with English and have the necessary qualifications. These sponsorships have not only filled vital roles but have also brought diverse skills and experiences to the NHS, improving patient care.

 

2. Tech

 

The technology sector in the UK has a high demand for skilled professionals in areas like AI development, cybersecurity and data science.

Globally, the tech talent market is highly competitive and the ability to sponsor workers from around the world has become essential for UK businesses filling key roles.

The Skilled Worker Visa is well-suited for tech roles, which often meet the skill and salary thresholds required by the Home Office. Employers should ensure that job descriptions and salaries align with visa requirements. The tech sector often embraces remote or hybrid working models. Employers should ensure that any remote working arrangements comply with Home Office rules, particularly regarding the worker’s physical location.

 

Tech sector case study

Developers: A London-based tech start-up specialising in artificial intelligence successfully sponsored software developers from India and the United States using the Skilled Worker Visa. By clearly defining the roles and offering competitive salaries that met Home Office requirements, the start-up was able to quickly bring in the talent needed to accelerate product development. The sponsorship process was streamlined by engaging an immigration consultant to handle the application, allowing the start-up to focus on growth.

 

3. Finance

 

The finance sector in the UK is a major global hub, requiring a diverse and highly skilled workforce.

The finance industry often requires workers with specialised skills in areas like investment banking, financial analysis, and risk management. These roles typically meet the Skilled Worker Visa requirements. Many finance roles offer salaries well above the minimum thresholds required for sponsorship, making it easier to meet visa criteria. However, employers should still ensure that salary packages are competitive to attract top international talent.

Finance professionals may need to be registered with or certified by relevant UK regulatory bodies (e.g., Financial Conduct Authority). Employers should verify these requirements before proceeding with sponsorship.

 

Finance sector case study

A global bank with its European headquarters in London used the Skilled Worker Visa to sponsor risk management experts from the United States and Australia. These experts were brought in to lead regulatory compliance initiatives in the wake of new post-Brexit financial regulations. The bank ensured compliance with the Home Office by carefully documenting the need for these highly specialised roles and offering compensation packages that met the visa criteria. This strategic use of sponsorship visas allowed the bank to maintain its competitive edge in the highly regulated financial sector.

 

4. Engineering and Construction

 

Engineering and construction sectors are also significant users of the Sponsorship Visa system, particularly for roles that require specialised technical skills.

Certain engineering roles may require specific qualifications or certifications that are recognised in the UK. Employers should ensure that foreign workers’ qualifications meet these standards.

The engineering and construction sectors often involve project-based work. Employers must ensure that the sponsorship is aligned with the project’s timeline and that any changes in employment duration are reported to the Home Office.

Sponsored workers in these sectors must comply with UK health and safety regulations, which may require additional training or certification. Employers should factor these requirements into their sponsorship plans.

 

Engineering and construction sector case study

A UK-based engineering firm involved in large infrastructure projects used the Skilled Worker Visa to sponsor civil engineers from South Africa and Canada. These engineers were needed to fill roles that required specific expertise in bridge construction, which was not readily available in the UK. By demonstrating that these roles were on the Immigration Salary List, the firm was able to secure visas for these key employees and successfully complete high-profile projects on time and within budget, ensuring that they attract and retain the best international talent available.

 

Section I: Summary

 

A UK Sponsorship Visa allows employers to hire non-UK skilled workers who do not already have the Right to Work for the vacant role. Employers must first obtain a sponsorship licence from the Home Office, demonstrating that they meet certain requirements, including a genuine need to fill roles that cannot be easily filled by the local labour market.

Once a licence is granted, employers can issue Certificates of Sponsorship to foreign workers, enabling them to apply for a sponsored visa.

Key considerations for employers include ensuring compliance with Home Office regulations, such as conducting Right to Work checks, maintaining accurate records, and reporting any changes in a worker’s status.

Failure to meet these obligations can lead to penalties, including fines, or suspension or revocation of the sponsorship licence.

There are also financial implications of managing a sponsor licence, such as the Immigration Skills Charge, which can add to the cost of hiring overseas talent. Employers must weigh these costs and compliance risks against the benefits of accessing a broader talent pool.

 

Section J: Need Assistance?

 

Given the upfront investment required to make a sponsor licence application – time spent building the submission and finding the employment, fees and costs of making the application – taking professional advice can help ensure you are following the process as required, that your submission aligns to the eligibility criteria and that any delays are avoided in processing your application.

For advice on sponsorship licences and hiring workers under a UK sponsorship visa route, contact us.

 

Section K: UK Sponsorship Visa FAQs

 

What is a Sponsorship Visa, and why do UK employers need it?
A Sponsorship Visa allows UK employers to legally hire skilled workers from outside the UK. Employers need it to fill roles that require specific expertise not readily available within the domestic workforce. Without a sponsorship licence, employers cannot sponsor foreign workers, making it essential for businesses looking to recruit internationally.

 

What are the basic eligibility criteria for a UK sponsorship licence?
To qualify for a sponsorship licence, your business must be legally operating in the UK, have a genuine need to hire foreign workers, and possess the necessary systems to monitor and manage sponsored employees. Your business must also have no history of non-compliance with UK immigration laws.

 

How much does it cost to obtain a sponsorship licence?
The cost of a sponsorship licence varies depending on the size of your business. Small sponsors and charities pay £536, while large sponsors pay £1,476. Additional costs, such as the Immigration Skills Charge and fees for Certificates of Sponsorship, also apply.

 

What types of visas can UK employers sponsor under the sponsorship licence?
Employers can sponsor a variety of visas, including the Skilled Worker Visa, Global Business Mobility Visa, Health and Care Worker Visa, and Temporary Worker Visa. Each visa type is designed for different roles and skill levels, catering to the specific needs of various industries.

 

How long does it take to get a sponsorship licence?
The processing time for a sponsorship licence application can vary but typically takes up to 8 weeks. Delays can occur if the application is incomplete, if there are high volumes of applications, or if the Home Office decides to conduct a site visit or additional compliance checks.

 

What are the ongoing compliance responsibilities for employers with a sponsorship licence?
Employers must fulfil several ongoing responsibilities, including keeping accurate records of sponsored employees, conducting regular right-to-work checks, and reporting any changes to the sponsored worker’s employment or the business’s circumstances to the Home Office. Non-compliance can result in fines, suspension, or revocation of the licence.

 

What are common challenges faced during the sponsorship process?
Common challenges include delays in application processing, mistakes in compliance, and difficulties in navigating sector-specific requirements. These challenges can be mitigated by thorough preparation, implementing robust compliance systems, and seeking expert advice when needed.

 

Are there sector-specific considerations for sponsorship visas?
Different sectors have unique requirements. For example, the healthcare sector often relies on the Health and Care Worker Visa, while the tech industry may prioritise the Skilled Worker Visa. Understanding these sector-specific needs is crucial for successful sponsorship.

 

Section L: Key Statistics

 

The UK Sponsorship Visa landscape has seen significant changes and trends over recent years, driven by shifts in immigration policies, economic factors, and global events such as the COVID-19 pandemic.

Key statistics and trends include:

 

1. Overall Visa Grants

In the year ending June 2024, a total of 1.16 million visas were granted for work, study, or family reasons. This number reflects an 11% decrease compared to the previous year, although it’s more than double the number of visas granted in 2019, indicating a strong recovery post-pandemic.

 

2. UK Work Visas

286,382 work visas were granted to main applicants across all categories in the year ending June 2024. This represents an 11% decrease from the previous year, but a significant increase of 109% compared to 2019. This shows a long-term upward trend despite recent fluctuations.

The number of Skilled Worker visas granted has doubled since 2021, although there was a slight 3% decrease in the most recent year. This indicates that while demand remains strong, recent policy changes and economic conditions are beginning to impact visa issuance.

 

3. Sector-Specific Insights

The Health and Care Worker visa category saw a sharp decline of 26% year-on-year, with 89,095 visas granted in the year ending June 2024. The most significant drop was observed between April and June 2024, when the number of visas issued fell by 81% compared to the same period in 2023. This decline is largely attributed to recent changes in immigration policy and economic challenges in the healthcare sector.

In contrast, the Technology sector continues to rely heavily on Skilled Worker visas, with demand for roles like software development and cybersecurity remaining high. Despite the slight decline in overall visa numbers, the tech industry remains a key driver of skilled migration to the UK.

 

4. Nationality Trends

The top nationalities receiving work visas include Indian, Nigerian, and American nationals, reflecting the UK’s continued reliance on international talent from diverse regions. Indian nationals, in particular, have consistently been the largest group receiving work visas, especially in sectors like technology and healthcare.

 

5. Sponsorship by Employers

The number of UK organisations offering work visa sponsorship has steadily increased from 2011 to 2022. This growth highlights the expanding opportunities for international professionals and the increasing willingness of UK businesses to engage with global talent pools. Both large corporations and SMEs are recognising the value of hiring from abroad to fill critical skill shortages.

 

6. Impact of Policy Changes

Recent immigration policy changes, including higher salary thresholds for Skilled Workers and tighter rules on dependants for international students, have begun to influence visa decisions. These changes are part of the UK government’s broader strategy to manage migration while still attracting essential skills.

 

Section M: Glossary

 

Term	Definition
Sponsorship Licence	A permit that UK employers must obtain to legally sponsor foreign workers under certain visa categories. It allows businesses to hire skilled non-UK workers.
Skilled Worker Visa	A visa category for skilled workers with a job offer from a licensed UK employer. Applicants must meet specific skill and salary thresholds.
Health and Care Worker Visa	A visa for healthcare professionals who have a job offer in the UK. It allows workers in the health and care sectors to fill critical roles and includes reduced fees.
Certificate of Sponsorship (CoS)	A digital certificate issued by a licensed sponsor to a foreign worker, which is required for visa applications under most work visa categories.
Immigration Skills Charge (ISC)	A levy imposed on UK employers for each foreign worker they sponsor under certain visa categories. The charge is aimed at funding UK training programmes.
Sponsorship Management System (SMS)	An online platform used by UK employers to manage their sponsorship licenses, issue Certificates of Sponsorship, and report changes to UKVI.
Immigration Salary List	A list of occupations which reduced minimum salaries for visa sponsorship.
Right to Work Check	A mandatory check that employers in the UK must perform to verify that a worker has the legal right to work in the UK. This applies to all employees, not just those on visas.
UK Visas and Immigration (UKVI)	The UK government agency responsible for managing the country’s visa and immigration system, including the issuance of sponsorship licenses.
Resident Labour Market Test (RLMT)	A former requirement where employers had to demonstrate that no suitable settled worker was available before offering a job to a non-UK worker (no longer required).
Intra-Company Transfer Visa	Now-closed visa that allowed multinational companies to transfer employees from an overseas branch to a UK branch of the same company.
Sponsor’s Duties	Legal responsibilities that a sponsoring employer must fulfil, such as maintaining records, conducting right-to-work checks, and reporting to UKVI.
Compliance Audit	An inspection by UKVI to ensure that a sponsoring employer is fulfilling its duties and complying with immigration laws.
Authorising Officer	A senior employee responsible for overseeing the sponsorship licence and ensuring compliance with UKVI regulations within the organisation.
Key Contact	The primary person responsible for communication between the sponsoring organisation and UKVI.
Level 1 User	The person responsible for the day-to-day management of the Sponsorship Management System (SMS), including the issuance of Certificates of Sponsorship.

 

Section N: Additional Resources

 

UK Visas and Immigration (UKVI) Sponsorship Licences
https://www.gov.uk/uk-visa-sponsorship-employers
The official UK government page providing comprehensive guidance on obtaining a sponsorship licence, including eligibility criteria, application processes, and maintaining compliance with UK immigration laws.

 

Home Office Immigration Statistics
https://www.gov.uk/government/collections/migration-statistics
A collection of regularly updated statistical reports covering various aspects of immigration to the UK, including work visas, study visas, and family-related migration. These reports offer valuable insights into migration trends and policy impacts.

 

GOV.UK Skilled Worker Visa
https://www.gov.uk/skilled-worker-visa
The official guide to the Skilled Worker Visa, detailing the application process, eligibility requirements, and the responsibilities of both employers and visa applicants. This is an essential resource for those looking to understand the Skilled Worker Visa in detail.

 

British Medical Association – Immigration Advice for Healthcare Workers
https://www.bma.org.uk/advice-and-support/international-doctors/coming-to-work-in-the-uk/immigration-overview
A resource specifically for healthcare professionals, providing guidance on immigration issues, visa applications, and sponsorship under the Health and Care Worker Visa category. It also offers advice on compliance with UK healthcare regulations.

 

UK Council for International Student Affairs
https://www.ukcisa.org.uk/Information–Advice/Working/Working-during-your-studies
A resource aimed at international students and their employers, providing guidance on work visa options during and after studies in the UK. It includes information on switching from a student visa to a work visa, which is particularly relevant for employers looking to retain international graduates.