An organisation usually needs a sponsor licence to employ someone to work for them from outside or inside the UK, including citizens of the EU, Switzerland, Iceland, Liechtenstein, and Norway who arrived in the UK after 31 December 2020. 

This includes unpaid work, like running a charity.

An organisation will not require a sponsor licence to sponsor certain categories of person, for example, Irish citizens, those with EUSS - settled or EUSS - pre-settled status, and those with settlement or ILR (Indefinite Leave to Remain) in the UK.

What is a sponsor licence?

If an employer wishes to hire a non-UK person who is not a settled worker (for example, a British citizen or an Irish citizen) in the UK and does not otherwise hold immigration permission to work for that employer in the UK, they will need to be formally authorised by the Home Office. This authorisation by the Home Office is known as a ‘sponsor licence’, and employers holding a sponsor licence are known as ‘sponsors’.

Types of sponsorship licence

The type of sponsorship licence one needs depends on whether the workers they want to fill the jobs are:

• ‘Workers’ - for skilled or long-term employment

• ‘Temporary workers’ - for short-term and specific types of temporary employment

One can apply for a licence covering workers, temporary workers, or both types of workers.

1. Worker licence

A ‘Worker’ licence will enable an employer to sponsor workers in various skilled occupations. The skilled work can be performed on a short-term, long-term, or permanent basis, depending on the worker’s visa.

For the purpose of sponsorship, the ‘Worker’ routes are: 

UK Skilled Worker route - the main UK immigration route for overseas nationals who want to work in the UK (including UK waters).

• UK GBM (Global Business Mobility) – Senior or Specialist Worker route (previously the Intra-company Transfer visa) – required for multinational companies which need to transfer their established employees to the UK 

• UK T2 Minister of Religion route – required for people coming to work for a religious organisation 

• UK International Sportsperson route – required for elite sportspeople and sports coaches who will be based in the UK

2. Temporary Worker licence

A ‘Temporary Worker’ licence will enable an employer to sponsor overseas workers on a temporary basis, including for job-shadowing and volunteering. The employer can only get a Temporary Worker licence for certain types of jobs and visas.

For the purpose of sponsorship, the ‘Temporary Worker’ routes are: 

• UK Charity Worker route – required for unpaid workers at a charity (up to 1 year)

• UK Creative Worker route - to work in the creative industry (up to 2 years), for example, as an artist or entertainer 

• the following GBM routes: 

  o UK Graduate Trainee route – required for overseas workers being transferred to the UK branch of their employers as part of a structured graduate training programme

  o UK Expansion Worker route – required for overseas workers sent to the UK to set up an overseas business’s new branch or subsidiary 

  o UK Service Supplier route – required for overseas workers contracted to provide services for a UK company (6 months or 12 months)

  o UK Secondment Worker route – required for overseas workers being transferred from overseas, as part of a high-value contract, to work for a different UK business 

• UK Government Authorised Exchange route - work experience (1 year), training or research projects, for example, scientific or practical medical training (2 years), to enable a short-term exchange of knowledge

• UK International Agreement route - where the worker (for example, employees of overseas governments) is coming to do a job which is covered by international law 

• UK Religious Worker route – required for those working in a religious order or organisation (2 years) 

• UK Scale-up route – required for people coming to the UK to work for a fast-growing UK business

• UK Seasonal Worker route - allows people to come to the UK and work in the horticulture sector for up to 6 months, or the poultry sector from 18 October- 31 December each year

Eligibility

To get a sponsorship licence as an employer/authorising officer, one cannot have any unspent criminal convictions for immigration offences (such as employing illegal workers) or certain other crimes, such as fraud or money laundering.

They also cannot have had a sponsor licence revoked in the last 12 months or in the last 24 months (if they have had their sponsor licence revoked more than once).

The employer applying for a sponsorship licence application will need appropriate systems to monitor sponsored employees and people to manage sponsorship in their business.

To be able to get a sponsorship licence, the job being offered by the organisation must be suitable for the overseas worker, which means the job complies with the UK minimum wage and working time regulations - the worker’s visa may be refused and the sponsor may lose their sponsorship licence if it does not and meets the other criteria needed for route specific visa.

UKVI will review their sponsorship licence application form and supporting documents. They may visit the applicant’s business to ensure the applicant is trustworthy and also capable of carrying out their sponsorship duties.

Sponsorship management roles

The sponsorship licence applicant needs to appoint ‘key personnel’ within their business to manage the sponsorship process at the time of their application for a licence.

The main tool that will be used is the SMS (Sponsorship Management Systems).

The roles are:

• Authorising officer – a senior and capable person responsible for the actions of the business's staff and representatives who use the SMS

• Key contact – the business’s main point of contact with UKVI (they can be a UK-based legal representative) 

• Level 1 user – responsible for all day-to-day practical tasks for the management of the sponsorship licence using the SMS

These roles (authorising officer, key contact, and level 1 user) can be filled by the same person or different people.

Suitability checks

The sponsor licence applicant and their staff will be assessed to ensure they are appropriate for their roles. The Home Office may refuse the sponsorship licence if anyone involved in sponsorship:

• Has an unspent criminal conviction for a specified offence under the law

• Has been issued a financial penalty by UKVI within the past 12 months

• Has been reported to UKVI for non-compliance

• Has breached the law

• Has served as key personnel at a sponsor whose licence was refused in the last 6 months

• Has failed to pay VAT (Value Added Tax) or other excise duties

A business may be denied a sponsorship licence if anyone involved in the sponsorship has previously acted as key personnel at a sponsor when that sponsor had their licence revoked in the last 12 months or in the last 24 months (if they’ve been ‘key personnel’ for more than one licence that has been revoked).

At least one Level 1 user must:

• Be a partner, director, or employee of the sponsoring organisation

• Hold settled worker status

Additionally, the sponsor organisation and its staff must:

• Be primarily located in the UK most of the times

• Not be consultants or contractors contracted for a specific project

• Not be subject to any debt relief restriction order or undertaking, or bankruptcy restriction order or undertaking

• Have no previous record of failing to comply with sponsorship obligations

The allocated staff must usually be paid members of staff, or office holders. 

Those applying for a UK Expansion Worker sponsor licence can appoint an overseas worker as an authorising officer if they do not have suitable staff based in the UK for this role.

Applying for a sponsorship licence

One needs to apply online for their sponsorship licence. After finishing the online application, they need to send in the submission sheet (summary cover page) at the end of their application and supporting documents (if asked) to the email address given on the submission sheet.

Any affidavits or statutory declarations being sent by the applicant must be witnessed by a qualified, independent person - for example, a solicitor, Justice of the Peace, Notary Public, Commissioner for Oaths, or a Councillor (in Scotland only).

Paying licence fees

One needs to pay a fee when they apply, which depends on the type of licence they are applying for and the type of organisation they are.

An organisation is usually a small sponsor if at least 2 of the following apply:

• Their annual turnover is £15 million or less

• Their total assets are worth £7.5 million or less

• They have 50 employees or fewer

The applicant must pay the licence fee themselves. They cannot ask the sponsored worker to pay the fee or any costs linked to their sponsorship licence application. Doing so may result in their licence being revoked.

Waiting for a decision

Most sponsorship licence applications are dealt with by the UKVI within less than 8 weeks. UKVI may need to visit the applicant’s business.

The applicant may be able to pay an extra amount of £750 (in addition to the application fee) to get a decision within 10 working days. However, this service is limited to a small number of licence applications every working day. Faster decisions are allocated on the first come, first-served basis.

Getting a decision

Successful applicants will get an A-rated licence, which enables the employer to start assigning CoS. Their business will be registered in the register of sponsors.

A sponsorship licence usually remains valid for as long as the sponsor continues to fulfil the eligibility requirements.

Those with a licence to sponsor UK Expansion Workers or Scale-up Workers will have their licence valid for 4 years. The business will not be able to apply for another sponsorship licence to sponsor these types of workers.

If one is applying to sponsor a UK Expansion Worker

One will get a ‘provisional’ rating instead of an A-rating if their authorising officer is based outside the UK.

They will only be able to assign one CoS (Certificate of Sponsorship), which must be assigned to the authorising officer so they can enter the UK.

Once the authorising officer has got their visa, the sponsor can upgrade their licence to an A-rating and request additional CoS.

Certificates of sponsorship

The sponsor must assign a CoS (Certificate of Sponsorship), which is an electronic record, to each foreign worker they employ. Each CoS has its unique number, which an overseas worker can use to apply for a UK work visa. 

Defined certificates

Defined CoS are for people applying on a Skilled Worker route from outside the UK.

Undefined certificates

Undefined CoS are for Skilled Workers applying from within the UK, and applicants on all other visas.

How can Visa and Migration help?

We provide support to an organisation in the UK to apply for and obtain a sponsorship licence by guiding them through the entire process and ensuring compliance with Home Office requirements. We help you determine which type of sponsorship licence you need. We advise you on the roles eligible for sponsorship and the supporting documents required, such as evidence of right-to-work checks, company registration, and financial records.

We also help you in preparing and reviewing the licence application, making sure all sections of your application are completed accurately and that your staff meet suitability criteria, including checks for unspent criminal convictions, compliance history, and financial penalties. 

Once you submit your sponsorship licence application, we will help you with any follow-up questions or inspections from the UKVI. Additionally, we advise you on your ongoing sponsor compliance, including right-to-work checks, record-keeping, and reporting duties, helping to reduce the risk of fines or licence revocation.

We increase your chances of a successful licence application while ensuring you meet all legal and procedural requirements.

For expert advice and queries, you can call us at +44 (0)20 3411 1261 or write at info@visaandmigration.com