Many employers in the UK turn to overseas recruitment as a solution to skills shortages and workforce demands. The recruitment of skilled workers from outside the UK is managed through a structured sponsorship system that ensures compliance with immigration laws. To hire workers through sponsorship visa routes, such as the Skilled Worker visa, employers must first secure a sponsor licence.
Sponsor Licence Application
The sponsor licence is a mandatory requirement for organisations wishing to recruit workers from overseas under sponsored work routes such as the Skilled Worker visa. This licence authorises employers to act as sponsors for eligible workers, allowing them to legally work in the UK.
The application process for a sponsor licence requires the employer to provide substantial evidence to demonstrate that their organisation is legitimate and capable of meeting sponsorship duties. Supporting documentation includes company accounts, proof of premises, and details of the key personnel responsible for overseeing sponsorship activities.
As part of the application, the Home Office conducts thorough checks to assess whether the employer meets the necessary criteria. These checks may include an inspection of the business premises to ensure that the organisation is prepared to meet its obligations. Employers are required to monitor sponsored workers, maintain accurate records, and adhere to sponsorship requirements. Failure to meet these standards could result in the refusal of the application or the revocation of an existing sponsor licence.
Sponsorship Costs
Employers recruiting workers under sponsorship visa routes must account for several financial commitments. The sponsor licence application fee varies depending on the size of the organisation. Small businesses and charitable organisations pay £536, while medium and large organisations are charged £1,476. To qualify as a small business, an organisation must meet at least two of the following criteria: annual turnover of £10.2 million or less, total assets valued at £5.1 million or less, or fewer than 50 employees.
Additional costs include the Immigration Skills Charge, which is payable for each sponsored worker. The charge is £364 per year for small organisations and £1,000 per year for medium and large employers. Each Certificate of Sponsorship (CoS), which is required for a worker’s visa application, costs £199.
The Skilled worker visa fees, determined by the visa’s duration and the worker’s personal circumstances, are typically borne by the applicant. However, some employers choose to cover these costs as part of their offer to attract skilled candidates.
Licence Approval
Once approved, the sponsor licence authorises employers to issue Certificates of Sponsorship to eligible workers. These certificates contain a unique reference number that the worker uses when applying for their Skilled Worker visa.
The employer’s details are also added to the Register of Licensed Sponsors, a public list maintained by the Home Office. This listing confirms that the organisation is authorised to sponsor workers and serves as a key resource for prospective recruits to verify an employer’s sponsorship capabilities.
Licence Compliance
Securing a sponsor licence is only the first step in the sponsorship process. Employers must meet a range of ongoing compliance obligations to retain their licence. These responsibilities include conducting right to work checks (as prescribed under the prevention of illegal working regulations), reporting changes in a worker’s circumstances to the Home Office and maintaining up-to-date records.
The Home Office may conduct unannounced inspections to assess whether employers are meeting their obligations. Non-compliance can result in severe penalties, including the suspension or revocation of the licence, which could disrupt recruitment efforts and damage the organisation’s reputation.
Need Assistance?
For guidance on applying for a sponsor licence or any aspect of licence compliance, management or penalties, contact us.
