UK employers who wish to hire foreign workers must apply for a Sponsor Licence.

The sponsorship licence grants permission to an organisation to sponsor workers in its business. Only organisations, not individuals, can be licensed ‘sponsors’.

The Home Office relies on the sponsorship regime to prevent illegal working and misuse of the immigration system.

Agreeing to become a sponsor license holder entails accepting specific compliance responsibilities, therefore subjecting your company to examination by the Home Office.

The sponsorship regime is used to ensure that:

• The sponsor is meeting all of the compliance duties expected when sponsoring migrant workers.
• Sponsored workers meet the requirements and are suitably qualified and skilled with the required language skills.
• The roles being sponsored meet the requirements for skill level, salary and genuineness.

Failure to meet the duties can result in enforcement action, from substantial fines to revocation of the licence, which would result in your visa workers losing their jobs and having to leave the country.

The Home Office uses the application process to assess the employer’s ability to meet the eligibility and suitability requirements.

There are no restrictions on the size or type of organisation that can hold a sponsorship licence, provided they meet the eligibility and suitability criteria for the specific category or tier that are applying for.

UK Sponsor Licence Requirement

Typically, sponsor licences fall under the categories of a Worker Licence and Temporary Worker Licence. The type of job the organisation is hiring for will determine which sponsor licence the employer needs to apply for.

As part of the application process, the organisation will be required to prove that they are a legitimate business which needs the use of migrant talent.

Failure to meet either the eligibility or suitability criteria will result in a refused application.

General Requirement

1. The organisation is genuine and operating and/or trading lawfully in the UK.
2. The organisation is based in the UK.

Specific Requirement

UKVI will look to ensure a potential sponsor:

• Is offering a genuine vacancy which meets the skilled worker criteria. The Home Office may request additional information to verify the specific nature of the role and its duties and to confirm that the role actually exists. Exaggerated job descriptions to meet the skill level requirements are likely to raise suspicions that the vacancy is not genuine.
• Has the HR and recruitment systems in place to render it capable of complying with the sponsor's duties and responsibilities, and evidencing that compliance. The Home Office reserves the right to investigate sponsor compliance by conducting a site inspection before (as well as after) the licence is granted.
• Is “honest, dependable and reliable”. This means the organisation and its owners, directors and appointed key personnel do not have any unspent criminal convictions.
• Does not represent a threat to immigration control with no evidence of any previous non-compliance by the organisation.
• If relevant, has the appropriate planning permission or Local Planning Authority consent for the type of business operated at the trading address.

Capable of carrying out sponsor duties

When applying for a sponsorship licence, the organisation is committing to adhere to certain administrative duties designed to ensure the prevention of illegal working.

Fundamentally, compliance with the duties ensures comprehensive and up-to-date records are maintained by sponsors that must be made available to the Home Office for inspection at any time.

The Home Office uses the licence application process to evaluate the employer’s ability to meet these sponsor duties.

The duties, as prescribed in the Home Office’s Sponsor Guidance, are as follows:

• Record-keeping
• Monitoring & reporting
• Absence monitoring
• Notifying the Home Office of changes in circumstances

What are the Sponsorship Management Roles?

You will need to appoint people within your business to manage the sponsorship process when you apply for a licence. The sponsor licence operations will be conducted via the sponsorship management system (SMS).

The specific roles which need to be filled are:

• The key contact: They will act as the main point of contact with UK Visas and Immigration (UKVI)
• Authorising officer: They must be a senior person. They will be responsible for the actions of the staff and representatives
• Level 1 user: This person will be responsible for the day-to-day management of the licence

These roles can be carried out by just one person if necessary. At least one level 1 user must be an employee of the company. However, other level 1 and level 2 users can be employed by third-party organisations.

Sponsor Licence Audit

For companies with a Points-based System (PBS) Sponsor Licence, sponsor licence compliance and audits are crucial, as the Home Office may conduct visits to ensure adherence to immigration control.

Failure to maintain proper procedures could lead to licence revocation and visa issues. To secure and maintain an A-rated sponsor licence, it’s essential to excel in areas such as monitoring immigration status, record-keeping, and recruitment practices.

Your business must ensure compliance by keeping filings up to date, organising HR files, creating checklists, ensuring easy access to records, implementing systems for training and file improvements, and conducting mock audits and staff appraisals

Sponsor Licence Renewal

Before April 2024, businesses must renew their sponsor licence every four years to avoid interruption only if they are sponsoring Scale-up Workers or UK Expansion Workers. Renewal, before the sponsor licence expires, requires checking if all sponsorship requirements are met and necessary systems are in place.

Sponsor licence application refused

It can be a frustrating experience to have a sponsor licence refused. The most common reasons why an application might be refused include the following reasons:

• Inaccurate or misleading documents
• Incomplete application
• The company has had a previous sponsor licence revoked
• The company has failed to furnish additional requested information within the given time limit

Companies are advised to avoid having their sponsor licence application refused wherever possible because the application fee is not refunded and companies are unable to re-apply until a cooling-down period has passed.

The length of time will depend on why the application was refused. Most companies will be unable to reapply until at least six months from the date of the refusal letter.

If your sponsor licence application is rejected, you do not have the right to appeal the decision. You may be able to request an administrative review of the decision, but this does not guarantee that the decision will be reversed.

The best way to prevent a refusal is to work with a qualified immigration solicitor to submit the strongest possible application and, in so doing, ensure that you can save time and money.

ARIS International Lawyers can assist UK employers in obtaining the right sponsor licence, maintaining their licence at the highest rating and complying with their sponsor duties. Our team of experts are always ready to provide the support you need to ensure UK employers obtain the right sponsor licence, maintain the licence at the highest level and comply with their sponsor duties and maintenance.

If you require assistance, please contact us on 020 3865 6219 or visit our website to leave a message.