The "Skilled Worker" route is an endorsed choice for individuals from abroad who have been offered a skilled job in the United Kingdom by a sponsor approved by the Home Office. In order to acquire a Skilled Worker visa, applicants must be sponsored by an employer who holds a valid Skilled Worker sponsor license and is offering a specific job that meets the requirements of salary and skill set.

This article primarily targets employers based in the UK who are considering applying to the Home Office for permission to sponsor a non-settled worker as a Skilled Worker. Employers are provided with guidance on the main general and route-specific criteria that need to be fulfilled in order to successfully submit an application for a Skilled Worker sponsor license.

Who is required to be sponsored for the Skilled Worker Route?

If an overseas national is not a settled worker or does not have immigration permission to work in the United Kingdom, you will need to sponsor them. This applies to most EU, EEA, and Swiss nationals who arrived in the UK after December 31, 2020. Before sponsoring a Skilled Worker, you must obtain authorization from the Home Office as a licensed Skilled Worker sponsor.

There is no limit to the number of workers that a Skilled Worker sponsor license holder can sponsor. However, when applying for a Skilled Worker sponsor license, the online application form will ask for an estimate of the number of Certificates of Sponsorship (CoS) you plan to assign in your first year. A CoS must be assigned to each worker you wish to sponsor for them to apply for a Skilled Worker visa. Therefore, it is important to carefully consider the number of employees you expect to hire in your initial year. Your request for Certificate of Sponsorship allocation must be supported with evidence.

Skilled Worker Sponsor Licence Application Process

In order to qualify for a Skilled Worker sponsor license, you are required to fulfill a range of general and route-specific criteria.

Skilled Worker Sponsor Licence General Requirements

To acquire a Skilled Worker sponsor license, it is imperative to meet the Home Office's specified criteria:

1. Your organisation must be a legitimate entity operating within the legal framework of the United Kingdom.

2. You must exhibit reliability, honesty, and refrain from any activities that may harm the public interest.

3. You should possess the ability to fulfill your sponsor obligations and demonstrate compliance within the designated timeframe and format as outlined in the sponsor guidance.

Conditions for a Skilled Worker Sponsor Licence that are Specific to a Route

In order to obtain a Skilled Worker sponsor licence, it is imperative to meet the specific criteria set by the Home Office:

1. The employment you offer must be in line with the talent level requirements of the Skilled Worker route.

2. The salary you offer must meet the threshold specified for the Skilled Worker route.

3. The job(s) you intend to sponsor must be genuine and legitimate.

4. There must be a direct employer-employee relationship between you (the sponsor) and the worker. You should not be seeking to sponsor a position that involves contracting a worker to a third party for ongoing or routine tasks.

Skilled Worker Sponsor Licence Requirements

General Requirements for a Skilled Worker Sponsor Licence

Genuine organisation operating lawfully in the UK

To demonstrate your legitimacy as an organisation operating lawfully in the United Kingdom to the Home Office, you must present at least four specific documents as detailed in Appendix A of the sponsor guidance. The documents required will vary depending on the circumstances of your application.

Appendix A consists of four tables. Table 1 states that public authorities or companies listed on the London Stock Exchange do not need to submit additional documents beyond those related to their specific licence application. Table 2 includes franchises, charities, and start-ups (operating for less than 18 months). Table 3 outlines the specific evidence needed for each tier.

Table 4 lists other potential documents that may be submitted. If audited accounts are mandatory, the most recent set must be included.

You must also provide the Home Office with an explanation for your Skilled Worker sponsor licence application, along with details about your organisation, the proposed job role, and the candidate involved.

Honest, dependable and reliable

The Home Office will assess your integrity, reliability, and absence of engagement in activities that may harm public interest by reviewing the history and background of your company, the profiles of the Key Personnel listed in your application, and the backgrounds of all individuals participating in the daily activities of your business.

Capable of carrying out sponsor duties 

The Home Office will assess your current human resources and recruitment procedures to determine your ability to meet sponsor responsibilities and demonstrate compliance as outlined in the sponsor guidance within the specified timeframe.

Sponsorship duties include using the sponsorship management system, providing information on sponsored employees, and managing your business operations. Reporting events must be done within 10 or 20 working days, depending on the situation. Changes in work location and start dates require reporting for eligible employees.

Maintaining employment records, such as contracts, salaries, and proof of advertised vacancies, is also part of your sponsorship responsibilities. Appendix D offers further details on record-keeping requirements.

It is important to note that the Home Office may inspect your premises during the Sponsor Licence application process to ensure your systems are sufficient. This is more likely for high-risk applications or newly established organisations. The Home Office has the authority to inspect your organisation during the application process and while you hold a Sponsor Licence.

Meeting sponsor obligations, especially in terms of record-keeping, is crucial as Home Office visits can be scheduled or unscheduled. During visits, the Home Office will review your HR systems and speak with the designated Authorising Officer. They may also request interviews with sponsored employees.
If the Home Office finds that you are not meeting your duties and commitments, they have the authority to cancel or temporarily halt your license, leading to the cancellation of any sponsored worker visas.

Route-specific Requirements for a Skilled Worker Sponsor Licence

Skill Level Requirement

Before applying for a Skilled Worker sponsor licence, employers must ensure that the position they are recruiting for meets the skill-level requirements of the Skilled Worker route.

The sponsored position should typically require training to a level of 3 or higher (equivalent to A-level) on the Regulated Qualifications Framework for England and Northern Ireland, or the equivalent level in Wales or Scotland.
While A-levels or an equivalent qualification are not mandatory for the prospective Skilled Worker, the job they will be undertaking must be at this specified skill level.

The Immigration Rules outline eligible occupations in the Appendix Skilled Occupations and the Appendix Immigration Salary List, with each eligible position being assigned a SOC 2020 occupation code.

Employers will be able to sponsor a worker for a position in a Skilled Worker eligible SOC 2020 occupation code listed in either the Appendix Skilled Occupations or the Appendix Immigration Salary List.

Failure to designate the position as eligible for the Skilled Worker route will result in the worker not meeting the skill-level requirement for a Skilled Worker visa, rendering the application for a Skilled Worker sponsor licence unsuitable.

Furthermore, it is crucial to select an occupation code that aligns with SOC 2020 as a sponsor. If the Home Office suspects that the chosen occupation code is not the most appropriate, the applicant's Skilled Worker Visa application may be rejected.

The Home Office will assess whether the sponsor has chosen the most suitable occupation code by considering factors such as demonstrating a genuine need for the job, the applicant's skills, qualifications, and experience, as well as compliance history with the immigration system.

Salary Level Requirement 

Employers must ensure that they can offer employment with a salary that is equal to or higher than the "going rate" for the relevant SOC 2020 occupation code and the general salary threshold before applying for a Skilled Worker sponsorship license.

Typically, a Skilled Worker's remuneration should meet or exceed the following:

- The general salary threshold, which is £38,700 per year for most jobs. However, it may be £34,830 or £30,960 per year if the worker scores 'tradable points' (refer to the criteria below). There are exceptions to this rule:

  - For workers who were previously granted permission as a Skilled Worker before 4 April 2024 and are applying before 4 April 2030, the general salary threshold is £29,000. However, it may be £26,100 or £23,200 if the worker scores 'tradable points'.

  - For workers sponsored for a Health and Care ASHE salary job, the general salary threshold is £29,000. However, it may be £26,100 or £23,200 if the worker scores 'tradable points'.

  - For workers sponsored in a Health or Education SOC 2020 occupation code where going rates are based on national pay scales, the general salary threshold is £23,200.

  - The applicable 'going rate' for the SOC 2020 occupation code in Appendix Skilled Occupations, or a percentage of the 'going rate' if the worker scores 'tradable points'.

It is necessary to pay at least the general salary threshold if the prevailing rate for the occupation is higher than the general salary threshold. If the general salary threshold is lower than the normal rate for the occupation, you will be required to receive at least the current rate.

Unless the applicant is being sponsored for work with irregular hours each week, resulting in varying pay, the general salary threshold is calculated based on actual gross earnings, up to a maximum of 48 hours per week.
In this scenario, if an individual works more than 48 hours in certain weeks, it can be counted towards meeting the salary thresholds, as long as the average over a regular cycle (which can be shorter than, but not longer than, 17 weeks) does not exceed 48 hours per week. Any unpaid rest periods will be taken into account when assessing if the salary thresholds have been met.

The current rate is calculated based on a standard schedule of 37.5 hours per week. The weekly working hours specified on the certificate of sponsorship (CoS) need to be adjusted proportionally to determine the applicable rates.

Tradable points

Certain sponsored skilled workers who apply through the Skilled Worker route may receive a salary below £38,700 per year. In such instances, they will be awarded additional "tradable points" for their other qualifications.

1: If an applicant possesses a PhD qualification that is relevant to the job, they may receive a salary that is equal to or higher than £34,830 per year and 90% of the going rate for the SOC 2020 occupation code.

2: In the case of an applicant with a PhD qualification in a STEM subject that is relevant to the job, their salary may be equal to or higher than £30,960 per year and 80% of the going rate for the SOC 2020 occupation code.

3: If an applicant has a job offer for a position listed on the Immigration Salary List, their salary may be equal to or higher than £30,960 per year and the going rate for the SOC 2020 occupation code.

4: For applicants who are new entrants to the labor market at the beginning of their career, their salary may be equal to or higher than £30,960 per year and 70% of the going rate for the SOC 2020 occupation code.

Salary Requirements for Skilled Workers Granted Before 4 April 2024

The salary threshold for most positions is £29,000 per annum. However, it could be lowered to £26,100 or £23,200 per year if the worker accumulates "tradable points."

•    Additionally, a portion of the "going rate" for the SOC 2020 occupation code in Appendix Skilled Occupations, or the actual "going rate" if the worker earns "tradable points," may be considered.

•    Certain Skilled Workers who were permitted to work under the regulations before April 4, 2024, may be eligible for an annual salary below £29,000. In such instances, they may be awarded extra "tradable points" based on their other qualifications:

- An applicant with a relevant PhD qualification may receive a salary equal to or exceeding £26,100 per year and 90% of the current rate for the SOC 2020 occupation code.

- Applicants with a STEM PhD relevant to the position may receive a salary equal to or exceeding £23,200 annually and 80% of the current rate for the SOC 2020 occupation code.

- An applicant with a job offer for a position on the Immigration Salary List may receive a salary equal to or exceeding the current rate for the SOC 2020 occupation code and £23,200 per year.

- New entrants to the job market may receive a salary equal to or exceeding £23,200 per year and 70% of the current rate for the SOC 2020 occupation code.

Salary Requirements for Health and Care Visa Annual Survey of Hours and Earnings (ASHE) Applicants 

Candidates who are sponsored for a Health and Care Annual Survey of Hours and Earnings (ASHE) position may receive a salary that is equivalent to or greater than the following:

•    The salary threshold for the majority of positions is £29,000 per year. However, it may be reduced to £26,100 or £23,200 per year if the worker earns "tradable points." and

•    A percentage of the "going rate" for the SOC 2020 occupation code in Appendix Skilled Occupations, or the actual "going rate" if the worker earns "tradable points."

Some sponsored Health and Care Workers who are vying for a Health and Care Annual Survey of Hours and Earnings (ASHE) job may receive a wage of less than £29,000 per year, in addition to receiving additional "tradable points" for other attributes.

•    An applicant who possesses a PhD qualification that is pertinent to the position may receive a salary that is equivalent to or greater than £26,100 per year and 90% of the current rate for the SOC 2020 occupation code.

•    Applicants who possess a PhD in a STEM field that is pertinent to the position may receive a salary that is equivalent to or greater than £23,200 annually and 80% of the current rate for the SOC 2020 occupation code.

•    An applicant who has received a job offer for a position on the Immigration Salary List may receive a salary that is equal to or greater than the current rate for the SOC 2020 occupation code and £23,200 per year.

•    A salary that is equal to or exceeds both £23,200 per year and 70% of the current rate for the SOC 2020 occupation code may be awarded to an applicant who is a new entrant to the labour market at the beginning of their career.

Salary Requirements for Health and Education SOC 2020 Occupation Codes where Going Rates are Based on National Pay Scales 

Applicants who are sponsored for a role in a health and education SOC 2020 occupation code that is eligible, and where national pay schedules determine market rates, may be entitled to a salary that is equal to or higher than the following:

- The annual compensation threshold is £23,200.

- The specified 'current rate' for the SOC 2020 occupation code can be found in Appendix Skilled Occupations.

What is the ‘Immigration Salary List’?

The Home Office maintains a record of skilled positions that employers struggle to fill due to a lack of workers with the necessary skills. Employers have the option to hire migrants for positions listed on the Immigration Salary List at a salary lower than the general threshold.

Skilled Worker eligible occupations listed on the Immigration Salary List can be paid a salary that meets or exceeds the current rate for the SOC 2020 occupation code and £30,960 per year.

Meanwhile, occupations eligible for a Health and Care Worker visa (excluding national pay scale occupations) and listed on the Immigration Salary List can be compensated at a rate equal to or higher than both £23,200 per year and the current rate for the SOC 2020 occupation code.

Who is a ‘New Entrant to the Labour Market’?

Individuals who are under the age of 26 at the time of application, or who are transitioning from a Student or Graduate Visa, are considered new entrants to the labour market.

This also includes those who are sponsored in specific postdoctoral research positions and those who are pursuing professional qualifications, registration, or chartered status.

It is important to note that the salary threshold requirement will be reduced for individuals who qualify as new entrants to the labour market.

However, it is crucial to understand that an applicant will not be eligible for new entrant status if their application approval would result in a combined period of permission as a Skilled Worker, Tier 2 Migrant, and/or Graduate that exceeds four years.

Hourly rate

The employee must receive a minimum hourly wage of £15.88 if they are being sponsored in an occupation code listed in Table 1 of Appendix Skilled Occupations. This requirement remains in place even if the worker is eligible for a discount on the standard rate based on tradable points and £15.88 exceeds 70%, 80%, or 90% of the standard rate.

If the worker is being sponsored in an occupation code specified in Table 2 of Appendix Skilled Occupations, they must be compensated at a minimum hourly rate of £11.90. This requirement applies regardless of whether the worker is eligible for a discount on the standard rate based on tradable points and if £11.90 exceeds 70%, 80%, or 90% of the standard rate.

The minimum hourly rate requirement is not applicable if the worker is sponsored in a health or education occupation code listed in Table 3 of Appendix Skilled Occupations.

An application for a Skilled Worker sponsor licence will not be accepted if the proposed salary for the Skilled Worker falls below the required rate, as this would make the worker ineligible for entry clearance or permission to stay.

The Immigration Rules and Sponsor Guidance provide detailed instructions on calculating the appropriate salary rates for skilled workers, including rules on allowances and pro-rating. Seeking advice from a legal professional on the salary requirements for eligible workers may be beneficial.

Genuine Employment Requirement

To proceed with your application for a Skilled Worker sponsor licence, the Home Office needs assurance that you will offer a valid job opportunity that meets the skill and salary criteria of the skilled-worker route. 

If there are suspicions that the positions an employer wishes to sponsor are not genuine, fraudulent, or solely established to support a worker's Skilled Worker Visa application, the sponsor licence application will be rejected.
 
It is essential that there is a genuine need for the role you intend to sponsor within your company.

Working for a Third Party Requirement

Furthermore, the Home Office will demand confirmation that you will not allocate a Certificate of Sponsorship to a worker for a role that entails filling a temporary or permanent position with a third party who is not the sponsor, or for contractual work that involves delivering an ongoing routine service or performing an ongoing routine role for a third party who is not a sponsor. 

This confirmation is necessary when seeking a Skilled Worker sponsor license.

The connection between the employer and the employee must be direct. As the employer, you (the sponsor) will be responsible for remunerating the sponsored worker.

Appointing Key Personnel

Once you have ensured that you meet the sponsorship requirements for the Skilled Worker route, it is important to designate specific individuals to fulfill key roles in the sponsorship process. These roles include a Key Contact, an Authorising Officer, and at least one Level 1 User.

The Key Contact serves as the primary point of contact between your business and the Home Office. This individual can be a legal representative acting on your behalf. 

The Authorising Officer is typically a prominent individual within your organisation or corporation who is involved in HR and recruitment. They have ultimate accountability for the sponsorship licence and ensuring that all obligations are met.

The Level 1 User is responsible for the day-to-day administration of the Sponsor Licence through the Sponsorship Management System (SMS), an online portal. This individual must be an employee at the time of application. However, once the Sponsor Licence is assigned, other individuals, such as legal representatives, can also be designated as Level 1 or Level 2 Users with specific tasks on the SMS.

It is important to note that these key personnel must be paid members of your staff or engaged as "office holders" (unless an exception applies). They should have no unspent criminal convictions, civil penalties, or adverse history, including adverse immigration history. Additionally, they must be based in the UK for the duration of their appointed role.

During the application process for a Skilled Worker sponsor licence, it is crucial to have these essential personnel in place. These roles can be performed by a single individual or a combination of individuals.

Certificate of Sponsorship (CoS) Allocation

When you apply for a Skilled Worker sponsor licence, you will need to estimate and provide a justification for the number of Undefined Certificates of Sponsorship (CoS) you wish to assign in your first year as a licensed sponsor. 

Once your sponsor licence application is approved, the Home Office will inform you of your CoS allocation for the year. You will then have a maximum of 12 months to use these CoS.

If you find that you need to increase your CoS allocation during the year, you can submit an application to do so. However, please note that an in-year allocation increase typically takes 18 weeks, unless you choose to use a priority service.

It's important to remember that any unused CoS cannot be carried over to the following CoS year. However, you will have the opportunity to apply for an additional allocation for the subsequent CoS year while your licence is still valid.

Applying for a Skilled Worker Sponsor Licence

Upon determining the quantity of workers you plan to sponsor in your initial year, it is necessary to promptly submit all relevant supporting documents outlined in Appendix A to the sponsor guidance. 

This should be done within five business days of submitting your online application form, paying the application fee, and fulfilling the Skilled Worker Sponsor Licence application.

Furthermore, you will need to furnish details about the essential personnel you are appointing, along with the necessary documents and evidence to meet the aforementioned eligibility requirements.

While a legal representative can assist in completing the application form, it is the sponsor's responsibility to ensure its submission.

How Much Does a Sponsor Licence Cost?

The cost of submitting a sponsor licence application will vary based on the scale of your organisation. A medium or large-sized company will be charged £1,476.00, while a tiny company or charity will be charged £536.00.

How Long Does It Take To Get a Skilled Worker Sponsor Licence?

The Home Office typically determines sponsor licence applications within eight weeks. A priority service is available for a fee of £500.00, and a decision will be provided within 10 working days.

Duration of a Skilled Worker Sponsor Licence

Your Skilled Worker sponsor licence will remain valid for a decade upon approval of your application. 

To extend sponsorship for skilled workers beyond the initial ten years, you must apply for a renewal of your sponsor licence before it expires. 

In the event that your application for a Skilled Worker sponsor licence is rejected, a six-month cooling off period will be imposed with no option for appeal.

Sponsor Licence Rating

If your application for a Skilled Worker sponsor licence is successful, you will be given an "A" rating on the official register of licensed sponsors.

In the event that the Home Office determines that you are unable to fulfill your sponsor responsibilities or behave appropriately during the validity period of your sponsor licence, they may downgrade your rating to a "B".

Should you be downgraded to a "B" rating, you will be required to follow a time-limited sponsorship action plan that outlines the necessary steps to regain an "A" rating. Failure to meet the conditions of your action plan will result in the revocation of your sponsor licence.

Immigration Requirements for a Skilled Worker Visa

Employers must be mindful that individuals seeking to come to the United Kingdom on a Skilled Worker Visa must fulfill various eligibility criteria as specified in the Immigration Rules.

It is crucial to confirm that the worker you wish to sponsor meets the requirements for a Skilled Worker Visa before issuing a Certificate of Sponsorship (CoS).

Applicants are required to demonstrate English language proficiency at a level of B1 or higher on the Common European Framework of Reference for Languages across all four components (speaking, listening, reading, and writing), in addition to meeting the skill requirements of the job and receiving an appropriate salary.

Skilled workers must also meet a financial threshold. However, upon achieving an A-rated sponsor status, you can confirm the financial requirement has been met when assigning a CoS.

Unless impractical, applicants applying for entry clearance and being sponsored for specific roles (typically in health, care, welfare, and education sectors) must provide a criminal record certificate from any country where they have resided for 12 months or more (whether continuously or cumulatively) in the 10 years prior to their application, from the age of 18. If this requirement applies, it is essential to allocate sufficient time to obtain the necessary documentation.

Immigration Skills Charge

If you assign a Certificate of Sponsorship (CoS) to a worker on the Skilled Worker route, you might have to make payment for the Immigration Skills Charge.