If you are an employer seeking to hire an overseas national who is not a settled worker and does not have permission to work in the UK, you will need to submit an application for a sponsor licence to the Home Office.

The specific type of sponsor licence application will depend on the immigration route that the overseas worker intends to be sponsored for. Each licence type has its own set of distinct requirements.

EU, EEA, and Swiss nationals who have entered the UK after December 31, 2020, must now obtain sponsorship in order to engage in employment within the country. Employers should take note of this important requirement.

What Is a Sponsor Licence?

To hire workers from outside the UK, a UK business must acquire a sponsor licence. This is necessary for employing the majority of overseas workers, including skilled workers and those involved in UK expansion. This includes citizens from the EU, Iceland, Liechtenstein, Norway, Switzerland, as well as non-EU nationals who arrived in the UK after December 31, 2020.

However, there are exceptions to this requirement. Hiring an Irish citizen, someone with settled or pre-settled status under the EU Settlement Scheme, an individual with indefinite leave to remain in the UK, or a foreign national with permission to work in the UK does not necessitate a sponsor licence.

To obtain a sponsorship licence, an application must be submitted to the Home Office along with the payment of an application charge.

Businesses of all sizes, regardless of their sector, are eligible to apply for a sponsor licence as long as they meet the business eligibility and job suitability criteria for the specific category of sponsor licence they are applying for.

Requirements for a Sponsor Licence

In order to qualify for a sponsor license, you need to satisfy a range of general and route-specific requirements.

General Requirements for a Sponsor Licence

In order to acquire a sponsor license, it is necessary to provide evidence to the Home Office that:

• Your organization is a legitimate entity that operates within the legal framework of the United Kingdom.
• 2. You possess qualities of dependability, honesty, and have not been involved in any activities that are contrary to the public interest.
• 3. You have the ability to fulfill your sponsor obligations and demonstrate compliance within the specified timeframe and format as outlined in the sponsor guidance.

To establish your legitimacy as an organization operating legally in the United Kingdom, you will be required to submit various company-related documents. The specific documents needed may vary depending on the type of organization and the route(s) through which you intend to sponsor migrants.

The Home Office will assess your honesty, dependability, and reliability by examining the history and background of your business, as well as the backgrounds of the Key Personnel mentioned in your application and those involved in the day-to-day operations of your business. Furthermore, they will inquire about any behaviour or actions that may be detrimental to the public good.

The Home Office will also evaluate your current human resources and recruitment procedures to determine if you have the capability to fulfill your sponsor responsibilities and demonstrate compliance within the specified manner and timeframe as outlined in the sponsor guidance.

Route-specific Requirements for a Sponsor Licence

To apply for a sponsorship license for an overseas national, an employer must also fulfill various additional requirements specific to the immigration route the overseas national is pursuing.

For instance, to apply for a "Skilled Worker sponsor license" for a worker on the "Skilled Worker visa" route, you must prove to the Home Office that:

• You can offer employment that meets the talent level requirements of the Skilled Worker route.

• You can offer employment that meets the salary threshold for the Skilled Worker route.

• The job(s) you wish to sponsor are genuine.

• There is a direct employer-employee relationship between you (the sponsor) and the worker. You are not looking to sponsor a position that involves contracting a worker to a third party for ongoing or routine tasks.

On the other hand, to sponsor a migrant on the Global Business Mobility – UK Expansion migrant visa route, you must satisfy the Home Office by applying for a UK Expansion Worker sponsor license.

• You have the choice to offer employment that meets the talent level requirement for the UK Expansion Worker route.
• The job(s) you wish to sponsor are valid.
• The position you want to sponsor does not involve working for a third party.
• The overseas business that will send workers to you has a qualifying connection with you (the sponsor).
• Even though you are not currently conducting business in the United Kingdom, you have a presence in the country.
• The international business that is expanding to the United Kingdom is currently involved in international trade and, unless an exception is granted, has been operating for at least 3 years.
• You have a genuine intention and the capability to establish a trading presence in the United Kingdom within the next two years.
• The expansion is expected to take place in the same sector of the business that you operate overseas.
• The overseas business either solely owns the business you are establishing in the UK or it is a part of the same legal entity (such as a branch).

There are various other Worker and Temporary Worker immigration pathways offered in the United Kingdom, including the Global Business Mobility – Senior or Specialist Worker, Scale-up, International Sportsperson, Minister of Religion, and Creative Worker pathways. The criteria for obtaining a sponsor licence for hiring a foreign national under any of these (or other) immigration routes will vary depending on the specific pathway.

If the sponsor licence requirements are not met, your sponsorship licence application will be declined.

Documents Needed for a Sponsor Licence Application

In accordance with the guidelines set forth in Appendix A of the Home Office sponsor guidance, a minimum of four mandatory documents must be submitted. The exact documents needed will depend on the unique circumstances of your application.

Moreover, it is essential to furnish the Home Office with a detailed explanation of the purpose behind your sponsor licence application, along with pertinent details about your organization, the intended job position, and the individual being considered.

Appointing Key Personnel

To apply for a sponsor licence, it is necessary to assign a Key Contact who will act as the main point of contact between your company and the Home Office, appoint an Authorising Officer to supervise your sponsorship licence, and designate a minimum of one Level 1 User to carry out daily sponsorship tasks through the Sponsorship Management System (SMS).

When seeking a sponsor licence, you are required to nominate a Key Contact to act as the primary liaison between your organization and the Home Office, appoint an Authorising Officer to oversee your sponsorship licence, and assign at least one Level 1 User to manage day-to-day sponsorship activities using the Sponsorship Management System (SMS).

• The Authorising Officer is typically a prominent figure within the organization or corporation who oversees HR and recruitment. These individual holds ultimate responsibility for the license and ensuring that all Sponsor License obligations are met.
• The Key Contact serves as the primary point of contact for the Home Office. This role may be taken on by a legal representative acting on your behalf.
• A Level 1 User is responsible for the day-to-day operational management of the Sponsor License through the Sponsorship Management System (SMS). This individual must be an employee at the time of application. After the Sponsor License is granted, other individuals, such as legal representatives, can be designated as Level 1 or Level 2 Users, with specific, limited tasks on the Sponsorship Management System (SMS).

At the time of submitting your sponsor licence application, it is necessary to have the following essential personnel in place. These roles can be fulfilled by either a single individual or a combination of individuals.

All Key Personnel must either be paid members of your staff or engaged by you as an "office holder" (unless an exception applies). Additionally, they should not have any unspent criminal convictions, civil penalties, or any other adverse history, including adverse immigration history. Furthermore, they must be based in the UK for the duration of their role, unless you are applying for a UK Expansion Worker sponsor licence, which has different regulations.

Apply for a Sponsor Licence

Upon submission of your sponsor licence application within 5 working days, you must promptly provide all relevant supporting documents, pay the application fee, and fill out an online application form to apply for a sponsor licence.

Furthermore, you must furnish details about key personnel you are appointing, along with the necessary documents and evidence to meet the eligibility and suitability criteria.

While the sponsor is accountable for submitting the sponsor licence application form, a legal representative can aid in completing the form, offer advice on required supporting documents, and prepare submissions to support the application.

How Much Does a Sponsor Licence Cost?

The fee for submitting a sponsor licence application will differ depending on the size of your organization. A medium or large-sized company will incur a charge of £1,476.00, whereas a small company or charity will be charged £536.00.

How Long Does It Take To Get a Sponsor Licence?

Home Office determinations on sponsor licence applications usually take around eight weeks. If expedited, a decision can be received within 10 business days through a priority service for a fee of £500.00.

Duration of a Sponsor Licence

If your application for a sponsor licence is approved, it will be valid for a period of ten years. However, in order to continue sponsoring labourers beyond this 10-year period, you must submit an application to renew your sponsor licence before it expires.

Please note that a UK Expansion Worker sponsor licence cannot be renewed. It is expected that a UK commercial presence will have been established within two years of the licence being issued.

However, once you have established a trading presence in the United Kingdom, you will have the opportunity to apply for additional routes to be included in your licence, such as Skilled Worker, Senior, or Specialist Worker. If your sponsored employees meet the necessary criteria, they can apply to transition to these routes.

It is extremely important to carefully prepare your sponsor licence application, as there is no right of appeal if your application is denied. Additionally, there will be a 6-month cooling off period in such cases.

Sponsor Licence Rating

If your application for a sponsor licence is approved, you will typically be assigned an "A" rating on the register of licensed sponsors that is publicly available. However, if your Authorising Officer (and Level 1 User) is an employee of the overseas business and you are applying for a UK Expansion Worker sponsor licence, you may receive a 'Provisional' classification.

Once you have obtained a sponsor licence, you will have the ability to issue Certificates of Sponsorship to migrants who are interested in working for your organization.

You will be granted access to the Sponsor Management System (SMS), which is an online portal where you can manage your sponsor licence. It is also mandatory for you to use this system to report specific events, such as a migrant's failure to report to work.

It is important to note that failure to fulfill your sponsorship licence obligations, including conducting appropriate right-to-work checks, may result in the revocation of your licence.

For detailed information on the requirements and guidelines for applying for a sponsor licence as an employer seeking to sponsor a non-settled worker, whether on the Skilled Worker or UK Expansion Worker route, please refer to our pages for comprehensive information.