UK Expansion Worker Sponsor Licence

UK Expansion Worker Sponsor Licence

The UK Expansion Worker Visa is a sponsored program designed for international businesses looking to expand into the United Kingdom. This route allows eligible businesses to sponsor senior managers or specialist workers who will be temporarily deployed to the UK for work related to the business's expansion in the country.

UK Expansion Worker Sponsor Licence

The UK Expansion Worker Visa is a sponsored program designed for international businesses looking to expand into the United Kingdom. This route allows eligible businesses to sponsor senior managers or specialist workers who will be temporarily deployed to the UK for work related to the business's expansion in the country.

This article is primarily intended for employers who are interested in obtaining authorization from the Home Office to sponsor a non-settled worker as a UK Expansion Worker. It provides guidance on the general requirements as well as the specific criteria that need to be fulfilled in order to submit a successful application for a UK Expansion Worker sponsor licence.

Who Needs to Be Sponsored on the UK Expansion Worker Route?

If you wish to establish a branch or subsidiary in the UK and you are an overseas national who is not a settled worker or does not have immigration permission to work, sponsorship is necessary. 

This requirement applies to the majority of EU, EEA, and Swiss nationals who arrived in the UK after December 31, 2020. To sponsor a UK Expansion Worker, you must obtain authorization from the Home Office.

Sponsors of the UK Expansion Workers program have the opportunity to sponsor up to five employees simultaneously, as long as they are truly necessary for establishing a business in the United Kingdom. 

This allocation enables you to replace individual workers if, for example, a sponsored worker leaves your company or goes back to their employer abroad. Nevertheless, it is important to note that sponsoring more than five workers on the UK Expansion Worker route at any given time is strictly prohibited.

How to Apply for a UK Expansion Worker Sponsor Licence 

In order to successfully apply for a UK Expansion Worker sponsor licence, you are required to meet a range of general and route-specific criteria.

General Requirements for a UK Expansion Worker Sponsor Licence

According to the essential criteria, you need to prove to the Home Office that:

•    Your organization is a lawful entity conducting business in the United Kingdom.

•    You are reliable, truthful, and have not participated in any activities that are harmful to the public.

•    You have the ability to meet your obligations as a sponsor and show your adherence to the guidelines provided within the specified timeframe.

Route-specific Requirements for a UK Expansion Worker Sponsor Licence

In order to satisfy the Home Office regarding the specific requirements of the UK Expansion Worker route, you must:

•    You have the option of providing employment that aligns with the talent level prerequisite for the UK Expansion Worker route.

•    You have the option of providing employment that satisfies the salary level requirement for the UK Expansion Worker route.

•    The job(s) you are interested in sponsoring are legitimate.

•    The position you are seeking to sponsor does not involve working for a third party.

•    The overseas business that will dispatch labourers to you has a qualifying link with you (the sponsor).

•    Although you are not currently conducting business in the United Kingdom, you maintain a presence in the country.

•    The international business that is expanding to the United Kingdom is currently engaged in international trade and, unless an exception is made, has been operating for a minimum of three years.

•    You have a sincere intention and the capacity to establish a trading presence in the United Kingdom within the next two years.

•    The expansion is anticipated to occur in the same sector of the business that you operate abroad.

•    The business you are establishing in the UK is either wholly owned by the overseas business or is a constituent of the same legal entity (such as a branch).

•    You have designated a Key Contact, an Authorising Officer, and at least one Level 1 User.

UK Expansion Worker Sponsor Licence Requirements

General Requirements for a UK Expansion Worker Sponsor Licence

Genuine organisation operating lawfully in the UK

To prove to the Home Office that your organisation is operating legally in the United Kingdom, you must provide certain documents listed in Appendix A of the sponsor guidance. The documents needed may vary depending on your application's specific circumstances.

It is crucial to highlight that a key requirement for obtaining a UK Expansion Worker sponsor licence is that the sponsor must have a UK "footprint" and not currently be actively trading in the UK, as we will delve into further below.

Honest, dependable and reliable

The Home Office will assess your integrity, trustworthiness, and consistency by examining the past and background of your company, the individuals listed as Key Personnel in your application, and any individuals involved in the daily operations of your business. Furthermore, they will investigate any instances where you have not demonstrated behavior or actions that are harmful to the welfare of the public.

Capable of carrying out sponsor duties 

The Home Office will assess your existing human resources and recruitment procedures to ascertain your ability to meet your sponsor obligations and show compliance within the specified timeframe and manner outlined in the sponsor guidance.

Route-specific Requirements for a UK Expansion Worker Sponsor Licence

Skill Level Requirement

Before applying for a UK Expansion Worker sponsor licence, employers must ensure that the role designated for the senior manager or specialist worker in the UK meets the skill level requirements of the UK Expansion Worker route.

The sponsored profession should be at skill level 6 or above (graduate level) on the Regulated Qualifications Framework for England and Northern Ireland, or the equivalent level in Wales or Scotland. Although a degree-level qualification is not obligatory for the potential UK Expansion Worker, the tasks they will undertake must be at degree level.

The Home Office has published a list of positions eligible for a Global Business Mobility – UK Expansion Worker Visa, including the relevant occupation code, job title, and employment category.

Furthermore, the Home Office outlines the occupations that meet the criteria for Appendix Skilled Occupations. Each eligible position is assigned a SOC 2020 code. The worker must be sponsored for a role in an eligible SOC 2020 occupation code listed in Appendix Skilled Occupations.

If the position does not fall under the eligible categories for Global Business Mobility routes, the worker will not meet the skill-level requirement for a UK Expansion Worker visa. In such cases, an application for a UK Expansion Worker sponsor licence would not be appropriate.

Salary Level Requirement 

Employers must ensure that they are able to offer employment with compensation in line with the salary rates specified for the UK Expansion Worker route in the Immigration Rules before applying for a UK Expansion Worker sponsorship license.

Employers looking to transfer an employee through the Global Business Mobility – UK Expansion Worker Visa route must ensure that the skilled worker is compensated with a salary that meets or exceeds the "going rate" for the corresponding SOC 2020 occupation code as well as the overall salary criteria.

General salary requirement

The annual compensation requirement for the UK Expansion Worker Visa under the Global Business Mobility program is set at £48,500. In most cases, applicants must receive a salary that is equal to or higher than this amount per year, or 100% of the pro-rated current rate for their occupation as specified in the SOC 2020 occupation code, whichever is greater.

The assessment of the salary is based on the guaranteed basic gross pay for up to 48 hours of work per week, as well as any allowances that are guaranteed to be paid throughout the employment in the UK (such as London weighting). Additionally, any mobility premiums or allowances provided to cover the additional cost of living in the UK are also taken into account.

If the applicant's work schedule involves irregular hours on a weekly basis, resulting in uneven pay, any hours worked in excess of 48 hours in certain weeks can be considered towards meeting the salary threshold of £48,500. However, the average number of hours worked over a regular cycle (which can be less than, but not more than, 17 weeks) must not exceed 48 hours per week. When assessing whether the salary thresholds are met, any weeks of unpaid rest will be included in the calculation.

Going rate requirement

To determine the suitable market rate for a particular occupation, employers must consider the relevant SOC 2020 occupation code. The Home Office has compiled a comprehensive list of current rates for eligible Global Business Mobility occupation codes. Additionally, the Home Office sets the prevailing rates for occupations that meet the criteria for a Global Business Mobility - UK Expansion Worker Visa in Appendix Skilled Occupations.

The annual salaries mentioned are based on a 37.5-hour workweek and should be adjusted proportionally for alternative work schedules.

Even if an employee works more than 48 hours per week, their total weekly hours will be taken into account when comparing their salary to the market rate.

If the amount an employer intends to pay a UK Expansion Worker falls below the appropriate rate, an application for a UK Expansion Worker sponsor licence would not be suitable. In such cases, the worker would not qualify for entry clearance or permission to remain.

Genuine Employment Requirement

The UK Expansion Workers sponsors are authorized to sponsor a maximum of five employees simultaneously, as long as they are genuinely needed to establish a business in the United Kingdom.

If there are reasonable grounds to suspect that the job(s) an employer intends to sponsor are either non-existent, fraudulent, or primarily created to enable the worker to apply for a Global Business Mobility - UK Expansion Worker Visa, the sponsor license application will be rejected.

In the event that an employer assigns a Certificate of Sponsorship (an electronic document with a unique reference number issued by the sponsor to a worker prior to their application for a UK Expansion Worker visa) to a worker for a role that is not genuine, despite having obtained a UK Expansion Worker sponsor license, the Home Office is likely to revoke the employer's sponsor license.

It is important to note that once your UK Expansion Worker sponsorship license application is approved, you will have the opportunity to add additional routes (such as the Skilled Worker route) to your license and sponsor workers under these routes. This will enable you to establish a trading presence in the UK.

Working for a Third-Party Requirement

Furthermore, the Home Office must be assured that you will not allocate a Certificate of Sponsorship to an employee for a position that entails filling a temporary or permanent role with a third party who is not the sponsor, or for contract work that involves providing an ongoing routine service or undertaking an ongoing routine role for a third party who is not a sponsor when seeking a UK Expansion Worker sponsor licence.

Moreover, it is likely that your sponsor licence will be withdrawn if the Home Office has valid reasons to believe that you have assigned a Certificate of Sponsorship in any of the aforementioned scenarios subsequent to the approval of your UK Expansion Worker sponsor licence application.

Qualifying Overseas Business Link Requirement

To be eligible for a UK Expansion Worker sponsor licence from the Home Office, it is essential to establish a qualifying link between yourself (the sponsor) and the overseas business that will be sending workers to the UK.

This involves providing solid proof that you have the capability and intention to set up a new UK branch or a wholly-owned subsidiary of an existing overseas company.

When completing the sponsor licence application form and using the sponsorship administration system, you must include details about any related overseas entities as part of the process for applying for a UK Expansion Worker sponsorship licence. 

In order to qualify for a UK Expansion Worker sponsor licence from the Home Office, it is necessary to establish a valid connection between you (the sponsor) and the overseas business that will be sending workers to the UK.

This requires submitting credible evidence demonstrating your ability and intention to create a new UK branch or wholly-owned subsidiary of an established overseas business.

As part of the sponsor licence application form and sponsorship administration system, you will need to provide information about any associated overseas entities when seeking a UK Expansion Worker sponsorship licence.

UK ‘Footprint’ Requirement 

To be eligible for a sponsor licence on the UK Expansion Worker route, you must not currently be conducting business in the UK. If the business is already operating in the United Kingdom, it is advisable to apply for a licence through a separate route, such as the Senior or Specialist Worker or Skilled Worker route.

Nevertheless, in order to obtain a UK Expansion Worker sponsor licence, it is necessary to demonstrate to the Home Office that you have a UK 'footprint'. This can be demonstrated by either:

•    evidence of the location of the enterprise in the United Kingdom. or 

•    confirmation that the UK business is registered with Companies House as either a new company that is a subsidiary of the overseas linked business or an overseas company branch.

The refusal of your application for a UK Expansion Worker sponsor licence will be based on the absence of a UK footprint.

Overseas Trading Presence Requirement

Typically, for an overseas business to expand to the UK, it is necessary for the business to have actively traded overseas for at least three years prior to the application date. However, there are certain exceptions to this requirement.

To support your sponsor licence application, you must provide evidence that the overseas business has been conducting business for a continuous period of 12 months leading up to the submission of the application. Additionally, you need to furnish evidence that the business was operational at the start of the three-year period preceding the application date and remained in operation throughout that period.

To meet the overseas commercial presence requirement, the Immigration Rules have established strict documentation criteria.

Credible Expansion Plan Requirement

You are required to prove to the Home Office your genuine intention and capability to expand to the UK and set up a trading presence within two years to be eligible for a UK Expansion Worker Sponsor Licence.

The Home Office will assess your business planning and financial evidence for this purpose.

Your strategic expansion efforts, along with a detailed business plan, will be expected by the Home Office.

Additionally, the Home Office will look for proof of your financial capacity to support your planned expansion. This proof should show that you have the necessary funds to cover the initial expenses for the first year, as outlined in your expansion plan.

The Home Office may also evaluate the potential, past activities, and size of your business.
The proposed expansion must align with the same type of business as your international operations and cannot be a new business venture for your company.

Your overseas business must either be the exclusive owner of the UK establishment or part of the same legal entity (e.g., a branch).

To meet the credible expansion plan requirement, the Immigration Rules have strict document requirements. Seeking advice from a legal professional could be beneficial.

Appointing Key Personnel, Certificate of Sponsorship (CoS) Allocation and Sponsor Licence Rating

Once you have confirmed your ability to meet the sponsorship requirements for the UK Expansion Worker route, it is crucial to designate a Key Contact who will act as the main point of contact between your business and the Home Office. 

Additionally, you should appoint an Authorising Officer to oversee your sponsorship licence and designate at least one Level 1 User to handle day-to-day sponsorship activities. These key personnel are essential when applying for a UK Expansion Worker sponsor licence.

Your Authorising Officer can either be a senior employee from your overseas business who has been assigned to supervise the expansion in the UK, or a worker currently based in the UK who will take on the responsibility of overseeing the expansion. 

Regardless of the scenario, they must hold the highest position within your organization and be accountable for recruiting migrant workers, ensuring compliance with sponsor responsibilities, and overseeing your business's activities as a licensed sponsor.

It is important to note that the allocation of your Certificate of Sponsorship (CoS) and the rating of your licence will depend on the location of the Authorising Officer, as specified in your UK Expansion Worker sponsor licence application.

Authorising Officer currently based in the UK

If the Authorising Officer is a resident of the United Kingdom, they are required to appoint a Level 1 User and a Key Contact who are also located in the country. The Level 1 User must also be a settled worker, unless there is an exception. 

The Authorising Officer has the choice to designate themselves as the Level 1 User and/or Key Contact, or someone else who meets the necessary criteria can fulfill these responsibilities.

If the application for the UK Expansion Worker sponsor licence is approved, the UK entity will be granted an A-rating and a full CoS allocation (up to a maximum of 5) only if the Authorising Officer mentioned in the application is already based in the UK.

Authorising Officer currently based outside the UK

Authorising Officers working for the international company outside of the UK must also hold Level 1 User status.

Sponsor Rating for a UK Expansion Worker Sponsor Licence

If you are approved for a sponsor licence under the UK Expansion Worker route, you will be given either a 'Provisional' or 'A' rating.

A 'Provisional' rating is granted if the overseas business employs your Authorising Officer (and Level 1 User). Initially, the UK enterprise will receive a CoS allocation of 1 and a Provisional licence rating. In order for the Authorising Officer to apply for entry clearance to the United Kingdom, they must assign the CoS to themselves.

Once the business has achieved an A-rating for its sponsor licence and the individuals are legally residing in the UK, the Authorising Officer will have the authority to appoint alternative individuals to these positions and request an increase in the CoS allocation, up to a maximum of 4.

Duration of a UK Expansion Worker Sponsor Licence

Your sponsor license will remain valid for a duration of 10 years upon approval of your application. A UK Expansion Worker sponsor license is not eligible for renewal, as it is generally expected that a UK business presence will have been set up within two years of the license being issued.

However, once a trading presence is established in the United Kingdom, you can apply to add more categories to your license, such as Skilled Worker, Senior, or Specialist Worker. If your sponsored employees meet the required criteria, they can apply to switch to these categories.

Applying for a UK Expansion Worker Sponsor Licence

Once you have established the quantity of employees you plan to sponsor in your initial year (not exceeding 5), you must provide all relevant supporting paperwork outlined in Appendix A to the sponsor guidance within five business days of application submission. 

This involves filling out an online application form, paying the required application fee, and submitting the application to the UK Expansion Worker Sponsor Licence.

Immigration Requirements for a UK Expansion Worker Visa

The Immigration Rules outline various criteria that individuals must meet in order to enter the United Kingdom on a Global Business Mobility – UK Expansion Worker Visa. It is important for employers to be aware of these requirements.

One crucial criterion is that the proposed UK Expansion Worker must have previously worked for the associated business or organization outside of the UK for a total of at least 12 months.

However, this particular requirement is exempted for two categories of individuals. Firstly, high earners who earn £73,900 or more annually are not required to fulfill this criterion. 

Secondly, Japanese nationals who aim to establish a UK branch or subsidiary of the linked business or organization under the UK-Japan Comprehensive Economic Partnership Agreement, as well as Australian nationals or permanent residents seeking to establish a UK branch or subsidiary of the sponsor group under the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and Australia (once the agreement is in effect or provisionally applied), are also exempted from this requirement.