A sponsor licence (previously known as a Tier 2 Sponsor Licence) is required by any UK employer planning to employ workers from overseas.
Contact our immigration lawyers for a free telephone consultation on 020 3744 2797 or complete our enquiry form to discuss your sponsor licence application.
A sponsor licence (previously known as a Tier 2 Sponsor Licence) is required by any UK employer planning to employ workers from overseas. With a sponsor licence, UK based businesses are able to issue Certificates of Sponsorship (CoS) to eligible international workers coming to the UK on a work visa (e.g. a Skilled Worker visa). As such, sponsor licences offer a valuable way to ensure that UK based businesses can recruit the staff they need from another country where needed. Sponsor licences are also required by educational establishments, including universities with international students.
It is important to note that having a sponsor licence does not mean that any employee you choose to sponsor will automatically obtain leave to remain in the UK. They will have to meet their own UK sponsorship visa requirements. Sponsor licences are not connected to any employee but issued to and for the company.
The sponsor licence application process is strict, and keeping your Sponsor Licence requires committing to a rigorous compliance regime. Sponsor licence compliance involves ensuring that your HR processes and procedures run smoothly and effectively in accordance with the Home Office’s requirements.
Sponsor licences are issued for a period of 4 years, at which point employers need to apply for renewal.
For questions on any aspect of your sponsor licence, please contact our business immigration lawyers for a telephone consultation on 020 3744 2797 or by email at info@reissedwards.co.uk.
In order to be eligible for a Tier 2 sponsorship licence, the applying organisation must meet the following requirements.
Businesses applying for a sponsor licence must be genuine and legally operating in the UK as a PLC, LTD, LLP or Sole Trader. They must also hold the appropriate planning permission or the Local Planning Authority's consent for the type of business operated at the trading address.
As part of the sponsor licence application process, businesses need to show that they do not have unspent criminal convictions for previous immigration offences. They also need to satisfy the Home Office that they do not have any unspent convictions relating to crimes such as fraud or money laundering or have had a sponsor licence revoked in the last year. In addition, the Home Office must be satisfied that the Key Personnel named on the sponsor licence application are honest, dependable, and reliable. Key personnel refers to authorised officers and key contacts who will manage the sponsorship process.
The Home Office must also be satisfied that the company requesting the sponsor licence is not only aware but is also capable of carrying out its sponsorship duties. In practical terms, meeting your sponsorship duties means that you must have a system and processes in place within your business to:
Under the current system, there is now no longer a requirement to carry out a Resident Labour Market Test (RLMT) to check if a local worker is available to perform the job before it is offered to an overseas worker.
There are two main types of sponsor licence available. Businesses applying for a sponsor licence must specify which type they need when submitting their application and only recruit international staff for the type of licence they are granted.
A “Worker” licence is granted to employers who need to employ skilled international workers on a short time, long-term or permanent basis. Worker licences are available for a number of specific categories, including:
As part of the application process, businesses must specify which category of worker licence they require. Depending on your needs and eligibility, you can apply for multiple subcategories of worker licences.
A “Temporary Worker” licence allows UK based employers to hire international staff on a short-term temporary basis, including volunteers. Temporary workers are available for several categories of workers as follows:
As part of the application process, businesses must specify which category of temporary worker licence they require. Depending on your needs and eligibility, you can apply for multiple subcategories of temporary worker licences.
To become a sponsor, a business needs to complete a number of steps, as follows:
The Home Office publishes specific sponsor licence guidance outlining all of the possible documents that UK sponsor licence applicants may be required to submit2. In most cases, you will be asked to submit a minimum of 4 documents. The sponsor licence guidance states you may not need to send 4 documents if you are a public body recognised by the UK Government, such as a local authority or a company listed on the London Stock Exchange Main Market.
Depending on your business and the type of licence you require, you may be asked to submit some or all of the following documents (please note this list is not exhaustive and is only a small sample of the possible documents you may be asked to provide):
In most cases, sponsor licence applications are processed within 2 months.
If you require a faster decision, you may be able to pay £500 for a decision within 10 working days. The Home Office limits the number of these priority applications (a limited number are made available each day and are allocated on a first-come, first-served basis).
Once you have submitted your application, you will be advised if you can use the priority application service and how to do so.
The sponsor licence application fees are as follows:
Type of licence | Small or charitable sponsors | Medium or large sponsors |
Worker licence | £536 | £1,476 |
Temporary Worker licence | £536 | £536 |
Worker and Temporary Worker licence | £536 | £ 1,476 |
Adding a Worker licence to an existing Temporary Worker licence | No cost | £940 |
Adding a Temporary Worker licence to an existing Worker licence | No cost | No cost |
To be classed as a small or charitable sponsor, your business must meet at least two of the following criteria:
For more information about the cost, please see our article: UK Work Visa Sponsorship Costs for Employers
Under the current sponsorship system, businesses are either given an A rating or a B rating. Businesses granted a new employer sponsorship licence will be A-rated. Later, where the Home Office has concerns that a business is not adhering to its sponsorship duties, it may downgrade a sponsor to a B rating. This means that they are unable to issue any new Certificates of Sponsorship and need to demonstrate to the Home Office that they have made any improvements requested before their A-rating can be regained.
If a sponsor licence holder is downgraded to a B-rating and they do not prove to the Home Office that all compliance issues have been addressed, they may have their licence revoked entirely. In this situation, any sponsored workers would have their leave curtailed (shortened). It is imperative to engage the services of an immigration Solicitor who can help you to regain your sponsor licence.
A sponsor licence number is a unique reference number included on a Certificate of Sponsorship (CoS) used by an overseas worker when applying for a work visa. A CoS is an electronic document containing important information about the job offer, including the type of job and the duration of the employment.
A nominated person within your organisation can apply for CoS using the Sponsorship Management System (SMS). If approved by the Home Office (typically within 1 day), the CoS can then be issued to the overseas Worker to prove they have been offered a job, which they can then use to apply for a work visa.
A CoS costs between £21 and £199 depending on the type of licence held.
Sponsor licences are issued for a period of 4 years, at which point employers need to apply for renewal.
There are several reasons why a sponsor licence may be refused, including:
Businesses are required to keep up to date proof of ID as well as right to work documentation. The company must ensure that there are systems in place to remind HR to request a new copy of any documents before they expire. UKVI will refuse a sponsor licence application if they are not satisfied that your recruitment and human resource management systems comply with the UKVI standards.
During the application process, UKVI may request further information and documents. If the items requested are not provided in time, the Home Office may refuse your application.
A sponsor licence application may be refused if the Home Office has concerns that the applying business does not intend to use the sponsor licence in the manner intended.
Sponsor licence applications may also be refused where an applicant has unspent convictions relating to crimes such as fraud or money laundering.
Where the Home Office believes that incorrect information has been submitted when applying for a sponsor licence, they may refuse the application. This may happen, for example, where the applicant incorrectly states they are a small company to benefit from the lower application and CoS costs.
In some cases, where an application for a sponsor licence is refused, a “cooling-off” period may apply whereby the applicant is unable to reapply for a certain amount of time. This can vary from 6 to 12 months (in most cases, it will be 12 months). Whether a cooling-off period applies will depend on the reasons for the refusal. If the Home Office believe that you acted in bad faith by providing false or misleading information in your application, it is more likely to be imposed. Where an application is refused on the basis that the eligibility criteria have not been met, a cooling-off period may not apply, meaning a fresh application can be submitted as soon as possible. If your application is refused, you may be able to request a review of your case, e.g. if a mistake was made by the Home Office when considering your application.
Contact our immigration lawyers for a free telephone consultation on 020 3744 2797 or by email at info@reissedwards.co.uk.
References
1 GOV.UK: Online application for Sponsor licence
2 GOV.UK: Supporting documents for sponsor licence