United Kingdom sponsorship

Sponsor Licence

The Home Office has issued instructions for sponsor licence applications. This reflects changes to UK immigration rules that took effect in December 2020. The new Skilled Worker visa has replaced the Tier 2 (General) visa for sponsored employment.

Companies must have a valid sponsor licence to employ skilled workers from abroad who are not permitted to work in the UK, including EEA and Swiss nationals and their family members who have not been granted settled or pre-settled status under the EU Settlement Scheme.

What a sponsor licence is

A sponsor licence is permission granted by the Home Office (UK Visas and Immigration) that allows an organisation to employ people from outside the UK. As a general rule, an employer needs a licence to sponsor a worker who does not already have the right to work in the UK. This includes EU citizens who arrived after 31 December 2020.

Some people do not need to be sponsored at all, so an employer would not need a licence to hire them. This includes Irish citizens and people with settled or pre-settled status under the EU Settlement Scheme.

Sponsor licences fall under two broad categories: the Worker routes (for longer-term employment, such as the Skilled Worker route) and the Temporary Worker routes (for temporary or specific types of work). An employer chooses the licence type that matches the roles it wants to fill.

• The employer holds the licence, not the applicant, so you cannot obtain a sponsor licence for yourself as a job seeker.
• Once approved, a licence is generally valid for as long as the employer keeps meeting the eligibility and compliance requirements.
• Licences to sponsor Scale-up Workers or UK Expansion Workers are valid for 4 years.

Cost of a sponsor licence (paid by the employer)

The employer pays the licence fee, and the amount depends on the route and the size of the organisation. These are the current figures on GOV.UK.

• Worker route licence, small or charitable sponsor: £611
• Worker route licence, medium or large sponsor: £1,682
• Temporary Worker route licence (all organisation types): £611

Small sponsor vs medium or large sponsor

An organisation usually counts as a small sponsor if at least two of the following apply, which reduces the Worker route licence fee. Registered and other recognised charities also qualify for the small-sponsor fee.

• Annual turnover of £15 million or less
• Total assets worth £7.5 million or less
• 50 employees or fewer

What a Certificate of Sponsorship (CoS) is

A Certificate of Sponsorship is not a paper certificate. It is an electronic record created by the sponsoring employer through the Sponsorship Management System (SMS). Each CoS has its own unique reference number, which the worker enters when they apply for their visa.

The CoS records key details of the job being sponsored, such as the role and start date. It confirms to UK Visas and Immigration that a licensed employer is genuinely offering the worker a specific job.

• The worker must apply for their visa within 3 months of being assigned the CoS.
• The worker cannot apply more than 3 months before the job start date shown on the CoS.

Defined and undefined Certificates of Sponsorship

There are two kinds of CoS for the Skilled Worker route, depending on where the worker is applying from.

A defined CoS is for a Skilled Worker applying from outside the UK. The employer requests it through the Sponsorship Management System, and requests are usually approved within one working day.

An undefined CoS is for a Skilled Worker applying from inside the UK, and for workers on certain other routes. Employers estimate how many undefined certificates they will need when they apply for their licence, and can request more later through SMS. Additional requests are usually decided within 12 weeks, or within 5 working days if the employer pays for a faster decision.

Cost of assigning a Certificate of Sponsorship

A separate fee applies each time the employer assigns a CoS to a worker. The amount depends on the route.

• Worker routes (except International Sportsperson): £525 per certificate
• Temporary Worker routes: £55 per certificate
• International Sportsperson for more than 12 months: £525; for 12 months or less: £55

Who is responsible for what

Sponsorship splits responsibilities between the employer and the applicant. Understanding the split helps set realistic expectations before you accept a job offer.

The employer is responsible for holding a valid licence, choosing appropriate staff to manage sponsorship duties, assigning the CoS, and meeting ongoing compliance and record-keeping duties. Failing these duties can lead to the licence being downgraded or revoked. Importantly, the employer must pay the licence and CoS fees itself. Asking the sponsored worker to cover these specific costs risks the licence being revoked.

The applicant is responsible for using the CoS reference number to submit their own visa application in time, paying their personal visa costs (such as the application fee and the immigration health surcharge), and meeting the requirements of the route, such as salary and English language rules where they apply.

What exactly is a sponsor license?

A sponsor licence (formerly known as a Tier 2 sponsor licence) enables UK-based companies to hire skilled workers from abroad or within the UK (applicants can "switch" to the Skilled Worker visa from other visa types, including Tier 4 Student and Tier 2 visas).

Once approved, the license is valid for four years with the option of renewal.

When will I need a sponsor license?

There are two scenarios where you will need to obtain a sponsor license. If you want to employ a skilled worker from outside the EEA and Switzerland, you will need to apply for and obtain a Tier 2 sponsor license. If you are a recognized education provider and wish to have students from outside of the EEA and Switzerland, you will need to apply for and obtain a Tier 4 sponsor license. The Visa Application processes for a Tier 2 or a Tier 4 sponsor license are subject to stringent criteria.

Before applying for a sponsor license, you should work with a lawyer who has specialist knowledge in this field. You will need to ensure all of your business policies and processes are in line with current regulations.

Before you start

Before applying for a sponsor license, you should work with a lawyer with specialist knowledge in this field. You must ensure all your business policies and processes align with current regulations.

There are requirements that you must be able to meet to be considered for a sponsor license:

• You will not be considered for a sponsor license if you have previously rejected applications.
• When employing an overseas worker, you must prove that the employment or education you intend to offer is genuine. you must provide an adequate salary for that position.
• You must demonstrate that you have proper monitoring systems for your sponsored student or employee.
• A business must operate lawfully within the UK and be a bona fide company.
• An employer must have failed to recruit a suitable worker.

What is a small sponsor?

A company is considered a small sponsor if two out of the following conditions are met:

• your total assets are worth less than £7.5 million
• you have 50 or fewer employees
• your annual revenue is less than £15 million

Prerequisites for obtaining a sponsor license

To apply for a sponsor licence, your organization must have a UK presence and legally operate or trade in the UK. If you have numerous UK branches, you may apply for a single licence to cover all of your linked UK entities; alternatively, depending on your circumstances, you may apply for separate licences for each branch.

If are regulated or inspected/monitored by a statutory body in order to operate legally in the UK, you must provide proof that the company (and any branches covered by the licence) are fully compliant and registered with the appropriate body. You may also be required to provide evidence that you have the necessary planning permission or local planning authority consent to operate your type of business at your trading address.

Further Requirements

The Home Office must be convinced that you can provide employment in a skilled occupation and that you will comply with the rate of pay specified by the Home Office.

As part of your license application, you agree to accept all the responsibilities of being a sponsor licence holder.

Private individuals are not usually eligible to be recognized as sponsors, but there is an exception if the applicant is a sole trader who wants to sponsor someone to work in their business.

What is the cost of applying for a sponsor license?

The size and type of organization determines the cost of a sponsor license. This application fee must be paid each time the sponsor renews their license (every four years). The Home Office reviews fees annually and publishes them on its website.

What exactly is a sponsor license rating?

You will be assigned an A rating if your sponsor licence application is approved. The Home Office awards this rating to trusted organizations that have demonstrated that they have the necessary systems to comply with sponsor duties.

To keep their A-rating, sponsors must maintain their systems and policies. The Home Office reserves the right to re-assess at any time, and these compliance visits will determine whether an organization still meets the criteria for an A rating.

If the Home Office discovers that a company is not fulfilling its sponsor duties, it may be demoted to a B-rating. To regain their A-rating, a B-rated sponsor must follow a time-limited action plan. If they fail to meet the requirements of the action plan within the timeframe specified, their license will be revoked.

It should be noted that the Home Office can suspend or revoke a license without first downgrading to a B-rating. The gravity of the violations discovered will determine the Home Office's course of action.

• A-rating
• B-rating

Can anyone sponsor me to UK?

Companies may sponsor a worker if the job they'll be performing has an appropriate wage and skill level, or if it meets the other visa requirements.