How Can My UK Business Get a Skilled Worker Sponsor Licence?

What is a Sponsor Licence?

A sponsor licence is an official permission provided by the UK government, permitting businesses to hire individuals from outside the UK through various work visas. This licence demonstrates a business’s allegiance to UK immigration regulations. It’s a strategic tool allowing businesses to access a diverse array of skills, experiences, and worldviews. This diversity can significantly enhance innovation, productivity, and global outreach.

There are two variations of sponsor licence: Worker Licence and Temporary Worker Licence. The ‘Worker’ licence is for roles like the Skilled Worker (previously tier 2), who meets the requirements specified; the Senior or Specialist Worker visa for multinational company transfers; the Minister of Religion for religious roles; and the International Sportsperson for elite sports professionals. 

Conversely, the ‘Temporary Worker’ licence is designed for short-term roles, including positions like the Creative Worker for the arts sector, Charity Worker for unpaid charity roles, and the Seasonal Worker for roles in horticulture and poultry. Each licence type is tailored to specific employment needs, ensuring a structured approach to the UK’s foreign employment system.

Why Does Your Business Need a Sponsor Licence?

The UK’s points-based immigration system ensures that only the most qualified and suitable individuals enter the country. A sponsor licence plays a crucial role in this system. It acts as a filter, ensuring businesses hire individuals based on genuine skill requirements. It aligns with the UK’s broader immigration objectives, ensuring that the inflow of foreign professionals complements the nation’s economic and social goals.

Benefits of having a sponsor licence include:

1. Access to Global Talent: With a sponsor licence, businesses can reach out to an extensive pool of international professionals, bringing in fresh perspectives and expertise.
2. Business Growth: Diverse teams often lead to enhanced creativity and innovation, driving business growth and expansion.
3. Flexibility: In specific sectors with a domestic talent shortage, a sponsor licence offers the flexibility to hire skilled workers from abroad, ensuring business continuity.

Eligibility Criteria for Sponsor Licence UK

The eligibility criteria for obtaining a sponsor licence in the UK are inflexible. Here’s a detailed breakdown:

1. Genuine Business Requirement: The business must demonstrate a genuine need to hire a non-UK resident. This could be due to a lack of specific skills within the domestic market or a strategic business decision to bring in international expertise.
2. Operational Integrity: The business should be operating lawfully in the UK, adhering to all relevant laws and regulations.
3. Robust HR Systems: The business must have robust HR systems in place to ensure compliance with sponsorship duties. This includes tracking the attendance and performance of sponsored employees and reporting any discrepancies to the Home Office.
4. No Threat to Immigration Control: The employer shouldn’t be deemed a threat to immigration control. This means they must have a clean record of criminal activities, specifically free from immigration violations and serious offences like fraud or money laundering.

After submitting the sponsor licence application, the UK Visas and Immigration (UKVI) will assess your submitted application and accompanying documents. They might conduct an on-site visit to your business to verify your credibility and ensure you can fulfil your responsibilities.

Required Documents for the Sponsorship Licence

Submitting the required documents is important to support your application for a sponsor licence and demonstrate your business’s eligibility and genuineness. Here’s a detailed list of the potential documents you might need:

1. Proof of Business Operation: This could include bank statements, utility bills, or a lease agreement for your business premises, showcasing that you’re trading lawfully in the UK.
   
2. HR Compliance Documents: These could include your HR system’s overview, showcasing how you track employee attendance, performance, and other relevant metrics.
   
3. Evidence of Genuine Vacancy: This might include job advertisements, descriptions, and the recruitment process you used before deciding to sponsor an overseas worker.
   
4. Financial Health Documents: These could be recent bank statements, balance sheets, or profit and loss accounts, showcasing your business’s financial stability.
   
5. Proof of Registration: Depending on your business type, this could be a registration with the relevant regulatory body in the UK.

Remember that the required documentation can vary depending on the nature of your business and the sort of licence for which you are applying. It’s always advisable to consult the latest sponsor licence application guidance on the Home Office website or seek advice from a legal expert on UK immigration rules.

How to Apply for a Sponsor Licence

The application process might seem a bit tricky, but with the right guidance and understanding, it becomes manageable. Here’s a step-by-step breakdown:

1. Online Application via the Sponsorship Management System: The Sponsorship Management System is the primary portal for all sponsor licence applications. While the system is relatively straightforward, it’s essential to be cautious. While applying, applicants are advised to save their progress regularly to prevent data loss.
   
2. Choose Licence Type: Depending on the nature of your business and the kind of workers you intend to sponsor, you’ll need to set the variation of licence type. This could range from skilled workers to Temporary workers for short-term employment needs.
   
3. Enter Contact Details: This is a straightforward but crucial step. Ensure all details are accurate to enable smooth contact with the Home Office.
   
4. Select Key Personnel: Every organisation applying for a sponsor licence must nominate individuals for specific roles related to the management of the licence and sponsored employees. These roles include the Key Contact, Authorising Officer (AO), and Level 1 User.
   
5. List Supporting Documents: The Home Office requires a range of supporting documents to verify the authenticity of your application. These documents will differ based on the variation of licence you’re applying for and the nature of your business. List the document that you will be submitting.
   
6. Payment of Application Fee: Upon completing the form, you’ll be prompted to pay the licence application fee. The cost varies based on business size and the type of licence.

After payment, the system will generate a submission sheet. This document must be signed by the Authorising Officer (AO) and sent to the Home Office, accompanied by the supporting document bundle.

The Sponsor Licence Application Fee

When applying for a licence, it’s essential to be aware of the associated fees. These fees vary depending on the licence type you’re seeking and the size of your organisation. Below is a breakdown of the fees:

• Worker Licence Fees:
  
  
  • Small or Charitable Sponsors: £536
  • Medium or Large Sponsors: £1,476
    
    
• Temporary Worker Licence Fees:
  
  
  • Small or Charitable Sponsors: £536
  • Medium or Large Sponsors: £536

These fees are always subject to change with UK immigration updates, so please always call our team of business immigration solicitors to know the most up-to-date fee structure.

Determining Your Organisation’s Category

To ascertain whether you qualify as a small or charitable sponsor, certain standards need to be met:

• Small Sponsor: You’re typically considered a small sponsor if a minimum of two of the below conditions apply:
  
  • Annual turnover of £10.2 million or less.
  • Assets in total worth equal to or less than £5,1 million.
  • A workforce comprising 50 employees or fewer.
    
    
• Charitable Sponsor: You fall under this category if you are:
  
  • A recorded charity in the United Kingdom. For Northern Ireland, if not registered, proof of charitable status for tax purposes from HMRC is required.
  • An excepted, exempt, or ecclesiastical corporation established for charitable intentions.

If there’s any uncertainty regarding your business’s category, it’s advisable to contact us for clarity.