Resources and Guides

The Sponsor Licence Application Process for Employers in the UK

Understanding the sponsor licence application process in the UK is essential knowledge for any entrepreneur, HR professional or director planning to hire foreign nationals. The recruitment and management of overseas staff is a complex issue that requires a strategic approach; once your organisation has obtained its sponsor licence you also need to maintain compliance with all Home Office requirements. It’s always advisable to consult with a qualified expert on all matters relating to immigration, whether for your organisation or as an individual. In this article we answer the key questions we are often asked by our clients who want their organisation to become a licenced sponsor.

What is a sponsor licence?

Under the UK Immigration Points Based System a sponsor licence permits UK-based employers to employ skilled foreign workers via the Skilled Worker route (and educational establishments to enrol overseas students under the Student Visa route). A sponsor licence therefore enables UK employers to source talent from outside the UK to fill skilled vacancies and potentially improve productivity within their organization.

Does my business need a sponsor licence?

Every UK employer must obtain a sponsor license from the Home Office to hire foreign nationals from anywhere in the world, excluding Irish nationals. From 1 January 2021 the UK Immigration Points Based System also requires that every new hire (foreign employee) from outside the UK must obtain a Certificate of Sponsorship from their licenced sponsor (UK employer) to support their visa application.

Can you apply for a sponsor licence yourself?

Technically, yes. Any organisation can apply online for a sponsor licence via the UK government website; you will need to pay the necessary fee which relates to your organisation’s size and submit the required supporting documentation. To ensure a smooth and efficient process however, it is recommended that you appoint an experienced UK immigration consultant to manage any sponsor licence application for your organisation.

Should we appoint an immigration consultant?

An immigration consultant can benefit your organisation and your team during the sponsor application process in several ways. Immigration matters are complex and time-consuming; giving the responsibility to a good Immigration Lawyer can make the overall process a lot less stressful and save you and your organization a lot of time, especially with regards to paperwork, understanding legislation and compliance. From the outset they should provide you with straightforward advice to help you identify the right kind of sponsor licence for your recruitment needs.

In addition to management of your sponsor licence application, a good immigration consultant will provide you with ongoing guidance to ensure your organisation remains compliant with all relevant licenced sponsor obligations, such as record keeping, annual audits and staff training. Most immigration law firms, such as The Yellow Halo, offer a complimentary initial consultation so that you can gain clarity on your organisation’s needs and identify any potential issues early on.

What are the benefits of being a licenced sponsor?

Once you have a sponsor licence your organisation can hire eligible skilled workers from anywhere in the world, including the EU, provided that the job you are recruiting for meets the minimum prescribed skill and salary thresholds. These requirements are:

• the minimum skill level is now set at RQF3 (A level and equivalent)
• the minimum salary threshold is the higher of £25,600 or the ‘going rate’ for that job – some employees may be paid less than £25,600, for example if their job is in a shortage occupation

All applicants are able to trade characteristics (e.g. higher qualifications versus a lower salary) to get the required 70 points to be eligible to apply to work in the UK. Being able to hire from anywhere in the world means your organisation can:

• recruit your ideal employee from a wider pool of candidates,
• expand into new markets with “local” expertise,
• fill technical skill, language or knowledge gaps,
• create a more diverse and inclusive workplace.

What are the key types of a sponsor licenses?

Under the UK’s Points Based Immigration there are several types of sponsor licence: the “Worker” licence enables an organisation to employ people on a long-term or permanent basis and includes the following:

• Skilled Worker – this is the general route formerly known as the Tier 2 sponsor licence, each job must pay the minimum salary threshold (or above) and only skilled workers who meet the set criteria to accumulate at least 70 points are eligible for employment.
• Intra-company transfer – multi-national firms trading in the UK can temporarily move employees to the UK from an overseas subsidiary to work in an RQF 6 (graduate level) role that meets the minimum salary threshold, providing the employee obtains an intra-company transfer visa from the Home Office.

The “Temporary Worker licence allows an organisation to employ people on a more temporary basis and includes those applying under the Creative and Sporting routes, Charity and Religious Workers, those applying under the Government Authorised Exchange or International Worker schemes and Seasonal Workers.

Some employment and/or business related routes do not require sponsorship and include the Innovator and Start-Up routes which replaced the previous Entrepreneur route, the Global Talent route for highly skilled foreign nationals who are considered leaders in the fields of academia or research, arts and culture or digital technology and have received an endorsement from a relevant governing body and the Investor route.

From Summer 2021, under the proposed Graduate route, foreign students who have completed a degree in the UK will be able to remain in the UK for two years and work at any skill level, without the need for sponsorship meaning UK organisations can hire them without a sponsor licence.

Your immigration consult will advise which route or sponsor licence is the most appropriate for your recruitment needs.

What are the eligibility requirements for a sponsor licence?

Your organisation must be registered and be trading lawfully in the UK and those responsible for the application process and administration of the license must have no unspent criminal convictions. For example, to prove your organisation is genuinely operating in the UK you may need to submit documents such as bank statements, VAT registration letters, evidence of employer’s liability insurance, evidence of premises etc.

The Home Office will inspect your organisation and must be satisfied that it is able to offer employment in accordance with the skilled job minimum salary and skill thresholds as described above.

How long does the sponsor application process take?

It takes around eight weeks from when the Home Office receives an application for it to be processed and a decision obtained. If you have plans to hire foreign nationals in the foreseeable future, we recommend that you consult with your immigration advisor and begin the application process right away.

How long will my sponsor licence be valid?

Once you have obtained your Sponsor Licence you can hire skilled workers globally for 4 years with the option for renewal at the end of this term.

Start your sponsor licence application with an immigration expert

The Yellow Halo recognise the need for straightforward and proactive immigration advice, particularly for the complex area of business immigration and hiring foreign nationals; we offer competitive fees with no compromise on expertise, ethics or quality of service. Please get in touch and book your free 30 minute consultation with our immigration experts to discuss your business immigration needs.