Sponsor Licence

Sponsorship Licence

The UK has stringent regulations governing the hiring of migrant workers. Businesses seeking to employ non-UK residents must first secure a Sponsor Licence. This requirement extends to hiring European Economic Area (EEA) and Swiss nationals post-Brexit.

What is a Sponsor Licence?

A Sponsor Licence is an authorization issued by the UK Home Office that allows businesses to sponsor foreign workers or students under specific immigration routes, such as the Skilled Worker visa. The licence enables employers to issue Certificates of Sponsorship (CoS) to prospective employees, a critical step in their visa application process.

Key Details about Sponsor Licences

Cost and Duration
- Application fees range from £536 to £1,476, depending on the business size and licence type.
- Sponsor licences are valid for 10 years. Starting April 6, 2024, sponsors no longer need to renew their licence every four years; automatic extensions apply.
Certificate of Sponsorship (CoS)
- CoS is an electronic document required for visa applications.
- Fees: £239 for Workers, £25 for Temporary Workers.
- Undefined CoS: Used for in-country applications and issued immediately by sponsors.
- Defined CoS: Required for overseas applicants and approved by the Home Office within two weeks.
Sponsor Management System (SMS)
The SMS portal is used for licence applications, management, and reporting changes in migrant worker details or employment status.

Requirements for Obtaining a Sponsor Licence

Genuine Organisation Operating Lawfully
Employers must provide supporting documents listed in Appendix A of the sponsor guidance to prove legitimacy. Requirements vary depending on the business type, such as franchises or start-ups.
Compliance with Sponsor Duties
Employers must demonstrate robust HR processes to manage:

Reporting changes in employment.
Keeping detailed records of worker employment and authenticity of vacancies.

Skill and Salary Levels
Jobs must meet at least Level 3 (A-level equivalent) on the Regulated Qualifications Framework. Salary thresholds are typically:

£38,700 annually or the “going rate” for the role.
Lower thresholds apply for eligible exceptions, such as roles on the Immigration Salary List.

Sponsorship Duties and Compliance

Key Personnel: Employers must appoint an Authorising Officer, a Key Contact, and a Level 1 User for managing sponsorship activities.
Reporting: Changes in employment details must be reported within 10-20 working days.
Home Office Visits: Unannounced visits may occur to ensure compliance.

Maintaining Your Sponsor Licence

Approved businesses are given an A-rating on the Register of Licensed Sponsors. Non-compliance can result in:

Downgrade to a B-rating with a mandatory action plan.
Suspension or revocation of the licence.

Benefits of a Sponsor Licence

A Sponsor Licence allows businesses to hire skilled international workers and address labor shortages while adhering to UK immigration regulations. It ensures access to global talent and streamlines the hiring process for roles requiring specialized skills.

How We Can Assist?

We specialize in guiding businesses through the Sponsor Licence application and management process. Our services include:

Eligibility Assessment: Ensuring your business meets all Home Office requirements.
Documentation Support: Assisting in the preparation and submission of required documents.
HR Compliance Guidance: Advising on processes to meet sponsorship duties.
CoS Allocation: Streamlining the issuance of Certificates of Sponsorship.

With our expertise, you can confidently navigate the complexities of UK immigration law and leverage global talent to grow your business.

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