Sponsorship Visa UK Guide for Employers 2025

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Anne Morris

Employer Solutions Lawyer

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Key Takeaways

  • UK sponsorship visas offer a recruitment lifeline for employers struggling with talent and skills shortages.
  • Sponsorship doesn’t just concern recruitment; it entails long-term compliance obligations.
  • Sponsors should be prepared for Home Office scrutiny of their HR systems, processes and documents.
  • Sponsorship visa rules are subject to change, which can disrupt workforce planning.
  • Financial implications of sponsoring workers go beyond initial applications, requiring ongoing budget planning.
For employers, sponsorship visas are the key mechanism to access global talent and meet operational needs in an increasingly competitive and global talent market.

To hire non-UK nationals under a sponsorship visa, in most cases employers will need to hold a valid sponsor licence, which comes with strict application requirements, ongoing compliance obligations and the risk of penalties for breaches.

In this guide, we explain which UK sponsorship visas are currently open to overseas nationals, and what employers have to do to employ workers under a sponsored visa route.

SECTION GUIDE

 

Section A: UK Sponsorship Visa Overview

 

A Sponsorship Visa allows foreign nationals to work in the UK for an employer with a valid sponsor licence, where the employer can show a genuine vacancy that meets the required skill and salary thresholds. The wider visa sponsorship system is designed to allow UK employers to benefit from overseas recruitment, while imposing compliance obligations to prevent misuse of these routes.

 

You can read our extensive guide to the Principles of Immigration Sponsorship here >>

 

1. What is a Sponsorship Visa?

 

There is no actual sponsorship visa in the UK. Instead, this is a term often used to refer to UK immigration routes such as the Skilled Worker visa that allow non-UK residents to work in the UK for a licensed employer.

 

2. Types of UK Sponsorship Visas

 

Under current rules, the following work visas require sponsorship by a qualifying employer:

 

Visa RouteWho it’s forSponsorship RequiredDurationISC Payable?Salary Threshold
Skilled WorkerSkilled non-UK workersYesUp to 5 yearsYes£41,700+ or lower if eligible
Health & Care WorkerNHS and care sector rolesYesUp to 5 yearsNo£25,000+ (varies)
Scale-upHigh-growth UK businessesYes (first 6 months)2 yearsYes£34,600 or going rate
Temporary WorkerShort-term roles (e.g. charity, creative)YesUp to 12–24 monthsNoVaries by route
Senior/Specialist Worker (GBM)Intra-company transfersYesUp to 5 yearsYes£48,500+ (default)

 

 

a. Skilled Worker visa

This is the most common type of sponsorship visa and is designed for skilled workers who have a job offer from a UK employer. The role must meet the required skill and salary criteria (see Section E), and the worker must demonstrate English language ability at CEFR B1 in reading, writing, speaking and listening.

 

You can read our extensive guide to the Skilled Worker Visa here >>

 

b. Health & Care Worker visa

A specialist visa aimed at healthcare professionals, this visa supports the recruitment of doctors, nurses, and other health professionals to work within the UK’s National Health Service (NHS) or in other eligible health and care roles.

 

You can read our extensive guide to the Health and Care Visa here >>

 

c. Temporary Worker visas

These visas allow individuals to undertake short-term work in specific categories such as creative, charity, religious, government authorised exchange and seasonal work.

 

You can read our extensive guide to Temporary Worker Visas here >>

 

d. Global Business Mobility visas

This category includes various sub-categories, such as the Senior and Specialist Worker visa, which is designed for employees of multinational companies who are being transferred to a UK branch.

 

You can read our extensive guide to Global Business Mobility Visas here >>

 

e. Scale Up worker (initial 6-month sponsorship)

This is effectively a hybrid visa, allowing high-growth employers to hire skilled workers initially under the sponsorship rules, but after 6 months, the sponsorship is no longer required, provided the Scale up workers meets specific earnings requirements.

Each of these routes has its own requirements and eligibility criteria that the worker and the employer must meet.

 

You can read our extensive guide to Scale Up Visa here >>

 

3. Why Employers Need a Sponsorship Licence to Employ Foreign National Workers

 

To sponsor a foreign worker for a visa, a UK employer must first obtain a sponsorship licence from the Home Office. The licence essentially enables the Home Office to ensure that employers meet specific standards in terms of eligibility, compliance and the ability to fulfil their sponsorship duties. Without this licence, an organisation cannot legally employ non-UK resident workers under sponsored visa work routes.

The application process for a sponsorship licence involves providing detailed information about the organisation, demonstrating that it is operating legally in the UK, and showing that there is a genuine need to hire a foreign worker. Employers must also prove that they have appropriate systems in place to monitor sponsored employees and comply with all legal and regulatory obligations.

 

DavidsonMorris Strategic Insight

 

Sponsorship visas can offer employers an operational lifeline, but they demand commitment and investment.

Strategically, visa sponsorship will require integration and alignment with overall workforce planning. With different sponsored routes available, employers will need to understand the options and to assess whether a candidate is likely to meet the relevant requirements. You also need to look beyond the recruitment process – sponsorship involves ongoing compliance expertise and efforts, or you risk Home Office investigations and penalties.

 

 

 

Section B: Eligibility Criteria for Employers

 

For UK employers looking to hire foreign nationals for a sponsorship visa, obtaining a sponsorship licence is a mandatory requirement. However, securing this licence involves meeting specific eligibility criteria and adhering to ongoing responsibilities as outlined by the Home Office in its official guidance for sponsors.

 

1. Requirements for Employers

 

To qualify for a sponsorship licence, UK employers must meet several key requirements that demonstrate their legitimacy and ability to sponsor foreign workers:

 

a. Proof of UK Presence & Trading

The organisation must be legally operating and trading within the UK. The Home Office will require evidence of the organisation’s genuine, physical presence in the UK, such as an office, and being registered with Companies House or the relevant regulatory body. The business must also have appropriate insurance, such as employer’s liability insurance, and be able to demonstrate financial stability.

 

b. Genuine Need for Sponsorship

The employer must show the job is genuine and meets the skill and salary requirements. While the Resident Labour Market Test has been abolished, the Home Office may refuse a licence or a Certificate of Sponsorship if it believes the role is not genuine or has been created primarily to enable a visa application.

 

c. Compliance Systems

Employers must have robust HR systems in place to manage sponsored workers. This includes systems for monitoring employee attendance, keeping records up-to-date, and ensuring that the business can comply with all sponsorship duties. The Home Office conducts both desktop and site visits to assess these systems before granting a licence, as well as during the licence validity period.

 

d. No Previous Immigration or Sponsorship Issues

The business must not have any history of non-compliance with UK immigration rules. If the employer has previously held a sponsorship licence, their history of compliance will be reviewed. Any history of violations or issues could impact the application’s success.

 

2. Sponsorship Compliance Duties

 

Once an employer secures a sponsor licence, maintaining compliance with Home Office regulations is crucial. This includes:

 

a. Regular Audits

The Home Office may conduct audits or site visits to ensure that the employer is complying with sponsorship duties. Failure to comply can result in penalties, including the suspension or revocation of the sponsorship licence.

 

b. Training and Awareness

Employers must ensure that all staff involved in the sponsorship process are adequately trained and aware of their responsibilities. This is particularly important for HR personnel who will be managing the compliance aspects of the sponsorship.

 

3. Key Responsibilities of Sponsoring Employers

 

One of the primary responsibilities of sponsoring employers is maintaining accurate records and reporting relevant changes to the Home Office. These responsibilities include:

 

a. Record-Keeping

Employers must keep detailed records of all sponsored workers, including copies of their passports, evidence of their right to work in the UK, and any other relevant documentation. Records must also be kept of the worker’s job description, salary, and employment contract.

Employers are required to retain records for a minimum of six years or for the duration of the sponsorship, whichever is longer. These records must be readily available for inspection by the Home Office.

 

b. Reporting Duties

Sponsoring employers are obligated to report certain changes to the Home Office within specific timeframes. This applies to changes in relation to the worker; for example, sponsors must report if a new worker fails to start, ends employment early or changes role or salary within 10 working days, and employers must also report any changes to the organisation itself, such as changes in ownership, address, or key personnel involved in the sponsorship process, usually within 20 working days. These reports should be made on the Sponsor Management System (SMS).

 

c. Ensuring the Worker is Eligible for the Role

Sponsoring employers have a responsibility to ensure that the foreign national they intend to hire is eligible for the role they are being sponsored for.

The job must meet the criteria set by the Home Office for a skilled role, including being at the appropriate skill level (usually RQF Level 6 or above, or those on the Immigration Salary List (ISL) or Temporary Shortage List (TSL)) and offering a salary that meets or exceeds the minimum threshold for the visa category. Employers must ensure that the job description, duties and remuneration are consistent with these requirements.

Employers must verify that the foreign worker possesses the necessary qualifications, skills, and experience for the role. This may involve checking academic credentials, professional certifications and references.

Before the worker starts their employment, the employer must conduct a right to work check. This involves verifying the worker’s visa status and ensuring they have the legal right to work in the UK for the duration of their employment.

 

 

DavidsonMorris Strategic Insight

 

Central to the sensor licence application criteria will be your HR systems and processes. The Home Office is looking for evidence that you are set up to meet the sponsorship obligations and to manage your licence competently.

Organisational capability should be assessed to identify areas of compliance and weakness. In many cases, this means investing upfront in improving (or establishing) HR systems, record-keeping protocols and a sustained training programme of all relevant personnel.

 

 

 

Section C: Sponsor Licence Application Process

 

To obtain a UK sponsorship visa licence, the employer must submit the application online via the Sponsor Management System, the government’s web portal for sponsor licence holders. All supporting documentation required to validate the application will need to be submitted within five working days of the initial application.

The organisation will need to provide at least four supporting documents to verify their organisation. The documentary requirements will vary depending on the nature of the organisation and the vacancies it is looking to fill under the sponsored visa route.

Failure to provide the necessary documentation in support of the application for a UK sponsorship visa licence risks the application being significantly delayed or even refused.

The Home Office will notify the employer of the outcome of the sponsorship licence application via the Sponsor Management System, and provide written reasons in cases of refusal. If refused, the employer will, in most cases, have to wait at least a further six months before re-applying.

 

1. Step-by-Step Guide to Applying for a Sponsorship Licence

 

Step 1: Preparing Your Business

Before starting the application process, it is essential to ensure that your business is fully prepared.

Ensure that your business meets the basic eligibility criteria for a sponsorship licence, including legal operation in the UK, having a genuine need to hire foreign workers, and having no history of non-compliance with UK immigration rules.

 

a. Establishing HR Systems

Set up robust HR systems to manage and monitor sponsored employees. This includes systems for record-keeping, reporting to the Home Office, and ensuring compliance with all sponsorship duties. Having these systems in place before applying can prevent delays and issues during the application process.

 

b. Assigning Key Personnel

Identify and assign key personnel within your business who will be responsible for managing the sponsorship process. These roles include the Authorising Officer, who has to be a senior employee responsible for the sponsorship licence; the Key Contact, who is the main point of contact with the Home Office, and the Level 1 User, who is the person responsible for the day-to-day management of the sponsorship system, including issuing Certificates of Sponsorship.

 

c. Reviewing the Job Roles

Ensure that the job roles you intend to fill with foreign workers meet the relevant visa skill level and salary requirements. The roles should be clearly defined, and the need for a foreign worker should be justified.

 

Step 2: Online Application Process

Once your business is prepared, you can proceed with the online application process:

Visit the Home Office website and create an account on the Sponsorship Management System. This system will be used to manage your sponsorship licence, including issuing Certificates of Sponsorship and reporting changes.

Fill out the online application form. The form will require detailed information about your business, the types of visas you wish to sponsor, and the job roles you intend to fill. Be thorough and accurate in providing all required details.

To submit the form, you will need to pay the licence application fee. The fee for a Worker sponsorship licence varies depending on the size of your business: £574 for small or charitable sponsors and £1,579 for medium/large sponsor. Temporary Worker sponsor licences cost £574 each to apply, regardless of organisation size. The fee must be paid online as part of the application process.

 

Step 3: Submit Supporting Documents

Once the form is completed and the fee is paid, you will need to submit supporting documents. The key reference document here is Appendix A. Employers are typically asked for at least four supporting documents, but the required set depends on the organisation’s structure, as prescribed in the most recent version of Appendix A. As a general guide, the following documents are typically required when applying for a sponsorship licence:

 

a. Proof of Business Registration: A copy of your business’s registration with Companies House or other relevant regulatory bodies.

b. Proof of Business Address: Documents proving your business’s physical address, such as utility bills, lease agreements, or official correspondence.

c. Employer’s Liability Insurance: A copy of your employer’s liability insurance certificate, showing coverage for at least £5 million.

d. Bank Statements: Recent bank statements demonstrating the financial stability of your business.

e. Corporate Structure: Documentation outlining your business’s corporate structure, including details of parent companies, subsidiaries, and key personnel.

f. HR Policies and Procedures: Copies of your HR policies and procedures, particularly those related to monitoring and managing sponsored employees.

g. Job Descriptions and Contracts: Detailed job descriptions for the roles you intend to sponsor, along with employment contracts that meet the Home Office requirements.

Table: Required Documents for Sponsorship Licence Application

Document Name
Description
Required For
Submission Format
Proof of Business Registration
Companies House registration or equivalent proof of legal operation
Small & Large Sponsors
Digital copy (PDF)
Proof of Business Address
Utility bill, lease agreement, or official correspondence
Small & Large Sponsors
Digital copy (PDF)
Employer’s Liability Insurance
Certificate showing coverage for at least £5 million
Small & Large Sponsors
Digital copy (PDF)
Bank Statements
Recent statements showing financial stability
Small & Large Sponsors
Digital copy (PDF)
Corporate Structure Document
Outline of parent companies, subsidiaries, and key personnel
Large Sponsors
Digital copy (PDF)
HR Policies and Procedures
Documents showing compliance with UKVI regulations
Small & Large Sponsors
Digital copy (PDF)
Job Descriptions
Detailed job descriptions for roles to be sponsored
Small & Large Sponsors
Digital copy (PDF)

 

The full list of required documents is set out in Appendix A, and will depend on factors such as the type of organisation that is applying. However, the mandatory documents will also need to be further supported by additional evidence to ensure the Home Office is given comprehensive proof of your organisation’s eligibility for the licence. Taking professional guidance will ensure your submission includes all necessary and additional documentation to meet the application requirements and the specific circumstances of your organisation.

 

Step 4: Await Decision

After submitting your application and supporting documents, the Home Office will review your application. The review process typically takes several weeks, during which the Home Office may conduct a site visit to verify your compliance systems. Once the review is complete, the Home Office will notify you of their decision.

If the application for a UK sponsorship visa licence is successful, the employer will be added to the list of UK sponsors and granted a licence with an “A” licence rating. This will allow them to assign certificates of sponsorship to each foreign worker they sponsor.

 

2. Sponsor Licence Application Tips

 

Errors or issues with your licence application can result in delayed processing and potentially a refusal. Avoid this by following these best practices:

 

a. Double-Check All Details

Ensure that all information provided in the application form and supporting documents is accurate and consistent. Discrepancies can lead to delays or rejection of your application.

 

b. Prepare for a Site Visit

Be ready for a potential site visit from the Home Office. Ensure that your HR systems are functioning correctly, your records are up-to-date, and your key personnel are prepared to demonstrate compliance.

 

c. Organise Your Documentation

Expect your supporting documentation bundle to be extensive. Compile all the required documents in an organised and accessible format to help both during the application process and in the event of any follow-up information requests.

 

d. Take Legal Advice

Contact our sponsor licence specialists for expert support and guidance on applying to become a licensed sponsor. We can help identify any potential issues and provide guidance on meeting the licence and visa sponsorship requirements.

You can read our extensive guide to Sponsor Licence Applications here >>

 

 

DavidsonMorris Strategic Insight

 

Central to the sensor licence application criteria will be your HR systems and processes. The Home Office is looking for evidence that you are set up to meet the sponsorship obligations and to manage your licence competently.

Strategically, this requires a realistic assessment of your organisation’s capability, to find both strengths and gaps. In practice, this often means investing early in building a compliant HR infrastructure, record-keeping protocols and a sustained training programme of all relevant personnel.

 

 

 

Section D: Sponsor Licence Costs and Fees

 

When applying for a sponsorship licence and hiring foreign workers under the UK Sponsorship Visa system, it will be important to understand the fees and costs you will need to meet – both in relation to the application and on an ongoing basis.

 

1. Sponsor Licence Application Fees

 

The level of fee for a UK sponsorship visa licence will depend on the size of the organisation and the type of sponsor licence being applied for.

The fee for medium or large sponsors for a Worker Sponsor Licence is currently £1,579 while the fee for small or charitable sponsors is £574. Temporary Worker licences cost £574 irrespective of size.

To qualify as a small sponsor, an organisation typically needs to satisfy at least two of these conditions: an annual turnover of no more than £15 million, total assets valued at £7.5 million or less, or a workforce of 50 or fewer employees. For charitable sponsor status, the organisation must be a registered charity in England or Wales, Scotland, or Northern Ireland, with unregistered Northern Irish charities providing evidence of their charitable tax status from HMRC. Other qualifying charitable entities include excepted charities, exempt charities, and ecclesiastical corporations set up for charitable objectives.

 

Table: Sponsor Licence Application Fees

Type of Sponsor LicenceSponsor Licence Application Fee
Worker sponsor licence (large sponsor )£1,579
Worker sponsor licence (small sponsor)£574
Student sponsor licence£574
Temporary Worker sponsor licence£574
Worker and Temporary Worker sponsor licence (large sponsor)£1,579
Worker and Student sponsor licence (large sponsor)£1,579
Worker, Temporary Worker and Student sponsor licence (large sponsor)£1,579
Temporary Worker and Student sponsor licence£574
Worker sponsor licence (large sponsor), where sponsor currently holds a Temporary Worker and/or Student Sponsor Licence£1,005

 

Employers also have the option to sign up for the premium sponsor scheme. The fee for the premium service can range from £8,000 for sponsors who qualify as a small or charitable organisation and have paid the lower licence application fee, to £25,000 for medium or large organisations. Under this scheme, the employer will receive an enhanced level of support with their own dedicated account manager.

In accordance with the reporting duties, the employer must let the Home Office know as soon as possible, and in any case within 10 working days, if the size or type of the business changes, as this will affect the amount payable for each certificate of sponsorship and skills charge.

Failure to inform the Home Office within this time limit can result in enforcement action, including downgrading, suspending or revoking the UK sponsorship visa licence.

 

2. Immigration Skills Charge

 

Under the Immigration Skills Charge Regulations 2017, sponsors are liable to pay the Immigration Skills Charge each time they sponsor a migrant worker under the points-based system. This is payable when assigning the Certificate of Sponsorship.

Small or charitable organisations will pay the ‘small’ charge, that is £364 for any stated period of employment up to 12 months, plus £182 for each subsequent 6-month period stated on the certificate.

In all other cases, employers must pay the ‘large’ charge, that is £1,000 for any stated period of employment up to 12 months, plus £500 for each subsequent 6-month period stated on the certificate.

Under the government’s Immigration White Paper proposals, the Immigration Skills Charge is expected to increase to £480 for small or charitable sponsors for the first 12months, and £240 for each additional 6-month period, and for medium or large sponsors, £1,320 for the first 12 months and £660 for each additional 6-month period. However, these increases are not yet in force.

Unless an exception applies, the employer must pay the charge each time it assigns a certificate of sponsorship to a sponsored worker who is either:

 

a. Applying from outside the UK for entry clearance to work in the UK for 6 months or more or

b. Applying from within the UK for leave to remain of any duration, including for less than 6 months.

 

3. Assigning Certificates of Sponsorship

 

The employer must assign a Certificate of Sponsorship to each foreign worker they sponsor. This is an electronic record, not a physical document, and contains a unique number that the worker can use to apply for a visa.

When assigning certificates of sponsorship under the UK sponsorship visa licence, the employer will need to pay a fee of £525 for any CoS issued under a Worker sponsor licence, such as to a Skilled Worker visa holder.

It costs £55 to assign a Certificate of Sponsorship under a temporary worker visa.

Table: Cost Breakdown for Sponsorship

Cost Type
Small Sponsor Fee
Large Sponsor Fee
Details 
Sponsorship Licence Application (Worker licence)
£574
£1,579
One-time application fee
Immigration Skills Charge (ISC)
£364 per year
£1,000 per year
Per sponsored worker, exemptions apply
Certificate of Sponsorship (CoS) under Temporary Worker Licence
£55
£55
Per sponsored worker, payable for each CoS issued
Certificate of Sponsorship (CoS) under Worker Licence
£525
£525
Per sponsored worker, payable for each CoS issued

 

You can read our extensive guide to the Certificate of Sponsorship here >>

 

4. Visa Application Fees

 

Although this cost is typically borne by the employee, some employers choose to cover the visa application fee as part of a benefits package. The cost varies depending on the visa type and the duration of stay.

 

5. Legal Fees

 

Given what is at stake, many organisations opt to engage immigration lawyers to assist with the sponsorship licence application and compliance management. The fees for these services can vary depending on the complexity of the case and the level of support required.

 

6. Ongoing Sponsorship Costs

 

Beyond the initial costs of obtaining a sponsorship licence, employers must budget for ongoing expenses related to maintaining the sponsorship and ensuring compliance with UK immigration regulations.

Maintaining compliance with UK regulations requires ongoing investment in HR systems and training for staff involved in the sponsorship process. Regular audits and potential legal advice should also be considered in the budget.

Non-compliance with sponsorship duties can result in significant fines, legal costs and even the loss of the sponsorship licence. Businesses should allocate funds for potential contingencies and ensure that their compliance systems are robust.

 

 

DavidsonMorris Strategic Insight

 

Employers (particularly first-time sponsors) should strategically evaluate the financial implications of sponsoring overseas workers against workforce benefits, including recruitment and retention of specialised talent. Poor budgeting can create unwanted financial pressures.

 

 

 

Section E: Sponsorship Visa Requirements for the Skilled Worker Route

 

The points‑based system includes a Skilled Worker route for overseas nationals who have a job offer from an approved sponsor. Applicants must score at least 70 points based on factors such as sponsorship, skill level, salary and English language. Following the government’s May 2025 Immigration White Paper, the Immigration Rules were updated on 22 July 2025 with higher skill and salary thresholds. Key changes include:

 

  • Skill level: New sponsorship is generally limited to graduate‑level roles (RQF 6). Sponsors may only offer jobs RQF 3-5 if the occupation appears on the Immigration Salary List (ISL) or Temporary Shortage List (TSL), or if the worker already held Skilled Worker permission in a medium‑skilled role before 22 July 2025 and is covered by transitional provisions.
  • Salary thresholds: The general minimum salary is the higher of £41,700 per year and the full going rate for the occupation (‘Option A’). Lower general thresholds apply under other points options: for example, £37,500 for a relevant PhD (Option B) or £33,400 for a STEM PhD, a job on the ISL or a new entrant (Options C–E). For health‑ and care‑sector roles, separate tables apply with thresholds starting at £31,300 or £25,000. Employers must also pay at least the specified percentage of the going rate for the role.
  • Care sector roles: New recruitment of care and senior care workers from overseas has ceased for new visas post‑22 July 2025. Transitional rules allow workers already sponsored in care roles before that date to continue under existing permissions, provided continuous employment is maintained.

 

There is no labour‑market test, but sponsors must demonstrate that the job is genuine and meets the skill and salary requirements.

 

 

DavidsonMorris Strategic Insight

 

When hiring under the Skilled Worker route, you’ll need to assess the candidate and the role itself to confirm that both meet the visa criteria. This is rarely a straightforward process, since the rules cover complex criteria like skill level and salary thresholds. The onus is on the employer to apply these rules correctly or risk refused applications and enforcement action, potentially derailing the recruitment process.

 

 

 

Section F: Managing Your Sponsor Licence

 

Once granted a sponsor licence, your organisation will be subject to ongoing compliance and management obligations.

 

Risk AreaDescriptionRisk Rating (Low/Med/High)Action Required
HR systemsAre HR processes aligned with UKVI requirements?
Record-keepingAre all CoS-related documents maintained and accessible?
Reporting changesAre role changes and early leavers reported within 10 working days?
Right to work checksAre checks being done correctly and on time?
SMS accessAre Level 1 users and Authorising Officers trained and active?

 

 

1. Reporting Requirements

 

One of the most important aspects of managing a sponsorship licence is fulfilling the regular reporting requirements. These obligations ensure that the Home Office can monitor the activities of sponsors and the foreign workers they employ. Key reporting requirements include:

 

a. Changes to the Sponsored Worker’s Employment

Employers must report any significant changes to a sponsored worker’s employment within 10 working days. This includes changes in job title, duties, salary (outside of standard annual pay increases), work location, or working hours.

 

b. Absences and Non-Attendance

If a sponsored worker fails to start their employment, is absent without permission for more than 10 consecutive days, or their employment is terminated earlier than expected, the employer must report these events promptly on the Sponsorship Management System.

 

c. Changes to the Sponsoring Business

Any changes to the business itself, such as changes in ownership, company name, or key personnel involved in managing the sponsorship licence, must be reported. This includes changes to the address of the company or significant changes in business structure.

 

d. Reporting on Compliance

Periodically, the Home Office may request information or documentation to ensure ongoing compliance. Employers must respond to such requests promptly and accurately, providing all required information.

 

e. Annual Compliance Reports

Premium sponsors and those specifically identified by the Home Office may be required to submit annual compliance reports to the Home Office, summarising their sponsorship activities and confirming their adherence to all sponsorship duties.

 

2. Staying Compliant with Home Office Rules

 

Maintaining compliance with UK Immigration Rules is a continuous responsibility that requires careful attention to detail and diligent management.

Non-compliance with the rules can result in serious consequences, including fines, the suspension or revocation of the sponsorship licence, and the potential barring of the employer from sponsoring workers in the future. Maintaining a proactive approach to compliance is essential to avoid these risks.

Key areas of focus include:

 

a. Record-Keeping

Employers must maintain detailed records of all sponsored workers for the duration of their sponsorship and for at least six years thereafter. These records include copies of the worker’s passport, right-to-work documentation, employment contracts, and evidence of their qualifications and skills.

 

b. Monitoring and Reporting Systems

Employers must have systems in place to monitor the whereabouts and activities of sponsored workers. This includes tracking absences, ensuring that the worker’s duties align with the role described in the Certificate of Sponsorship, and confirming that the worker continues to meet the conditions of their visa.

 

c. Conducting Right to Work Checks

Employers must conduct a right to work check before the employment begins. Follow-up checks are only required where the individual has time-limited permission to work in the UK. Failure to conduct these checks properly can result in fines and legal penalties.

 

d. Preparing for Immigration Audits

The Home Office may conduct site visits or audits to assess an employer’s compliance with sponsorship duties. Employers should be prepared for these audits by ensuring that all records are up-to-date, key personnel are knowledgeable about compliance requirements, and that HR systems are functioning effectively.

 

Table: Compliance Checklist

Compliance Requirement
Frequency
Responsible Personnel
Reporting Method
Consequences of Non-Compliance
Report changes in circumstances
Worker changes within 10 working days, organisation changes within 20 working days
HR Manager / Level 1 User
Through SMS
Fines, licence suspension or revocation
Conduct right to work checks
At hiring, periodically
HR Manager
Physical/digital document verification
Fines, legal penalties
Maintain accurate records
Ongoing, for 6 years
HR Manager / Compliance Officer
Internal database
Issues during UKVI audits, potential fines
Annual CoS allocation request
Annually
Authorising Officer
Through SMS
Delay in hiring if not submitted
Notify UKVI of business changes
Within 20 working days
Key Contact / Authorising Officer
Through SMS
Fines, compliance issues

 

3. Changing Your Licence

 

As your organisation evolves, you may need a different type of sponsorship licence to meet new operational needs. The licence you need depends on whether the workers you want to fill your jobs are ‘Workers’ – for skilled or long-term employment or ‘Temporary workers’ – for specific types of temporary employment.

You can apply for a licence covering one or both types of worker, or you can apply for a different type of licence to enable you to hire a different classification of sponsored worker.

You can action this by submitting an application for a change of circumstances through the Sponsorship Management System.

 

 

DavidsonMorris Strategic Insight

 

Compliance is generally known to be an unwanted headache, but it’s a non-negotiable for sponsorship visas. Proactive licence management will sustain your organisation’s long-term capability to recruit global talent and will help to avert disruption to business operations caused by compliance issues.

 

 

 

Section G: Common Sponsorship Challenges

 

The UK Sponsorship Visa system can be complex and challenging for employers, especially those new to the process and unfamiliar with the rules.

While obtaining a sponsorship licence is a significant achievement, maintaining compliance and managing sponsored employees is a mandatory obligation on sponsors and can present a range of difficulties in practice.

 

Table: Common Sponsorship Challenges and Solutions

Challenge
Description
Potential Impact
Recommended Solution
Resources Available
Delays in application processing
Slow UKVI processing due to incomplete or inaccurate applications
Delays in hiring, project setbacks
Double-check applications, use checklists
UKVI website, immigration consultants
Mistakes in compliance
Errors in reporting or record-keeping
Fines, suspension of licence
Implement robust HR systems, regular audits
Legal advisers, UKVI guides
Managing SMS
Difficulty in navigating the Sponsorship Management System
Errors in CoS issuance, reporting delays
Train key personnel, seek expert guidance
UKVI SMS manual, training workshops
Changing immigration policies
Adjusting to new rules or visa requirements
Compliance risks, legal issues
Stay informed, consult with legal experts
UKVI updates, immigration lawyers

 

1. Delays in Application Processing

 

One of the most common challenges employers face is delays in the processing of sponsorship licence applications or visa applications for sponsored workers. This can impact your recruitment process and, in cases of severe delays, can result in the job applicant withdrawing their interest in your organisation.

Delays can occur for several reasons. If the initial application for a sponsorship licence or visa is incomplete or contains errors, the Home Office may request additional information, which can significantly extend processing times.

At certain times of the year, such as after major policy changes or during peak hiring seasons, the Home Office may experience a high volume of applications, leading to longer processing times.

The Home Office may conduct site visits or request additional documentation to verify the employer’s compliance with sponsorship requirements. While these checks are essential, they can also cause delays in the approval.

Sudden changes in immigration policy or the introduction of new visa categories can lead to confusion and delays as employers and the Home Office adjust to the new rules.

 

2. Compliance Breaches

 

Maintaining compliance with Home Office regulations is crucial for keeping a sponsorship licence in good standing, but

Compliance mistakes are not uncommon, but employers have to be proactive in understanding and meeting their obligations.

Employers are required to report significant changes to a sponsored worker’s employment status or the business’s circumstances within strict timeframes. Failing to do so can lead to non-compliance penalties.

Poor record-keeping practices, such as missing or outdated documentation, can result in compliance issues during Home Office audits. Employers must keep detailed records of sponsored workers and ensure that these records are easily accessible.

Employers must conduct right to work checks before hiring a foreign worker and at regular intervals during their employment. Mistakes in this process, such as failing to verify a worker’s visa status, can lead to fines and legal penalties.

 

3. Failure to Update Sponsorship Management System

 

The Sponsorship Management System is used to manage sponsorship activities, including issuing Certificates of Sponsorship and reporting changes to the Home Office. The Home Office requires the Sponsorship Management System to be accurate and updated, with all relevant changes reported within the specified timeframes, typically 10 or 20 working days depending on the change.

Errors in managing the Sponsorship Management System, such as incorrect data entry or failure to update information, can cause compliance issues and penalties.

 

4. Failure to Train & Support Key Personnel

 

Employers with a sponsor licence should take proactive steps to ensure their key personnel are informed, trained and able to fulfil the compliance duties.

Key roles include the Authorising Officer, who oversees compliance, the Key Contact, who manages communication with UK Visas and Immigration, and the Level 1 User, responsible for day-to-day operations within the Sponsorship Management System.

 

Table: Roles and Responsibilities in Sponsorship Management

Role
Key Responsibilities
Training Required
Reporting Lines
Tools/Systems Used
Authorising Officer
Overall responsibility for the sponsorship licence
Comprehensive knowledge of UKVI rules
Reports to senior management
Sponsorship Management System (SMS)
Key Contact
Main communication link with UKVI
Understanding of visa processes and SMS
Reports to Authorising Officer
SMS, email correspondence
Level 1 User
Day-to-day management of the SMS, issuing CoS
SMS system training, knowledge of compliance
Reports to Authorising Officer
SMS, internal HR systems
Compliance Officer
Ensures adherence to sponsorship duties, conducts audits
In-depth knowledge of UKVI regulations
Reports to Authorising Officer/HR Manager
Internal compliance tools
HR Manager
Conducts right-to-work checks, manages employee records
Right to work check procedures, HR software
Reports to senior management/Compliance Officer
HR software, document management systems

 

Mismanagement by key personnel is a leading cause of sponsor licence suspension or revocation. Regular training sessions, either in-house or through external immigration experts, can help keep staff informed of any changes in immigration law or Home Office requirements. Training for these personnel should include how to use the Sponsor Management System, how to carry out right to work checks, CoS assignment, record-keeping duties and UKVI compliance obligations.

Employers should also consider implementing robust monitoring and auditing systems to ensure that all processes are followed correctly, providing additional support to key personnel and reducing the risk of compliance failures.

The risks of failing to train and support key personnel are significant. Non-compliance can lead to penalties, including fines and suspension or revocation of the sponsorship licence.

Any errors in managing the licence can also cause significant operational disruption to the organisation and its ability to employ foreign workers.

 

Section H: Summary

 

A UK Sponsorship Visa allows employers to hire non-UK skilled workers who do not already have the right to work for the vacant role. Employers must first obtain a sponsorship licence from the Home Office, demonstrating that they meet certain requirements, including a genuine need to fill the role in question.

Once a licence is granted, employers can issue Certificates of Sponsorship to foreign workers, enabling them to apply for a sponsored visa.

Key considerations for employers include ensuring compliance with Home Office regulations, such as conducting Right to Work checks, maintaining accurate records and reporting any changes in a worker’s status. Failure to meet these obligations can lead to penalties, including fines, or suspension or revocation of the sponsorship licence.

There are also financial implications of managing a sponsor licence, such as the Immigration Skills Charge, which can add to the cost of hiring overseas talent. Employers must weigh these costs and compliance risks against the benefits of accessing a broader talent pool.

 

Section I: Need Assistance?

 

Given the upfront investment required – in terms of the time and costs of finding the right candidate, making the licence application and compiling supporting documents – taking professional advice can help ensure you are following the process as required, that your submission aligns to the eligibility criteria and that any delays are avoided in processing your application. You will want to avoid issues that result in delays that may put the recruitment process at risk.

For advice on sponsorship licences and hiring workers under a UK sponsorship visa route, contact us.

 

Section J: UK Sponsorship Visa FAQs

 

What is a Sponsorship Visa, and why do UK employers need it?

A Sponsorship Visa allows UK employers to legally hire skilled workers from outside the UK. Employers need it to fill roles that require specific expertise not readily available within the domestic workforce. Without a sponsorship licence, employers cannot sponsor foreign workers, making it essential for businesses looking to recruit internationally.

 

What are the basic eligibility criteria for a UK sponsorship licence?

To qualify for a sponsorship licence, your business must be legally operating in the UK, have a genuine need to hire foreign workers, and possess the necessary systems to monitor and manage sponsored employees. Your business must also have no history of non-compliance with UK immigration laws.

 

How much does it cost to obtain a sponsorship licence?

The cost of a sponsorship licence varies depending on the size of your business. Small sponsors and charities pay £574, while large sponsors pay £1,579. Additional costs, such as the Immigration Skills Charge and fees for Certificates of Sponsorship, also apply.

 

What types of visas can UK employers sponsor under the sponsorship licence?

Employers can sponsor a variety of visas, including the Skilled Worker Visa, Global Business Mobility Visa, Health and Care Worker Visa, and Temporary Worker Visa. Each visa type is designed for different roles and skill levels, catering to the specific needs of various industries.

 

How long does it take to get a sponsorship licence?

The processing time for a sponsorship licence application can vary but typically takes up to 8 weeks. Delays can occur if the application is incomplete, if there are high volumes of applications, or if the Home Office decides to conduct a site visit or additional compliance checks.

 

What are the ongoing compliance responsibilities for employers with a sponsorship licence?

Employers must fulfil several ongoing responsibilities, including keeping accurate records of sponsored employees, conducting regular right-to-work checks, and reporting any changes to the sponsored worker’s employment or the business’s circumstances to the Home Office. Non-compliance can result in fines, suspension, or revocation of the licence.

 

What are common challenges faced during the sponsorship process?

Common challenges include delays in application processing, mistakes in compliance, and difficulties in navigating sector-specific requirements. These challenges can be mitigated by thorough preparation, implementing robust compliance systems, and seeking expert advice when needed.

 

Are there sector-specific considerations for sponsorship visas?

Different sectors have unique requirements. For example, the healthcare sector often relies on the Health and Care Worker Visa, while the tech industry may prioritise the Skilled Worker Visa or a Scale up visa.

 

Section K: Glossary

 

Term
Definition
Sponsorship Licence
A permit that UK employers must obtain to legally sponsor foreign workers under certain visa categories. It allows businesses to hire skilled non-UK workers.
Skilled Worker Visa
A visa category for skilled workers with a job offer from a licensed UK employer. Applicants must meet specific skill and salary thresholds.
Health and Care Worker Visa
A visa for healthcare professionals who have a job offer in the UK. It allows workers in the health and care sectors to fill critical roles and includes reduced fees.
Certificate of Sponsorship (CoS)
A digital certificate issued by a licensed sponsor to a foreign worker, which is required for visa applications under most work visa categories.
Immigration Skills Charge (ISC)
A levy imposed on UK employers for each foreign worker they sponsor under certain visa categories. The charge is aimed at funding UK training programmes.
Sponsorship Management System (SMS)
An online platform used by UK employers to manage their sponsorship licences, issue Certificates of Sponsorship, and report changes to UKVI.
Immigration Salary List
A list of occupations which reduced minimum salaries for visa sponsorship.
Right to Work Check
A mandatory check that employers in the UK must perform to verify that a worker has the legal right to work in the UK. This applies to all employees, not just those on visas.
UK Visas and Immigration (UKVI)
The UK government agency responsible for managing the country’s visa and immigration system, including the issuance of sponsorship licences.
Resident Labour Market Test (RLMT)
A former requirement where employers had to demonstrate that no suitable settled worker was available before offering a job to a non-UK worker (no longer required).
Intra-Company Transfer Visa
Now-closed visa that allowed multinational companies to transfer employees from an overseas branch to a UK branch of the same company.
Sponsor’s Duties
Legal responsibilities that a sponsoring employer must fulfil, such as maintaining records, conducting right-to-work checks, and reporting to UKVI.
Compliance Audit
An inspection by UKVI to ensure that a sponsoring employer is fulfilling its duties and complying with immigration laws.
Authorising Officer
A senior employee responsible for overseeing the sponsorship licence and ensuring compliance with UKVI regulations within the organisation.
Key Contact
The primary person responsible for communication between the sponsoring organisation and UKVI.
Level 1 User
The person responsible for the day-to-day management of the Sponsorship Management System (SMS), including the issuance of Certificates of Sponsorship.

 

 

Section L: Additional Resources

 

ResourceLinkDescription
UK Visas and Immigration (UKVI) Sponsorship Licenceshttps://www.gov.uk/uk-visa-sponsorship-employersThe official UK government page providing comprehensive guidance on obtaining a sponsorship licence, including eligibility criteria, application processes, and maintaining compliance with UK immigration laws.
Home Office Immigration Statisticshttps://www.gov.uk/government/collections/migration-statisticsA collection of regularly updated statistical reports covering various aspects of immigration to the UK, including work visas, study visas, and family-related migration. These reports offer valuable insights into migration trends and policy impacts.
GOV.UK Skilled Worker Visahttps://www.gov.uk/skilled-worker-visaThe official guide to the Skilled Worker Visa, detailing the application process, eligibility requirements, and the responsibilities of both employers and visa applicants. This is an essential resource for those looking to understand the Skilled Worker Visa in detail.
British Medical Association – Immigration Advice for Healthcare Workershttps://www.bma.org.uk/advice-and-support/international-doctors/coming-to-work-in-the-uk/immigration-overviewA resource specifically for healthcare professionals, providing guidance on immigration issues, visa applications, and sponsorship under the Health and Care Worker Visa category. It also offers advice on compliance with UK healthcare regulations.
UK Council for International Student Affairs (UKCISA)https://www.ukcisa.org.uk/Information–Advice/Working/Working-during-your-studiesA resource aimed at international students and their employers, providing guidance on work visa options during and after studies in the UK. It includes information on switching from a student visa to a work visa, which is particularly relevant for employers looking to retain international graduates.

 

About our Expert

Picture of Anne Morris

Anne Morris

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.
Picture of Anne Morris

Anne Morris

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.

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Legal Disclaimer

The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.