PBS Licence Guide for UK Employers

Section A: What is a PBS licence?

A PBS licence is the permission needed from UKVI to be able to recruit overseas nationals to work in the UK under certain sponsored immigration routes of the UK’s points-based immigration system.

The PBS licence is required to verify that the sponsoring employer agrees to meet all of the duties and obligations associated with sponsoring a migrant and that the worker will fill a genuine vacancy.

Under the points-based immigration system, migrant workers coming to the UK must meet a specific set of requirements for which they will score points, where visas are then awarded to those who gain the minimum number of points required.

For example, under the Skilled Worker route, a worker must be awarded 50 mandatory points for their sponsorship, proposed job offer and English language skills, together with 20 tradeable points for their proposed salary and other attributes. Similarly, under the Scale-up route, an applicant applying for entry clearance must be awarded a total of 70 points for their sponsorship, English language skills and a financial requirement.

In broad terms, the points-based system provides flexible arrangements for UK employers to recruit foreign workers through a number of different immigration routes, accessing people and talent from around the world, although employers will first need a PBS licence to hire most eligible employees from outside the UK. In addition to the Skilled Worker and Scale-up route, other sponsored routes for which a PBS or sponsor licence will be needed to include the Minister of Religion and International Sportsperson routes, as well as any one of the Global Business Mobility (GBM) routes or any one of the Temporary Worker routes.

1. Types of PBS licence

Under the UK’s points-based immigration system, there are two main types of sponsor licence: the ‘Worker’ PBS licence and the ‘Temporary Worker’ PBS licence. The type of licence you need will depend on whether the workers you want to fill your jobs are skilled workers with short or long-term job offers, or skilled temporary workers. You can apply for a licence covering either type or both.

a. Worker Licence

The ‘Worker’ PBS licence will allow an approved sponsor to recruit overseas nationals in various different types of skilled employment in the UK, both in the short and long-term, or even on a permanent basis, depending on the immigration route in question. The ‘Worker’ PBS licence can be sub-categorised into the following four routes:

• Skilled Worker route: for workers to fill eligible skilled job roles in the UK
• Senior or Specialist Worker route: for existing employees working for a linked overseas business and transferring to a UK office, previously known as intra-company transferees and now one of five new work routes under the GBM umbrella
• Minister of Religion route: for workers undertaking roles within a faith community in the UK, such as a minister of religion, a missionary or a member of a religious order
• International Sportsperson route: for elite sportspeople and overseas sports coaches looking to work in the UK, on both a short or long-term basis.

b. Temporary Worker Licence

The ‘Temporary Worker’ PBS licence will allow an approved sponsor to temporarily recruit migrant workers for specific types of temporary employment, including:

• Scale-up Worker route: for skilled migrant workers whose skillset and talent will help to ensure the continued growth of a fast-growing UK business
• Creative Worker route: for workers who will be undertaking employment in the UK within the creative sector, such as artists or entertainers
• Charity Worker route: for those undertaking unpaid voluntary work at a UK charity
• Religious Worker route: for those working in a religious organisation in the UK
• Government Authorised Exchange route: for those pursuing work experience in the UK, or undertaking a research project or training
• International Agreement route: for workers coming to do a job in the UK covered by international law, such as an employee of an overseas government
• Seasonal Worker route: for those coming to work within the UK’s poultry sector or horticulture sector, such as picking flowers, or fruit and vegetables
• Graduate Trainee (GBM) route: for an existing trainee working for a linked overseas business and transferring to a UK office as part of a graduate training programme
• Service Supplier (GBM) route: for foreign contractual service suppliers or self-employed independent professionals with a contract to provide services for a UK company
• UK Expansion Worker (GBM) route: for workers being sent to the UK to establish a new branch or subsidiary of an overseas business
• Secondment Worker (GBM) route: for workers transferring from overseas as part of a high-value contract and/or investment to work for a UK business.

The type of PBS licence that an organisation will need when recruiting a migrant worker will depend on the kind of work that the business is able to offer that worker, and whether or not it can meet the specific requirements of the immigration route in question. This means that before applying to be a sponsor, the prospective employer should check that the jobs they want to hire people for will meet the requirements for sponsoring work visas.

Taking the example of the Skilled Worker route, to sponsor an overseas national as a Skilled Worker, the employer’s organisation would first need to have in place a PBS licence on the Skilled Worker route. As such, the organisation must be able to offer genuine employment meeting the relevant route-specific skill-level and salary requirements for Skilled Workers. It is only once the prospective Skilled Worker has been granted a valid Certificate of Sponsorship (CoS) by a licensed sponsor that they will be able to apply for a visa on this route. However, if the sponsor is unable to offer genuine employment meeting the relevant skill and salary requirements, the CoS will not be valid and the visa application will fail.

In some cases, the employer may want to apply for just a Worker licence. In others, they may decide to apply for both a Worker and Temporary Worker licence on different routes.

Section B: PBS Licence Requirements

To be eligible for a PBS (sponsor) licence, your organisation must be both genuine and lawfully operating in the UK. You will be required to provide supporting documentation to evidence this, drawn from the list set out in Appendix A of the Home Office sponsor guidance. In addition to demonstrating lawful trading, your organisation must be capable of meeting its sponsorship duties and offering genuine employment that satisfies the specific requirements of the immigration route in question.

UKVI will assess your organisation’s suitability based on both eligibility and route-specific criteria. This includes reviewing your HR and recruitment systems to ensure that you have appropriate procedures in place to monitor and report on sponsored workers. You must be able to demonstrate that you can comply with ongoing sponsor duties, such as record-keeping and notifying UKVI of changes in worker circumstances.

The Home Office will also expect to see evidence that the roles you intend to sponsor meet the relevant skill and salary thresholds. Sponsorship is not available for low-skilled or casual work, and you will need to show that the vacancy is genuine and meets the minimum criteria for the visa category. If the proposed role does not meet the route-specific requirements, the application will be refused regardless of the organisation’s wider compliance record.

As part of the application process, you will be required to nominate key personnel to manage the licence. These individuals, such as the Authorising Officer and Level 1 User, must be based in the UK and be honest, dependable and reliable. They must not have any unspent criminal convictions for immigration or other relevant offences such as fraud. The Home Office may refuse your application if any nominated person fails these requirements, or if your organisation has a history of non-compliance, insolvency, or is associated with a previously revoked sponsor.

In some cases, additional eligibility conditions will apply depending on the specific visa route. For example, to sponsor a worker under the Scale-up route, your business must meet the criteria of a qualifying Scale up sponsor. This can be achieved through either the standard pathway, where UKVI will assess your employment and turnover growth using HMRC data, or via the endorsing body pathway, where an approved body confirms your business has high growth potential but is not yet able to meet the standard requirements.

Meeting these eligibility requirements in full is a condition of approval. Any weakness in your systems, personnel or vacancy evidence increases the risk of refusal, which in turn delays recruitment and restricts access to overseas talent. Careful preparation of your application and supporting evidence is therefore vital to satisfy the Home Office that your organisation is a suitable sponsor.

Section C: How to Apply for a PBS Licence

The application stage is where many organisations face setbacks. While the online form itself is straightforward, the evidential burden is high and UKVI expects complete accuracy. Missing documents or errors in key personnel details can invalidate the submission and delay recruitment plans. Employers need to be ready to evidence lawful trading, HR systems and route-specific eligibility from the outset. Preparation, including collating the right documentation and ensuring nominated staff meet the Home Office requirements, is what determines whether an application is processed smoothly or rejected at the first hurdle.

1. Application Process

You apply for a sponsor licence by completing the online application form and then emailing the specified supporting documents within 5 working days. The Sponsorship Management System (SMS) is used after a licence is granted to manage the licence and to assign or apply for Certificates of Sponsorship.

While the process of completing the online application form is relatively straightforward, the challenges come with compiling the necessary information and supporting documentation. This evidence is required to show your organisation meets the various general and route-specific requirements to be approved by UKVI as a sponsor.

You must submit the documents specified in Appendix A for your organisation type. The number and content vary by business; all mandatory items must be emailed within 5 working days of submitting the form or the application will be invalid. It is strongly advised to seek expert advice and assistance with compiling the sponsor licence documentation to avoid issues or delays with your application.

All supporting documents must be submitted within five working days of the online application.

The PBS licence application will need to include the names of your appointed key personnel. These roles include an authorising officer (a senior and competent person responsible for the actions of staff and representatives using the SMS); a key contact (the main point of contact with UKVI); and a level 1 user (responsible for all day-to-day management of the PBS licence using the SMS). These roles can be filled by the same person or different people, and additional level 1 and level 2 users can be added if the application is approved.

2. Pre-licence Compliance Visits

In some cases, before making a decision on an application for a PBS licence, UKVI will carry out a pre-licence compliance visit. This is effectively an audit exercise to assess the nature and extent of the organisation’s HR and recruitment practices, where UKVI must be satisfied that the organisation will be capable of managing the sponsorship process and meeting its duties.

Only if the caseworkers are satisfied that the organisation is capable of meeting the compliance duties will a PBS licence application be granted.

During the compliance inspection, the UKVI representatives will have the authority to inspect HR documentation, assess your processes and interview relevant personnel to ensure compliance with your illegal working obligations and to confirm that your organisation does not pose a risk to immigration control. The inspectors will also want to verify that the sponsored roles meet the relevant requirements for skill and salary level. They will also look at how many CoS you have requested, and whether this is appropriate for your organisation’s needs.

We recommend carrying out a mock inspection as part of the sponsor licence application preparation, to ensure your organisation is ‘match-fit’ should the Home Office inform you that they will be attending your premises to carry out an assessment. This exercise will identify areas of non-compliance or risk which can be rectified to avoid issues with your licence application.

3. How much does a PBS licence cost

The cost of a UK sponsor licence can vary, depending on the type of licence sought, as well as the size and charitable status of the organisation in the context of ‘Worker’ sponsor licences.

The cost of applying for a PBS ‘Worker’ licence is £574 for smaller employers and charitable organisations, or £1,579 for all other employers.

The CoS fee is £525 for Worker routes (including Skilled Worker, Minister of Religion, GBM Senior or Specialist Worker and International Sportsperson over 12 months). For Temporary Worker routes (including GBM Graduate Trainee, UK Expansion Worker, Service Supplier, Secondment Worker), Scale-up, Seasonal Worker, Charity Worker, Creative Worker, Religious Worker, Government Authorised Exchange, International Agreement and International Sportsperson up to 12 months, the CoS fee is £55.

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.

The cost of applying for a ‘Temporary Worker’ licence is £574.

The charge is paid up front when a Certificate of Sponsorship is assigned, and the rate depends on the size and type of sponsoring organisation.

From 16 December 2025, the Immigration Skills Charge (payable only for sponsors of Skilled Worker and GBM Senior or Specialist Workers) for medium and large sponsors will rise from £1,000 to £1,320 per worker for the first 12 months, with each additional six months increasing from £500 to £660. For small or charitable sponsors, the rate will rise from £364 to £480 for the first 12 months, and from £182 to £240 for each further six-month period.

You can opt into the Home Office premium customer service scheme to receive enhanced support with a dedicated account manager. The current annual fees are £8,000 for small or charitable sponsors and £25,000 for large sponsors.

4. How long does it take to get a PBS licence?

The standard processing time for an application for a PBS licence is usually 8 weeks, and will start when UKVI receives the application and paperwork, although this can take longer if there are any queries about the information or paperwork submitted. This is why it is best to seek expert assistance, to help navigate the evidential pitfalls.

If the application is approved, the organisation will be added to the online register of sponsors, which provides a list of organisations licensed to sponsor workers on both the ‘Worker’ and ‘Temporary Worker’ routes. The employer will also then be eligible to assign CoS to prospective new recruits to enable them to apply for a visa on the relevant immigration route. The PBS licence will allow the employer to hire employees from anywhere in the world, provided these workers meet the route-specific requirements.

If the migrant worker is approved for a visa, the employer must ensure that they meet the various ongoing sponsorship duties, including reporting any changes and keeping accurate records for each worker they sponsor, otherwise risk having their licence revoked. However, it is worth noting that an organisation’s responsibilities as a Scale-up sponsor will automatically end after 6 months. As a partly sponsored/unsponsored route, a Scale-up worker can either move to another employer without the need for a new sponsorship certificate, or continue working for the same employer on an unsponsored basis.

With sponsor licence applications taking on average 8 weeks to process, some employers may be looking for an expedited decision to be able to recruit and onboard sponsored workers in a shorter timeframe. It may be that the employer does not want to miss out on a valued candidate or that the UK-based vacancy needs to be filled urgently.

For such circumstances, you may be able to pay an additional £500 for a faster decision within 10 working days. Availability is limited and allocated on a first-come, first-served basis, and you will be told how to ask for a faster decision after you apply.

Section D: Managing a PBS Licence

Securing a PBS licence is only the first step. To keep the licence valid and avoid enforcement action, sponsors must meet strict management and compliance duties on an ongoing basis. UKVI monitors sponsors closely and can downgrade, suspend or revoke a licence if they find failures. Employers therefore need clear systems, trained personnel and regular oversight of their recruitment and HR practices to demonstrate continued compliance. Managing a sponsor licence is not an administrative box-ticking exercise but an ongoing legal responsibility that underpins the right to employ overseas nationals in the UK.

1. Compliance Duties

Employers must meet certain ongoing compliance and management requirements under a sponsorship licence, mainly to ensure that the immigration system is not abused. In particular, sponsoring employers are required to comply with the following duties:

• Only assign certificates of sponsorship to workers when the job is suitable for sponsorship.
• Check that any migrant workers have the necessary skills, qualifications or professional accreditations to do their jobs, and keep copies of documents showing this.
• Keep up-to-date records of all migrant workers.
• Report certain employee activities to UK Visas and Immigration (UKVI) if your workers are not complying with the conditions of their visa, such as non-attendance at work.
• Carry out right to work checks on employees to ensure that they are entitled to be in the UK and undertake the job in question.

Scale up sponsor licence responsibilities end after 6 months, but the employer must continue reporting if they issue a new CoS to another Scale-up worker during the licence period.

Any failure to comply with these duties can result in your sponsor licence being downgraded, suspended or revoked.

2. Appointing Key Personnel

One of the fundamental, mandatory requirements on sponsor licence holders is to appoint and have in place key personnel at all times. These include:

• Authorising officer: must be a senior and competent individual within your organisation responsible for the actions of all members of staff or any representatives using the SMS. You must always have an AO in place for your licence to be valid. The AO must be an employee or office holder of the sponsor.
• Key contact: the Home Office’s primary contact for your organisation. They must be appointed and added to your SMS when making your licence application.
• Level 1 User(s): responsible for the day-to-day operation and management of your organisation’s sponsor licence, including tasks such as assigning CoS and reporting changes. You must have at least one Level 1 User who is an employee, director or partner of the organisation and a settled worker, unless a published exception applies.

Certain rules apply as to who you can appoint in each of the roles. For example, key personnel must:

• Be based in the UK while they are acting as key personnel
• Be of good character with no criminal convictions
• In most cases be a paid member of staff or office holder, with the following exceptions:
  • UK-based legal representatives can fill any key personnel role except the role of Authorising Officer
  • If you contract out some or all of your HR functions to an external organisation, you can appoint an employee of that organisation as a Level 1 or Level 2 user on your licence. You must still have at least one Level 1 user who is an employee or office holder of the licence-holding company.

Key personnel cannot be any of the following:

• A representative who is not based in the UK
• A contractor or consultant who is contracted for a specific project
• Subject to a Bankruptcy Restriction Order, or Undertaking
• Subject to a Debt Relief Restriction Order, or Undertaking
• Legally prohibited from being a company director

Section E: Summary

A PBS licence, more formally known as a sponsor licence, is the legal foundation for employing most overseas nationals in the UK. It is not enough to submit the application form and pay the fee. The Home Office looks closely at whether the organisation is genuine, trading lawfully and capable of sustaining the duties that sponsorship demands. Employers must be ready to show robust HR systems, transparent recruitment practices and the ability to monitor and report on sponsored workers. The assessment does not stop once the licence is granted. UKVI can and does carry out inspections to test compliance, and any shortcomings can result in a licence being downgraded, suspended or revoked.

Eligibility requirements extend beyond the organisation to the individuals appointed as key personnel. These roles carry direct responsibility for compliance and must be held by trustworthy people with no disqualifying history. Route-specific rules, such as Scale-up sponsorship or the Global Business Mobility routes, add an extra layer of scrutiny. The cost and evidential burden make preparation crucial. For employers, the licence represents both an opportunity to access international talent and an ongoing compliance obligation. Managing the licence effectively is what ultimately secures recruitment continuity and avoids enforcement risk.

Section F: Need Assistance?

The provisions relating to PBS licences can be both complex and subject to change. As business immigration lawyers, DavidsonMorris can assist with your PBS licence application, with advice and support for your ongoing compliance with duties as a PBS licence holder.

For advice on PBS licence applications or sponsoring overseas workers, contact us.

Section G: PBS Licence FAQs

What is a PBS licence?

A PBS licence, more commonly known as a sponsor licence, is permission granted by UK Visas and Immigration (UKVI) to a UK-based organisation to sponsor foreign nationals under the UK’s points-based immigration system. Without this licence, an employer cannot lawfully hire most overseas workers.

Is a sponsor licence the same as a PBS licence?

The term “PBS licence” refers to the employer licence required under the UK’s points-based system. The official term used by the Home Office is “sponsor licence”.

How long does a PBS licence take to be approved?

The standard processing time is up to eight weeks from the date UKVI receives a complete application and supporting documents. Employers may apply for a priority service, subject to availability, to receive a decision within 10 working days.

Do I need to renew my PBS licence?

Since 6 April 2024, sponsor licences no longer expire and do not require renewal every four years. However, sponsors must continue to comply with all sponsorship duties to avoid revocation.

What’s the difference between a Worker and Temporary Worker licence?

A Worker licence allows you to sponsor workers in long-term skilled roles (e.g. Skilled Worker, GBM routes), while a Temporary Worker licence is for short-term or non-permanent roles (e.g. Creative Worker, Charity Worker). Some routes fall under specific categories, so it’s important to check the correct classification.

Can I apply for both types of sponsor licence at the same time?

Employers can apply for a Worker licence, a Temporary Worker licence, or both. The application process and documentation requirements are similar for each, though separate fees may apply depending on the circumstances.

What if I make a mistake on my application?

Mistakes or missing documentation may result in refusal or delay. Applications must be submitted with accurate and complete information, including appropriate supporting documents. In some cases, UKVI may allow minor corrections after submission, but this is not guaranteed.

Who can be appointed as key personnel on a PBS licence?

Key personnel must be based in the UK, be of good character, and usually be paid staff or office holders. Certain roles may be held by legal representatives or outsourced HR staff, but the Authorising Officer must be a senior person within the sponsor organisation and an employee or office holder. At least one Level 1 User must be an employee, director or partner of the organisation and a settled worker, unless a published exception applies.

What happens if my sponsor licence application is refused?

You cannot appeal a refusal, but you may reapply after a cooling-off period, typically six months, depending on the reasons for the refusal. Seeking legal advice before reapplying is recommended to avoid repeat issues.

Do I need a PBS licence to hire EU nationals?

Except those that hold pre-settled or settled status under the EU Settlement Scheme or are Irish citizens, other EU nationals usually require a valid work visa, most of which require employer sponsorship.

What is a certificate of sponsorship?

A certificate of sponsorship (CoS) is a unique reference number assigned by a sponsor to an overseas national who is applying for a UK sponsored work visa. The PBS licence and any CoS assigned under it do not themselves automatically permit a foreign national to enter or work in the UK. Having been granted a PBS licence, you use the SMS to assign a CoS to the candidate, who then uses this reference number to make their visa application to the Home Office.

Can I use one PBS licence to sponsor workers across multiple branches?

Yes, provided the branches are included in the sponsor licence application and the sponsor has control over recruitment and HR processes at those sites. Separate licences may be needed if the business structure does not allow central control.

What are my responsibilities once I have a PBS licence?

You must assign Certificates of Sponsorship only to eligible workers, carry out right to work checks, report relevant changes to UKVI, and maintain up-to-date records. Non-compliance can lead to enforcement action, including licence revocation.

Are there any costs besides the sponsor licence fee?

Additional costs include the Immigration Skills Charge, Certificate of Sponsorship fees, visa application costs (typically paid by the worker), and potentially legal or administrative costs. Employers may also opt to pay for the Home Office priority processing service.

What is a Defined vs Undefined CoS?

Defined Certificates of Sponsorship are required for workers applying from outside the UK. Undefined CoS are for applicants already in the UK. Sponsors must request Defined CoS on a case-by-case basis via the Sponsor Management System.

Section H: Glossary

Section I: Additional Resources and Links