Temporary Worker Sponsor Licence Guide UK

Organisations looking to recruit an overseas national under one of the UK’s temporary worker visas must hold a valid Temporary Worker Sponsor Licence.

The Temporary Worker Sponsor Licence covers several categories of workers, each tailored to specific industries and roles, allowing businesses to sponsor workers for temporary employment in sectors such as agriculture, entertainment, charity, and religion.

However, there are a considerable number of rules and information that employers must digest before applying for a Temporary Worker sponsor licence.

The licence also imposes compliance responsibilities on employers, with substantial penalties for breaches.

This article provides a comprehensive guide on how UK employers can apply for a Temporary Worker Sponsor Licence, covering eligibility requirements, the application process, associated costs, and the responsibilities that come with holding the licence. We also share practical insights into common challenges employers may face when applying for and managing a Temporary Worker Sponsor Licence.

 

Section A: What is a Temporary Worker Sponsor Licence?

 

A Temporary Worker sponsor licence is the permission granted by UK Visas and Immigration (UKVI) to enable the approved licence-holder to assign Certificates of Sponsorship (CoS) to overseas nationals under certain temporary routes.

The Temporary Worker routes are used to recruit workers on a short-term basis in a variety of different roles through various sectors, including the charitable, cultural and religious sectors, and under most of the Global Business Mobility (GBM) visas, which allow overseas businesses to establish a UK presence or transfer staff to the UK.

A worker applying for permission under any one of these Temporary Worker routes must have a sponsorship certificate for an eligible job role meeting certain route-specific requirements. The sponsor confirms this by assigning them a valid CoS. This is an electronic certificate with a unique reference number that can be used to submit their visa application to UKVI.

 

1. Role of the Temporary Worker Sponsor Licence

 

The Temporary Worker Sponsor Licence is designed to help UK organisations recruit workers from outside the UK for temporary positions. The primary purpose of the licence is to ensure that employers adhere to the legal requirements set out by the UK government when hiring non-UK nationals. By holding this licence, businesses can sponsor workers who meet the specific criteria of the temporary work visa categories, ensuring that these employees can legally work in the UK for a defined period.

 

2. Types of Temporary Worker Visas

 

The Temporary Worker Sponsor Licence covers several distinct categories of workers, each tailored to different industries and types of temporary work:

 

Licence Type	Visa Categories	Description
Temporary Worker Licence	Scale-up Worker	For people coming to work for a fast-growing UK business.
	Creative Worker	To work in the creative industry, such as an entertainer or artist (up to 2 years).
	Charity Worker	For unpaid workers at a charity (up to 1 year).
	Religious Worker	For those working in a religious order or organisation (up to 2 years).
	Government Authorised Exchange	For work experience (1 year), research projects, or training (up to 2 years).
	International Agreement	For jobs covered by international law, such as employees of overseas governments.
	Graduate Trainee (Global Business Mobility)	For workers transferring to a UK branch as part of a graduate training programme.
	Service Supplier (Global Business Mobility)	For workers providing services to a UK company under contract (6 to 12 months).
	UK Expansion Worker (Global Business Mobility)	For workers sent to the UK to set up a new branch or subsidiary of an overseas business.
	Secondment Worker (Global Business Mobility)	For workers transferring from overseas to a UK business as part of a high-value contract.
	Seasonal Worker	For workers in horticulture (up to 6 months) or poultry work (between 18 October and 31 December annually).

 

a. Creative Worker visa: for overseas nationals wanting to work in the creative industry in the UK, who can make a unique contribution to the UK’s rich cultural life, for example, as an entertainer or artist, for a period of up to 12 months (with the option to extend their stay in the UK up to 24 months if continuing to work for the same sponsor)

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

 

b. Charity Worker visa: for voluntary workers wanting to undertake unpaid work for a recognised charitable organisation in the UK for a period of up to 12 months

You can read our extensive guide to the Charity Visa here >>

 

c. Religious Worker visa: for those wanting to support the activities of a religious institution in the UK, for example, by working in a UK-based religious order or filling a non-pastoral placement in the UK for a period of up to 2 years

 

d. Government Authorised Exchange visa: for those wanting to come to the UK for training or research through an approved exchange scheme for a period of up to 2 years

 

e. International Agreement visa: for those providing a service in the UK covered under international law, such as employees of international organisations or a private servant in a diplomatic household, for a period of up to 2 years in most cases

 

f. Seasonal Worker visa: for overseas nationals wanting to do seasonal work with an approved scheme operator in the UK’s horticulture sector for a period of up to 6 months.

 

g. Senior/Specialist Worker visa: for senior managers and specialist employees being assigned to a UK business that’s linked to their employer overseas and who wish to undertake a temporary assignment in the UK.

 

h. Graduate Trainee visa: for overseas nationals transferring to a UK branch of their overseas employer as part of a graduate training programme for a managerial or specialist role, replacing the provisions of the Intra-Company Graduate Trainee route

 

i. Service Supplier visa: for service suppliers or independent professionals providing a contractual service for a UK business under a qualifying trade agreement, replacing the relevant provisions of the International Agreement route

 

j. UK Expansion Worker visa: for overseas nationals being sent to the UK by an overseas business to set up a UK branch or subsidiary, replacing the provisions of the Representative of an Overseas Business route for sole representatives

 

k. Secondment Worker visa: for those being transferred to the UK by their overseas employer to work for a UK business under a high-value contract, introducing a brand new business immigration route under the UK’s Immigration Rules.

 

Each of these categories has specific eligibility criteria and requirements, which businesses must adhere to when applying for the licence and sponsoring workers. This ensures that the right individuals are brought into the UK for the right purposes, helping businesses meet their temporary staffing needs while staying compliant with immigration laws.

 

Section B: Temporary Worker Sponsor Licence Eligibility Requirements

 

The rules on sponsoring Temporary Workers are contained within the extensive Home Office sponsor guidance: ‘Workers and Temporary Workers: Guidance for Sponsors’, together with various route-specific guides on how to sponsor workers on any one of the various Temporary Worker routes.

To be eligible for a Temporary Worker sponsor licence, there are a number of general eligibility and suitability requirements that must be met by the applicant organisation, together with various route-specific requirements, depending on the category of worker.

 

Requirement	Details
Registered and Operational	The organisation must be legally established in the UK, registered with Companies House (if applicable), have a valid UK address, and provide evidence of trading (contracts, invoices, financial records).
Genuine Employment Need	The organisation must demonstrate the need to employ temporary workers that meet visa criteria, with job descriptions aligned to the relevant visa category and evidence the roles cannot be filled locally.
Suitability for Sponsorship	The Home Office will evaluate the company’s compliance history, sponsorship management ability, and the integrity of key personnel. HR systems must be in place to monitor compliance.
No History of Immigration Breaches	The organisation and key personnel must have no previous immigration violations or non-compliance history, including illegal employment or failure to meet previous sponsor duties.
Key Personnel Appointment	Specific individuals must be appointed to manage the sponsorship process (Authorising Officer, Key Contact, Level 1 User), based in the UK, with no unspent convictions for immigration offences.
Visa-Specific Criteria	The organisation must meet the specific requirements for the relevant visa route, including offering genuine employment, meeting skill/salary thresholds, and proving overseas business links where applicable.

 

In most cases, the applicant must be able to satisfy UKVI, with reference to the information contained within its application and detailed supporting documentation, that it’s a genuine organisation operating lawfully in the UK. The one exception to this is the UK Expansion Worker route, where to sponsor overseas nationals to set up a UK branch or subsidiary, the overseas business must instead be able to show a UK’ footprint’, for example, registration with Companies House. This is because, unlike other sponsored Temporary Worker routes, the UK Expansion Worker route can only be used if the business hasn’t yet started trading in the UK.

In all cases, the Home Office must also be satisfied that the applicant organisation is both trustworthy and capable of carrying out its sponsor duties.

UKVI will look at the history and background of the applicant organisation, together with the key personnel named on the licence application — those people nominated by the applicant to manage the sponsorship process and liaise with UKVI — as well as those involved with the day-to-day running of the business. This will include any evidence of previous non-compliance with the Immigration Rules, any criminal convictions, and any other evidence which may suggest that these people are not honest, dependable and reliable or are engaging or have previously engaged in behaviour or actions that are not conducive to the public good.

These requirements are designed to ensure that only reputable and compliant businesses are granted the ability to sponsor non-UK nationals:

 

1. Registered and Operational

The organisation must be legally established and actively trading in the UK. This includes being registered with Companies House (if applicable), having a valid UK address, and being able to provide evidence of trading activities, such as contracts, invoices, and financial records.

 

2. Genuine Employment Need

The organisation must demonstrate a genuine need to employ temporary workers who meet the specific criteria of the visa categories under the Temporary Worker Sponsor Licence. This includes providing job descriptions that align with the relevant visa category and proving that the roles cannot be filled by the local workforce.

 

3. Suitability for Sponsorship

The Home Office will assess whether the business is suitable to hold a sponsor licence. This includes reviewing the company’s history of compliance with UK laws, its ability to manage the sponsorship process effectively, and the integrity of its key personnel. The business must show that it has the necessary HR systems in place to monitor sponsored workers and ensure compliance with immigration rules.

 

4. No History of Immigration Breaches

The organisation and its key personnel must not have any previous immigration violations or a history of non-compliance with immigration regulations. This includes any past issues with employing illegal workers, failing to comply with previous sponsor duties, or any other relevant breaches.

 

5. Key Personnel Appointment

The organisation must appoint specific individuals to manage the sponsorship process, including an Authorising Officer, a Key Contact, and a Level 1 User. These individuals will be responsible for the day-to-day management of the licence and communication with the Home Office. They must be based in the UK and must not have any unspent criminal convictions for immigration offences or certain other crimes.

 

6. Visa-Specific Criteria

In addition to the general requirements for a Temporary Worker sponsor licence, the applicant organisation must be able to meet the requirements of the relevant route. Under the GBM routes, for example, the applicant must be able to offer genuine employment that meets minimum skill and salary requirements and show a qualifying overseas business link.

 

Section C: Temporary Worker Sponsor Licence Application Process

 

Preparation is key when making a sponsor licence application. This means ensuring that there are robust recruitment procedures and HR practices already in place prior to applying, carefully selecting key personnel to deal with the application and sponsorship process, and bringing together the correct documentation in support of the application.

 

1. Step-by-Step Guide on How to Apply for a Temporary Worker Sponsor Licence

 

The following are the key stages when applying for a sponsor licence:

 

Step 1: Determine Eligibility

Before starting the application, ensure your business meets the eligibility criteria set by the Home Office. This includes being a legally registered and operational business in the UK, having no history of immigration violations, and being able to demonstrate a genuine need for temporary workers.

 

Step 2: Identify the Appropriate Visa Category

Determine which temporary work visa category your business will be sponsoring workers under. Each category has specific requirements that must be met.

 

Step 3: Prepare Your Business for Sponsorship

Set up appropriate HR systems to monitor and record the activities of sponsored workers, ensuring compliance with all sponsorship duties.

Appoint key personnel who will be responsible for managing the sponsor licence. These roles include the Authorising Officer, Key Contact, and Level 1 User. Ensure that these individuals have the necessary skills and understanding of the sponsorship process.

 

Table: Responsibilities of Key Personnel

Role	Responsibilities	Importance
Authorising Officer	Overall responsibility for the licence and compliance	Must be a senior person; oversees sponsorship activities
Key Contact	Primary liaison with UKVI	Ensures timely communication with the Home Office
Level 1 User	Day-to-day management of the Sponsor Management System (SMS)	Handles administrative tasks, updates, and reporting

 

As part of the application process, a number of individuals must be nominated to fill the key personnel roles: an Authorising Offer, a Key Contact and a Level 1 user. The Authorising Officer must be the most senior person within the applicant organisation responsible for recruiting migrant workers and ensuring that all sponsor duties are met. They will also be responsible for managing the sponsor licence application and signing and dating the submission sheet at the end. The submission sheet, together with all documentation, must then be emailed or posted to UKVI within 5 working days of submitting the application.

The Key Contact will act as the main point of contact with UKVI, whilst the Level 1 user will be responsible for the day-to-day management of the sponsor licence using the Home Office sponsorship management system (SMS). If the application for a Temporary Worker licence is approved by UKVI, additional Level 1 users can be appointed, together with Level 2 users. A Level 2 user is an SMS user with more restricted system access than a Level 1 user.

The Authoring Officer can nominate themselves as a Level 1 user and will need to do so if they also require access to the SMS. They can also act as the Key Contact. Alternatively, different people can undertake these roles, provided they’re paid members of staff or office holders and meet the various other requirements under the rules for key personnel.

 

Step 4: Gather Required Documentation

Collect all the necessary documents to prove your business’s eligibility, as stipulated under Appendix A of the Immigration Rules and the Home Office sponsor guidance. These documents typically include:

 

a. Proof of Business Registration: Such as a Certificate of Incorporation or VAT registration.

b. Evidence of Trading: Contracts, invoices, or bank statements that demonstrate active trading.

c. Proof of Office Location: Lease agreements or utility bills that verify your UK business address.

d. Details of Key Personnel: Information on the appointed Authorising Officer, Key Contact, and Level 1 User, including their passport copies and proof of residence in the UK.

e. Compliance Evidence: Documents showing that your business has the appropriate systems in place to manage sponsored workers, such as HR policies and procedures.

 

Step 5: Complete the Online Application

Go to the UK government’s online application portal for sponsor licences. Complete the online application form, ensuring that you accurately provide all the required information about your business, the roles you intend to sponsor, and the key personnel responsible for managing the licence.

Select the appropriate visa categories for which you are applying to sponsor workers.

 

Step 6: Pay the Application Fee

Pay the required application fee, which varies depending on the size of your business (small or charitable organisations generally pay a lower fee compared to larger businesses). Ensure that you have the payment method ready during the application process.

 

Step 7: Submit the Required Documents

Once the online application is complete, submit the required supporting documents to the Home Office, usually by uploading them through the online portal.

Ensure that all documents are clear, legible, and correctly formatted according to the Home Office guidelines. Missing or incorrect documents can lead to delays or rejection of your application.

 

Step 8: Home Office Review and Decision

Having completed the online application, paid the fee, and submitted all documentation, UKVI will review the application. The standard processing time for Temporary Worker sponsor licence applications is usually less than 8 weeks, although it can take longer for UKVI to reach a decision if a site visit is needed or additional documentation is requested.

During this period, the Home Office may contact you for further information or to arrange a compliance visit to assess your business’s readiness for sponsorship.

The applicant organisation may also be subject to a pre-licence site visit by UKVI, typically where there’s insufficient evidence or concerns over the adequacy of its ability to comply with the various duties associated with being a licensed sponsor. This will be assessed with reference to the applicant’s recruitment practices and HR systems. UKVI must be satisfied that the applicant organisation will be able to monitor its sponsored workers, comply with its record-keeping and reporting obligations, and not pose a threat to immigration control.

 

Step 9: Receive the Decision

If your application is approved, you will receive a Temporary Worker Sponsor Licence, allowing you to start assigning CoS and sponsoring workers under the specified visa categories.

If your application is refused, the Home Office will provide reasons for the decision, and you may be able to appeal or reapply after addressing the issues raised.

 

2. Required Documents

 

A Temporary Worker Sponsor Licence application requires certain documents to be submitted,

UK employers applying for a Temporary Worker Sponsor Licence must provide specific supporting documents to demonstrate their eligibility and compliance with Home Office requirements. These include both mandatory documentation, as stated under Appendix A and Workers and Temporary Workers: guidance for sponsors, as well as other additional documents to evidence eligibility and the organisation’s ability to manage the sponsorship process effectively.

These documents typically include:

 

Category	Sample Required Documents
Proof of Business Registration and Trading	– Certificate of Incorporation (for limited companies) – Business bank statements or VAT registration certificate – Copies of contracts or invoices showing ongoing trading
Proof of Business Address	– Lease or rental agreements – Utility bills showing the business address
Details of Key Personnel	– Passport copies and proof of UK residency for the Authorising Officer, Key Contact, and Level 1 User – Evidence of no unspent criminal convictions for immigration offences
HR Systems Documentation	– HR policies and procedures – Employment contracts – Record-keeping systems to monitor sponsored workers
Compliance History	– Documentation showing your business’s history of compliance with UK employment and immigration laws
How to Submit	– Submit via the online Sponsor Management System (SMS) or follow Home Office instructions for postal submission, ensuring all documents are clear and complete.

 

Under Appendix A, in most instances, you are required to submit a minimum of four documents (or combinations of documents where indicated), including those labelled as ‘mandatory’. If your organisation is listed in Table 1, you may not need to submit all four documents.

The best way to determine which documents to send is to carefully review each of the tables, starting with Table 1.

Table 1 outlines specific situations where fewer than four documents may be necessary. If your organisation falls under the categories listed in this table, only the specified documents need to be sent. In some cases, no documents may be required unless specific ones are listed in Tables 2 or 3 for your organisation type or the visa route you’re applying for.

If your organisation is not listed in Table 1, proceed to Table 2. This table details the mandatory documents for start-ups (trading for less than 18 months), franchises, charities, and organisations subject to regulation, inspection, or monitoring.

After reviewing Table 2, move to Table 3, which lists the documents required for the specific route you are applying under. If you still haven’t identified four documents, refer to Table 4 for additional documents that can be submitted to meet the minimum requirement.

 

Section D: Temporary Worker Sponsor Licence Costs and Fees

 

Obtaining and maintaining a Temporary Worker Sponsor Licence involves several costs that will need to be budgeted for. These fees vary depending on the size and type of organisation, as well as the specific requirements of the visa categories under which workers will be sponsored.

 

1. Sponsor Licence Application Fee

 

The cost of applying for a Temporary Worker sponsor licence includes an application fee, together with a fee for issuing each CoS.

 

Table: Cost Breakdown for a Temporary Worker Sponsor Licence Applications

Type of licence	Fee for small or charitable sponsors	Fee for medium or large sponsors
Worker	£536	£1,476
Temporary Worker	£536	£536
Worker and Temporary Worker	£536	£ 1,476
Add a Worker licence to an existing Temporary Worker licence	No fee	£940
Add a Temporary Worker licence to an existing Worker licence	No fee	No fee
Assign CoS	£25	£25

 

The licence application fee is £536, although if the applicant organisation is seeking both a Temporary Worker and Worker licence at the same time, the fee will depend on the size and status of the organisation. For small or charitable sponsors, the fee will still be £536, increasing to £1476 for medium or large sponsors.

However, no fee is payable to add a Temporary Worker licence to an existing Worker licence, regardless of size or status.

The organisation will be a small sponsor if at least two of the following apply:

 

a. its annual turnover is £10.2 million or less

b. its total assets are worth £5.1 million or less

c. it has 50 employees or fewer.

 

2. Certificate of Sponsorship

 

Once a business is granted a sponsor licence, it must issue a Certificate of Sponsorship (CoS) for each worker it intends to sponsor.

The fee for assigning a CoS under a Temporary Worker sponsor licence is £25. This fee is payable each time a new worker is sponsored and is required for the visa application process.

 

3. Immigration Skills Charge

 

The Immigration Skills Charge is a levy that businesses must pay when they sponsor workers under certain visa categories. However, this charge generally applies to Skilled Worker visas and is not usually applicable to most Temporary Worker categories, with exceptions depending on specific roles or if the worker switches visa categories.

 

Section E: Temporary Worker Sponsor Licence Processing Times

 

When applying for a Temporary Worker Sponsor Licence, the time it takes to receive approval can vary based on several factors, including the quality of the application and whether any additional checks are carried out by the Home Office.

 

1. Standard Processing Times for Sponsor Licences

 

The Home Office typically processes a Temporary Worker Sponsor Licence application within 8 weeks from the date the application is submitted. This timeframe applies to most straightforward applications where all necessary documentation is provided, and no additional checks are required.

If your application is more complex, such as involving multiple visa categories or a high number of workers, the processing time could extend beyond 8 weeks.

The Home Office may need to conduct additional checks if there are any concerns about the legitimacy of the business, the key personnel involved, or the compliance history. These checks can include reviewing more detailed financial records, conducting site visits, or requesting additional information, which can delay the approval process.

In some cases, the Home Office may decide to carry out a compliance visit to your business premises before granting the licence. This can add a few weeks to the processing time, depending on the scheduling and outcome of the visit.

While the standard processing time is generally consistent, there are ways to potentially expedite the process, ensuring that businesses can start sponsoring workers as quickly as possible.

 

2. Pre-Licence Priority Service

 

The Home Office offers a priority service for sponsor licence applications for some of the temporary sponsored work routes:

 

a. Creative Worker Visa

b. Charity Worker Visa

c. Religious Worker Visa

d. Graduate Trainee Visa

 

This service, if available, can reduce the processing time to 10 working days for an additional fee of £500. However, it is important to note that this service is limited and subject to availability, meaning not all applications will be eligible for expedited processing. You will be advised when you apply if priority processing is available.

 

3. Adding a Temporary Worker Sponsor Licence to an existing Worker Sponsor Licence

 

To add a Temporary Worker Sponsor Licence to an existing Worker Sponsor Licence, follow these steps. These steps also apply to add a Worker Sponsor Licence to an existing Temporary Worker Licence.

 

Step 1: Log in to the Sponsor Management System

Access the UK Home Office’s Sponsor Management System (SMS) using the account details of the current licence. This system is where sponsors manage their existing sponsor licence and apply for additional categories.

 

Step 2: Select the ‘Add Tier or Category’ Option

After logging into the SMS, navigate to the section that allows you to apply for additional tiers or categories. This option will let you add the Temporary Worker route to your existing Worker Sponsor Licence.

 

Step 3: Complete the Application

Provide the required information about why you need the Temporary Worker category, including details about the types of temporary workers your business plans to sponsor. You may be asked to provide additional supporting documents to demonstrate your need for this new category, similar to the process for your original licence.

 

Step 4: Pay the Additional Fee

There is only a fee associated with adding a new category to your licence if you are classed as a medium or large employer and you are adding a Worker Licence to an existing Temporary Worker Licence:

[Insert table 11: Adding to an Existing Sponsor Licence]

 

Step 5: Wait for the Home Office Decision

The Home Office will process your application to add the Temporary Worker category, which can take up to 8 weeks. During this time, they may conduct additional checks.

 

Section F: Using Your Temporary Sponsor Licence Compliance

 

Temporary Worker Sponsor Licence holders need to be aware of several key responsibilities and processes to ensure they use their licence correctly and stay compliant with UK immigration rules. Here’s what they need to know:

 

1. Applying for Certificates of Sponsorship

Sponsor licence holders must apply for a Certificate of Sponsorship (CoS) for each worker they intend to sponsor under the Temporary Worker route. A CoS is an electronic record, not a physical certificate, and must be issued before the worker applies for their visa. To apply for a CoS, sponsors need to log into the Sponsor Management System (SMS), request the appropriate type of CoS (Temporary Worker), and ensure that the details match the role and visa requirements.

 

2. Assigning Certificates of Sponsorship

Once the CoS application is approved, the licence holder can assign it to the worker. When assigning a CoS, it’s essential to include accurate information about the job, salary, and duration of employment. This must align with the specific visa category (e.g., Seasonal Worker, Charity Worker). Any errors can lead to visa refusal or compliance issues. The CoS is valid for three months from the date of assignment, and the worker must use it within this period to apply for their visa.

 

3. Cancelling a Certificate of Sponsorship

If a sponsorship arrangement falls through or the worker no longer requires sponsorship, the sponsor must cancel the CoS. This can be done through the SMS. It’s crucial to cancel a CoS as soon as possible to avoid breaching sponsorship duties, especially if the worker is no longer employed or doesn’t arrive to start work.

 

Section G: Temporary Worker Sponsor Licence Compliance

 

If your organisation is granted a Temporary Worker Sponsor Licence, it will be committing to ongoing duties and responsibilities. Sponsor licence compliance should become an everyday concern, with staff trained and aware of how to meet these responsibilities to avoid breaches and enforcement action.

Ongoing obligations for Temporary Worker Sponsor Licence holders include:

 

1. Monitoring Sponsored Workers

 

Sponsors must closely monitor the status and activities of all sponsored workers. This includes ensuring that sponsored workers start their employment as specified in the Certificate of Sponsorship (CoS), keeping track of their attendance and ensuring they do not exceed the permitted working hours or take up unauthorised roles, and monitoring their visa status and ensuring that their employment does not extend beyond the validity of their visa.

 

2. Record-Keeping

 

Accurate and up-to-date records must be maintained for each sponsored worker. These records include copies of the worker’s passport and proof of the Right to Work check, contact details such as the worker’s address and telephone number, records of the worker’s employment contract, including job description, salary, and working hours, documentation of any changes in the worker’s role, salary, or personal circumstances.

 

3. Reporting Duties

 

The organisation is required to report certain events to the Home Office within specific timeframes, including:

 

a. If a sponsored worker does not start work on the expected start date.

b. If a sponsored worker is absent from work for more than 10 consecutive working days without permission.

c. If a sponsored worker’s employment is terminated earlier than expected, whether through resignation, dismissal, or redundancy.

d. Any significant changes in the worker’s employment conditions, such as a change in job title, salary, or work location.

e. If the organisation itself undergoes significant changes, such as mergers, takeovers, or a change in business address.

 

4. Ensuring Compliance with Immigration Rules

 

The organisation must ensure that all sponsored workers comply with the conditions of their visa, which includes preventing them from undertaking unauthorised work or roles not covered by their visa and ensuring that they do not exceed the allowed number of working hours, especially if they are on a visa with restricted hours, such as a student visa.

 

5. Cooperation with the Home Office

 

The business must be prepared to cooperate with the Home Office in the event of compliance checks, audits, or investigations. This includes granting access to premises, providing records and documents for inspection, and answering any inquiries related to the sponsorship.

 

6. Updating Licence with Organisation Changes

 

It is essential to update your sponsor licence details whenever there are significant changes in your business circumstances. This ensures that the information The Home Office requires that the information about your organisation on the SMS is accurate and up to date.

The Home Office may review the changes you’ve reported, especially if they involve key personnel or significant business changes. In some cases, this may trigger a compliance visit or further inquiries to ensure that your business continues to meet the sponsorship requirements.

Ensure that all updates are made promptly and accurately to avoid any issues with your sponsor licence. Failure to report significant changes could result in penalties or affect your licence’s status.

Types of changes that require updates include:

 

a. Changes in Key Personnel

If there are changes in your Authorising Officer, Key Contact, or Level 1 User, you must update these details in the Sponsor Management System (SMS) as soon as possible. New personnel must meet the eligibility criteria and be prepared to take on their respective responsibilities.

 

b. Change of Business Address

If your organisation relocates, you must update your licence to reflect the new address. This includes any changes to the premises where sponsored workers will be employed.

 

c. Changes in Business Structure

If your business undergoes significant changes, such as a merger, acquisition, or change in ownership, these must be reported. Depending on the nature of the change, you may need to apply for a new sponsor licence.

 

d. Changes in Business Operations

Any significant changes to your business operations that could affect your ability to sponsor workers, such as a shift in industry focus or a reduction in operations, should be reported to the Home Office.

 

e. Process for Updating Licence Details

Log in to the UKVI Sponsor Management System (SMS) to update your licence details. The system allows you to make changes to key personnel, business address, and other relevant information.

For certain changes, such as a change in key personnel or business address, you may be required to submit additional documentation to support the update. Ensure that all documents are accurate and up to date.

Some updates, particularly those involving significant changes in business structure or operations, may require you to notify the Home Office through a specific form or process outlined in the SMS. Follow the instructions provided to ensure that the update is processed correctly.

 

Section H: Consequences of Sponsor Licence Non-Compliance

 

Non-compliance with sponsor licence duties can have serious consequences for employers. The Home Office may conduct compliance audits, and if breaches are identified, penalties can range from fines to the suspension or revocation of the sponsor licence.

 

1. Downgraded Sponsor Licence

 

Sponsor licence downgrading refers to when the Home Office reduces an organisation’s sponsor licence rating from an A-rating to a B-rating due to breaches of sponsorship duties.

Downgrading typically follows an investigation or compliance visit where the Home Office identifies issues such as failure to properly monitor sponsored workers, inaccurate record-keeping, or failure to report significant changes, like worker absences or terminations.

A B-rated licence means the business can no longer sponsor new workers until the issues are resolved.

The Home Office will issue an action plan outlining steps the employer must take to restore their licence to A-rating status.

This action plan typically comes with a fee of £1,476, and the sponsor will have a limited time to meet the required improvements.

Employers must act promptly and ensure they follow all instructions outlined in the action plan.

For UK employers, downgrading presents several risks. It may disrupt recruitment plans, impact the visa status of existing workers, and damage the business’s reputation. Failing to meet the requirements of the action plan could result in the revocation of the sponsor licence altogether.

Employers should prioritise compliance with the action plan, ensuring that HR and reporting systems are improved to meet Home Office standards. Regular internal audits and close attention to sponsorship obligations are essential to prevent future downgrading or more severe penalties.

 

2. Sponsor Licence Suspension

 

Sponsor licence suspensions are when the Home Office temporarily removes an employer’s ability to sponsor new workers due to non-compliance with sponsorship obligations. While suspended, the business can continue employing existing sponsored workers, but it cannot issue new Certificates of Sponsorship or renew existing ones. The suspension is typically the result of serious breaches identified during a compliance visit or audit, such as failing to monitor sponsored employees, inaccurate record-keeping, or not reporting changes in worker circumstances.

During the suspension period, the business is usually given the opportunity to address the identified issues. The Home Office will investigate further and decide whether to reinstate the licence, downgrade it to a B-rating, or revoke it completely, depending on the outcome.

For UK employers, sponsor licence suspension carries significant risks. Recruitment plans are immediately halted, and there is the potential for visa issues for existing sponsored workers if the suspension leads to further actions like revocation. Employers must act quickly to rectify the problems, ensuring that all processes are fully compliant with Home Office requirements. It is crucial to provide any requested evidence or explanations promptly and implement corrective measures to demonstrate compliance. A well-organised and transparent response can be key to regaining the licence and avoiding more severe penalties.

 

3. Sponsor Licence Revocation

 

The most severe consequence of non-compliance is revocation of the sponsor licence. If the licence is revoked, the organisation will lose its ability to sponsor new workers, and any existing sponsored workers may have their visas curtailed, meaning they must leave the UK unless they find another sponsor or switch to a different visa category.

A revoked sponsor licence requires immediate action to resolve the matter to avoid operational disruption. Our sponsor licence experts can advise on your options if you are facing a licence revocation.

 

4. Fines and Penalties

 

Non-compliant businesses may face significant financial penalties. These fines can vary depending on the nature and severity of the breach, and repeated breaches may lead to increased scrutiny and further penalties.

Under the current regime for the prevention of illegal working regime, employers can face a civil penalty of up to £45,000 per breach for a first offence, rising to £60,000 per breach for repeat offences.

 

5. Damage to Business Reputation

 

Non-compliance can severely damage a business’s reputation, both with the Home Office and within the industry. A revoked licence is often publicly recorded, which can affect the business’s relationships with clients, partners, and potential employees. It can also lead to a loss of trust from current and future employees, affecting the company’s ability to attract and retain talent.

 

6. Legal Consequences

 

In cases of serious non-compliance, particularly those involving the illegal employment of non-UK nationals, employers can face criminal sanctions for knowingly employing illegal workers.

 

7. Impact on Sponsored Workers

 

Non-compliance not only affects the business but also has significant consequences for the sponsored workers. If the licence is revoked, workers may be forced to leave the UK, disrupting their lives and careers. This can also lead to reputational damage for the business, as it affects the livelihoods and futures of those employees.

 

8. Increased Scrutiny

 

Businesses that fail to comply with their sponsorship obligations may be subject to increased scrutiny by the Home Office. This can include more frequent audits and inspections, making it harder to maintain a clean record in the future and complicating the renewal process.

 

Section I: Common Challenges and How to Overcome Them

 

From the complexity of the application process to the ongoing obligations of compliance, employers face compliance risk, which, if not properly managed, can lead to delays, additional costs, or Home Office penalties.

 

1. Incomplete or Inaccurate Application

One of the most common challenges businesses face is submitting an incomplete or inaccurate application. Missing documents, incorrect information, or failure to meet specific requirements can lead to delays in processing or outright rejection of the application.

Before submitting the application, thoroughly review the eligibility requirements and gather all necessary documentation. Double-check that all forms are correctly completed and that all supporting documents are accurate and up to date.

Consider using a checklist to ensure that no essential details are overlooked. Engaging an immigration consultant can also help ensure that the application is complete and meets all requirements.

 

2. Complexity of Compliance Requirements

The ongoing compliance requirements can be challenging to manage, particularly for businesses that are new to the sponsorship process. This includes maintaining accurate records, monitoring sponsored workers, and ensuring timely reporting to the Home Office.

Without a dedicated HR or immigration compliance resource, these duties can quickly become overlooked.

Consider using the services of external specialists to support with your licence management and compliance, or if you have in-house personnel, support them with regular training on sponsorship compliance.

 

3. Changes in Business Circumstances

Changes in key personnel, business address, or structure can complicate the maintenance of the sponsor licence. Failing to update the Home Office promptly about these changes can result in non-compliance.

Ensure that any significant changes in your business, such as a change in key personnel or business structure, are reported to the Home Office as soon as possible. This includes updating the SMS with the latest information.

Assign a dedicated person or team to monitor and manage these updates, ensuring that changes are communicated promptly and accurately.

 

4. Dealing with Compliance Visits

The prospect of a Home Office compliance visit can be daunting. These visits can be thorough, and if the business is unprepared, it may struggle to demonstrate compliance, risking penalties or licence revocation.

Regularly review your compliance status and ensure that all records are in order. Conduct internal audits to identify any potential compliance issues before they are flagged by a Home Office visit.

Familiarise your staff with what to expect during a compliance visit and conduct mock audits to ensure everyone is prepared. This preparation can help mitigate the stress of an actual audit and ensure a positive outcome.

 

5. Delays in Application Processing

Processing delays can be a significant challenge, particularly for businesses that need to fill positions quickly. These delays can occur due to incomplete applications, additional checks by the Home Office, or a backlog in processing times.

Keep track of your application’s progress by regularly checking the status through the Sponsor Management System (SMS). If there are delays, be proactive in following up with the Home Office to inquire about the status and provide any additional information if requested.

Opt for the priority service (if available) to expedite processing times, especially if your business needs to start sponsoring workers urgently. This can help avoid unnecessary delays.

 

6. Managing Sponsored Workers

As organisations grow and sponsor more workers, the complexity of managing their compliance obligations increases. This can lead to challenges in maintaining accurate records, monitoring visa conditions, and ensuring all sponsored workers meet their employment requirements.

As the number of sponsored workers increases, consider appointing a dedicated team or individual responsible for managing their compliance. This includes tracking visa expiry dates, monitoring working hours, and ensuring all conditions of sponsorship are met.

Regularly review each sponsored worker’s status to ensure ongoing compliance. Use reminders and alerts to manage critical dates and tasks related to each worker’s visa and employment conditions.

 

Section J: Summary

 

A Temporary Worker Sponsor Licence allows UK employers to hire non-UK residents for temporary roles under specific short-term visa categories.

For employers, obtaining and maintaining the licence involves meeting strict eligibility criteria and complying with ongoing obligations. These include monitoring sponsored workers, keeping accurate records, and reporting any changes in the worker’s employment status to the Home Office. Employers must also ensure that their key personnel, who are responsible for managing the licence, are well-trained and aware of their responsibilities.

The key risks for employers include non-compliance with the Home Office regulations, which can lead to penalties, licence suspension, or even revocation. Non-compliance can also affect the visa status of sponsored workers, forcing them to leave the UK. Employers should also consider the costs involved, such as the application fee, Certificate of Sponsorship fees, and potential legal or consultancy costs for managing the process effectively.

Maintaining up-to-date systems and processes is essential to ensure compliance and avoid any potential penalties that could disrupt business operations.

 

Section K: Need Assistance?

 

DavidsonMorris’ business immigration specialists can support your organisation with all aspects of the UK sponsorship licence.

Wherever you are in the lifecycle of the sponsor licence – whether you are looking to apply for your first Temporary Worker sponsor licence, have been refused a licence application, or are looking for ongoing support with managing your compliance duties, we can help.

Contact us for expert support.

 

Section L: Temporary Worker Sponsor Licence FAQs

 

What is a Temporary Worker Sponsor Licence?
A Temporary Worker Sponsor Licence is an authorisation from the UK Home Office that allows businesses to sponsor non-UK nationals for temporary work visas under specific categories, such as the Seasonal Worker Visa, Creative and Sporting Worker Visa, Charity Worker Visa, and Religious Worker Visa.

 

Who needs a Temporary Worker Sponsor Licence?
Any UK organisation that wants to hire non-UK nationals for temporary roles under specific visa categories must obtain a Temporary Worker Sponsor Licence. Without this licence, it is illegal to sponsor or employ workers from outside the UK under these visa categories.

 

How long does it take to get a Temporary Worker Sponsor Licence?
The standard processing time for a Temporary Worker Sponsor Licence application is around 8 weeks. However, if the application is complex or requires additional checks, it may take longer. In some cases, the Home Office offers a priority service that can reduce the processing time to about 10 working days, subject to availability.

 

What are the costs involved in obtaining a Temporary Worker Sponsor Licence?
The application fee for a Temporary Worker Sponsor Licence is £536 for small or charitable sponsors and £1,476 for medium or large sponsors. Additional costs may include the Certificate of Sponsorship (CoS) fee (£25 per worker) and fees for legal or consultancy services if you choose to seek professional assistance.

 

What are the ongoing responsibilities after obtaining the licence?
Once you have the licence, you must monitor your sponsored workers, maintain accurate records, and report certain events to the Home Office (such as a worker not starting their job or a change in their employment). You must also ensure compliance with all visa conditions and be prepared for potential compliance visits from the Home Office.

 

How do I renew my Temporary Worker Sponsor Licence?
You no longer need to apply to renew your sponsor licence. Your licence will remain in place unless it is withdrawn by the organisation or revoked by the Home Office.

 

What should I do if my business details change?
If there are significant changes in your business, such as a change in key personnel, business address, or ownership structure, you must update your sponsor licence details through the Sponsor Management System (SMS) as soon as possible. Failing to report changes can lead to non-compliance issues.

 

What happens if I fail to comply with the sponsorship duties?
Non-compliance with your sponsorship duties can result in serious consequences, including fines, suspension, or revocation of your sponsor licence. If your licence is revoked, you will no longer be able to sponsor workers, and your current sponsored workers may have their visas curtailed, forcing them to leave the UK.

 

Can I sponsor multiple workers under the same licence?
Yes, a Temporary Worker Sponsor Licence allows you to sponsor multiple workers, but you must issue a separate Certificate of Sponsorship (CoS) for each worker. Each sponsored worker must meet the requirements of the specific visa category under which they are being sponsored.

 

Can I apply for a new licence if my previous one was revoked?
If your sponsor licence was revoked, you would need to wait for a “cooling-off” period before you can reapply. The cooling-off period typically lasts 12 months, but this may vary depending on the reasons for the revocation. You must address the issues that led to the revocation before reapplying.

 

Is there a limit to the number of workers I can sponsor?
While there is no strict limit to the number of workers you can sponsor under a Temporary Worker Sponsor Licence, you must have the resources and systems in place to manage the compliance and monitoring responsibilities for each sponsored worker. The Home Office may review your capacity to manage multiple sponsored workers as part of your licence application or renewal.

 

Section M: Glossary

 

Term	Definition
Temporary Worker Sponsor Licence	An authorisation from the UK Home Office allowing businesses to sponsor non-UK nationals for specific temporary work visa categories.
Sponsor Management System (SMS)	The online portal provided by UK Visas and Immigration (UKVI) for managing sponsor licences, including applications, renewals, and updates.
Certificate of Sponsorship (CoS)	An electronic document assigned to a non-UK worker by a licensed sponsor, required for the worker to apply for a visa under a specified category.
Immigration Skills Charge	A levy paid by employers when sponsoring workers under certain visa categories, intended to support the development of skills in the UK workforce.
Authorising Officer	A senior person responsible for the overall management of the sponsor licence and ensuring the business complies with its sponsorship obligations.
Key Contact	The primary individual responsible for liaising with UK Visas and Immigration (UKVI) on behalf of the sponsoring business.
Level 1 User	The individual responsible for the day-to-day administration of the sponsor licence, including updates and reporting through the Sponsor Management System (SMS).
Compliance Visit	An inspection by the Home Office to assess whether a business is complying with the obligations of holding a sponsor licence.
UK Visas and Immigration (UKVI)	The division of the Home Office responsible for managing the UK’s visa and immigration services.
Visa Categories	Specific types of visas under which non-UK nationals can be sponsored for work in the UK, such as the Seasonal Worker Visa or Creative and Sporting Worker Visa.
Home Office	The UK government department responsible for immigration, security, and law enforcement, including the management of sponsor licences.
Small or Charitable Sponsors	Businesses with an annual turnover of £10.2 million or less, a balance sheet total of £5.1 million or less, or 50 employees or fewer, eligible for reduced sponsor licence fees.
Medium or Large Sponsors	Businesses that exceed the criteria for small or charitable sponsors, usually subject to higher sponsor licence fees.
Compliance Obligations	The ongoing responsibilities of a business holding a sponsor licence, including monitoring sponsored workers and reporting changes to the Home Office.
Renewal	The process of extending the validity of a sponsor licence, typically required every four years to continue sponsoring workers.
Non-Compliance	Failure to meet the sponsorship obligations set by the Home Office, which can result in penalties, suspension, or revocation of the sponsor licence.
Priority Service	A fast-track service offered by the Home Office for sponsor licence applications, subject to additional fees and availability, reducing processing times.
Key Personnel	Individuals appointed by the sponsoring business to manage the licence, including the Authorising Officer, Key Contact, and Level 1 User.
Certificate of Sponsorship Fee	The fee paid by the sponsoring business to assign a Certificate of Sponsorship to a worker, required for their visa application.
Reporting Duties	The legal obligation of a sponsor to report certain events, such as absences or changes in employment, to the Home Office within a specified timeframe.

 

Section N: Additional Resources

 

UK Government: Sponsor a Visa Guide for Employers
https://www.gov.uk/uk-visa-sponsorship-employers
A comprehensive guide from the UK government providing detailed instructions on how to apply for a sponsor licence, manage sponsorship duties, and comply with legal requirements.

 

Visas and Immigration: Immigration Rules
https://www.gov.uk/government/collections/immigration-rules
The official collection of immigration rules governing visa applications, including the specific requirements for sponsoring temporary workers in the UK.

 

Sponsor Management System (SMS)
https://www.gov.uk/sponsor-management-system
Access to the UK Home Office’s Sponsor Management System, where employers can apply for, renew, and manage their sponsor licences and Certificates of Sponsorship.

 

Home Office: Immigration Skills Charge Guidance
https://www.gov.uk/government/publications/immigration-skills-charge
A resource outlining the Immigration Skills Charge, including when and how employers must pay the charge when sponsoring workers under certain visa categories.

 

UK Home Office: News and Updates
https://www.gov.uk/government/organisations/uk-visas-and-immigration
The official page for UK Visas and Immigration, providing updates on changes to immigration laws, policies, and sponsor licence regulations.