This measure equally affects those who are not yet a Sponsor and wanting to apply for a sponsorship licence and also those organisations who are already Sponsors.
So how does it affect applicants for sponsor licences? If you are applying for a Tier 2 licence, your application may be refused if the Home Office is of the view that you are unable to offer genuine employment. The Home Office will assess this by looking for example at whether the nature or size of your business would be able to satisfy the skill levels or salary rates as outlined in the Tier 2 Codes of Practice.
For those of you who are existing Sponsors, the new changes would similarly affect you. Again, the Home Office may now refuse an application for a Tier 2 (General) Certificate of Sponsorship for the same reasons as above. There could be serious consequences if you are found to exaggerate a job description to deliberately make it appear that the role meets the requirements when it does not. Sponsors should continue to be careful when they are undertaking Resident Labour Market Tests and ensure that these tests are carried out as per the Home Office guidelines.
Unlike the Tier 1 Genuine Entrepreneur Test the Home Office has yet to detail the criteria they use to determine genuineness, so watch this space!