Tier 2 Sponsor Licence Application

UK employers can no longer make a Tier 2 Sponsor Licence Application. Instead, you should apply for a Worker Sponsor Licence to sponsor foreign nationals under the Skilled Worker visa route.

 

What type of sponsor licence do you need?

 

The type of sponsor licence your organisation requires depends on the specific roles you intends to recruit for and the category of workers you plan to sponsor. For most skilled positions, a Worker Sponsor Licence, previously known as the Tier 2 Sponsor Licence, would be necessary. The Worker Sponsor Licence  allows you to hire under the Skilled Worker route.

However, for temporary roles, and in certain industries such as religious or charitable work, a Temporary Worker Sponsor Licence, formerly known as Tier 5, may be required. This licence covers various short-term roles, including charity workers, religious workers, and creative workers.

The roles must meet the minimum skill level and salary threshold as defined by the Home Office. For example, the Skilled Worker route demands that the job be at least RQF Level 3, equivalent to an A-level qualification, and that it meets the minimum salary requirements.

The duration of employment is another factor to consider. If workers are being sponsored for a temporary period, such as up to 12 months, a Temporary Worker Sponsor Licence may be more appropriate.

 

Tier 2 sponsor licence application criteria

 

To apply for a sponsor licence, the organisation must evidence within their application that:

 

• They are a genuine organisation operating lawfully in the UK
• Their key personnel named on the application are honest, dependable and reliable
• They are aware of and capable of carrying out their sponsor duties ie they have appropriate human resources and recruitment systems and practices in place
• They are offering genuine employment that meets the visa skill level and appropriate rates of pay.

 

Roles being recruited for that are on the Immigration Salary List, or its predecessor the Shortage Occupation List, benefit from lower salary thresholds and application fees.

 

Assign key personnel roles

 

As part of your sponsor licence application you must identify the individual(s) within your organisation who will be responsible for the sponsor management duties and for using the online sponsor management system (SMS). The key personnel roles to be assigned are:

 

• Authorising Officer – a senior and competent person responsible for the actions of staff and representatives who use the sponsor management system.

• Key Contact – your main point of contact with UK Visas and Immigration.

• Level 1 User – responsible for all day-to-day management of your licence using the sponsor management system.

 

The roles can be filled by one individual or by several, giving you some flexibility to suit the set-up of your organisation. Note also that nominated employees will need to undergo suitability checks.

 

Making your Tier 2 sponsor licence application

 

The sponsor licence application itself is made online. The online form in itself asks for relatively straightforward detail about the organisation, to establish that you are a legitimate entity and to understand the full nature of your operations. There will also be a fee payable when making the application.

The more demanding aspect of the sponsor licence application is the extensive supporting documentation needed to prove that the evidentiary requirements are met.

Common grounds for refusal, or delays, in applications relate to sponsor licence supporting documentation submitted by applicants failing to meet Home Office requirements. There is some time pressure once you have completed the online application – the supporting documents must be supplied within five days of the initial application. Failure to submit all required documents will result in your application being delayed or rejected, and further costs being incurred. So it’s important to have prepared all of the necessary evidence and documentation by the time you make your application online.

Following the receipt of these documents, the company may then be subject to a compliance visit from UK Visas and Immigration, who will assess whether or not to grant the licence.

Employers will also be required to comply with the illegal working requirements which states that all employees are required to provide documentation that proves their right to work before being employed by a UK company and copies of this information must also be retained by the employer.

 

Read our comprehensive guide to making a Sponsor Licence Application here >> 

 

Sponsor licence application supporting documents

 

The full lists of the current sponsor licence supporting documents are available on the Home Office’s Appendix A List of documents. The lists of sponsor licence supporting documents are extensive, the requirements highly specific, and they vary depending on the type of organisation you are – eg charity, ‘start up’, public body etc.

For example, businesses that have been operating for less than 18 months will be subject to different checks than longer-established employers, and as such must provide evidence of a current business bank account with a bank registered by the Financial Conduct Authority in the UK.

Whereas if your organisation is listed on the London Stock Exchange main market, in most cases you will not need to submit documents as the Home Office will check your listing online.

The lists of sponsor licence supporting documents are extensive, the requirements highly specific, and they vary depending on the type of organisation you are – eg charity, ‘start up’, public body etc.

The reality of compiling the specific supporting documentation in its expected format is no mean feat. Depending on the size, age and location of the organisation, you may struggle to locate certain items, either in part or whole.

The most common difficulty is the time it takes to obtain the supporting documents. You have only five working days after completing your online application to submit the required supporting documentation.

Mandatory documents however are not always the easiest for HR to collate, particularly when they are located within a different business department, such as finance. This is where the communication and confusion begins, especially when the information required is found on two separate documents. This is most common with proof of HMRC payroll registration and company tax documents.

For proof of HMRC payroll, UKVI want to see the reference numbers for both the PAYE and the accounts office. Both reference numbers are found on the front cover of the employer payslip booklet and on the HMRC letter titled the New Employer Registration and Reference Numbers.

Depending on the age and size of the company, these documents may be archived and time-consuming to obtain. Therefore, it is likely to be quicker to obtain them from two separate documents such as an HMRC notification to file and the employer/employee filed return.

Another hurdle with collating the supporting documents may be obtaining the documents in original form, and knowing when it is acceptable to submit a certified copy of a document. Take advice on when it is permissible to submit a certified copy, or when UKVI will expect an original.

If documents require certification it is important to note that they must be certified in a certain way otherwise the entire licence application can be refused because the caseworker was unable to verify the certifier.

Certifying documents goes beyond making photocopies. UKVI only accept certified documents by a practising lawyer, a notary public or the issuing authority such as the bank.

 

Be prepared for a Home Office inspection

 

After you’ve made your application online and submitted your supporting documents, you may find yourself subject to a compliance inspection to assess whether or not to grant you the licence. Home Office visits are daunting, and require a great deal of preparation to get the ‘house’ in order.

A key driver behind the visits, and the reason for them becoming more common than ever, is the ‘genuineness test’. The test is looking to ascertain whether the employment your licence relates to is genuine and meets Home Office guidance on ‘skill level and appropriate rates of pay’.

Unfortunately, there’s no black and white criteria as to what this means in practice, which creates uncertainty for employers. Seeking professional advice is the most effective way of ensuring the basis of your sponsor licence application and the application itself are sufficiently relevant and robust. It also helps to conduct a mock immigration audit to help identify and rectify potential areas of non-compliance.

 

Home Office decision

 

If your sponsor licence application is approved, you will be awarded an A-rated licence and will be added to the Home Office register of sponsors. You can now take the next step in your recruitment strategy and start assigning Certificates of Sponsorship to the visa applicant.

If your sponsor licence application is not successful, there is no right to appeal and you would instead have to make a new application, at full cost and after a specified period of time, which will depend on your circumstances. So it clearly pays to get it right first time.

 

Avoiding a refused licence application

 

The Tier 2 sponsor licence application process is designed to ensure UK employers are complying with their duties in preventing illegal working. It is essential that organisational systems, policies and procedures are established, operational and effective in meeting the sponsor licence compliance duties. Undertaking an internal immigration audit before you make the application can help you identify areas for improvement and maximise your chances of being awarded a sponsor licence.

UKVI are also stringent with the eligibility of supporting documents and likely to delay or refuse the application if a document is:

 

• incomplete;
• out of date;
• not the original document or not a correctly certified copy where permitted; or
• not provided within the specified time after the application is made (i.e. five working days).

 

With current processing times for securing a sponsor licence around three months, there is no margin for error in the application process. If there are issues with your supporting documents, you may in response to your submission be asked by UKVI to supply further information or documentation.

Failure to respond to this request within the prescribed timeframe (generally seven working days) will result in application rejection and you will lose your application fee. Alternatively, UVKI may, in light of questions around your supporting documents, arrange to come and visit your premises. Home Office scrutiny is best avoided by compiling and submitting a comprehensive application across the form and supporting documents. Put simply, getting your application right first time is the best way to secure your sponsor licence.

 

Need assistance?

 

Given the scope for error and the organisational importance of getting your sponsor licence application right first time, seeking professional advice can help you ensure you are collating the correct documentation for your organisation’s application.

DavidsonMorris are highly experienced in helping employers with sponsor licence applications, managing the process on your behalf and deal with any questions you have relating to sponsor licence supporting documents to help you avoid delay or refusal of your application. We are also highly experienced in managing sponsored worker visa applications and ongoing licence compliance and management.

If you have any queries about sponsor licence processes or duties, contact our experts.

 

Tier 2 sponsor licence application FAQs

 

Is the Tier 2 Sponsor Licence still available?

No, the Tier 2 Sponsor Licence has been replaced by the Skilled Worker route under the UK’s new points-based immigration system. Employers now need to apply for a Worker Sponsor Licence to hire skilled workers from outside the UK.

 

What is a Worker Sponsor Licence?

A Worker Sponsor Licence is the updated version of the Tier 2 Sponsor Licence, allowing UK employers to sponsor non-UK nationals for roles that meet the required skill and salary levels. It’s a key requirement for businesses wanting to recruit talent from abroad.

 

How does the new Worker Sponsor Licence differ from the old Tier 2 Sponsor Licence?

The Worker Sponsor Licence operates under the new points-based immigration system, which is designed to be more flexible and includes a broader range of eligible roles. The basic principles remain the same, but the criteria for sponsorship and the way points are allocated have changed.

 

What should employers be aware of under the new Worker Sponsor Licence system?

Employers must still adhere to strict compliance requirements, including maintaining accurate records and reporting changes in employment status. The penalties for non-compliance are severe and can include fines or licence revocation.

 

Can businesses that previously held a Tier 2 Sponsor Licence continue to sponsor workers?

Yes, businesses that held a Tier 2 Sponsor Licence are automatically transferred to the new Worker Sponsor Licence. However, they must ensure that they meet the updated requirements under the new system to continue sponsoring workers.

 

 

Glossary

 

Term	Definition
Tier 2 Sponsor Licence	The name of the previous type of sponsor licence needed to hire Tier 2 visa workers pre-Brexit. It is now called a Worker Sponsor Licence, and it is needed by UK employers wanting to sponsor workers under the Skilled Worker visa route.
Certificate of Sponsorship (CoS)	A unique reference number issued by a licensed sponsor to a foreign worker, enabling them to apply for a Tier 2 visa.
Home Office	The UK government department responsible for immigration, security, and law and order.
Immigration Skills Charge	A fee that employers must pay when sponsoring workers, used to fund training for UK residents.
Sponsor Management System (SMS)	An online platform that employers use to manage their Sponsor Licence, including issuing CoS and reporting worker activity.
Sponsorship Duties	Legal obligations that employers must fulfil when holding a Sponsor Licence, such as keeping records and reporting changes.
Eligibility Criteria	The set of requirements that a UK employer must meet to qualify for a Sponsor Licence.
Revocation	Home Office enforcement action, withdrawing a Sponsor Licence, usually due to non-compliance with sponsorship duties.
Small Business	A company that typically meets the criteria of having fewer than 50 employees and a turnover or balance sheet total not exceeding certain thresholds, often eligible for lower fees.
Compliance	The act of following the rules and regulations set by the Home Office, necessary for maintaining a Sponsor Licence.
Skilled Worker	A non-UK national employed in a role that meets the required skill level and salary threshold set by the UK government for sponsorship.
Non-UK Worker	A person who is not a citizen of the United Kingdom and requires a visa to work in the UK.
Appeal	A process where a decision by the Home Office, such as the refusal of a licence application, can be contested and reviewed.