Summary
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- Your business will normally need a sponsor licence if the worker requires a sponsored work visa.
- A licence alone does not make a job eligible: the role and worker must meet the relevant immigration requirements.
- The Home Office does not extend Graduate visas, so retaining an employee may require a switch to another immigration route.
- This guide explains sponsor licence decisions and preparation for employers recruiting or retaining workers in the UK.
- LegalVision’s immigration lawyers advise employers on sponsor licence applications, assessing sponsored roles and retaining employees whose visas are expiring.
Tips for Businesses
Record visa expiry dates and work backwards to plan licence and visa applications. Assign each application step to a named person. Compare the job description with the proposed occupation code before agreeing a start date. Speak to an immigration lawyer at LegalVision about preparing your sponsor licence application.
On this page
- What Is a Sponsor Licence?
- Does Every Non-British Employee Need Sponsorship?
- When Will I Need a Sponsor Licence?
- What If the Employee Is Already in the UK?
- How Can I Plan for a Graduate Visa Employee to Stay?
- Can I Sponsor Any Job Once I Have a Licence?
- What Salary Must a Sponsored Role Pay?
- What Does the Home Office Consider When I Apply?
- What Happens After I Get a Sponsor Licence?
- Key Takeaways
- Frequently Asked Questions
Your business normally needs a sponsor licence before sponsoring a Skilled Worker, and the job must meet salary and skill requirements. A sponsor licence gives a UK business permission to sponsor certain overseas workers. Employers may need one when recruiting a candidate or retaining an employee whose immigration permission is ending. Some candidates already have permission to work without sponsorship. Check the person’s immigration status before planning their start date. This article explains sponsor licence requirements, role eligibility and planning for continued employment and sponsor responsibilities.
What Is a Sponsor Licence?
The Home Office grants a sponsor licence to give your business permission to sponsor certain overseas workers.
For many UK employers, the most relevant route will be the Skilled Worker sponsor licence.
Once your business holds the correct licence, you can potentially assign an eligible worker a Certificate of Sponsorship, or CoS. It is an electronic sponsorship record containing information about the worker and the role. The worker then uses it as part of their visa application.
A sponsor licence can therefore allow a business to recruit new international talent. It can also allow a business to retain existing employees who now require sponsorship to continue working in the UK.
The business, the proposed role and the individual worker must all satisfy the relevant immigration requirements.
Does Every Non-British Employee Need Sponsorship?
Someone does not require sponsorship simply because they are not British.
Some candidates will already have the right to work in the UK without being sponsored by your business. This could include someone who has:
- indefinite leave to remain;
- settled or relevant pre-settled status under the EU Settlement Scheme;
- an Irish passport; or
- another visa or immigration status that permits them to work without employer sponsorship.
Indefinite leave to remain means permission to stay without a time limit.
Check the person’s immigration status and whether it allows them to work for your business.
If their permission allows them to work, you may not need to sponsor them at all.
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When Will I Need a Sponsor Licence?
You will generally need a sponsor licence when the person you want to employ requires a sponsored work visa to work for your business.
The most common example is the Skilled Worker visa.
If they do not already have immigration permission allowing them to work for you and need to apply as a Skilled Worker, you will normally need to become an approved sponsor first.
You may already employ someone who has independent permission to work in the UK, but that permission is about to expire. If you want to retain them and they need to switch into the Skilled Worker route, sponsorship may become necessary.
There are also other sponsored routes. For example, international businesses may use one of the Global Business Mobility routes when transferring staff to the UK or establishing a UK presence.
The correct sponsorship route will depend on your business, the worker and what you are trying to achieve.
What If the Employee Is Already in the UK?
Being in the UK is not the same as having unrestricted permission to work.
A candidate may already hold a UK visa, but you still need to understand the conditions attached to it.
Some visas allow an individual to work without employer sponsorship. Others place restrictions on the type of work they can undertake, the hours they can work or how long they can remain employed.
In some circumstances, the employee may be able to start working for you without sponsorship. In other cases, they may need to switch to a different immigration category before they can take up the role.
How Can I Plan for a Graduate Visa Employee to Stay?
If you employ someone on a Graduate visa, plan their next immigration step before their permission ends. The Home Office does not allow workers to extend a Graduate visa. The worker may qualify to switch to a Skilled Worker visa instead.
For example, suppose your business wants to retain a designer whose Graduate visa will expire during a busy trading period. Work backwards from the visa expiry date when planning recruitment and staffing. Allow time to assess the role, prepare your sponsor licence application and arrange the worker’s visa application.
Keep the employer’s licence application separate from the employee’s application in your planning. Applying for a sponsor licence does not, by itself, extend the employee’s immigration permission. The worker must apply to switch before their existing visa expires.
Ask the employee about their plans early and record who will manage each step. Give your recruitment team and the licence administrator the same timetable. Check progress against the visa expiry date, rather than relying only on the planned employment start date.
Can I Sponsor Any Job Once I Have a Licence?
Obtaining a sponsor licence does not mean that every role within your business can automatically be sponsored.
The proposed job must meet the requirements of the relevant immigration route.
For the Skilled Worker route, you will need to consider whether the role falls under an eligible occupation code, meets the required skill level and satisfies the applicable salary requirements.
An occupation code identifies the type of work in a job.
The occupation code must also properly reflect what the employee will actually be doing. The Home Office can consider the actual duties, the seniority of the position, the salary, and whether the role makes sense within the structure and activities of the business.
“Treat a visa expiry date as a staffing decision point. Planning backwards gives your team time to assess sponsorship before continued employment becomes urgent”
What Salary Must a Sponsored Role Pay?
For most new Skilled Worker applications, the standard general salary threshold is £41,700 per year. However, the worker will usually need to be paid whichever is higher: £41,700 or the applicable going rate for their occupation. The going rate is the salary benchmark for the occupation.
For example, if you offer a salary of £42,000 but the going rate for that particular occupation is £45,000, the role would not normally meet the standard salary requirement just because it has cleared the £41,700 threshold.
The Home Office salary guidance sets out the standard threshold and the occupation-specific going rates.
When Can Different Salary Rules Apply?
Different salary thresholds can apply depending on the worker’s circumstances. This may include certain new entrants, workers with relevant PhD qualifications and workers who qualify under other tradable-points or transitional provisions.
Before promising sponsorship, check:
- whether the role is eligible for sponsorship;
- whether the correct occupation code has been identified;
- whether the proposed salary meets the applicable requirements;
- whether the employee’s actual duties match the occupation being sponsored; and
- whether any alternative rules apply because of the worker’s individual circumstances.
What Does the Home Office Consider When I Apply?
The Home Office will consider whether your organisation is genuine, trading or operating lawfully and capable of taking on the responsibilities that come with being a licensed sponsor.
Prepare Your HR Systems
Your business should have appropriate HR and recruitment systems in place. This includes keeping required records, monitoring sponsored employees, carrying out right-to-work checks, and reporting certain changes to the Home Office.
Appoint People to Manage the Licence
You will also need to appoint Key Personnel to manage the licence. These include:
- an Authorising Officer, usually a senior person within the organisation who has overall responsibility for your sponsorship activity;
- a Key Contact, who acts as the main point of contact with the Home Office; and
- a Level 1 User, who carries out the day-to-day management of the licence through the Sponsorship Management System.
The same individual can hold more than one of these roles where they meet the relevant requirements. The Sponsorship Management System is the online portal for managing sponsorship.
Prepare for Compliance Checks
The Home Office can also conduct a compliance check before deciding on your application. This may involve reviewing your HR systems, recruitment practices, and business operations, and assessing whether the relevant people within the business understand their sponsor duties.
The Home Office can also carry out compliance checks after your licence has been granted. Prepare to demonstrate how your business will meet sponsor responsibilities in practice, and provide the application documents.
Planning to sponsor a worker from overseas? Download our free guide to sponsor licences, visa routes and your ongoing sponsor duties.
What Happens After I Get a Sponsor Licence?
Your responsibilities as a sponsor start on the day the Home Office grants your licence. These include responsibilities relating to right-to-work checks, record-keeping, and monitoring sponsored employees.
They also include reporting certain changes to the Home Office and ensuring sponsored roles continue to meet the relevant immigration requirements.
You may also need to report changes relating to the sponsored worker, their employment or your organisation through the Sponsorship Management System.
Failure to comply with your sponsor duties can put your licence at risk and, in more serious cases, may affect the immigration status of the workers you sponsor.
Key Takeaways
Start by checking whether the person’s immigration permission allows them to work for your business. If they need a sponsored work visa, such as a Skilled Worker visa, your business will normally need the appropriate sponsor licence. Check the role, salary and worker against the relevant requirements. Prepare your business to meet sponsor duties from licence approval.
LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced immigration lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Does every non-British employee need sponsorship?
No, some people already have permission to work without employer sponsorship. Examples include Irish citizens and people with indefinite leave to remain. Check the individual’s immigration status and whether that status permits the proposed work.
Can I sponsor any job once I have a licence?
A sponsor licence does not make every job eligible for sponsorship. For a Skilled Worker visa, check the occupation code, skill level and applicable salary requirements. The code must reflect the employee’s actual work.
Does an employee already in the UK need sponsorship?
An employee already in the UK may still need sponsorship. Their visa conditions determine whether they can work for your business. Some employees may need to switch immigration categories before taking up the role.
What does the Home Office check before granting a sponsor licence?
The Home Office assesses whether your organisation operates lawfully and can meet sponsor responsibilities. Your business should have suitable HR systems and eligible people to manage the licence. The Home Office may carry out a compliance check.
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