How to Get a Sponsor Licence in the UK: Everything You Need to Know

Copy of AYJ Alert News - 2025-01-03T161303.221

A sponsor licence is one of the must-haves for UK-based businesses to recruit skilled talent from other countries. UKVI issues a sponsor licence to employers who are supposed to sponsor foreign talent while ensuring they comply with immigration laws. However, preparing and navigating the sponsor licence application process requires a lot of preparation and understanding of what obligations lie in the application. Failure to meet these requirements will mean sponsor licence suspension, disrupting recruitment efforts and causing harm to the organisation’s reputation.

What is a Sponsor Licence?

A sponsor licence is a legal permit issued to UK employers to recruit non-resident workers under specific visa categories. The two are the Skilled Worker and Temporary Worker visa routes. In applying for this licence, the business will be demonstrating that it is genuine and compliant with the laws of the UK and that it can meet its responsibilities as a sponsor. These are duties of sponsorship, such as maintaining accurate records of sponsored employees, monitoring their activities, and reporting any non-compliance to UKVI.

Eligibility Criteria for Sponsor Licence

Prior to submitting for a sponsor licence, firms need to have passed various eligibility criteria. The requirements demonstrate that the firm has systems that are lawfully managed and ensure adequate monitoring of sponsored workers. For instance, the level of tracking for attendance and compliance with visa and report requirements needs to be shown through the human resource processes. Secondly, key people who will operate with the licence must have relevant skills and no prior history of immigration offences.

How to Apply for a Sponsor Licence

A structured process is followed to get a sponsor licence from a business.

First, the sponsor licence application must be done online through the Sponsor Management System. Employers must declare the type of licence that they need, depending on their needs for recruitment, such as long-term workers under the Skilled Worker visa or short-term employees under a Temporary Worker visa. The supporting documents required, such as proof of premises, bank statements, and PAYE registrations, will then have to be obtained and submitted. These documents must be submitted within five working days of the online application to avoid delays.

The application fee differs according to the size of the organisation. Small businesses or charitable sponsors pay £536, while larger businesses pay £1,476. Applications are usually processed within eight weeks after submitting them. A faster outcome can be obtained with the help of the priority service. This costs £500 in addition to the application fee and will return a decision within ten working days, subject to availability.

Sponsor Licence Compliance Requirements

Once a sponsor licence is granted, a huge responsibility comes with it. The employers must have accurate records of the sponsored workers and evidence that they are either outside or within the immigration rules. They are also obliged to report specific changes or incidents, for instance, where a sponsored worker fails to appear at work or breaches conditions attached to their visa within specified timeframes. Regular internal audits and updates to HR policies are crucial to ensure ongoing compliance with these requirements.

What Causes Sponsor Licence Suspension?

Non-compliance can lead to sponsor licence suspension, such that the employer is barred from sponsoring new workers and maybe even the immigration status of any existing employees. The more common reasons for suspension of a sponsor licence include poor record-keeping, failure to report an employee change, or delegating sponsorship duties to those who are not qualified for the task. Suspension would also occur if organisations are found violating UK legislation, for instance, against employment and minimum wage practices.

How to Respond to a Suspended Sponsor Licence

A suspended sponsor licence requires swift action from the employer to resolve the issues that UKVI identifies. This is achieved through reviewing the reasons for suspension, corrective measures to rectify the issues, and providing a formal response within the specified timeframe. If the sponsor licence suspension is found to be unjustified, the employers can challenge the decision by presenting evidence to negate the findings of UKVI. Failure to respond may lead to revocation of the licence, and thus, the possibility of sponsoring foreign workers becomes impossible.

Avoiding Sponsor Licence Suspension

Regular compliance checks and audits by employers are conducted to minimise suspension risk. Conducting compliance checks will ensure that human resource systems are working appropriately; hence, sponsored employees operate under visa conditions. A further way to avoid a mistake or omission by authorised staff members is by making them go through some form of training. It makes the organisation comply with the new legal and policy changes within UKVI.

Get Sponsor Licence Guidance

It is one of the key responsibilities of UK employers to allow them to employ international talent to meet their labour requirements. However, they need to be extremely cautious while making applications and ensure they comply with sponsorship obligations at all times. Non-compliance can lead to sponsor licence suspension and major operational issues. For professional advice on applying for a sponsor licence and avoiding compliance issues, A Y & J Solicitors provide customised legal assistance. With experience in managing sponsor licence applications and dealing with suspensions, our expertise will help your organisation successfully fulfil its recruitment needs while complying with UKVI regulations.

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