The UK sponsor licence, formerly known as the Tier 2 sponsor licence, allows UK-based organisations to hire skilled professionals from overseas, including US citizens, to fill positions in the UK. Currently, any UK company wishing to bring US workers to the UK must sponsor them, unless they already hold a visa allowing them to work in the UK.

To obtain a sponsor licence in the UK, employers must demonstrate their ability to comply with the programme’s regulations and pay associated fees. This process can pose significant challenges in terms of both time and financial investment for employers seeking to fill eligible positions with migrant workers.

However, there has been a significant increase in the number of companies acquiring sponsor licences since Brexit, and this trend of growth appears to be continuing without any signs of slowing down. Given that the UK sponsor licence process can be quite complicated and take months to complete, there’s a lot to be mindful of. But don’t worry, we’ve got you covered.

The objective of this guide is to provide a comprehensive understanding of UK sponsor licences, covering their various types, eligibility criteria, application processes, and associated costs.

Introduction

A UK sponsor licence is a mandatory requirement for organisations that wish to sponsor skilled migrant workers. Sponsor licences come in two main types: the skilled worker licence, designed for sponsoring skilled individuals for long-term or permanent roles, and the temporary licence, intended for specific temporary employment scenarios.

The skilled worker licence covers various categories, including the Skilled Worker Visa, while the temporary licence encompasses categories of visas such as the Creative Worker Visa. Generally, a US worker eligible for sponsorship under a skilled worker licence cannot be sponsored under a temporary licence. However, employers have the option to apply for a licence to cover either or both tiers if they wish.

Eligibility Requirements for a UK Sponsor Licence

The following criteria must be met to obtain a UK sponsor licence:

Your organisation must have a physical presence in the UK and must engage in lawful operations or trade within the country.
Your company needs to meet the requirements set by the UK immigration authorities, ensuring that you provide genuine employment opportunities and pay the appropriate salary rates as a licenced UK employer.
There should be no outstanding criminal convictions for immigration violations or particular offences such as fraud or money laundering.
There should be no record of a sponsor licence being revoked within the last 12 months.
Your business must establish effective monitoring systems for sponsored workers, overseen by designated personnel responsible for managing sponsorship within the organisation.

Sponsor Licencing Process

The process of obtaining a sponsor licence is rigorous and aimed at ensuring that only genuine employers can bring skilled workers from overseas to the UK. Below is a typical step in the application process:

Preparation

The first step in the sponsor licence process is to gather all the necessary documents, including details about the company, the open roles, and evidence that they have been unable to find a suitable candidate from within the UK.

Application

The next step involves completing the online sponsor licence application form, which is accessible through the UK government’s official website. This form requests details about the company, the categories of workers intended for sponsorship, and the specific visa pathways they plan to utilise (such as the Skilled Worker Visa, formerly referred to as Tier 2 Visa).

Following the submission of the online application, payment of the corresponding application fee is required. Subsequently, all necessary supporting documents should be forwarded to the UK Visas and Immigration (UKVI) agency within five working days of completing the online application.

Compliance assessment

After submitting your application and sending the supporting documents, UKVI will proceed to assess the application by reviewing the quality of the documents and may opt to inspect your organisation to determine whether to grant you the licence.

Application Fees

There’s an application fee required for obtaining the UK sponsor licence at the time of application. However, the exact amount of the fee depends on the type of licence you are applying for and the nature of your organisation.

For small or charitable sponsors applying for the skilled worker and temporary licence types, the application fee is £536. However, for medium or large sponsors, the fee is £1,476 for the skilled worker type and £536 for the temporary licence type.

A small organisation is described as having a staff of 1–50 individuals, an annual turnover of under £10.2 million, and total assets valued at £5.1 million or below. Furthermore, to keep the licence, the organisation must pay an annual sponsor fee, determined exclusively by the number of skilled workers it hires.

A charitable sponsor must be recognised as a religious organisation formed with charitable intentions and/or be a charity that is exempt from taxes.

Timescales for Decision Approval

The majority of applications are processed within eight weeks, a process that may involve a visit from the UKVI to your organisation. However, decisions can be expedited to 10 business days with an additional payment fee of £500.

It is important to note that this service is available for only a limited number of applications per working day, with requests prioritised based on their submission in order to expedite decision-making. Generally, upon submitting your application, you will receive instructions on how to request expedited processing.

Causes of Application Refusals

Applications can be refused by the UKVI for a variety of reasons, but the most common ones include:

The business failed to meet the UKVI’s ‘genuineness test’.
Failure to successfully pass UKVI’s compliance audit.
Inadequate retention of documentation regarding migrant workers.
The company lacks appropriate policies and procedures to fulfil its sponsorship obligations.
The company’s failure to provide timely responses to UKVI inquiries.

Conclusion

A sponsor licence is a valuable investment for UK employers because it expands their recruitment opportunities worldwide. While the sponsor licence has become mandatory for organisations that want to bring migrant workers, especially US workers, to the UK, navigating the UK immigration rules can be complex, challenging, and rigorous. Therefore, it is advisable to seek the help of an immigration expert to provide you with the right knowledge and guidance for successful navigation