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Many UK employers rely on overseas recruitment to fill skills gaps and meet business needs. This process is governed by a structured sponsorship system that allows organisations to hire skilled workers from outside the UK while adhering to immigration regulations. To be able to hire under these designated sponsorship visa routes, such as the Skilled Worker visa, employers must first secure a sponsor licence.
Applying for a Sponsor Licence
Employers looking to recruit workers from overseas must, in most cases, apply for a sponsor licence. This licence permits the organisation to sponsor individuals applying under routes like the Skilled Worker visa.
The sponsor licence application process requires the employer to demonstrate that they are a legitimate and compliant business. Evidence such as company accounts, proof of operational premises, and details of key personnel responsible for managing sponsorship must be provided.
The Home Office will conduct detailed checks during the application process to ensure the organisation meets the necessary criteria. These checks may include an inspection to verify the organisation’s capabilities in fulfilling the sponsorship duties. Obligations include monitoring sponsored employees, maintaining accurate records, and adhering to sponsorship requirements. If these obligations are not met, the application may be refused, or an existing licence could be revoked.
Sponsorship Costs
Sponsoring overseas workers involves specific financial commitments. The sponsor licence application fee varies depending on the size of the organisation. Small businesses and charitable organisations are charged £536, while medium and large organisations pay £1,476. To qualify as a small business, the employer must meet at least two of the following criteria: an annual turnover of £10.2 million or less, total assets worth £5.1 million or less, or fewer than 50 employees.
Beyond the application fee, there are additional costs for employers. The Immigration Skills Charge must be paid for each sponsored worker, amounting to £364 annually for small organisations and £1,000 annually for medium and large employers. Employers must also pay £239 for each Certificate of Sponsorship (CoS) issued to a worker.
Skilled worker visa fees vary based on the visa’s duration and the worker’s individual circumstances, and are typically covered by the applicant. However, some employers include these fees as part of their recruitment package to attract skilled talent.
Licence Approval and the Register of Licensed Sponsors
Once a sponsor licence is approved, the employer’s details are added to the publicly accessible Register of Licensed Sponsors, maintained by the Home Office. Being on this register confirms that the organisation is authorised to sponsor workers and enhances its credibility with prospective recruits. Candidates can verify an employer’s sponsorship status using the register, which is a vital tool in the recruitment process.
Approved employers can issue Certificates of Sponsorship to eligible workers. These unique codes are used by the workers when applying for their Skilled Worker visas, forming an essential step in the hiring process.
Ensuring Compliance
Obtaining a sponsor licence is just the beginning. Employers must comply with a range of ongoing responsibilities to maintain their licence. This includes conducting right to work checks, reporting any changes in a sponsored worker’s circumstances, and keeping up-to-date records.
The Home Office may carry out unannounced inspections to ensure compliance. Any failure to meet the required standards could result in penalties, including the suspension or revocation of the licence. Maintaining compliance is essential to avoid disruptions to recruitment efforts and potential reputational damage.