Skilled Worker Sponsor Licence: A Complete Guide

Specialist advice on applying for or managing a Sponsor Licence.

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Skilled Worker Tier 2 Sponsor Licence

Skilled Worker Sponsor Licence: A Complete Guide

Specialist advice on applying for or managing a Sponsor Licence.

Rated Excellent on TrustPilot

What is a Skilled Worker Sponsor Licence

The Skilled Worker Sponsor Licence is essential for UK businesses aiming to recruit skilled workers from overseas. Whether you’re struggling to find local talent with the right expertise or looking to expand your workforce, this licence allows you to hire internationally and fill those crucial gaps. It’s not just about meeting immigration rules; it’s about accessing the skills needed to keep your business competitive and sustainable.

Are You Eligible for a Skilled Worker Licence?

Before diving into the application, it’s important to check whether your business ticks all the right boxes. Your company must be actively trading in the UK and have a clean history regarding legal matters, particularly immigration. It’s not enough to be a legitimate business; you also need to prove you’ve got reliable HR systems to manage sponsored workers. This might include policies for record-keeping, monitoring employees’ immigration status, and reporting changes to the Home Office.

If your business is relatively new or has had previous compliance issues, consider taking extra steps to show you’ve made improvements or have systems in place to prevent future problems. The more you can demonstrate your readiness, the smoother your application process will likely be.

How to Apply for a Skilled Worker Licence: A Step-by-Step Guide

Applying for a Skilled Worker Sponsor Licence involves more than just filling out a form.

Step 1:

First, head over to the Sponsorship Management System (SMS) online and complete your application. You’ll need to submit various documents, including proof of business operations (like bank statements and VAT registration) and a cover letter that outlines why you need the licence and what roles you plan to fill.

Step 2:

Next, designate key staff members for certain roles. This includes the Authorising Officer, who ensures the company meets its responsibilities, and the Level 1 User, who manages the day-to-day functions within the SMS. These roles must be filled by individuals who understand their duties because errors here can cost you the licence.

Step 3:

Expect the process to take up to eight weeks, but if your application is audited, it could take longer. For faster processing, double-check everything is in order before submitting. If you’re a smaller or charitable organisation, you may also qualify for a reduced application fee.

Roles and Responsibilities for Sponsorship

Managing a Skilled Worker Sponsor Licence involves more than just assigning someone to handle the paperwork. The Authorising Officer must not only know the rules but also actively ensure the business is meeting them. This person is responsible for the behaviour of everyone else who uses the SMS, so it’s not a role to take lightly.

Meanwhile, the Level 1 User should be on top of day-to-day tasks, such as issuing Certificates of Sponsorship (CoS) and updating worker records. Make sure these roles are filled by people who are not only reliable but also well-trained in the sponsorship requirements. Compliance is key, and failure to stick to the rules can lead to serious consequences.

Navigating the Points-Based System

The UK’s points-based immigration system sets specific criteria for Skilled Worker Visas. To qualify, workers need at least 70 points, which they can earn based on factors such as a valid job offer, meeting skill and salary thresholds, and English language proficiency. Employers should pay attention to the exact requirements for each role to ensure they’re offering positions that meet these standards.

For example, if your role is on the shortage occupation list or the salary exceeds a certain threshold, additional points can be earned. This flexibility can help businesses bring in top international talent while complying with the Home Office’s guidelines.

Keeping Up with Compliance Obligations

Compliance isn’t a one-and-done task—it’s ongoing. Once you’ve secured your licence, you’re responsible for keeping accurate records of all sponsored employees. This includes holding copies of passports, visa documents, and relevant qualifications. You also need to report any significant changes to the Home Office. For instance, if a sponsored worker doesn’t start their job, goes missing, or if the business relocates, it must be reported immediately.

To stay ahead, conduct regular reviews of your processes. Even if everything appears to be running smoothly, make it a habit to audit your compliance measures to ensure you’re meeting the Home Office’s standards. This not only helps avoid penalties but also ensures you’re ready if an unexpected inspection occurs.

Why the Certificate of Sponsorship (CoS) Matters

Think of the CoS as your official stamp of approval that verifies a job offer for an overseas worker. Each one is tied to a specific individual and job, containing details about the role and salary. There are two types: defined CoS (for workers applying from outside the UK) and undefined CoS (for workers already in the UK). The key is to get the details right—any mistakes can cause delays in visa processing, costing you time and potentially impacting your reputation.

The Skilled Worked Sponsor Licence Renewal Process

A Skilled Worker Sponsor Licence lasts for four years, but it’s wise to start planning your renewal at least three months before it’s due. The Home Office will look at how well you’ve managed compliance over the past few years, including whether your HR systems are still up to scratch and if you’ve maintained accurate records. Make sure you’ve kept up with any changes to your business structure or sponsorship duties, as these could affect your renewal.

Brexit’s Impact: What’s Changed?

Brexit has shifted the game. Now that EU citizens need sponsorship just like everyone else, businesses that once relied on a steady flow of EU workers must adjust to the new rules. This has not only increased the demand for sponsor licences but also made it more important for companies to understand the criteria for sponsorship and prepare for a more competitive hiring landscape.

Pitfalls to Avoid When Applying

Many businesses trip up by not providing enough evidence or misunderstanding the requirements for specific job roles. For example, roles need to meet certain salary and skill thresholds, which aren’t always straightforward. Make sure all your documentation is thorough and accurate before submitting the application. If you’re unsure, don’t hesitate to seek professional advice to avoid setbacks.

Financial Considerations: Know the Costs

The financial side of obtaining and maintaining a Skilled Worker Sponsor Licence involves more than just the initial application fee. You’ll also need to budget for the Immigration Skills Charge, which applies to each sponsored worker. If you’re sponsoring multiple employees, this can add up quickly. Don’t overlook the potential costs of non-compliance either—penalties can be hefty.

Investing in proper HR training and robust systems will help you stay on track, avoid fines, and manage costs more effectively.

The Role of Legal Assistance

Given the complexities involved, having a legal expert by your side can make a significant difference. An immigration solicitor can help you navigate each step of the process, ensuring all requirements are met. This support is especially useful if your business has faced any compliance issues in the past or if your application is more complicated than usual.

Truth Legal: Your Partner in the Sponsorship Journey

At Truth Legal, we provide practical, hands-on guidance throughout the Skilled Worker Sponsor Licence process. From preparing your application and gathering the right documents to managing ongoing compliance, our team ensures you’re fully equipped to succeed. Our goal is to make the sponsorship process smoother for your business, allowing you to focus on hiring the right talent while we take care of the paperwork.

Staying Ahead: Keep Up with Rule Changes

The immigration rules around sponsorship are always changing, especially post-Brexit. Regularly review any updates to the Points-Based System, the Immigration Skills Charge, and compliance requirements. This will help you avoid nasty surprises and keep your licence in good standing.

What exactly is a Skilled Worker Sponsor Licence?

Think of it as permission from the UK government that lets your business legally hire skilled workers from abroad. It’s more than just a formality; it ensures that your company can recruit international talent in a way that meets the UK’s immigration rules and standards.

How do you apply for this licence?

The application is an online process through the Home Office’s system. You’ll fill out the required forms and upload documents proving that your business is genuine and meets the criteria to hire overseas workers. Make sure your information is accurate and up to date for a smooth process.

What are the requirements?

To qualify, your business needs to be legitimate and actively operating in the UK. You should have a good compliance record, proper HR systems in place for managing sponsored employees, and the role you’re hiring for must meet certain skill and salary criteria.

How long does it take to get a licence?

Processing times vary but usually take up to eight weeks. This depends on how complete your application is and whether any additional checks are needed.

Can the licence be renewed?

Yes, you can renew your Skilled Worker Sponsor Licence. It’s important to apply before your current licence expires. The renewal process is similar to the original application, and you’ll need to provide updated documents.

Do you need to pay for the licence?

Yes, there’s a fee involved. The amount depends on the size and type of your business—larger companies pay more, while smaller or charitable organisations pay less.

What if your licence application is denied?

If your application is “rejected,” you can usually reapply immediately, and you’ll get a refund. If it’s “refused,” you’ll face a waiting period (usually six months) before you can reapply.

Can the licence be revoked?

Yes, if you don’t stick to the rules or fail to meet your sponsorship duties, the licence can be taken away.

What are the responsibilities of a licence holder?

You’ll need to keep accurate records for your sponsored workers, report any changes (like if someone leaves), and make sure everything stays above board to avoid penalties.

Can the licence be transferred to another company?

No, each company needs to apply for its own licence. Licences are specific to the organisation that applies and can’t be moved to another business.

Why Choose Truth Legal

Sponsoring foreign national workers can be highly cost effective for your business when done well. At Truth Legal, we’re not just about getting the licence; we aim to cultivate a close partnership with you, ensuring that sponsorship seamlessly integrates into your business.

Our team comprises genuine sponsor license specialists, offering effective support at a more affordable rate than most competitors. Our reviews speak volumes. Arrange a free consultation, and we’ll promptly send you our costs for your consideration.

At Truth Legal, our dedicated and experienced team of immigration solicitors has assisted numerous businesses in obtaining a Skilled Worker (previously known as a Tier 2) Sponsor Licence to sponsor overseas workers.

While other organisations, many of which are not regulated solicitors, may handle the basics of submitting the licence application, they often leave you in the dark about how sponsorship truly works, exposing you to long-term vulnerability. At Truth Legal, we take the time to ensure you enter into sponsorship with a full understanding of how it works and the responsibilities associated with holding a licence.

Our ethical approach not only secures the future of your business but also considers long-term goals. Our expertise in employment law enables us to maintain employee satisfaction, ensuring sponsored employees remain loyal to your company.

How we can help?

Detailed consultation

We conduct a detailed consultation to ensure you fully understand the sponsorship process and licence duties. You’ll receive a tailored advice letter and our Quick Reference Guide to sponsor licence compliance.

Preparing your licence application

We prepare a robust licence application, advising you on required documentation, drafting a detailed cover letter outlining your business case, and setting up your online application. Typically, we can turn an application around within a week, provided you promptly provide the required documentation.

Help sponsoring individuals

After obtaining your licence, we guide you through applying for certificate(s) of sponsorship and assigning them to individuals. Additionally, we offer end-to-end services, advising and assisting the sponsored individual with their visa application.

Compliance support

As an optional service, we can prepare a specific compliance report to accompany the licence application, potentially avoiding audits and ensuring your HR systems are in place from the outset. Our ‘mock-audit’ service reviews existing HR systems, providing detailed feedback to ensure HR compliance with sponsor licence requirements.

Frequently Asked Questions

How much does it cost?2023-11-13T10:49:58+00:00

The sponsor licence costs £536 for small businesses or £1,476 for medium/large businesses. Our fee for assisting with the licence application is available upon request after a free initial consultation.

Additional costs apply when sponsoring an individual:

  • 1 certificate of sponsorship = £239 (one-off fee per sponsored person)
  • Immigration Skills Charge = £364 (small employer) or £1,000 (medium/large employer) per year, per person, payable upfront.

Individuals also have visa fees, which are their responsibility.

You can read more in our blog ‘Sponsor licence costs – everything you need to know’.

Do I REALLY need a lawyer?2024-09-14T07:25:40+01:00

While you can apply for a licence without support, be warned that it requires close attention to detail and a significant time investment. Our support ensures a robust application and the correct HR systems, saving you money in the long run.

If you want to apply on your own, check out our detailed legal guide – taking you step-by-step through the process (we genuinely don’t hold back and give away years of combined knowledge for free). Or check out our video by Head of Immigration, Louis.

How long does it take?2023-11-13T10:51:21+00:00

Standard processing time is up to 8 weeks, with priority processing available for 2 weeks at an extra charge. Additional processing time often applies for a ‘defined certificate.’ Visa processing time is up to 3 weeks (outside the UK) or up to 8 weeks (inside the UK), with a priority service available for a fee.

How much do I have to pay my worker?2023-11-13T10:51:54+00:00

The Home Office requires a minimum salary for sponsored workers, varying by job code. Recovery of some fees paid for the sponsored worker is possible, excluding the Immigration Skills Charge. This is a complicated area and we go into this in more detail in this blog.

Can I recover costs from the worker?2023-11-13T10:52:31+00:00

Yes, it is possible to recover some fees that you pay in respect of the sponsored worker, although the Immigration Skills Charge cannot be recovered. Check out our blog on this issue.

As an ethical employer ourselves, we are keen to promote ethical practices when it comes to claw back arrangements. If you are recruiting into a care role, check out our blog here.

What are the pros and cons of sponsorship?2023-11-13T10:53:03+00:00

Starting with the positives, a sponsor licence allows access to a broader talent pool. Additionally, sponsored workers can only work for you, enhancing employee retention.

At first glance the costs could be viewed in the negative column. However, we often hear from our clients that the cost of sponsorship is considerably less than the costs that come with trying to source from the domestic market, such as recruiters fees or agency staff.

Sponsorship does require a time commitment in terms of HR, with the amount varying depending on how many individuals you sponsor.

Recent success story

Small Business Retains Irreplaceable Employee With the Help of Truth Legal’s Immigration Solicitors

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Further reading

Read our popular articles for more information on Skilled Worker (Tier 2) Sponsor Licence.

  • Sponsoring a Skilled Worker Under the New Entrant Rate image

    Sponsoring a Skilled Worker Under the New Entrant Rate

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  • How Long Should I Sponsor My Skilled Worker For? image

    How Long Should I Sponsor My Skilled Worker For?

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Legal Guides

Read our extensive legal guides for more information on Skilled Worker (Tier 2) Sponsor Licence.

  • Applying For a Skilled Worker Sponsor Licence (2024)

    Reading time: 41 minutes

    Immigration Law

  • Applying for a Tier 2 Sponsor Licence – The Ultimate Guide

    Reading time: 38 minutes

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