In today’s global workforce, many businesses in the UK rely on hiring talented individuals from outside the European Union (EU) and the European Economic Area (EEA) to fill skills gaps and meet specific business needs. To employ non-EU/EEA nationals, UK employers must first obtain an Employer Sponsorship Licence. This licence allows companies to sponsor foreign workers under the UK’s points-based immigration system, which has replaced freedom of movement for EU nationals following Brexit.
Understanding the Employer Sponsorship Licence process is crucial if you’re a business owner or HR professional considering hiring non-UK workers. Here’s a detailed guide to help you navigate the complexities of applying for and maintaining a sponsorship license.
What is an Employer Sponsorship Licence?
An Employer Sponsorship Licence is a legal document issued by the UK Home Office that authorises UK employers to hire foreign workers outside the EU/EEA. It forms part of the UK’s points-based immigration system, which was introduced in January 2021. This system ensures that only individuals who meet specific criteria can work in the UK.
To sponsor a non-EU/EEA worker, the employer must first apply for a sponsorship licence. Once granted, the employer becomes an official sponsor. This enables the employer to issue a Certificate of Sponsorship (CoS) to a foreign worker, allowing them to apply for a visa and legally work in the UK.
Who Needs an Employer Sponsorship Licence?
Any UK employer wishing to employ foreign workers outside the EU/EEA must apply for a sponsorship licence. This applies whether the worker is filling a skilled role, an academic position, or temporary or seasonal work.
Common examples of businesses requiring a sponsorship licence include:
- Large corporations: Global companies with UK operations looking to hire skilled foreign professionals.
- Small and medium-sized enterprises (SMEs): Smaller businesses must fill specific skills gaps or employ workers with expertise that cannot be sourced locally.
- Universities and educational institutions: Academic institutions hiring international researchers or staff.
- Charities and non-profits: Organisations that need to employ workers from outside the EU for various roles, including research and development or specialised technical work.
If a company does not hold a sponsorship licence, it cannot legally hire foreign workers under the points-based immigration system. Thus, the licence is an essential requirement for any business seeking to employ international talent.
Types of Sponsorship Licences
There are two main types of sponsorship licences:
- Worker Licence: This is for employers who want to hire foreign workers in skilled roles under various visa categories, including the Skilled Worker Visa, the Intra-Company Transfer Visa, and the Health and Care Worker Visa.
- Temporary Worker Licence: This licence is for employers who wish to sponsor workers in temporary roles under specific visa categories, such as the Seasonal Worker Visa or the Creative Worker Visa.
Depending on the roles you intend to sponsor, you may need one or both types of licences. For instance, a business hiring permanent skilled professionals and temporary workers might need a Worker and a Temporary Worker licence.
How to Apply for an Employer Sponsorship Licence
The process of applying for an Employer Sponsorship Licence can be straightforward if you meet the necessary requirements. Here are the main steps involved:
Step 1: Determine Eligibility
Before applying, your business must meet the basic eligibility criteria. These include being a legal entity in the UK, being compliant with UK immigration law, and having a good track record with HMRC and UKVI (UK Visas and Immigration). You must also be able to demonstrate that you can meet the obligations and responsibilities of a sponsor.
Step 2: Choose Your Licence Type
You must decide which type of licence is appropriate for your business needs—either a Worker Licence, a Temporary Worker Licence, or both. For example, you’ll need a Worker’s Licence if you plan to hire skilled workers for long-term positions. You’ll need a Temporary Worker Licence if you want to sponsor workers for short-term or seasonal positions.
Step 3: Complete the Application
The application process is done online through the UK Government’s Sponsorship Management System (SMS). You will need to provide key details about your business, including:
- Business registration details
- The type of workers you plan to hire
- Evidence of your compliance with UK laws
- Information about your business’s HR systems to monitor the sponsored employees
Step 4: Submit Supporting Documents
You must submit various supporting documents as part of your application. These typically include:
- Proof of your company’s legal status (e.g. your Certificate of Incorporation)
- Evidence of your compliance with UK tax and immigration laws (e.g. tax returns, financial records)
- Evidence of your HR practices and systems to manage sponsored workers
Step 5: Wait for a Decision
Once your application is submitted, the Home Office will review it and decide whether to approve your licence. This process can take several weeks. If your application is approved, you will be granted a sponsorship licence and can start sponsoring foreign workers.
Responsibilities of Employers with a Sponsorship Licence
Once you have received your sponsorship licence, it is important to understand the ongoing responsibilities that come with it. Employers must comply with a set of duties, including:
- Maintaining records: You must keep records of your sponsored workers and provide these to the Home Office upon request.
- Reporting changes: You must report certain changes, such as a worker’s absence or change of role, to the Home Office via the Sponsorship Management System.
- Monitoring employees: Employers must actively monitor the attendance and performance of sponsored workers to ensure they comply with their visa terms.
Failure to comply with these responsibilities can result in penalties, including suspending or revoking your sponsorship licence.
What Happens if Your Application is Refused?
If your application is refused, you can appeal the decision or address the issues raised by the Home Office and reapply. Common reasons for refusal include providing incomplete or inaccurate information, failing to meet the sponsorship criteria, or not demonstrating a good track record with the UK immigration authorities.
