Introduction
With rising skill shortages across various industries, UK businesses are increasingly looking to hire international talent. However, employing a non-UK worker requires a Sponsor Licence and compliance with strict immigration rules.
If you’re an employer looking to sponsor a Skilled Worker, this guide will walk you through the eligibility criteria, application process, compliance responsibilities, and key challenges to ensure a smooth hiring experience.
Why Do UK Employers Need a Sponsor Licence?
Post-Brexit, the UK introduced a points-based Skilled Worker Visa, requiring employers to sponsor foreign workers who don’t have UK residency or citizenship. Without a Sponsor Licence, businesses cannot legally employ skilled workers from outside the UK.
Key Benefits of Sponsoring Skilled Workers:
Access to a wider talent pool in high-demand industries
Fill workforce gaps in healthcare, IT, engineering, and hospitality
Improve business growth and competitiveness in the global market
Did You Know?
The UK’s new salary threshold for Skilled Worker Visas increased to £38,700 in 2024 (except for health and care roles). Employers must ensure that job offers meet this requirement.
Step 1: Check If Your Business is Eligible for Sponsorship
Before applying for a Sponsor Licence, your business must meet the following requirements:
Legally Operating Business – Registered with HMRC and Companies House.
Genuine Job Vacancy – The role must meet the required skill and salary threshold.
HR & Compliance Systems in Place – To monitor sponsored employees and report to the Home Office.
You Cannot Apply If:
- You have criminal convictions related to immigration violations.
- Your company has a history of non-compliance with sponsorship duties.
- You fail to demonstrate a real need for a foreign worker.
Step 2: Apply for a Sponsor Licence
How to Apply?
1 Register on the UK Visas and Immigration (UKVI) Sponsorship Management System (SMS).
2 Submit Your Online Application via the UK government portal.
3 Pay the Sponsor Licence Fee (based on business size).
4 Provide Supporting Documents (business registration, VAT details, HR policies, etc.).
5 Prepare for a Compliance Inspection – The Home Office may visit to check your systems before approval.
Sponsor Licence Fees (2025):
- Small Business/Charity: £536
- Medium/Large Business: £1,476
Processing Time: 8-12 weeks (Priority service: 10 working days for an extra £500).
Expert Tip: Ensure your HR team is trained on sponsor compliance before applying to avoid future penalties.
Step 3: Issue a Certificate of Sponsorship (CoS)
Once your Sponsor Licence is approved, you can issue a Certificate of Sponsorship (CoS) to a foreign worker.
Types of CoS:
Defined CoS – For workers applying from outside the UK.
Undefined CoS – For workers already in the UK switching visas.
Cost of a Certificate of Sponsorship:
- £239 per worker (as of 2025).
Once the worker receives a CoS, they can apply for a Skilled Worker Visa within 3 months.
Step 4: Meet Skilled Worker Visa Salary & Job Requirements
For a job to be eligible for a Skilled Worker Visa, it must meet:
Skill Level – RQF Level 3 (A-level equivalent) or above.
Salary Threshold – £38,700 per year (or £23,200 for shortage occupations).
Approved Occupation List – The job must be listed under eligible roles.
Exceptions to Salary Rules:
- Health & Social Care Roles have lower thresholds.
- PhD-level jobs in STEM fields may qualify for a discounted salary threshold.
Tip: Employers should regularly check the UK Shortage Occupation List to benefit from lower salary thresholds.
Step 5: Understand Employer Responsibilities & Compliance Rule
Once a business sponsors a worker, it must comply with UKVI rules to maintain its licence.
Employer Duties:
Track & Report Employee Activity – Monitor attendance and report if they leave their job.
Keep HR Records – Maintain right-to-work documents and CoS history.
Inform UKVI of Any Changes – Report job role changes, promotions, or resignations.
Failure to comply with sponsorship duties can lead to:
Sponsor Licence suspension or revocation.
Hefty fines (£10,000+ per illegal worker).
Ban on hiring foreign workers in the future.
Best Practice: Assign a dedicated HR team member as a Level 1 User on the UKVI Sponsorship Management System (SMS) to ensure full compliance.
Common Challenges & How to Overcome Them
1. High Visa Costs & Salary Requirements 💰
✔ Solution: Apply for workers in Shortage Occupation roles where salary thresholds are lower.
2. Lengthy Sponsor Licence Processing Time ⏳
✔ Solution: Use the Priority Service (£500 extra) for a 10-day decision.
3. Meeting Compliance & Record-Keeping Standards 📑
✔ Solution: Invest in HR management software to track visa expiry dates and compliance records.
4. Home Office Compliance Audits 🔍
✔ Solution: Conduct internal audits every 6 months to ensure your company meets sponsorship obligations.
Final Thoughts: Is Sponsoring a Skilled Worker Worth It?
Despite the increasing costs and compliance responsibilities, sponsoring skilled workers remains a valuable investment for UK businesses struggling with workforce shortages.
Key Takeaways:
- A Sponsor Licence is required to hire foreign workers legally.
- Employers must meet salary thresholds and skill requirements.
- Compliance is crucial to avoid penalties and licence revocation.
- Hiring shortage occupation workers can reduce visa costs.
💬 Need help with your Sponsorship Licence application? Contact our immigration experts today!
