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Why do businesses need a sponsor licence?

Friday 25 November 2022

Post Brexit immigration considerations are impacting on an increasing number of organisations across a whole host of sectors.

Understanding the immigration options to meet recruitment needs and fill key skilled roles, is no longer just a “big business” issue, but increasingly affects organisations of all shapes and sizes who are struggling to navigate the skills shortage in the wake of Brexit and the pandemic.

The main route of entry for economic migration to the UK is the Skilled Worker visa. This visa is for skilled workers who have a job from an approved sponsor. It applies to EU and non-EU nationals alike (aside from EU nationals who have obtained settled/pre-settled status, or Irish nationals who are exempt). For multinational businesses, they may also want to use the Global Business Mobility (GBM) routes; these allow businesses to send skilled workers to the UK on a temporary basis.

Other visa options may not prove suitable to meet the organisation’s needs. For example, they may not allow the individual to undertake the tasks required or may simply delay the likely need for sponsorship to a future date (such as the graduate/high potential visas).

The gateway to accessing the Skilled Worker or GBM routes is for the organisation to apply to UK Visas and Immigration to become a licensed sponsor. Holding a licence expands the available talent pool from which the organisation can recruit; without a licence, organisations are not able to access these visa routes.

Holding a sponsor licence is increasingly becoming a key strategic business objective. Getting the sponsor licence as quickly as possible, and getting the application right first time, is often business critical.

This is demonstrated by the explosion in the number of registered sponsors over the last 12 months. The latest figures from the Home Office indicate that just under 10,000 organisations have registered to become a sponsor between June 2021 and June 2022, bringing the total number of sponsors as of June 2022 to just over 45,000; a 27% increase year on year.

The sponsor licence application process involves completing an online form and submitting detailed supporting documents that meet the prescriptive requirements under the Immigration Rules. This can prove tricky, given the detailed and complicated requirements under the Rules. However, it is more than simply a form filling exercise – becoming a sponsor involves accepting a high degree of responsibility for immigration compliance. Sponsorship is a privilege, not a right so, when applying for a licence, your business must show that you can meet your compliance obligations and understand what is expected of you going forwards.

Once you have obtained your sponsor licence, sponsoring individuals involves a detailed understanding of who is eligible under the Immigration Rules, the detailed requirements for issuing Certificates of Sponsorship (and applying for Defined Certificates of Sponsorship from the Home Office), and the timing of these applications. The organisation must then continue to meet detailed compliance requirements to ensure it retains its sponsor licence.

Giving immigration advice in the UK is a regulated activity, so it is important that HR teams and managers take appropriate legal advice on these issues to avoid providing immigration advice and potentially committing a criminal offence.

Our experienced immigration specialists are here to do the hard work for you by advising you on the different visa options when recruiting into your organisation, along with the associated compliance requirements.

If you have any queries about sponsor licences or need help with applying for/managing a sponsor licence application or making specific visa applications, please contact a member of our team of expert business immigration solicitors.

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