What is a sponsor licence?

A sponsor licence (formerly known as Tier 2 sponsor licence) allows UK-based companies to employ skilled migrant workers. From 1 January 2021, companies must have a valid sponsor licence in order to employ EU and non EEA skilled workers, who do not have the right to work in the UK.

The Home Office has published a new guidance for sponsor licence applications, which reflects the replacement of the Tier 2 (General)visa route with the new skilled worker visa route since December 2020.

Eligibility

We have dealt with a wide varieties of sponsor licence applications with varied degree of complexities. The requirements defined by the Home Office in applying for sponsor licence are as follows,

• Your company is a genuine organisation operating lawfully in the UK; (If you have multiple UK branches you may apply for one licence to cover all your linked UK entities or may apply for separate licences for each branch, depending on circumstances)
• You are honest, dependable and reliable;
• You can offer genuine employment that meets the appropriate skill level and appropriate rates of pay
• The UKVI will also examine your current human resources and recruitment practices to ensure that you are capable to fulfil your sponsor duties.

How much does the application cost?

The fee for a sponsor licence application differs depending on the size and type of the organisation as defined under the Companies Act 2006. Fees are usually reviewed annually by the Home Office and will be published on the government website.

If you are a charitable or small organisation, the sponsor licence application fee is £536

If you are a medium or large organisation, the fee is £1476.

The application fee is payable every time the sponsor renews their licence (usually every four years).

What you will get

If your application is successful, you will be awarded a sponsor licence. There are two types of sponsor licence rating, namely A-rating and B-rating. Your rating reflects any track record you have in employing the migrants and appears on the published register of sponsors.

A-rating is the highest rating and is awarded to the trusted organisations which have proven that they are in compliance with the sponsor duties. The Home Office understand that most sponsors are honest and will comply with their duties. However, if the Home Office finds that the business is not complying with sponsor duties, it may be downgraded to a B-rating.

Your must renew your sponsor licence every four years to satisfy the Home Office that you are still operating and still want to be a sponsor. You should apply to renew your sponsor licence before it expires.