Many employers in the UK turn to overseas recruitment as a solution to skills shortages and workforce demands. The recruitment of skilled workers from outside the UK is managed through a structured sponsorship system that ensures compliance with immigration laws. To hire workers through sponsorship visas, such as the Skilled Worker visa, employers must first secure a sponsor licence.


Sponsor Licence Application Process


To recruit from overseas, an employer must first apply for a Sponsor licence. This licence authorises the organisation to act as a sponsor for skilled workers. The Sponsor licence application involves demonstrating that the employer is a legitimate business, capable of meeting sponsorship duties. Employers need to provide evidence of their operational status, such as company accounts, proof of premises, and details of key personnel who will manage the sponsorship process.

During the application, the Home Office conducts checks to ascertain if the organisation meets the sponsor criteria, which may include an inspection of the business. The check ensures the employer understands their obligations, such as monitoring sponsored workers and maintaining accurate records. Failure to meet these requirements can result in the refusal of the application or revocation of an existing licence.


Sponsorship Costs


Applying for a sponsor licence to hire overseas workers under the Skilled Worker visa route involves specific costs and timescales. The financial requirements vary depending on the size of the organisation. For small or charitable organisations, the application fee is £536. Organisations qualify as small if they meet at least two criteria, such as having an annual turnover of £10.2 million or less, total assets worth £5.1 million or less, or fewer than 50 employees. For medium and large organisations, the application fee is £1,476.


In addition to the application fee, there are further costs associated with sponsorship. Employers are required to pay the Immigration Skills Charge, which is £364 per year for small organisations and £1,000 per year for medium and large organisations. There is also a fee of £239 for each Certificate of Sponsorship (CoS) issued to a worker. 


The Skilled worker visa fees vary depending on the duration of the visa and the worker’s circumstances. While the Skilled Worker visa fee is usually covered by the applicant, some employers choose to pay it as part of their recruitment package.

Once a sponsor licence is granted, employers can issue Certificates of Sponsorship (CoS) to eligible overseas workers. These certificates are essential for workers applying for a Skilled Worker visa, which is one of the most common visa routes for overseas recruitment in the UK.


Once a sponsor licence is approved, the employer’s details are added to the Register of Licensed Sponsors, a public list maintained by the Home Office. Being on this register signifies that the organisation is authorised to sponsor workers, enhancing its credibility for prospective employees. Potential recruits can check the register to verify an employer’s ability to provide sponsorship, making it an essential tool in the recruitment process.


Ensuring Compliance


Holding a sponsor licence comes with ongoing responsibilities. Employers must ensure they meet compliance obligations, such as conducting right to work checks - as prescribed under the prevention of illegal working regulations - reporting changes in a sponsored worker’s circumstances, and maintaining accurate records. The Home Office may conduct unannounced visits to assess compliance, and any breaches can result in penalties, including licence suspension or revocation.


Need Assistance?


DavidsonMorris offers a complete employer sponsorship licence application and management service, with our team of UK immigration specialists highly experienced in all the documentary and evidentiary requirements vital to a prompt and stress-free process when applying for a sponsor licence.


For guidance on applying for a sponsor licence or any aspect of licence compliance, management or penalties, contact us.