Sponsor Licence and Compliance Essentials for UK Employers

Employing overseas nationals in the UK requires businesses to hold a Sponsor Licence issued by the UK Home Office. Holding a licence comes with significant compliance responsibilities, and failure to meet these can lead to suspension, revocation, or even civil penalties.

This guide offers a comprehensive overview of how to apply for a sponsor licence, maintain it, and avoid common compliance issues. Whether you’re a small business or a large organisation, these essentials are crucial for hiring legally and sustainably.

A Sponsor Licence is a formal authorisation from the UK Home Office that permits UK-based organisations to employ non-UK and non-Irish nationals under certain immigration routes. It is primarily used to sponsor Skilled Worker Visa applicants, Global Business Mobility workers, and Temporary Workers.

Without a valid licence, companies cannot legally sponsor or employ foreign nationals who require a work visa.

🔗 Official UK Government Sponsor Licence page

Licence Type	Suitable For	Visa Routes
Worker Licence	Long-term job roles	Skilled Worker, Senior/Specialist Worker, Minister of Religion, International Sportsperson
Temporary Worker Licence	Short-term or temporary employment	Seasonal Worker, Creative Worker, Charity Worker, Government Authorised Exchange, International Agreement

You can apply for one or both types depending on your hiring needs.

To qualify, an organisation must:

Be a genuine organisation, operating legally in the UK.
Have no history of immigration violations, fraud, or criminal convictions.
Have appropriate HR systems in place to monitor and report sponsored workers.
Appoint key personnel (see below) to manage the licence.

Key Personnel Roles:

Authorising Officer – A senior person responsible for compliance.
Key Contact – Primary contact for the Home Office.
Level 1 User – Manages daily tasks via the Sponsor Management System.

All roles must be filled by people based in the UK and free from immigration or criminal offences.

Application Steps:

Prepare documentation:

Companies House registration
Bank account details
VAT registration
Proof of premises
Latest accounts

Submit the online application: Apply for a sponsor licence.
Pay the application fee (see below).
Upload or send supporting documents within 5 working days.
The Home Office may visit your premises (pre-licence audit).
Decision typically issued within 8–10 weeks.

Organisation Size	Licence Type	Application Fee
Small / Charitable	Worker / Temporary	£536
Medium / Large	Worker / Temporary	£1,476

You are a small sponsor if two of the following apply:

Turnover ≤ £10.2 million

≤ 50 employees

Balance sheet total ≤ £5.1 million

The Sponsor Management System (SMS) is the Home Office’s online platform used to:

Issue Certificates of Sponsorship (CoS)
Report changes (e.g., job changes, address updates)
Track employee visa status
Apply for renewals or add visa routes

A Level 1 User will have primary control, with additional Level 2 Users added as needed.

Ongoing Compliance Duties

Maintaining your licence means complying with strict duties, including:

Right to work checks on all staff
Monitoring visa expiry dates
Updating the Home Office on:
Employee absences of 10+ days
Change in job role or location
Early termination or resignation
Keeping accurate records of employee contracts, salaries, and work addresses

Record Keeping and Reporting Obligations

Sponsors must retain and provide:

Full contact details and current address of all sponsored workers
Evidence of recruitment processes (e.g. job ads, interview notes)
Employment contracts and pay records
Attendance and absence logs

Reports must be submitted via SMS within 10 working days of any significant change.

🔗 Right to Work Guidance

Rating	Description	Impact
A-Rating	Fully compliant	Can sponsor new workers
B-Rating	Non-compliant	Restricted sponsorship & action plan required
Revoked	Licence cancelled	No longer allowed to sponsor employees

If downgraded to a B-rating, you’ll need to pay for a Home Office Action Plan (£1,476) and improve systems within 3 months.

Employing a worker illegally or outside visa conditions
Failing to report required changes or absences
Falsifying documents or job details
Inadequate HR systems or record keeping
Refusal to cooperate with compliance audits

Once revoked, your current workers’ visas may be curtailed, and you may be barred from reapplying for up to 12 months.

Sponsor licences are valid for 4 years. To renew:

Apply via SMS before expiry.
Pay the renewal fee.
Home Office may request updated documents or conduct a visit.

Failure to renew results in automatic expiration, and all Certificates of Sponsorship become invalid.

Helpful Resources and Internal Links

🔗 UK Visa Sponsorship for Employers (GOV.UK)
🔗 Right to Work Check Tool
🔗 Skilled Worker Visa Points Calculator
🔗 Visa Eligibility Checker Tool
🔗 Graduate Visa Pathway Guide

Disclaimer

This article is for informational purposes only. For legal and up-to-date immigration guidance, consult the UK Home Office or a qualified immigration solicitor.

© This article is free to use for personal, educational, or non-commercial purposes. Commercial use requires clear credit to ukbloom.co.uk or you may be subject to copyright enforcement.