UK Sponsor Licence

UK Sponsor Licence – A Complete Guide for Employers

If you’re a UK business looking to hire skilled workers from overseas, you’ll need a Sponsor Licence. Whether you’re a care home in Coventry, a tech firm in London, or a restaurant in Birmingham, this guide will walk you through everything you need to know — from eligibility and application to compliance duties and common mistakes to avoid.

What is a Sponsor Licence?

A Sponsor Licence allows UK-based employers to sponsor skilled workers and fill roles that cannot be met by the domestic workforce. With this licence, your organisation can assign Certificates of Sponsorship (CoS) to international workers under visa routes like the Skilled Worker or Senior/Specialist Worker visa.

Who Needs One?

If you intend to employ workers from outside the UK (including EU nationals who arrived after 1 January 2021), you will need a valid Sponsor Licence.

Types of Sponsor Licences

Worker Licence:
– Skilled Worker (most common)
– Senior or Specialist Worker (Global Business Mobility)
– Minister of Religion
– International Sportsperson
Temporary Worker Licence:
– Charity Worker
– Creative Worker
– Religious Worker
– Seasonal Worker

Eligibility Criteria for Employers

To apply, you must:
– Be a genuine UK-based organisation
– Have a trading presence and be registered (Companies House or other relevant body)
– Be honest, dependable, and reliable (no unspent convictions for immigration offences)
– Appoint key personnel (Authorising Officer, Key Contact, Level 1 User)
– Have appropriate HR systems to meet sponsor duties

Application Process

Online Application – Complete the form on the Home Office portal
Submission of Documents – Typically includes:
– Corporate bank statements
– Employer’s liability insurance
– Latest business accounts
– Proof of premises (e.g. lease agreement)
– VAT registration (if applicable)
Payment of Fees – Based on company size:
– Small sponsors: £536
– Medium/large sponsors: £1,476
Decision – Processing time is typically 8 weeks (or 10 working days via the priority service for an additional £500)

Sponsor Duties and Ongoing Compliance

Once granted, you must:
– Keep accurate records of each sponsored employee (contact details, job role, NI number)
– Report changes to employment or business (e.g. employee absences, job title changes, company address)
– Monitor immigration status and ensure right-to-work checks are up to date
– Notify UKVI of any breaches or terminations

Risks of Non-Compliance

Failure to meet your duties could result in:
– Suspension or revocation of your Sponsor Licence
– Inability to issue new CoS
– Civil penalties and reputational damage
– Liability for employing illegal workers

Common Pitfalls to Avoid

– Applying with incomplete documents
– Assigning CoS to roles not eligible under the Skilled Worker route
– Using the wrong SOC code or underpaying the minimum salary
– Poor record-keeping or failing to report changes promptly

Validity and Renewal

Sponsor Licences last for 4 years and must be renewed before expiry. Compliance is monitored throughout the validity period.

Sector-Specific Examples

✅ Care Homes Care homes previously sponsored care workers and senior care workers on the Health and Care Worker visa at lower salary levels (£23,200 or £20,960 for new entrants). From July 2025, the government closed new overseas recruitment of care workers and senior care workers. Existing workers can extend their visas, but no new sponsorships are allowed. Other eligible health roles (e.g. nurses) can still be sponsored if they meet the minimum salary (currently £25,000+ or 80% of the going rate, whichever is higher).
✅ Restaurants (Chefs) All roles must meet the “genuine vacancy” test – the job must be real and match the Home Office definition. Chef roles used to qualify if the salary was at least £38,700 (or higher if the going rate applied). From July 2025, chefs are no longer eligible for new Skilled Worker visas, regardless of salary. Only those already on visas in the UK can extend or switch sponsors.
✅ Retail / Office Managers Code 1222 covers restaurant and catering managers, not general retail or office managers. Retail managers (SOC 1150) and office managers (SOC 4141) were sponsor-eligible in the past if salaries were high enough (usually £30k+). From July 2025, these roles are no longer eligible for new Skilled Worker visas due to the higher skill threshold (RQF Level 6). Only certain shortage roles on the Immigration Salary List (ISL) remain eligible, and retail/office management jobs are not on it.

Whether you’re a growing tech start-up, an established care provider, or a specialist hospitality business, Atwal Law can help you secure your Sponsor Licence and meet your compliance obligations.
📞 Call us today on 07973 760075
📧 Or message us to book a free 10-minute consultation with our legal team.
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Looking for Skilled Worker or Health and Care Worker visa support?
Atwal Law – Trusted Immigration Advice for Employers in Coventry, Birmingham, and London.

Frequently Asked Questions (FAQs)

4 years, with the option to renew if you remain compliant.

Yes, but you must prove the job is genuine and meets all Home Office requirements. You’ll be subject to extra scrutiny.

You must report it within 10 working days. Failure to do so may lead to penalties or sponsor rating downgrade.

You can still apply, but you’ll need strong documentation to show trading activity and capacity to meet sponsor duties.

Yes, you can add routes to your existing licence if needed, subject to approval.

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