The UK sponsor licence: a guide for UK and international businesses
If your business is looking to hire migrant workers in the UK, you will need a sponsor licence. The process is complex, and making mistakes can lead to serious compliance issues, costing your business significant time and money. This guide explains the different types of licences and helps you decide which one is right for your business.
Types of sponsor licences
Sponsor licences fall into two main categories: worker sponsor licence and temporary worker sponsor licence.
Worker sponsor licence
This licence allows businesses to hire migrant workers for skilled roles on a permanent or fixed-term basis. The most common licences are:
- Skilled worker: This is the most common sponsor licence category. It is for businesses hiring skilled workers for roles that cannot be filled by UK residents. The minimum salary threshold is £38,700 a year or the “going rate”, whichever is higher. In some cases, salaries can be between 70% and 90% of the standard rate, with a minimum of £30,960. Workers may be eligible for settlement (indefinite leave to remain) after five years.
- Senior or specialist worker (global business mobility): This is for international companies transferring employees to UK branches. Employees must have worked for the overseas company for at least 12 months unless they will earn £73,900 or more in the UK. This route does not lead to settlement. Stays are limited to five years (if earning below £73,900) or nine years (if earning above £73,900).
Temporary worker sponsor licence
This licence is for businesses that need to hire migrant workers on a short-term basis. Key types include:
- UK expansion worker (global business mobility): For overseas businesses sending staff to establish a UK subsidiary.
- Graduate trainee (global business mobility): For transferring trainees to the UK as part of a graduate programme.
- Service supplier (global business mobility): For businesses contracted to provide services to a UK company.
- Secondment worker (global business mobility): For employees seconded to the UK as part of a high-value contract.
- Scale-up worker: For fast-growing UK businesses that meet the scale-up sponsor criteria.
How to choose the right sponsor licence
To choose the correct licence for your business, consider:
- Job role: Is the position permanent or temporary? A worker sponsor licence is suitable for permanent skilled roles, while a temporary worker sponsor licence is ideal for short-term positions.
- Industry requirements: Certain industries require specific licences, such as charities seeking to sponsor unpaid workers on a short-term basis or production, theatre or fashion businesses seeking to sponsor temporary overseas workers eg, entertainers, artists, musicians, dancers, models.
- Duration: Use a worker sponsor licence for long-term roles and a temporary worker sponsor licence for short-term needs.
- Compliance: Ensure your business meets Home Office requirements, including monitoring and reporting responsibilities.
How to apply for a sponsor licence
The application process includes:
- Preparation: Collect necessary documents, such as proof of UK trading status and job details.
- Submit the application: Complete the online form and pay the fee.
- Home Office review: The Home Office may visit your business to assess compliance.
- Approval: Once approved, you can issue certificates of sponsorship to hire migrant workers.
Total estimated time
If your business needs to apply for a sponsor licence, it is important to consider the following processing times:
- Standard route: up to eight weeks following the date of submission.
- Priority service: up to ten working days following the date of submission, subject to availability.
There is also the preparation time to consider, which varies for each business depending on size, length of trading, sector, etc. We recommend preparing the candidate’s visa application at the same time, so that there are no delays once the licence is granted.
Conclusion
Choosing the right licence is essential for hiring migrant workers and complying with UK immigration laws. These licences enable businesses to access a global talent pool, driving growth and innovation.
For assistance with your application, please contact us.
For more official details, you can also visit the UK visa sponsorship for employers – GOV.UK page.
