Sponsor Licence Application

Overview

The UK sponsorship application route allows UK employers to hire foreign nationals to work in the UK. Employers must first apply for and obtain a Sponsor Licence from the Home Office (UKVI) by demonstrating that they are a legitimate business with robust HR and compliance systems. Once licensed, the employer issues a Certificate of Sponsorship (CoS) to an eligible worker, who then applies for their visa (such as the Skilled Worker Visa or Health and Care Worker Visa) under a points-based immigration system.

Key considerations include updated salary threshold rules, the shift to a stricter compliance framework in 2026, the removal of the 4-year licence renewal requirement, exemptions from the Immigration Skills Charge for specific roles, and stringent post-arrival compliance obligations. Employers should always check the latest GOV.UK guidance before making decisions, as thresholds and rules are subject to change.

Sponsor Licence Application

The Sponsorship Application route is mandatory for UK employers seeking to hire non-settled workers, including nationals from the EU, EEA, and Switzerland who do not hold pre-settled or settled status under the EU Settlement Scheme.

Key Features of the Sponsorship Application Route

Sponsor Licence Eligibility

• Genuine Business: Employers must prove they are actively trading in the UK and operating lawfully.
• Key Personnel: Employers must appoint named staff to key roles on the Sponsor Management System (SMS): an Authorising Officer, Key Contact, and Level 1 User.
• HR & Monitoring Systems: Employers must demonstrate adequate systems to track employee attendance, monitor visa expiry dates, maintain up-to-date contact details, and carry out statutory Right to Work checks.
• Compliance History: The business and its key personnel must have no unspent criminal convictions for immigration offenses or money laundering, nor a history of licence revocations.
• Eligible Role Test: Sponsored jobs must meet the strict “eligible role” test (which replaced the older “genuine vacancy” test). The role must truly exist, exactly match the duties and hours stated on the CoS, meet all specific route requirements regarding skill and salary, and remain suitable for the sponsor throughout the duration of the sponsorship.

Licence Categories

• Worker Licences: For long-term or permanent employment (e.g., Skilled Worker, Global Business Mobility, Minister of Religion, International Sportsperson).
• Temporary Worker Licences: For short-term work (e.g., Seasonal Worker, Creative Worker, Charity Worker, Government Authorised Exchange). (Note: The Youth Mobility Scheme is a self-sponsored visa and does not require an employer sponsor licence).

Types of Worker Licences

• Skilled Worker: The primary route for filling eligible skilled roles meeting minimum skill levels (RQF Level 3 or above) and salary thresholds.
• Global Business Mobility (GBM): Replaced the former Intra-Company Transfer (ICT) route. Designed for multinational companies transferring senior managers, specialist workers, or service suppliers to a UK business entity.
• Temporary Worker: Covers temporary assignments across specific sectors.

Certificate of Sponsorship (CoS)

A Certificate of Sponsorship is a unique electronic reference number generated by the employer through the Home Office Sponsor Management System (SMS) that the candidate uses for their visa application.

• Defined CoS: Required for Skilled Workers applying for their visa from outside the UK. These must be specifically requested and approved by UKVI for each role.
• Undefined CoS: Used for workers applying from inside the UK (such as switching from a Student Visa or extending an existing Skilled Worker Visa) and for most other sponsored routes that require a CoS. Employers are allocated an annual batch of Undefined CoS.

Compliance and Post-Arrival Obligations

Holding a sponsor licence is a privilege that carries ongoing statutory duties. Sponsors must:

• Report Events: Notify UKVI within 10 working days if a sponsored worker fails to start work, is absent without permission for more than 10 consecutive days, resigns, or experiences a significant change in job role/salary.
• Maintain Records: Keep copies of passports, Right to Work checks, contact details, contracts, and proof of recruitment/qualifications as set out in Appendix D of the sponsor guidance.
• Report Organizational Changes: Report company mergers, acquisitions, address changes, or insolvency within 20 working days.
• Provide Employment Rights Information: Sponsors must give each sponsored worker written information about their UK employment rights (including minimum wage, working hours, holiday entitlement, right to join a union, and other core rights) and retain evidence that this was provided, as set out in Appendix D of the sponsor guidance.

Policy and Rule Updates

• Indefinite Licence Validity: The requirement for sponsors to apply to renew their licence every 4 years was abolished. Sponsor licences granted or valid remain valid indefinitely unless surrendered by the employer or revoked by UKVI.
• Salary Thresholds & ‘New Entrant’ Discounts: Employers must pay sponsored workers at or above the minimum general salary threshold of £41,700 per year (from July 2025) or the specific ‘going rate’ for their occupation code under SOC 2020, whichever is higher. Crucially, from April 2026, sponsors must ensure the required salary is met in each individual pay period; ‘topping up’ later in the year to fix shortfalls is no longer sufficient and is a common trigger for compliance action. Eligible early-career hires (such as those under 26, recent UK graduates, or those in professional training) can qualify as ‘New Entrants’ and benefit from a reduced general threshold of £33,400 and a 30% discount on the going rate; they must be paid at least the higher of these two amounts. Note: This is entirely separate from the ‘Transitional Provisions,’ which apply exclusively to workers already continuously sponsored on the Skilled Worker route prior to 4 April 2024.
• Health and Care Sector Reforms: Care Workers (SOC 6145) and Senior Care Workers (SOC 6146) are not permitted to bring family dependants to the UK. Furthermore, care providers in England must be registered with the Care Quality Commission (CQC) to hold a sponsor licence.
• Digital Right to Work Checks: The method of checking depends on the worker’s nationality. Foreign nationals holding digital immigration status (eVisas/BRPs) must use the Home Office online share code service. Identity Service Providers (IDSPs) are legally intended for conducting digital checks on British and Irish passport holders.

Written On: 15 August 2026