Sponsor Licensing - Tiers 2 and 5 of The Points Based System

An employer has to show that they are both suitable and eligible and will fulfil their “sponsor duties” throughout the time they employ the skilled worker in the UK. 

The Application Process

• This requires the employer to supply specified documents to the Home Office to demonstrate that they can meet the requirements.
• When the Home Office consider sponsor licence applications, they will look for any possible adverse factors relating to the organisation, eg anything in its history, or that of its “Key Personnel” who will be responsible for operating the licence if it is granted.  For this reason, the company should give careful consideration to the staff who will be appointed as responsible for operating the sponsor licence, if it is granted.
• Sponsor licence applications are made on-line and the supporting documents forwarded after paying the fee on-line.  The fee varies according to the size of the business and is not refundable if the application is refused.

The Requirements

• In order to make a successful application for a sponsor licence, the business must be based in the UK and be able to provide original or properly certified documents to prove this.  The organisation must be genuine, and trading lawfully in the UK, including having regard to payment of tax and planning permission to operate from their business premises.
• At the time a business makes an application for a sponsor licence, they should be prepared to be visited by the Home Office so that an assessment of their office procedures and systems can be carried out.   Prior to submitting their sponsor licence application, employers should consider carefully whether their existing systems and practices are compliant, or whether further  work on these issues is required before the application is made.

The Home Office Assessment

• When a sponsor licence application is received, the Home Office will assess whether the organisation will “represent a threat to immigration control” if the licence is granted, and whether their human resources and other systems are sufficiently developed to enable them to comply adequately with their sponsor duties to monitor and track migrants.
• If the Home Office are not satisfied these requirements are met,  they will refuse to grant the sponsor  licence and the business will not be able to employ overseas workers.

We recommend that every care is taken in the initial preparation of a sponsor licence application to  ensure that the business is compliant with the requirements and to avoid the risk of a Home Office refusal. 

The Next Stage – Maintaining the licence and ensuring compliance

• It is only once the licence is granted that “Certificates of Sponsorship” can be issued to individual workers.   When maintaining and operating the licence, the business has to be able to demonstrate that they have consistently complied with their “sponsor duties” eg to inform the Home Office if migrant workers  are absent without permission, or fail to commence employment.
• The employer needs to keep records of all sponsored migrants and be able to show these records  to the Home Office on request.
• If a licence is granted, the Home Office can visit the business premises at any time (including unannounced) and so it is essential that the business ensures its record keeping and other systems are adequate to carry out its “sponsor duties” properly throughout the life of the licence (usually four years).  
• Following grant of the licence, there will be a contractual relationship between the parties, and the employer is required to co-operate with the Home Office in all respects, including the sharing of information and allowing access to business premises and records, in order to achieve compliance.
• If the Home Office considers that serious breaches of the regulatory framework have occurred and that the business is non-compliant, they have the power to suspend or revoke the licence.  If the licence is revoked, any overseas workers employed by that business will have to cease working  for the employer, which may cause serious operational difficulties for the business.
• It should also be noted that the Home Office have the power to levy civil penalty fines of up to £10,000 per illegal worker found at a business premises in some cases where the rules are not complied with, and that a criminal prosecution can also be brought against the company in certain circumstances.  (See our web article on illegal working for further information).

Types of Sponsor Licence

• Different grades of licence can be awarded, and if a licence is granted as a “B-Grade” licence the employer will have to pay a further fee and is obliged to follow a “Sponsorship Action Plan” and make changes to work towards an “A-rating” in accordance with that plan.
• For this reason, it is advisable to put as much effort as possible into preparing the sponsor licence application before submission, to enhance prospects of success and to avoid additional expense and delay arising from  rejected or “B” graded licence applications.

We offer advice and assistance with the preparation of Sponsor Licence applications, including an AUDIT  SERVICE when we can visit your business premises to assess your systems for compliance with the regulatory framework prior to submission of the application in order to enhance prospects of success.

We also provide an on-going  SPONSOR LICENCE SUPPORT SERVICE regarding your existing sponsor licence, assisting you with any compliance issues arising, as required.

Please contact Miranda Leate on MLeate@jdspicer.co.uk if you require assistance, or alternatively Kam Dhanjal on contact number  0207-625-5590.

We offer  our clients  reasonable fixed rates and an efficient practical legal service tailored to meet your business needs.