The global economy offers businesses an unprecedented opportunity to secure top international talent. For UK businesses, there can be great value in recruiting workers from overseas to fill skill gaps and drive growth. However, to legally hire non-UK workers who have no other basis to remain in the UK, businesses need to secure a sponsor license from the Home Office. This license allows employers to sponsor skilled workers who require a visa to live and work in the UK, and subsequently support their visa applications.
While acquiring a sponsor licence can open doors to a global talent pool, the process is complex, and businesses must adhere to strict legal requirements. The sponsor licence application process is governed by Home Office guidance, and failure to meet specific requirements can lead to an application being rejected. Such a setback not only delays recruitment but also results in additional costs and administrative burdens. A refusal could also result in a cooling-off period being imposed in relation to the submission of a fresh application.
In this post, the expert immigration solicitors at JMW will explore common mistakes that businesses make when applying for sponsor licences. By recognising these pitfalls, businesses can take proactive steps to avoid them and improve their chances of a smooth application process.
Inadequate Documentation and Record-Keeping
Among the most common mistakes businesses make with sponsor licence applications are administrative errors like failing to provide the necessary information or documentation to prove your business case for a licence. The Home Office requires a substantial amount of documentation when it assesses a business’ eligibility for a sponsor licence. This documentation is used to prove that the business is genuine, operates legally in the UK and has the capability to meet its sponsorship obligations.
The specific documents required will depend on the type of licence being applied for and the nature of the business. Commonly requested documents include evidence of a UK business bank account, evidence of business premises, and evidence of financial status such as audited accounts, financial statements or company tax returns.
Moreover, even after obtaining a sponsor licence, businesses are required to maintain thorough records relating to their sponsored workers. This includes details of their immigration status, their job roles, payment of salary and attendance at work. The Home Office can conduct compliance visits at any time – including when they are considering a sponsor licence application – so businesses must be prepared to present these records upon request. Inadequate record-keeping can lead to the suspension or revocation of a sponsor licence, as well as potential legal penalties.
To avoid these issues, businesses should take the time to carefully review the Home Office’s guidance on required documentation before submitting their application. They should also ensure that they have practices and procedures in place to ensure that they can monitor their workers and understand their record-keeping duties, as these compliance duties will come into play on the day the sponsor licence is issued.
It may be beneficial to seek advice from an immigration solicitor who can ensure that all necessary documents are included and that record-keeping practices meet the required standards. Solicitors can also assist with ensuring that sponsors are abiding with their post-application compliance duties.
Sponsorship Management Failures
Once a sponsor licence is granted, businesses are required to comply with ongoing sponsorship management responsibilities. This involves appointing key personnel to manage the sponsorship process and using the Sponsorship Management System (SMS) to fulfil various duties.
Key personnel nominated at the licence application stage include an Authorising Officer, a Level 1 User, and a Key Contact. The Authorising Officer is responsible for the overall sponsorship process and ensuring that the business complies with its obligations. The Level 1 user manages the day-to-day operations of the SMS, including issuing Certificates of Sponsorship (CoS) to sponsored workers. The Key Contact serves as the primary point of communication between the business and the Home Office.
A common mistake businesses make is failing to provide any nominated personnel with adequate training. These staff members have important responsibilities. For example, failing to report changes in a sponsored worker’s employment status, such as a change in job role or a reduction to their salary, can result in non-compliance with sponsorship duties. The Level 1 User should understand and fulfil this function effectively to avoid legal penalties, and procedures must be in place to ensure the Level 1 User is made aware of any changes to the organisation’s sponsored workers.
Additionally, businesses must keep the Home Office informed of any significant changes within the business, such as a change of address or key personnel. Neglecting these duties can lead to the downgrading of a sponsor licence rating or, in severe cases, the revocation of the licence altogether.
To mitigate these risks, businesses should invest time in training their key personnel and implementing robust internal processes to manage their sponsorship obligations. Regular audits of the sponsorship management process can help identify potential issues before they escalate into compliance failures.
Administrative Mistakes
Administrative mistakes may seem minor, but they can have significant consequences, including delays or even the rejection of a sponsor licence application.
One of the most common administrative errors is incorrect or incomplete information on the application form or accompanying information documents. The sponsor licence application form is detailed and requires accurate information about the business and the nominated key personnel. Detailed information in relation to the required number of Certificates of Sponsorship (CoS) needed is also required. Mistakes such as incorrect business or key personnel information, or inadequate information on the required information documents in relation to why a sponsor licence is needed, can all lead to rejection.
Another administrative pitfall is applying for the wrong type of sponsor licence. The UK offers different types of sponsor licences depending on the nature of the employment, such as the Skilled Worker licence for long-term employment on a route that leads to settlement, the Temporary Worker licence for short-term employment and routes like the Seasonal Worker visa, or even a sponsor licence held in one of the Global Business Mobility routes. These might include a Senior or Specialist Worker visa, which enables multinational companies to transfer senior workers to an entity in the UK.
Late submissions or failure to respond to requests for additional information from the Home Office within the specified timeframe can also result in the application being rejected or delayed.
To avoid administrative errors, businesses should approach the application process with high attention to detail. It is advisable to double-check all information before submission and consider having the application prepared, or at least reviewed, by a legal expert who specialises in immigration law.
If your application is rejected, an immigration solicitor can provide your organisation with advice in relation to correcting any errors before you reapply or can explore the option of a review. This can be useful in providing clarity on potential outcomes before you proceed.
Businesses aiming to expand their access to international talent should consult a legal expert without delay to initiate the sponsor licence application process.
