Sponsorship of foreign workers
Sponsorship eligibility
To sponsor foreign workers in the UK, an organisation must be a genuine, lawfully operating business or charity with a UK presence. The Home Office will assess whether the organisation and its key personnel (such as directors and those managing the sponsorship process) are honest, dependable, and reliable, with no unspent criminal convictions for immigration offences or other relevant crimes. The business must also demonstrate robust HR systems to manage sponsorship duties and ongoing compliance, and must not have had a sponsor licence revoked in the last 12 months. There is no minimum size or turnover requirement, but the business must be able to offer genuine employment that meets the relevant skill and salary thresholds for the visa route in question. Umbrella companies and agencies generally cannot sponsor workers unless the employment is direct and not for third-party supply, due to compliance and supervision requirements.
Differences between tier 2 and tier 5 sponsorships
The Tier 2 visa route has been replaced by the Skilled Worker visa, which is now the main long-term work route for skilled professionals. Skilled Worker (formerly Tier 2) sponsorship is for roles that meet specific skill and salary thresholds and provides a pathway to settlement (Indefinite Leave to Remain) after five years. It requires a job offer in an eligible occupation from a licensed sponsor and allows for dependants to join the worker in the UK. In contrast, Tier 5 (now Temporary Worker) sponsorship covers short-term or specific temporary roles, such as charity, creative, sporting, religious, and seasonal work, and does not lead to settlement. Temporary Worker visas are generally valid for up to two years (or less, depending on the category) and have different eligibility and compliance requirements. Employers must apply for the appropriate licence type(s) and can hold both if needed.
Documentation and information for a sponsor licence application
When applying for a sponsor licence, employers must complete an online application via the UK Visas and Immigration (UKVI) portal and pay the relevant fee (£536 for small/charitable sponsors, £1,476 for medium/large sponsors for Worker licences; £536 for Temporary Worker licences). The application must be supported by at least four documents evidencing the organisation’s trading presence, such as VAT registration, business bank statements, employer’s liability insurance, and Companies House registration. Additional documents may be required depending on the business type and the visa route. Employers must also provide details of the key personnel who will manage the licence: Authorising Officer, Key Contact, and Level 1 User, all of whom must be based in the UK and meet suitability criteria. The signed submission sheet and all supporting documents must be submitted within five working days of the online application. The Home Office may conduct a compliance visit before granting the licence to assess HR systems and readiness to meet sponsor duties.
Ongoing sponsor duties and compliance
Once a sponsor licence is granted, employers must maintain accurate records for each sponsored worker, including proof of right to work, contact details, and employment contracts. Sponsors must monitor and report absences, changes in employment, and any breaches of visa conditions to UKVI within prescribed timeframes. Failure to comply with these duties can result in licence suspension, revocation, or civil penalties. Sponsors must also renew their licence every four years and ensure all key personnel remain eligible and up to date on the Sponsor Management System (SMS).
Applying for a sponsor licence
Step-by-step process for applying for a sponsor licence
1. Assess eligibility and suitability
Confirm your organisation is genuine, trading, and lawfully operating in the UK. This includes being registered with Companies House (if applicable) and having a UK trading presence. You must not have any unspent criminal convictions for immigration or other relevant offences among owners, directors, or key personnel. Your HR systems must be capable of meeting sponsor duties, including right to work checks and record-keeping requirements as outlined in Home Office guidance and Appendix D. Failure to meet these criteria will result in refusal of the application.
2. Appoint key personnel
Nominate individuals for the roles of Authorising Officer, Key Contact, and Level 1 User. These individuals must be based in the UK, have no unspent criminal convictions, and be sufficiently senior and trustworthy to manage the sponsor licence and compliance duties. At least one Level 1 User must be an employee, partner, or director of your organisation at the time of application.
3. Prepare supporting documents
Gather a minimum of four supporting documents as specified in Appendix A of the Sponsor Guidance. These may include bank statements, VAT registration, employer’s liability insurance, HMRC registration, and evidence of premises. Additional information such as a hierarchy chart, list of employees (if fewer than 50), and job descriptions for roles to be sponsored may be required. Documents must be current, accurate, and submitted in the correct format within five working days of the online application.
4. Review HR and compliance systems
Ensure your HR systems and processes are robust enough to monitor sponsored workers, track visa expiry dates, and report changes to the Home Office within required timeframes. Conduct an internal audit to identify and rectify any compliance gaps before submitting your application. This preparation is critical to passing a potential Home Office compliance visit.
5. Complete and submit the online application
Submit the sponsor licence application via the UKVI online portal, providing detailed information about your business, key personnel, and the roles you intend to sponsor. Pay the appropriate application fee: £536 for small or charitable sponsors, £1,476 for medium or large sponsors. Ensure the fee matches your business size and status to avoid rejection.
6. Submit the submission sheet and documents
After submitting the online application and paying the fee, print and sign the submission sheet (signed by the Authorising Officer). Email the signed submission sheet and all supporting documents to the Home Office within five working days. Failure to do so will result in your application being rejected as invalid.
7. Prepare for a Home Office compliance visit
The Home Office may conduct a pre-licence compliance visit to assess your HR systems, right to work processes, and ability to meet sponsor duties. Ensure all records are up to date and staff are aware of their responsibilities. Non-compliance or inadequate systems may lead to refusal.
8. Application decision
If successful, your organisation will be added to the Register of Licensed Sponsors and you will be able to assign Certificates of Sponsorship (CoS) to eligible workers. If refused or rejected, review the reasons provided and address any issues before reapplying. Note that a cooling-off period of 6–12 months may apply in cases of serious non-compliance or fraud.
Sponsorship licence application processing time
The standard processing time for a sponsor licence application is up to 8 weeks from submission of the complete application and supporting documents. Processing may be delayed if the Home Office requests further information, conducts a compliance visit, or if documents are missing or incorrect. Employers can apply for the priority service for an additional £500 fee, which aims to provide a decision within 10 working days, subject to availability and eligibility. The priority service is heavily oversubscribed and not available for all licence types.
Reasons for denial of a sponsorship application
Common reasons for refusal or rejection include:
Failure to submit the required number or type of supporting documents, or submitting them late or in the wrong format.
Payment of the incorrect application fee or failure to pay the fee at all.
Inadequate HR systems or inability to demonstrate compliance with sponsor duties, including right to work checks and record-keeping.
Appointment of unsuitable key personnel (e.g. those with unspent criminal convictions or a history of immigration breaches).
Failure to demonstrate a genuine vacancy that meets the required skill and salary thresholds.
Submission of false, fraudulent, or misleading information or documents.
Failing a Home Office compliance visit due to inadequate systems or non-compliance.
Previous revocation of a sponsor licence or being subject to a cooling-off period.
Not responding to Home Office requests for further information within the specified timeframe.
Application submitted by a representative rather than the employer (in certain cases).
If refused, there is no right of appeal, but an error correction request may be made within 14 days if a factual error is identified. Judicial review is possible only in cases of procedural unfairness or illegality.
Responsibilities of a sponsor licence holder
Ongoing reporting duties of sponsor licence holders
Sponsor licence holders must report specific changes and events to the Home Office via the Sponsorship Management System (SMS) within strict deadlines. Most changes relating to sponsored workers—such as changes in job title, work location, salary, working hours, or unauthorised absences of 10 or more consecutive working days—must be reported within 10 working days. Organisational changes, including changes to company name, ownership, structure, address, or key personnel, must generally be reported within 20 working days. Failure to report within these timeframes is a breach of sponsor duties and can trigger enforcement action by UKVI. Sponsors must also report if a sponsored worker does not start work as expected, leaves employment early, or is suspected of breaching visa conditions. All reporting must be accurate and supported by relevant documentation, and sponsors should ensure internal systems enable prompt identification and escalation of reportable events to avoid missed deadlines.
Ensuring compliance with UK immigration laws
Sponsor licence holders are legally required to comply with all UK immigration laws and the specific requirements set out in the Worker and Temporary Worker Sponsor Guidance. This includes only sponsoring workers for genuine vacancies that meet the relevant skill and salary thresholds, ensuring all sponsored employees have the correct qualifications and right to work, and conducting and recording right to work checks before employment commences. Sponsors must also comply with wider UK law, including employment legislation such as the National Minimum Wage and Working Time Regulations, and act in a manner that is not detrimental to the public good. Regular internal audits, robust HR systems, and ongoing training for key personnel are essential to maintain compliance and demonstrate to UKVI that the organisation is capable of fulfilling its sponsor duties at all times. Sponsors must also cooperate fully with Home Office requests for information or site visits, whether announced or unannounced, and provide all requested records promptly.
Record-keeping and monitoring obligations
Sponsors must keep a detailed set of records for each sponsored worker, as outlined in Appendix D of the sponsor guidance. Required documents include copies of passports, biometric residence permits or eVisas, employment contracts, proof of salary payments, job descriptions, evidence of qualifications, and full absence records. Contact details and right to work check evidence must also be retained. These records must be stored securely and made available for inspection upon request by UKVI. Most records must be kept for at least one year from the end of sponsorship or until a compliance officer has reviewed and approved them, whichever comes first. Failure to maintain proper records is a common reason for compliance breaches and enforcement action.
Appointment and management of key personnel
Every sponsor licence holder must appoint and maintain suitable key personnel: an Authorising Officer (AO), Key Contact, and at least one Level 1 User. The AO is legally responsible for the sponsor licence and must be a senior, UK-based employee with authority over recruitment and compliance. Level 1 Users manage day-to-day SMS functions, including assigning Certificates of Sponsorship and reporting changes. The Key Contact acts as the main liaison with UKVI. Details of all key personnel must be kept up to date in the SMS, and any changes must be reported within 10 working days. If key personnel leave or are no longer suitable, prompt replacement is required to avoid compliance risks.
Consequences of failure to meet sponsor licence holder responsibilities
Failure to meet sponsor duties can result in a range of enforcement actions by the Home Office. These include downgrading the licence rating (from A to B), suspension of the licence (during which no new Certificates of Sponsorship can be assigned), or full revocation of the licence. Revocation is reserved for the most serious or systemic breaches and results in the loss of the ability to sponsor any workers; existing sponsored workers will have their visas curtailed and may be required to leave the UK. Additional consequences include substantial civil penalties (up to £45,000 per illegal worker for a first breach), reputational damage, and a mandatory “cooling-off” period (usually 12 months) before reapplying for a licence. The Home Office is conducting more frequent and thorough compliance visits, and the number of suspensions and revocations has increased significantly in the past year. Sponsors must be proactive in managing compliance to avoid these severe outcomes.
Right to work checks
Specific documents reviewed during a right to work check
Employers must review original documents from the Home Office’s prescribed lists: List A (permanent right to work) and List B (time-limited right to work). List A includes current or expired British or Irish passports, a passport endorsed for indefinite leave to remain, a certificate of registration or naturalisation as a British citizen with a permanent National Insurance number, and birth or adoption certificates from the UK, Channel Islands, Isle of Man, or Ireland, each accompanied by a permanent National Insurance number. List B is divided into Group 1 (documents showing temporary permission, such as a current passport with a work endorsement or an Immigration Status Document with a National Insurance number) and Group 2 (evidence of a pending application or Positive Verification Notice from the Employer Checking Service). EU, EEA, and Swiss nationals must provide proof of immigration status, such as settled or pre-settled status, rather than relying solely on a passport or ID card. Employers must not accept UK driving licences or National Insurance numbers alone as proof of right to work. All checks must be completed before employment commences, and copies must be retained for the duration of employment plus two years after termination.
Technology and its impact on right to work checks
Technology has significantly changed right to work checks, introducing three main methods: manual checks, digital checks using Identity Document Validation Technology (IDVT) via certified Identity Service Providers (IDSPs), and online checks using the Home Office’s share code system. Digital checks are available for British and Irish citizens with valid passports or passport cards, allowing remote verification and reducing the need for in-person checks. Online checks are mandatory for individuals with eVisas, Biometric Residence Permits (BRP), Biometric Residence Cards (BRC), or status under the EU Settlement Scheme, using a share code generated by the individual. Employers must ensure the photo and details in the digital or online check match the person presenting for work. The move to digital systems, including the phasing out of physical BRPs in favour of eVisas, has increased efficiency but also requires employers to stay updated with Home Office guidance and ensure secure record-keeping. Outsourcing checks to IDSPs does not transfer legal responsibility; employers remain liable for compliance.
Exemptions and special considerations
Certain situations require alternative procedures or additional checks. For employees with pending immigration applications, appeals, or administrative reviews, employers must use the Employer Checking Service to obtain a Positive Verification Notice, which provides a statutory excuse for six months. Under TUPE transfers, the new employer may rely on previous right to work checks if they were compliant and conducted after February 2008, but it is best practice to conduct fresh checks within 60 days of transfer. For students, employers must obtain and retain evidence of term and vacation dates to ensure compliance with work restrictions. Self-employed contractors are generally exempt from right to work checks, but employers should ensure that any agency or third-party staff have been checked by their direct employer. Employers must avoid discriminatory practices by applying checks uniformly to all staff, regardless of nationality or perceived immigration status. There is a 28-day grace period for follow-up checks where an employee has a pending application at the time their previous permission expires, provided the employer is reasonably satisfied the application was made in time.
Penalties for illegal employment
Penalties for employers employing someone illegally in the UK
Civil penalties for employing someone illegally are now up to £45,000 per illegal worker for a first breach and £60,000 per worker for repeat breaches, effective for illegal working from 13 February 2024 onwards. These fines apply where an employer fails to carry out correct right to work checks or does not do them at all, regardless of whether the breach was intentional. If an employer knew, or had reasonable cause to believe, that an individual did not have the right to work, this constitutes a criminal offence punishable by up to five years’ imprisonment and/or an unlimited fine. Additional consequences include the potential loss of a sponsor licence, business closure orders, and public naming by the Home Office, which can cause significant reputational damage and operational disruption.
Home Office enforcement of employment eligibility laws
The Home Office enforces employment eligibility laws through unannounced site visits, audits, and compliance checks. If illegal working is suspected, the Home Office may issue an Information Request, requiring a timely response and cooperation. Failure to respond or cooperate can increase the risk and severity of penalties. If a breach is identified, the Home Office issues a Referral Notice, followed by a Civil Penalty Notice if liability is established. The Home Office also publishes the details of businesses penalised for illegal working, and may revoke or downgrade sponsor licences, leading to further business disruption. Repeat breaches or lack of cooperation can result in higher penalties and increased scrutiny in future compliance visits.
Steps to rectify employment of someone illegally
Immediate action is required if an employer discovers an employee is working illegally. This includes suspending the employee, reporting the situation to the Home Office, and seeking legal advice to ensure all steps are compliant and fair, especially to avoid claims of unfair dismissal or discrimination.
Employers must terminate the employment of any individual found to be working illegally, but must follow a fair process, including meeting with the employee to confirm their immigration status and documenting all actions taken. Failure to follow a fair process can expose the employer to employment tribunal claims, even where dismissal is legally justified.
Employers should review and strengthen internal right to work checking procedures, provide staff training, and conduct regular audits to prevent future breaches. Where a civil penalty is issued, employers have 28 days to pay, object, or appeal. Objecting or appealing requires submission of evidence, and the Home Office may increase the penalty if the challenge is unsuccessful. Fast payment within 21 days can secure a 30% discount for first-time offenders.
To mitigate liability, employers should demonstrate effective right to work practices, active cooperation with the Home Office, and prompt reporting of suspected illegal workers. These factors can reduce the penalty or, in some cases, result in a warning notice instead of a fine, provided there have been no previous breaches in the last three years.
Record-keeping and statutory excuse
Employers must retain clear, unalterable records of all right to work checks for the duration of employment and for two years after employment ends. Properly conducted checks provide a statutory excuse against civil penalties, even if an employee is later found to be working illegally. The responsibility for conducting checks cannot be delegated to third parties; failure to comply removes the statutory excuse and exposes the employer to full penalties.
Post-Brexit immigration & EU settlement scheme
Impact of the end of free movement on UK businesses employing EU nationals
The end of free movement on 31 December 2020 means EU, EEA, and Swiss nationals (excluding Irish nationals) who were not resident in the UK by that date are now subject to the UK’s points-based immigration system, requiring sponsorship and a visa to work in the UK. Employers must now obtain a sponsor licence to recruit new EU nationals, with significant costs, compliance duties, and administrative burdens, including monitoring sponsored workers and maintaining robust HR systems. Businesses that previously relied on EU nationals for both skilled and lower-skilled roles face increased recruitment costs, more complex processes, and potential skills shortages, particularly in sectors where roles do not meet the new skill or salary thresholds for sponsorship. Non-compliance with the new system, such as employing individuals without the correct status, exposes employers to civil penalties, criminal liability, and reputational damage.
Employers must also adapt their right to work checks: from 1 July 2021, EU nationals must evidence their status under the EU Settlement Scheme or another immigration route. Prior EU residence documents (e.g., permanent residence cards) are no longer valid, and employers should not require retrospective checks for existing staff employed before 30 June 2021, but must ensure all new hires have the correct documentation. Failure to comply with right to work requirements can result in significant penalties.
Eligibility for the EU Settlement Scheme
The EU Settlement Scheme is open to EU, EEA, and Swiss nationals and their eligible non-EU family members who were resident in the UK by 31 December 2020. Applicants must have been physically present and living in the UK before this date; the deadline for applications was 30 June 2021, but late applications may be accepted at the Home Office’s discretion if there are ‘reasonable grounds’ for missing the deadline (e.g., serious illness, being a child, or other exceptional circumstances). Those with five years’ continuous residence are eligible for Settled Status (indefinite leave to remain), while those with less than five years’ residence can obtain Pre-Settled Status, allowing them to remain until they reach the five-year threshold and then apply for Settled Status. Irish nationals are exempt, but their non-Irish family members must apply. Previous EU residence documents are not sufficient; an application under the EU Settlement Scheme is required unless the individual has obtained British citizenship.
Employers should audit their workforce to identify all potentially eligible staff, including non-EU family members, and encourage prompt applications to avoid loss of right to work. Although employers cannot compel employees to apply, proactive communication and support—such as signposting to official guidance and offering assistance—are strongly recommended to minimise business disruption and legal risks.
