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Tier 2 Sponsor License

Tier-2-Sponsor-License

Securing a sponsor licence, previously known as the Tier 2 sponsor licence, empowers UK companies to hire skilled workers from abroad or within the UK. Skilled workers can transition into the Skilled Worker visa from various other visa types, such as Tier 4 Student and Youth Mobility Scheme. The approved sponsor licence remains valid for an initial four-year period, and renewal options are available.

Eligibility requirements for a sponsor licence

To apply for a sponsor licence, your organisation must have a lawful presence and operation in the UK. If you have multiple branches, you can apply for one licence to cover all linked entities or opt for separate Licences for each branch. If registration or inspection/monitoring by a statutory body is necessary, proof of such registration is required. Additionally, evidence of appropriate planning permission may be needed.

The Home Office needs assurance that you provide genuine employment in a skilled occupation and adhere to the correct salary rates. By applying for a licence, you commit to fulfilling all associated duties. Normally, individuals cannot be sponsors, except for sole traders sponsoring someone to work in their business. We possess expertise in sponsor licence applications and ensure ongoing compliance for our clients. If you have questions about UK immigration law, we’re here to assist!

How Long Does the UK Passport Application Process Take?

An organisation typically qualifies as a small sponsor if it meets at least two of the following criteria:

  1. Annual turnover of £10.2 million or less
  2. Total assets worth £5.1 million or less
  3. 50 employees or fewer

Registered charities are also considered “small” sponsors. Small sponsors are required to pay a sponsor licence fee of £536.

If you already have a granted ‘Skilled Worker’ sponsor licence (formerly Tier 2 sponsor licence) and wish to add a subcategory, there is no additional fee. For instance, if you hold a Skilled Worker licence (formerly Tier 2 General) and want to sponsor migrants under the Senior or Specialist Worker Visa (formerly Tier 2 Intra-Company Transfer), you can submit an application through the Sponsor Management System to add a subcategory without an additional Home Office fee.

Sponsor Licence Rating

The sponsor licence system has two ratings

  1. A-rating: This is the highest rating awarded to organizations that have successfully demonstrated to the Home Office that they have the necessary systems and processes in place to comply with sponsor duties. Maintaining an A-rating requires ongoing adherence to systems and policies. The Home Office may conduct compliance visits to ensure continued compliance.
  2. B-rating: If a sponsor is found not to be fully complying with sponsor duties during a compliance visit, it may be downgraded to a B-rating. A B-rated sponsor is given a time-limited action plan to rectify the issues and regain their A-rating. Failure to meet the requirements within the specified time-frame may lead to licence revocation.

It’s important to note that the Home Office has the authority to suspend or revoke a licence without first downgrading to a B-rating, depending on the severity of identified breaches.

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Tier-2-Sponsor-License

Advantages Of a Sponsor Licence

Once an organisation obtains a sponsor licence, it becomes registered with the Home Office as a sponsor and gains the ability to issue Certificates of Sponsorship (CoS) to skilled foreign migrants, provided it meets the necessary requirements.

For many companies, the ability to hire skilled talent from overseas is crucial for the successful operation and growth of their business. This need has become more pronounced with the end of freedom of movement following the UK’s departure from the EU. Since January 2021, a significant portion of the UK workforce would require sponsorship if they hadn’t secured their status in the UK before the deadline.

Push Legal Services have substantial experience in assisting companies with the acquisition and maintenance of their Skilled Worker sponsor Licences.

Contact Us For More Information

Fill out the form below to receive a confidential initial consultation.

Contact Us For More Informtion

Fill out the form below to receive a confidential initial consultation.

Frequently Asked Questions

To obtain your sponsor licence number, you can refer to the decision letter confirming the grant of the licence. This unique sponsor licence number is also available on the licence summary page on the Sponsorship Management System (SMS).

It’s important to note that being granted a licence comes with the responsibility to adhere to immigration rules and the legal system of the UK. Sponsors should recognize that sponsorship is a privilege, not a right. The Home Office will only grant licences to organizations whose actions align with the public good.

If a sponsor is found to be engaging in behaviors that are not conducive to the public good, the Home Office may take appropriate compliance actions based on the severity of the actions or behavior.

To obtain your sponsor licence number, you can refer to the decision letter confirming the grant of the licence. This unique sponsor licence number is also available on the licence summary page on the Sponsorship Management System (SMS).

 

It’s important to note that being granted a licence comes with the responsibility to adhere to immigration rules and the legal system of the UK. Sponsors should recognize that sponsorship is a privilege, not a right. The Home Office will only grant licences to organizations whose actions align with the public good.

If a sponsor is found to be engaging in behaviors that are not conducive to the public good, the Home Office may take appropriate compliance actions based on the severity of the actions or behavior.

Your sponsor licence application can be refused by the Home Office for various reasons. Some common reasons include:

Failure to Pass Compliance Audit: If your business fails the Home Office’s Compliance Audit, which assesses your readiness to meet sponsorship duties.

Inadequate Policies and Procedures: If your business lacks appropriate policies and procedures to fulfill sponsorship duties.

Genuineness Test Failure: If your business does not pass the ‘genuineness test,’ meaning the Home Office questions the legitimacy of your sponsorship.

Insufficient Documentation Retention: If your business fails to retain sufficient documentation on migrant workers.

Delayed Response to Home Office Inquiries: If your business does not respond to Home Office inquiries within the stipulated time.

It’s important to note that employing migrant workers without a sponsorship licence is not permitted unless they have another form of visa that allows them to work. Doing so may result in civil penalties and criminal convictions. If your application was refused, it would be beneficial to review the decision letter for specific details that can help determine if it is challengeable.

Certificates of Sponsorship (CoS) are electronic documents generated on the Sponsor Management System (SMS) after a sponsor licence is granted. They are essential for sponsoring migrant workers. There are two types of CoS under the new sponsor licence rules:

  1. Defined CoS:

   – Required for individuals based outside the UK making an entry clearance application as a Skilled Worker.

   – Sponsors can apply for a Defined CoS on the SMS, and the Home Office typically processes it within 48 hours.

   – There is no longer an overall cap on the number of Defined CoS that the Home Office can grant annually.

   – Individuals in the UK as visitors must apply for a Skilled Worker visa from their country of residence and need a Defined CoS.

  1. Undefined CoS:

   – The annual allocation runs from April 6 to April 5 each year.

   – Sponsors can request multiple Undefined CoS before the April 5 deadline for extending the leave of an existing employee or sponsoring someone switching visa categories.

   – If the allocation is justified, it is granted from April 6.

   – If sponsors miss the renewal deadline or need additional Undefined CoS during the year, they can request an increase on the SMS, providing justification.

It’s important to note that the processing time for a request to increase CoS allocation is 18 weeks. Both types of CoS play a crucial role in the sponsorship process, allowing sponsors to support migrant workers’ visa applications.