8 Steps to Successfully Sponsoring a Skilled Worker

Navigating Changes to Sponsorship Systems

UK Immigration Rules are subject to frequent updates, as seen with the requirement for EU workers to be sponsored under the points-based system post-Brexit.

More recently, in 2024, new rules were enacted to address worker abuse and exploitation concerns in the Skilled Worker – Health and Care visa route. Under these rules, many sponsor licences were revoked, and care sponsors must now register with the Care Quality Commission to hire foreign workers.

Additionally, the increase in the minimum salary threshold for skilled workers means sponsors must pay more wages to hire foreign workers.

These frequent changes can significantly impact businesses, affecting budget planning and long-term talent acquisition strategies.

Strict Eligibility and Job Requirement Checks

Under the sponsorship system, employers must verify their intended employees’ qualifications to take on the role. They are also expected to issue Certificates of Sponsorship (CoS) and ensure employees have all the necessary information to apply for their visas.

Unfortunately, visa rejections are common, with one popular reason being an applicant’s inability to meet the required skill level. Additionally, applicants who provide incomplete information in their visa applications may be denied.
Visa denials mean losses in all sponsorship-related fees paid by sponsors and applicants.

Preparing for Home Office Audits

The Home Office conducts compliance audits to ensure employers have efficient HR structures to manage sponsorship. These audits can occur at any stage of the sponsor licence application process, before a licence is granted, during the validity period, or as part of a random compliance check.

Preparing for an audit means having well-documented records, a transparent sponsorship management system, and compliance policies. For many HR teams, the sheer volume of administrative tasks and legal requirements can feel overwhelming.

Complying with Sponsorship Duties

Employers are responsible for maintaining ongoing compliance with immigration laws. In complying with sponsorship duties, they are required to:

• Conduct mandatory right-to-work checks
• Ensure that employees are engaged in the job for which they were sponsored
• Keep records of employees’ personal information, right-to-work documents, and attendance at work
• Report changes to employees’ circumstances, such as a change in role or an end of employment

Failure to comply with these requirements can result in serious consequences, including licence denial, suspension, or revocation. These can further delay hiring and put a business’s operations and growth plans at risk.

Employer Eligibility

To be eligible to sponsor workers in the UK, employers must:

• Be a genuine organisation operating lawfully in the UK
• Not have any unspent criminal convictions for immigration offences or certain crimes such as fraud or money laundering
• Not have had a sponsor licence revoked in the last 12 months

Employers are also required to meet the job suitability requirement. Under this regulation, they can only sponsor a worker if the job:

• Complies with the UK minimum wage and working time regulations
• Meets all the criteria for the visa under which the worker will be sponsored

Additionally, sponsors must appoint key personnel to manage sponsorship responsibilities. These roles include:

• The authorising officer who oversees other key personnel and the management of the online Sponsorship Management System (SMS)
• The key contact who is the organisation’s primary point of contact with the Home Office
• The level 1 user who is responsible for the daily use of the SMS and assigning certificates of sponsorship

Worker Eligibility

Applicants for the Skilled Worker route must meet specific requirements under the UK’s point-based system and achieve 70 points. 50 of these points are mandatory and are based on meeting the following criteria:

• Having a job offer that is on the list of eligible skilled occupations
• Having the required skills for the job, which must be at least equivalent to RQF level 3
• Showing proficiency in English to at least CEFR Level B1

Other requirements are tradeable and attract 20 points, such as the criteria to meet the minimum salary threshold of £38,700 annually or the going rate for the role, whichever is higher. However, workers applying for roles on the Immigration Salary List enjoy reduced salary thresholds and visa fees.

Furthermore, applicants must have sufficient funds to support themselves (at least £1,270 for their first month in the UK) without relying on public funds. They must also have a clean criminal record.

Step 1: Assess Your Business Readiness

Securing a valid sponsor licence from the Home Office is an essential prerequisite for hiring skilled workers.

However, before applying for a sponsor licence, conduct an internal audit to assess your company’s current HR processes. You should evaluate your business’s ability to meet compliance obligations, such as monitoring visa statuses and maintaining accurate records.

Also, ensure your HR team are well-trained to handle sponsorship responsibilities.

Step 2: Apply for a Sponsor Licence

The Home Office issues two types of sponsor licences: Worker and Temporary Worker Licences. You must apply for the Worker licence to sponsor an individual for the Skilled Worker visa route.

Visit the UK government website to complete the online form and pay the application fee. Then print out the submission sheet at the end of the application and prepare a minimum of four supporting documents that detail:

• Your business registration
• Any registrations with regulatory bodies
• Financial documents
• Tax documents
• Information on the role you’re hiring for

Your authorising officer must sign and date the submission sheet and send it along with the supporting documents to a designated email address. The UKVI will assess the application, perform a site audit if required, and issue a decision within eight weeks.

Step 3: Assign a Certificate of Sponsorship (CoS)

If your application is successful, your level 1 user should assign a Certificate of Sponsorship to the intended foreign worker. It is with the CoS that the applicant will use in applying for their Skilled Worker visa.

There are two types of Certificate of Sponsorships: Defined and Undefined Certificates. Defined certificates are applicable if your intended employee is outside the UK, while Undefined certificates are for skilled workers already living in the UK.

Step 4: Support the Worker’s Visa Application

Once you’ve assigned a Certificate of Sponsorship to your chosen candidate, support them in submitting a successful Skilled Worker visa application. Your key responsibilities include ensuring the worker has the following:

• The CoS reference number
• Proof of your sponsor licence number
• Evidence of the job’s genuineness
• Evidence of meeting the skilled worker salary requirement
• Details about your company and its operations
• Information on the job title and job occupation code

You can also offer them guidance throughout the application process. While you can’t provide legal advice unless qualified, you can help them navigate the application portal and understand the requirements.

The worker is responsible for submitting their visa application and providing evidence of their eligibility. This typically involves completing the online application accurately and submitting proof of eligibility, such as:

• English language proficiency
• Documents supporting their qualifications and experience
• Passports or travel documents

The applicant must also pay the visa application and Immigration Health Surcharge. If required, they may need to attend an in-person appointment and submit their biometrics at a visa application centre in their country of residence.

Sponsor Licence Fees

When making your online sponsor licence application, you must pay a fee corresponding to the size of your business.

If you are a small or charity business, you must pay £536, but if you run a large or medium-sized business, you should pay £1,476.

Priority Processing Fees

Note that you can get a faster decision on your application, usually within 10 working days, for an extra fee of £500.

Certificate of Sponsorship (CoS) Fees

Additionally, each time you assign a Certificate of Sponsorship to a skilled worker, you must pay a fee of £239.

Immigration Skills Charge Fees

Furthermore, as a licenced sponsor, you may also need to pay an Immigration Skills Charge (ISC), depending on the role you are hiring for. Some occupations exempt from the ISC include chemical, biological, and physical scientists, research and development managers, and higher education teaching professionals.

Here’s a breakdown of the fees:

Note that under a new government policy, sponsors must meet all these costs themselves and not pass them on to the employee. This rule aims to protect overseas workers from unfair recoupment policies practised by some sponsors.

Skilled occupations refer to roles that require a specific level of expertise, training, and experience to perform.

The UK government classifies these jobs by skill levels, ranging from RQF level 3 to RQF level 6, using the Standard Occupational Classification (SOC) system.

You can find a list of the eligible skilled roles on the UK government’s website. These jobs span various industries, including education, healthcare, engineering, finance, and IT. Each role on the list has an assigned occupation code and defined skill level criteria.

Employers must ensure that the roles they offer align with these classification standards to comply with skilled worker sponsorship requirements.

HR teams are crucial in accurately identifying and classifying job positions to determine their eligibility under the UK sponsorship system.

Enroll in our Skilled Worker Visa Training Course and learn how to use the UK government’s CASCOT occupation coding tool to search for occupation codes easily.