Common Mistakes To Avoid When Applying For A Sponsor Licence

For many businesses, applying for a sponsor licence is the first step towards accessing a broader talent pool and developing a competitive edge in recruitment. You need a sponsor licence to employ most workers from overseas, as you must issue a Certificate of Sponsorship to each employee to enable them to apply for a UK work visa. While the advantages are clear, significant responsibilities come with your role as a sponsor, and it can be challenging to secure a licence as a result.

Here, the legal experts at Latitude Law explain some of the most common mistakes that businesses make in their applications and outline the core responsibilities that you must meet to comply with the law when hiring and supporting overseas workers.

Key personnel

Before making your sponsor licence application, you must implement a structure within your business to manage the process. This is not just a convenience - it is a requirement under the sponsorship scheme, and your business may be subject to compliance action or inspection to ensure you are capable of sponsoring staff. Your duties include appointing ‘Key Personnel’ to take on specific duties pertaining to the sponsorship and training these nominees to use the Home Office’s Sponsorship Management System (SMS).

There are three primary types of Key Personnel to which you will need to nominate members of staff. The people who take on these roles must hold valid immigration status in the UK for ten years, which is the duration of a sponsorship licence, so this is an important consideration to make when choosing your Key Personnel.

The first position you need to fill is that of an Authorising Officer. This person will oversee the management of the sponsor licence and ensure your business maintains compliance at all times. The Authorising Officer will not usually be involved in the general operations of the SMS, but will be able to grant lower-level users access and delegate these responsibilities. As such, the duties of the Authorising Officer are usually best carried out by the person in charge of your recruitment and HR, who will have the necessary oversight and authority to manage your sponsorship responsibilities.

You will also need a Key Contact, who will act as a liaison between your business and the Home Office regarding immigration issues. The Home Office may ask for data or conduct audits to monitor compliance, and your Key Contact will manage all of these communications.

Finally, you will need at least one Level 1 User who will take on the day-to-day operation of the SMS. This person will be able to issue Certificates of Sponsorship and must record information about any overseas workers. They will need to collect each worker’s contact details, monitor their attendance at work, and update the SMS with any changes in their circumstances.

The penalties for failing to meet your legal duties can be serious. Failing to implement this system effectively can also seriously affect your likelihood of having your application approved.

Supporting documents

Sponsorship guidance specifies certain documents you must provide to the Home Office within 5 working days of applying for your licence. When applying for a sponsor licence, you must show that you intend to hire for a genuine role that is relevant to your business operations and that pays above the minimum salary threshold for workers of the same type. From 4 April salary requirements for many sponsored roles have increased significantly, so it is best to check immigration rules before embarking on sponsorship. You must supply supporting evidence and documents that prove this to the satisfaction of the Home Office decision maker who will review your application.

If businesses cannot show that a vacancy is genuine and fits within the day-to-day operations of their organisation, the Home Office may perceive that it has been created purely to give an applicant an opportunity to move to the UK.

Choosing the right type of licence

A factor that can make this more confusing is that there are different types of licence for which you can apply. It is vital to identify the right one for your business’ needs - otherwise, you may find yourself unable to hire the right workers even if your licence is granted, which may introduce further challenges.

Working with a specialist immigration solicitor is the best way to avoid all of these problems. With their expertise, an experienced lawyer can discuss your recruitment ambitions and advise you on the best path forward. They can review your supporting documents, help you to make your application as strong as possible and give you the highest chances of success.

Gary McIndoe

Gary McIndoe is Managing Partner at Latitude Law