In an increasingly competitive and global environment, employers are often finding it difficult to fill vacancies that may require particular skills, qualification and/or proven expertise. The Labour Government intends to change that by upskilling the domestic labour force.
This is something that we have heard before, back when Gordon Brown was Prime Minister, and he wanted to “upskill and reskill” UK residents. Whether this will turn out to be an aspirational goal for the current government or one that will in fact happen, any results are still in the distant future.
In the meantime, what does a UK employer do if it needs to fill a vacancy but can’t find anyone within the resident labour force? The solution for many is to obtain a sponsor licence. Under UK immigration law, a sponsor licence allows a UK based employer to employ migrants who need immigration permission to work in the UK. In this post-Brexit world, this means all nationalities except British and Irish citizens.
More and more employers are applying for a sponsor licence: the total number of Skilled Worker licences as at 13 February 2025 was almost double the figure from two years ago. The table below demonstrates the increase in the two main sponsor routes (Skilled Worker and Global Business Mobility: Senior or Specialist Worker) as well as the total overall within sponsored work routes.
* including other work categories such as: Tier 2 Minister of Religion, Creative Worker, International Sportsperson, Religious Worker, Charity Worker, Graduate Trainee, Government Authorised Exchange, International Agreement, UK Expansion Worker, Scale-Up, Secondment Worker, Seasonal Worker, Service Supplier etc.
The advantages of obtaining a sponsor licence for an employer are:
to be able to sponsor a migrant to work in the UK (although the role must meet minimum skill level and salary requirements);
to be able to recruit from an international pool of candidates, which will overcome difficulties with recruiting resident candidates and can increase the company’s competitiveness;
pursue a more diversified recruitment programme with candidates who are more adaptable and flexible, which can be of interest to future candidates;
the greater the range of backgrounds and diversity within a workforce, the more varied the contributions/innovative ideas/strategies made to the business by its employees;
being able to sponsor migrants who already work for the employer under a different visa or on a Youth Mobility Scheme. This ensures the employer retains people who are already familiar with its system and processes, and now have in-house expertise. The employer will also save the costs of training someone completely new.
Applying for a sponsor licence is not as straightforward as many employers think. Whilst the online application form may be simple and some employers may be able to provide the required supporting documents, the devil is very much in the detail.
The Home Office’s view is that having a sponsor licence is a privilege, not a right. Consequently, employers are required to comply with a number of duties and responsibilities. The Home Office expects sponsoring employers to ensure that the immigration system is not abused as well as comply with wider UK law.
We regularly find that ensuring an employer has a robust HR and administrative processes in place (for example, right to work checks conducted before someone starts work, that the relevant staff are aware of their compliance obligations, that the correct records are retained on file and for the minimum period) is the step that trips up employers the most. We are progressively seeing start-ups being invited by the Home Office to attend a compliance/audit interview as part of the decision-making process. It is therefore vital that an employer has the correct processes and documentation in place as well as an in-depth understanding of the sponsor’s duties and responsibilities for a successful sponsor licence application.
Key aspects of a sponsoring employer’s compliance duties and responsibilities include:
record keeping;
carrying out compliant right to work checks;
monitoring sponsored workers’ activities;
reporting certain changes to the organisation and migrant workers’ circumstances to the Home Office; and
co-operating with compliance visits.
The Home Office may downgrade (ie. limit an employer’s ability to sponsor a migrant worker) or revoke a sponsor licence if it finds that the sponsoring employer is not compliant.
We therefore recommend that any employers considering moving ahead with a sponsor licence application, ensure that they are able to be fully compliant before an application is submitted. Getting the licence is only the first step. The employer should carry out an annual “health checks” to ensure that it remains compliant and is not risking revocation of its sponsor licence.
Our immigration team specialises in UK immigration and nationality law and would be able to guide you throughout the application process and provide you with the tools you need for a successful application. Please feel free to reach out to any member of the team for a free consultation.
Please also see article - Illegal Working, Sponsor Licence Management and Right to Work Checks: How Compliant is Your Organisation?
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Disclaimer: This publication is provided by Laytons LLP for informational purposes only. The information contained in this publication should not be construed as legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Any questions or further information regarding the matters discussed in this publication can be directed to Laytons LLP and its Immigration team.