There are several issues that employers should bear in mind when considering applying for a Sponsor Licence for the first time. The benefits (for recruitment and retention) can be large, but there are some key pros and cons that should be considered before an employer takes the plunge.

Essentially, a Sponsor Licence is the permission given by the Home Office to UK companies and organisations to employ migrants to work in the UK. UK employers may want to apply for a Sponsor Licence if they have attempted to recruit a British citizen, a Settled Person (i.e. someone with indefinite leave to remain) or some other form of leave allowing them to work in the UK, but they have been unable to do so.

Relevant considerations for prospective sponsors

The relevant issues that a prospective sponsor should consider before applying for a Sponsor Licence, are briefly outlined below (this list is however not intended to be exhaustive):

1. Is the organisation operating or trading in the UK? Unless the application is being made for an Expansion Worker licence, UK Visas & Immigration (UKVI) will expect an organisation to demonstrate that it is lawfully operating and trading in the UK.

2. How urgently does the employer require the licence? If the sponsorship of a particular migrant worker is driving the application and there is a defined window of opportunity in which to sponsor them, will that window still be open by the time the employer is in possession of its licence and able to sponsor the worker?

3. Is the employer large or small (with respect to its turnover, assets, and the number of employees it has) or is it charitable? This will have a bearing on not only the cost of the licence, but also on the cost of each migrant sponsorship undertaken.

4. Does the employer have the requisite documents which may be required by the UKVI? Only certain types of supporting evidence relating to the employer will suffice when seeking a licence.

5. Does the employer have the relevant personnel which need to be identified in the Sponsor Licence application and do they meet the requirements set out in the Sponsor Licence Guidance (including, for example, being based in the UK)?

6. Does the employer operate from physical premises in the UK? UKVI will pay particular attention to how the employer intends to monitor its migrant workers on a regular basis, and the absence of physical premises may cause it to question the genuineness of the need for a migrant worker to be based in the UK at all.

7. The category of sponsor licence required should also be given some consideration. It is more efficient to apply for all categories required at the outset, than apply to add them later.

8. Does anyone within the organisation in a position of seniority have a history of having committed immigration offences? The UKVI will consider whether a potential sponsor has a previous record of non–compliance and this may result in a further sponsor licence not being granted.

9. Has the employer made a failed application before or had a previous licence revoked, so that a cooling off period is still in effect? This can be for a period of six or twelve months or more, depending on the basis for the original application refusal, or sponsor licence revocation. Where a cooling-off period is in effect, any application made during this period will be refused.

10. Does the employer have more than one entity/branch in the UK? If so, should it apply for one sponsor licence for the entire group, or would it be better to apply for individual licences for different branches or a group of branches?

11. Is the employer ready and able to demonstrate to UKVI that it has the HR systems and processes in place to comply with the various duties and responsibilities of a licensed sponsor as set out in the Sponsor Guidance?

If your company or organisation is considering applying for a sponsor licence, DMH Stallard LLP has experienced Immigration solicitors who can assist. We have a great success rate and will take your organisation through the process from start to finish as seamlessly as possible.

Contact Omayemi Mac-Jaja, Senior Associate, Immigration at DMH Stallard.
Email: Omayemi.Mac-Jaja@dmhstallard.com
Phone: +44 (0) 207 822 1636.