Many UK organisations and employers are suffering from labour shortages due to Brexit and COVID-19. With the introduction of new Skilled Worker visas with lower salary thresholds and qualification levels, employers now need to apply for sponsorship licenses to issue Certificates of sponsorship to potential applicants to obtain their visas and fill out the vacant job posts.

In order for the employer to apply for a sponsor license, the employer must meet certain eligibility and suitability criteria.

The employers seeking sponsorship must submit evidence demonstrating that they are legally operating and trading presence in the UK. To meet the eligibility criteria, you must provide at least four pieces of evidence requested by the Home Office.

There are differences in evidence submitted by type of the employers, and documents to be submitted by companies listed on public authority, stock exchanges, and any evidence to be submitted by type of company, such as franchises, charities, and start-ups, etc.

Basic information about the organisation, as well as job roles to sponsor, and information on the candidate in mind must be submitted. In addition, the reason why the employer applies for a Skilled Worker license should be stated.

The Home Office requires the nomination of a specific individual to take on roles in regards to a sponsorship license. The nominated person must be primarily in the UK, and the main roles are as follows:

• Authorising Officer – generally senior positions related to recruitment and/or personnel within the company or organization. This person must ultimately take responsibility for the license and ensure that the sponsor license duties are met.

• Key contacts – The primary point of contact for the Home Office and a legal representative can undertake this role.

• Level 1 users – this person is responsible for all day-to-day management of sponsor licenses through an online portal called Sponsor Management System (SMS). At the time of application, the level 1 user must be an employee, but once a sponsor license is assigned, a Level 1 user or another Level 2 user can be set up to undertake certain limited tasks on SMS.

When deciding whom to nominate for the above role, the employer needs to consider whether the person has a criminal record in the past or any adverse involvement with the Home Office.

Unlike qualification criteria, the suitability criteria require a much broader assessment. The Home Office wants to ensure that the organisation or company that has applied for the sponsor license is honest, reliable, and capable of fulfilling the responsibilities expected as a sponsor.

• Whether the sponsor has the human resources and recruitment system in place to meet, continue to meet their sponsor duties.

In other words, the Home Office wants to satisfy that the organisation has the HR or recruitment procedures to meet the obligation to manage the sponsorship. Sponsorship duties include reporting information on changes in sponsoring employees and using the sponsor management system. If there is a change, the report must be completed within 10 days. It also includes recording employment contracts, salaries, and recruitment practice evidence.

As part of the sponsor licence application process, the Home Office visits to check whether if the personnel system is sufficient. It usually occurs if an organisation is newly formed or if the application is high risk. The inspection is taking place during the application process and they also visit without announcement whilst the organisation is a sponsor licence holder. During the visit, the Home Office will check the HR system and speak to the appointed Authorising Officer. They may also interview sponsored employees to ask if they are performing the reported duties.

If it is determined that the sponsor does not or will not fulfil their obligations and duties during the visit, they will refuse the application or revoke or suspend the sponsor licence, resulting in curtailment of any sponsored workers visas.

An application can be made online and information on the key personnel the company is trying to appoint, as well as what documents and evidence to submit to meet the eligibility criteria.

The submission fee depends on the size of the organisation. Small companies or charities will be charged £536.00 and medium and large companies will be charged £1,476.00.

The decision on the sponsorship license application takes up to 8 weeks, and 10 days of priority service will be available with an additional £500.00.

Once the application is approved, a four-year valid sponsor license will be issued. However, if the application is refused, there is no right to appeal and there is a six-month cooling-off period from the date of the decision.