UK employers must ensure every worker holds valid permission to work in the UK before employment commences, verify this through prescribed right to work checks, and maintain compliant human resources systems to retain statutory protection. Organisations wishing to hire overseas talent must secure a sponsor licence from UK Visas and Immigration, assign appropriate Certificates of Sponsorship, and continuously meet stringent reporting, record-keeping, and compliance duties. Failure to comply can result in civil penalties of up to £60,000 per illegal worker, licence revocation, and criminal liability.
1. Establishing Right to Work: Verification Methods and Statutory Excuses
Every employer in the United Kingdom has a legal duty under Section 15 of the Immigration, Asylum and Nationality Act 2006 to prevent illegal working. To establish a statutory excuse against a civil penalty, an employer must conduct a compliant right to work check before the individual begins employment. Conducting a check after an employee has already started work does not provide a statutory excuse.
The Three Verification Pathways
There are three lawful methods for conducting a right to work check in the UK. The correct method depends on the nationality of the individual and the type of immigration documentation they hold.
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Home Office Online Right to Work Check: This service is mandatory for individuals holding an eVisa, biometric residence permit (BRP), biometric residence card (BRC), status under the EU Settlement Scheme, or a frontier worker permit. The job applicant generates a 9-character share code via the online GOV.UK service. The employer must access the employer section of the service, enter the share code alongside the applicant's date of birth, view the profile in the presence of the applicant (in person or via a live video link), verify that the photograph matches the applicant, and retain an electronic or hard copy of the final profile page showing the date the check was conducted.
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Manual Document Check: This method applies strictly to individuals holding physical documents that cannot be verified online, such as valid British or Irish passports, or specific documents listed in Home Office guidance. The employer must obtain the original document, examine it in the presence of the holder to confirm it is genuine and that photographs and dates of birth match, make an unalterable copy of every page required by Home Office guidance, and record the exact date on which the check was performed.
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Identity Document Validation Technology (IDVT) via an Identity Service Provider (IDSP): Employers may use certified IDSPs to carry out digital identity verification for British and Irish citizens who hold valid passports or Irish passport cards. The employer remains legally liable for the check and must independently verify that the photograph on the IDVT output matches the individual presenting themselves for work, whilst storing the output securely for the duration of employment plus two years.
List A and List B Documents
Physical documents for manual checks are divided into List A and List B under the Immigration (Restrictions on Employment) Order 2007 (as amended):
- List A Documents: Establish an indefinite right to work. Conducting a compliant check on a List A document grants a continuous statutory excuse for the entire duration of the individual's employment. No follow-up checks are required. Examples include a current British passport, an Irish passport, or a registration certificate confirming permanent residence.
- List B Documents: Establish a time-limited right to work. Group 1 documents provide a statutory excuse valid until the expiry date of the permission. Group 2 documents provide a statutory excuse valid for six months from the date specified in the Positive Verification Notice issued by the Employer Checking Service. Employers must diarise and execute a repeat check prior to the document's expiry date to maintain their statutory excuse.
The Employer Checking Service and Positive Verification Notices
If an employee or prospective employee cannot provide acceptable documents because they have an outstanding in-time application, an administrative review, or an appeal pending with the Home Office, the employer must submit an online request to the Employer Checking Service (ECS).
An employer must not allow the individual to start work, or continue working after a visa expiry, without requesting an ECS check. If the individual has valid continuing permission under Section 3C of the Immigration Act 1971, the ECS will issue a Positive Verification Notice (PVN). A PVN provides a statutory excuse that lasts for exactly six months from the date of the notice. If the ECS returns a Negative Verification Notice (NVN), the employer has no statutory excuse and must immediately review the individual's continued employment to avoid civil and criminal liability.
| Verification Pathway | Eligible Individuals | Method of Execution | Statutory Excuse Duration |
|---|---|---|---|
| Home Office Online Service | eVisa holders, BRP/BRC holders, EUSS status holders, frontier workers | Enter share code and date of birth on GOV.UK portal; check photo via video or in person | Indefinite for settled status; up to visa expiry for time-limited status |
| Manual Document Check | British and Irish citizens without digital ID; specific List A/B document holders | Examine original physical document in person; take full unalterable copy; record date | Indefinite for List A; up to visa expiry or 6 months for List B |
| IDVT via Certified IDSP | British and Irish citizens holding valid passports or passport cards | Digital upload via certified commercial provider; employer checks likeness | Indefinite |
| Employer Checking Service | Individuals with in-time applications, appeals, or Section 3C leave | Online form submission to Home Office; receipt of Positive Verification Notice | 6 months from date of Positive Verification Notice |
2. Securing a Sponsor Licence: Eligibility, Key Personnel, and Documentation
Organisations that need to recruit non-settled workers must hold a valid sponsor licence issued by UK Visas and Immigration (UKVI). Sponsoring overseas workers is a privilege that comes with specific legal obligations under the Points-Based Immigration System.
Determining Licence Category and Eligibility
An employer must select the specific immigration routes it intends to sponsor under. The primary categories are:
- Worker Routes: Skilled Worker, Senior or Specialist Worker (Global Business Mobility), Minister of Religion, and International Sportsperson.
- Temporary Worker Routes: Creative Worker, Charity Worker, Religious Worker, Government Authorised Exchange, and Scale-up Worker.
To be eligible, an organisation must be a genuine legal entity operating lawfully in the UK, have an established physical trading address in the UK, hold appropriate planning permissions and regulatory registrations for its industry, and demonstrate that it has robust human resources and attendance-monitoring systems capable of meeting sponsor obligations.
Appointing Key Personnel
During the licence application, the organisation must nominate specific individuals to fill statutory roles on the Sponsor Management System (SMS):
- Authorising Officer (AO): The most senior paid official responsible for the recruitment of all migrant workers and for ensuring all sponsor duties are met. The AO is legally accountable for the licence.
- Key Contact: The primary point of contact between UKVI and the business. This role can be filled by an employee or an external legal representative.
- Level 1 User: The operational user who manages daily functions on the SMS, including requesting and assigning Certificates of Sponsorship. At least one Level 1 User must be an employee, director, or partner of the business at the time of application. Additional Level 1 Users (including external legal representatives) can be added once the licence is granted.
- Level 2 User: An operational user with restricted SMS access, who can assign Certificates of Sponsorship but cannot perform administrative functions such as reporting organisational changes.
All key personnel must be based in the UK, must not have unspent criminal convictions for immigration or financial offences, and must not have been associated with a sponsor licence that was revoked within the preceding 12 months.
Appendix A Evidential Requirements
Applicants must submit a minimum of four qualifying supporting documents specified in Appendix A of the Sponsor Guidance, unless they are a public body or listed on the London Stock Exchange Main Market. Documents must be submitted within five working days of the online application fee payment. Typical document sets include:
- Proof of corporate bank account with a regulated UK financial institution.
- Employer's liability insurance certificate providing cover of at least £5,000,000.
- Proof of registration with HM Revenue and Customs (HMRC) for PAYE and National Insurance, alongside recent payroll documentation.
- Certificate of VAT registration.
- Proof of ownership or lease agreement for business premises.
- Latest audited or unaudited annual accounts showing trading activity.
The Genuine Organisation and Genuine Vacancy Test
Home Office caseworkers assess whether the applicant organisation is a genuine trading business and whether there is an authentic operational need for the roles to be sponsored. If UKVI suspects that an application is made to facilitate visa entry for individuals rather than to fill genuine roles, or if the business lacks the revenue to support the proposed salaries, the licence will be refused. If a licence is refused on grounds of deception or serious non-compliance, a mandatory cooling-off period of up to five years applies before the business can reapply.
| Licence Category | Small or Charitable Sponsor Fee | Medium or Large Sponsor Fee | Standard Processing Service Level |
|---|---|---|---|
| Worker Routes (e.g. Skilled Worker) | £574 | £1,577 | 8 weeks standard (Priority available for £500 extra for 10 working days) |
| Temporary Worker Routes | £574 | £574 | 8 weeks standard |
| Combined Worker & Temporary Worker | £574 | £1,577 | 8 weeks standard |
Note: An organisation qualifies as a small sponsor if it meets at least two of the following criteria under the Companies Act 2006: annual turnover of £10.2 million or less, balance sheet total of £5.1 million or less, or 50 employees or fewer.
3. Assessing Roles and Assigning Certificates of Sponsorship (CoS)
Once a sponsor licence is approved, the employer must assign a Certificate of Sponsorship (CoS) to each individual they wish to sponsor. A CoS is an electronic record, not a physical certificate, which the applicant uses to support their visa application.
Defined vs Undefined Certificates of Sponsorship
Employers must use the correct type of CoS for each specific situation:
- Defined CoS (dCoS): Required for individuals who are currently outside the UK applying for entry clearance under the Skilled Worker route. The employer must apply for a specific dCoS via the SMS for each individual role, detailing the job title, SOC code, working hours, and salary. The Home Office must assess and approve the request before it can be assigned to the candidate. Standard dCoS processing takes one to two working days, but can take longer if the Home Office requests further information regarding the genuineness of the vacancy.
- Undefined CoS (uCoS): Required for individuals who are already in the UK and eligible to switch into the Skilled Worker route from another visa category, or for those extending their permission with the same sponsor. Employers request an annual allocation of uCoS via the SMS (usually during the annual renewal window from February to April or via an in-year allocation increase). Once granted, the uCoS sits in the sponsor's online account and can be assigned directly to the candidate without prior individual approval from UKVI.
Assigning an Undefined CoS to an offshore applicant who requires a Defined CoS is a serious compliance breach that leads to the visa being refused and the sponsor licence being suspended.
Standard Occupational Classification (SOC) 2020 Mapping
Every sponsored role must match an eligible four-digit Standard Occupational Classification (SOC) code published in the Immigration Salary List or Appendix Skilled Occupations. Roles must be skilled to at least Regulated Qualifications Framework (RQF) Level 3 (equivalent to A-levels), although the candidate does not necessarily need to hold a formal qualification if their practical skills and experience allow them to perform the role.
Caseworkers assess whether the chosen SOC code matches the actual day-to-day duties of the position. If an employer selects a higher-skilled or higher-paying SOC code to bypass skill or salary thresholds (known as job misclassification or SOC code shopping), UKVI will refuse the application and initiate compliance enforcement against the sponsor.
Salary Thresholds, Going Rates, and Pro-Rating Calculations
Under the rules implemented on 4 April 2024, Skilled Worker roles are assessed against updated salary thresholds using SOC 2020 codes. A sponsored worker must be paid whichever is the highest of:
- The general salary threshold of £38,700 per year; or
- The standard going rate for the chosen SOC 2020 code (based on the 50th percentile of UK earnings for that occupation).
Salary rates are assessed on a standard 37.5-hour working week. If the employee works more or fewer hours, the salary must be pro-rated accordingly. The hourly rate must also meet the absolute minimum of £15.88 per hour.
Example of Pro-Rating Calculation: If a role has a published going rate of £45,000 based on a 37.5-hour week, and the employee is contracted to work 40 hours per week, the minimum salary required is calculated as:
$$\text{Required Salary} = \frac{£45,000}{37.5} \times 40 = £48,000$$
Allowances such as London weighting, overtime pay, bonuses, pension contributions, or accommodation allowances cannot be counted towards the minimum salary thresholds under the Skilled Worker route. Only guaranteed basic gross pay can be included.
Tradeable Points and Discounts: Discounts against the general threshold and going rate are permitted under specific tradeable points options:
- New Entrants: Individuals under 26 years of age, those switching from Student or Graduate routes, or those working towards recognised professional qualifications may be paid 70% of the going rate, subject to a minimum general threshold of £30,960 per year. The new entrant discount can only be held for a cumulative maximum of four years across all Points-Based System routes.
- Relevant PhD Qualifications: Applicants holding a STEM PhD relevant to the job can be paid 80% of the going rate (minimum £30,960), whilst those with a non-STEM PhD can be paid 90% of the going rate (minimum £34,830).
- Immigration Salary List (ISL): Roles on the ISL can be paid a minimum threshold of £30,960, but the employer must still pay 100% of the occupation's specific going rate.
The Immigration Skills Charge (ISC)
The Immigration Skills Charge must be paid by the sponsor at the point of assigning any CoS under the Skilled Worker or Senior/Specialist Worker routes, unless an exemption applies (such as switching from a Student visa to a Skilled Worker visa in-country, or sponsoring under specific SOC codes such as EU researchers or certain creative occupations).
| Employer Size | ISC: First 12 Months | ISC: Each Additional 6 Months | 3-Year Total Cost | 5-Year Total Cost |
|---|---|---|---|---|
| Small or Charitable Sponsor | £364 | £182 | £1,092 | £1,820 |
| Medium or Large Sponsor | £1,000 | £500 | £3,000 | £5,000 |
If the visa application is refused, withdrawn before a decision, or if the employee fails to take up the post, the Home Office will issue a refund of the ISC. However, the initial Certificate of Sponsorship assignment fee (£239) is non-refundable.
4. The Visa Application Process and Employee Onboarding
Once the CoS is assigned, the candidate has three months to submit their online visa application to the Home Office. The employer must ensure the candidate meets all statutory entry and leave requirements.
Applicant Eligibility Criteria
- English Language Requirement: The applicant must prove English language ability to at least Level B1 on the Common European Framework of Reference (CEFR) in reading, writing, speaking, and listening. This can be evidenced by being a national of a majority English-speaking country, passing a Secure English Language Test (SELT) with an approved provider, or holding an academic degree taught in English verified by Ecctis.
- Financial Requirement (Maintenance): Applicants must show they have held at least £1,270 in cleared personal funds for a continuous 28-day period prior to application, unless the sponsor certifies maintenance on the CoS (ticking the 'A-rated sponsor certifies maintenance' box) or the applicant has been legally resident in the UK for at least 12 months.
- Criminal Record Certificate: Required if the applicant is being sponsored under specific education, health, or social care SOC codes. Certificates must be provided from every country where the applicant has resided for 12 months or more within the past 10 years (since the age of 18).
- Tuberculosis (TB) Testing: Applicants applying from specified countries for entry clearance of more than six months must provide a valid TB test certificate from an approved clinic.
Immigration Health Surcharge and Visa Fees
The applicant must pay the Immigration Health Surcharge (IHS) and the application fee during submission. The IHS is £1,035 per year for adults (£776 per year for children under 18 and Student/Youth Mobility applicants). Standard visa processing times are three weeks for applications submitted outside the UK and eight weeks for applications submitted inside the UK, unless priority processing services are purchased.
Pre-Start Checks and the Biometric Transition
Prior to the employee's first day of work, the employer must complete the final compliance checks:
- Perform a right to work check using the online share code service (for eVisa holders) or manual document verification (where applicable).
- Confirm that the start date matches the date on the CoS. If the start date is delayed by more than 28 days from the date on the CoS or the visa validity date (whichever is later), the sponsor must report the delay on the SMS or cancel sponsorship.
- Retain copies of the employment contract, job description, proof of national insurance number, qualifications, and right to work check records in accordance with Appendix D.
5. Ongoing Sponsor Duties and Licence Management (Appendix D)
Sponsors must comply with five core duty areas: reporting, record keeping, complying with immigration laws, cooperating with the Home Office, and genuine vacancy monitoring.
Mandatory Reporting Timelines via the SMS
All reports must be submitted electronically through the Sponsor Management System within strictly defined statutory timeframes:
10 Working Day Reports (Worker Changes):
- The sponsored worker fails to attend their first day of work, along with the reason if known.
- The worker's contract of employment is terminated early (resignation, dismissal, or redundancy).
- The worker ceases to be sponsored for any other reason (for example, switching to another visa route or obtaining Indefinite Leave to Remain).
- The worker is absent from work for more than 10 consecutive working days without authorised leave.
- There is a significant change in employment circumstances, such as a promotion, change in job title, transfer to a new department, or a change in primary work location.
- The worker's salary decreases from the level stated on the CoS (salary reductions are only permitted under specific statutory exemptions, such as company-wide pay freezes or parental leave).
20 Working Day Reports (Organisational Changes):
- The business changes its registered or trading name, address, or contact details.
- The business undergoes a change of ownership, takeover, merger, demerger, or acquisition.
- The business ceases trading, enters administration, goes into liquidation, or is placed under a company voluntary arrangement.
- There is a change to the Authorising Officer, Key Contact, or Level 1 User.
Appendix D Record-Keeping Requirements
Under Appendix D of the Sponsor Guidance, the sponsor must maintain complete physical or digital records for every sponsored worker. Key documents include:
- Copies of the worker's initial and ongoing right to work check records.
- Comprehensive history of the worker's residential address, personal email address, and UK telephone number.
- Detailed payroll data showing gross pay, tax deductions, and net pay (via HMRC Real Time Information submissions).
- Signed contract of employment stating duties, working hours, and remuneration.
- Copies of academic qualifications, professional registrations, or references showing the worker meets the skill requirements.
- Recruitment records confirming how the worker was identified (including job advertisements, interview notes, and applicant shortlists), to evidence the genuine vacancy requirement.
Monitoring Attendance, Absences, and Remote Working
Sponsors must operate a robust system to track daily attendance, sickness absences, annual leave, and travel for work.
If a sponsored worker works in a hybrid model (splitting time between a nominated office premises and their home address), both locations must be declared on the CoS or reported via the SMS. 100% remote working arrangements are scrutinised heavily by UKVI. If an overseas worker is working entirely from home with no requirement to attend a UK office, UKVI will question the necessity of UK-based sponsorship, which can result in the cancellation of the CoS.
Absences and the Four-Week Rule
A sponsor must stop sponsoring an employee if they are absent from work without pay for more than four weeks in total in any calendar year (1 January to 31 December), whether as a continuous period or across multiple shorter periods.
The only statutory exceptions to this rule are absences relating to:
- Statutory maternity, paternity, shared parental, or adoption leave.
- Sick leave certified by a registered medical practitioner.
- Assisting with a national or international humanitarian or environmental crisis.
- Taking part in legally organised industrial action.
If an unauthorised or non-exempt unpaid absence exceeds four weeks, the sponsor must report the termination of sponsorship on the SMS within 10 working days, leading to visa curtailment.
6. Civil Penalties, Compliance Audits, and Licence Sanctions
Non-compliance with immigration legislation exposes businesses to financial penalties, operational disruption, and reputational damage.
The Civil Penalty Scheme and Calculations
Under the revised civil penalty regime that took effect on 13 February 2024, fines for employing illegal workers are calculated as follows:
- First Breach: Up to £45,000 per illegal worker.
- Repeat Breach (within a three-year period): Up to £60,000 per illegal worker.
If illegal working is identified, the Home Office issues a Civil Penalty Notice detailing the total fine. The calculation starts at the maximum statutory level and is reduced only if the employer meets specific mitigation criteria:
- Fast Payment Option: A 30% reduction applies if the employer pays the penalty in full within 21 days of the notice, provided this is a first breach.
- Cooperation and Reporting: Reductions of £5,000 per worker may be applied if the employer reported the suspected illegal worker voluntarily and cooperated fully with the investigation.
Responding to a Notice of Liability: Information Requests, Objections, and Appeals
When Home Office Immigration Enforcement suspects illegal working, they issue an Information Request or Notice of Potential Liability. The business has 10 working days to provide evidence of its statutory excuse.
If a Civil Penalty Notice is issued, the employer has 28 days to take one of three actions:
- Pay the penalty in full (utilising the 21-day fast-track discount if applicable).
- Submit a formal Objection to the Home Office on the grounds that the business is not liable, has a statutory excuse, or the penalty amount is miscalculated.
- Agree an instalment payment plan with the Home Office Civil Penalty Compliance Team.
If the objection is dismissed by the Home Office, the employer has 28 days from the date of the Objection Outcome Notice to lodge an appeal with the County Court under Section 17 of the Immigration, Asylum and Nationality Act 2006. An appeal can be brought on the grounds that the employer is not liable, is excused from paying, or the penalty is excessive.
Home Office Compliance Audits
UKVI compliance officers conduct compliance visits to sponsor organisations. Visits can be announced (with prior notice) or unannounced. Officers will inspect premises, review HR files, interview key personnel, and interview sponsored workers separately to verify their duties and salaries.
Following an audit, UKVI categorises the sponsor's compliance:
- A-Rating: Full compliance. The licence is maintained without restrictions.
- B-Rating (Downgrade): Minor or procedural compliance failures. The sponsor is issued a mandatory Action Plan costing £1,476. The sponsor must complete all remedial steps within three months. During the B-rating period, the sponsor cannot assign new Certificates of Sponsorship to new hires (it can only issue extensions for existing staff).
- Suspension: Serious compliance breaches, such as failure to track attendance, paying salaries below legal thresholds, or employing workers in non-genuine roles. The sponsor has 20 working days to submit written representations explaining why the licence should not be revoked.
- Revocation: Issued if the sponsor fails an Action Plan, provides false information, commits serious breaches, or loses its operational base. When a licence is revoked, all current sponsored workers have their visas curtailed to 60 days, and the business faces a mandatory cooling-off period of at least 12 months before it can reapply for a licence.
7. Evidential Checklist: What Home Office Caseworkers and Compliance Officers Scrutinise
Home Office decision-makers evaluate applications and conduct audits against strict evidential benchmarks. Employers must verify that all records align with the following criteria:
Licence Application Stage
- Corporate Identity: Cross-referencing Companies House records, lease contracts, and business bank statements to confirm the business is actively operating at the stated address.
- Financial Viability: Scrutinising bank statements and audited accounts to ensure the business has the financial turnover to sustain proposed staff salaries and regulatory overheads.
- Key Personnel Suitability: Running automated background and criminal checks on nominated individuals to confirm there are no unspent convictions or previous licence revocation links.
Certificate of Sponsorship Stage
- Job Description Consistency: Ensuring the drafted job description matches the exact tasks detailed in the selected SOC 2020 code.
- Pay Calculation: Auditing contracted working hours to verify that pro-rated hourly rates meet both the general threshold (£15.88 per hour) and the occupation going rate.
- Candidate Qualifications: Checking that degree certificates, transcripts, and professional registrations directly match the requirements stated during recruitment.
Post-Licence Compliance Audits
- HMRC RTI Records: Matching monthly payroll data directly to the gross salary declared on the CoS. Any downward discrepancy without an SMS report is treated as a major compliance breach.
- Right to Work Audits: Inspecting date stamps and share code verification records for 100% of the active workforce (both sponsored and non-sponsored staff).
- Absence Logs: Verifying that all sickness, holiday, and unpaid leaves are documented with clear management sign-off and tracked against statutory limits.
8. Common Compliance Failures and Licence Refusal Triggers
Compliance failures often arise from administrative oversight rather than deliberate evasion. The most common refusal and penalty triggers include:
- Selecting the Incorrect SOC Code: Selecting an inaccurate occupational code to meet salary or skill thresholds. Caseworkers will interview employees; if the employee's real duties reflect an unqualified or lower-skilled position, the visa will be refused and the sponsor licence reviewed.
- Failure to Complete Timely Follow-Up Checks: Allowing an employee with time-limited leave (List B) to continue working past their visa expiry date without obtaining a fresh share code check or an ECS Positive Verification Notice prior to midnight on the expiry date.
- Pro-Rating Errors for Extended Working Hours: Sponsoring a worker on a 40-hour or 45-hour contract while paying only the minimum salary calculated for a 37.5-hour week, resulting in an illegal hourly rate.
- Unreported Changes in Work Location: Permitting a sponsored worker to relocate permanently to a different regional office or work exclusively from home without lodging a notification on the SMS within 10 working days.
- Using Undefined CoS for Offshore Hires: Allocating an Undefined CoS from the annual allocation to an applicant located outside the UK, rather than applying for a Defined CoS.
- Failure to Retain Appendix D Recruitment Evidence: Discarding interview notes, application tracking records, or job advertisements used during recruitment, leaving the business unable to prove the vacancy is genuine during an audit.
- Illegal Salary Deductions: Making deductions from a sponsored worker's salary for training fees, administrative costs, or visa processing charges that reduce their effective gross pay below the statutory going rate.
9. Complex Scenarios and Edge Cases
Employers regularly encounter complex scenarios that require specific application of the immigration rules.
Transitional Provisions for Pre-April 2024 Sponsored Workers
Workers who held valid permission under the Skilled Worker route before 4 April 2024, and who apply to extend their stay or change sponsors before 1 December 2030, are subject to transitional provisions:
- The general salary threshold is set at £29,000 (rather than £38,700).
- The going rates are benchmarked against the 25th percentile of UK earnings from the updated SOC 2020 codes, rather than the 50th percentile.
- If such a worker changes sponsor, the new employer can apply these lower transitional thresholds, provided the worker has held continuous leave under the Skilled Worker route.
Sponsoring Students and Graduates: Switching Constraints
Switching from Student or Graduate visas into the Skilled Worker route requires careful timing:
- Students: A student visa holder can only switch into the Skilled Worker route in-country if they have completed their course of study, or if they are studying a degree-level course or above and the employment start date is after the course completion date. For PhD students, they must have completed at least 24 months of study towards the doctorate.
- Graduates: Graduate visa holders can switch to a Skilled Worker visa at any point before their Graduate visa expires. Employers can utilise the 'New Entrant' salary rate (70% of the standard going rate, minimum £30,960) for a Graduate switcher, provided the total time spent across the Graduate and Skilled Worker routes does not exceed four years.
TUPE Transfers and Corporate Mergers
When a business undergoes a transfer of undertakings (TUPE), the immigration rules impose strict procedural requirements:
- Transfer of Sponsored Workers: Under the Transfer of Undertakings (Protection of Employment) Regulations 2006, the receiving employer takes on the sponsored workers. The receiving business must report the transfer via the SMS within 20 working days of the transfer date.
- Licence Requirements: If the receiving employer already holds an active sponsor licence in the correct route, the workers are transferred to that licence. If the receiving employer does not hold a sponsor licence, it must apply for a licence within 20 working days of the transfer. If it fails to apply, or if the application is refused, the transferred workers' visas will be curtailed.
- Right to Work Grace Period: The receiving employer receives a statutory 60-day grace period from the date of the transfer to carry out fresh right to work checks for all newly acquired employees. Checks carried out after the 60-day grace period will not establish a statutory excuse.
Unpaid Absences and Reductions in Salary
If an employer reduces a sponsored worker's salary below the rate stated on their CoS, this must be reported on the SMS within 10 working days. The reduced salary must still meet or exceed the absolute statutory minimum thresholds (the higher of £38,700 or the applicable going rate). If the salary is reduced below this statutory threshold, sponsorship must cease unless an exemption applies (such as maternity leave, paternity leave, or sick leave).
Dependant Sponsorship Rules and Restrictions
From early 2024, the Home Office introduced restrictions on dependants:
- Sponsored workers under SOC codes relating to care workers (SOC 6135) and senior care workers (SOC 6136) are prohibited from bringing dependants to the UK, unless the worker was already in the route prior to 11 March 2024.
- For all other Skilled Worker roles, dependants (partners and children under 18) are permitted. Dependants hold unrestricted right to work in the UK (with limited exceptions regarding work as a professional sportsperson) and do not require separate sponsorship from their employer.
Supplementary Employment vs Secondary Sponsorship
Sponsored workers on a Skilled Worker visa are permitted to undertake supplementary employment in addition to the work specified on their CoS, provided the supplementary work meets all of the following conditions:
- It is in the same profession and at the same professional level as the job for which the CoS was assigned, or is in an occupation listed on the Immigration Salary List.
- It does not exceed 20 hours per week.
- It takes place outside the working hours contracted for their primary sponsored employment.
If an employee wishes to work for a second employer for more than 20 hours per week, or in a different occupational field not on the ISL, the secondary employer must hold a sponsor licence and issue a separate 'Secondary CoS', requiring a distinct secondary visa application.
10. Practical Next Steps for Employers
To ensure your organisation maintains full compliance with UK immigration law, audit your current right to work files and sponsorship procedures against the following operational steps:
- Conduct an Internal Right to Work Audit: Review all active personnel files to confirm you hold valid, date-stamped records of manual checks, IDVT outputs, or online share code profiles for every employee. Identify all List B visa holders and set calendar reminders at 90, 60, and 30 days prior to document expiry.
- Review SMS Key Personnel: Log into the Sponsor Management System to verify that all named Key Personnel (Authorising Officer, Key Contact, Level 1 Users) remain active employees or regulated representatives, and update any outdated personal or corporate contact details.
- Assess Salary Threshold Compliance: Cross-examine current payroll records for all sponsored staff against the post-April 2024 salary requirements, ensuring contracted hours match the pro-rated going rates for each SOC code.
- Formalise Absence and Reporting Protocols: Establish a central system between your payroll, HR, and line management teams to log remote working arrangements, report unpaid leaves, and flag any worker changes to your Level 1 User within the mandatory 10 working day window.
- Seek Regulated Legal Counsel: For complex restructuring, TUPE transfers, response to Civil Penalty Notices, or preparation for a Home Office compliance audit, engage an OISC-regulated or SRA-regulated immigration adviser to review your files before regulatory action is taken.
Reviewed by Wesbridge Associates team on . We check our published guidance against GOV.UK and current Home Office rules.
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