UK Employer Immigration: Sponsor Licences & Compliance

UK employer immigration allows businesses registered and operating in the United Kingdom to sponsor non-settled workers under routes such as the Skilled Worker and Global Business Mobility visas. To hire international personnel, an employer must secure a sponsor licence from UK Visas and Immigration (UKVI), assign Certificates of Sponsorship (CoS), and adhere to strict ongoing HR reporting and record-keeping duties. Maintaining compliance requires aligning job vacancies with approved Standard Occupational Classification (SOC) codes, meeting revised minimum salary thresholds, and conducting statutory Right to Work checks.

Key facts

Eligibility for UK employer sponsorship

To sponsor overseas talent, an organisation must demonstrate that it is a genuine, operating legal entity in the UK, has established human resources systems to track migrant workers, and has appointed key personnel capable of discharging compliance obligations.

Corporate prerequisites

Under the UKVI guidance for sponsors, an organisation must satisfy several foundational criteria before an application can be approved:

1. Operating Footprint in the UK: The organisation must have an established trading presence in the UK, evidenced through corporate bank accounts, registered office addresses, PAYE registration with HMRC, and valid commercial insurance.
2. Genuineness and Honesty: The Home Office must be satisfied that the business is not a vehicle set up to facilitate unlawful immigration and that its key officers have unspent criminal convictions neither for immigration offences nor for financial crimes such as fraud or money laundering.
3. HR and Tracking Capabilities: The business must have human resource systems capable of monitoring sponsored worker attendance, tracking visa expiry dates, maintaining up-to-date contact details, and notifying UKVI within statutory deadlines of changes in employment status.
4. Offer of Genuine Employment: Any prospective role must meet the skill level requirements (RQF Level 3 or higher for Skilled Worker) and offer a legitimate vacancy that aligns with the business model.

Key personnel requirements

Every licensed sponsor must appoint named individuals to specific administrative and oversight roles on the Sponsorship Management System (SMS):

• Authorising Officer (AO): The most senior figure in the organisation responsible for the actions of staff and representatives using the SMS. The AO carries ultimate legal accountability for the licence.
• Key Contact: The primary liaison between UKVI and the business.
• Level 1 User: The operational user who manages day-to-day administrative functions on the SMS, including assigning Certificates of Sponsorship, reporting worker changes, and requesting CoS allocation increases. At least one Level 1 User must be a paid employee or office holder of the organisation at the time of application.
• Level 2 User: Optional users who have restricted access to the SMS, usually limited to creating and assigning certificates without wider administrative authority.

All nominated key personnel must be based in the UK, pass standard background checks, and, with limited exceptions for regulated legal representatives, be direct employees, directors, or partners of the organisation.

Main business immigration routes

Employers typically secure sponsorship under one or more specific routes:

• Skilled Worker Route: The primary route for hiring overseas professionals into eligible roles. Workers can bring dependants, change employers (subject to a new CoS), and qualify for Indefinite Leave to Remain (ILR) after five years of continuous lawful residence.
• Global Business Mobility (GBM) - Senior or Specialist Worker: Designed for multinational organisations transferring established senior managers or specialist employees from an overseas entity to a UK branch. This route does not lead directly to settlement in the UK.
• Global Business Mobility - UK Expansion Worker: Allows overseas businesses that have not yet begun trading in the UK to send up to five senior employees to establish a commercial branch or subsidiary.
• Scale-up Route: Designed for high-growth businesses demonstrating at least 20% annualised growth in turnover or staffing over a three-year period. Sponsored scale-up workers are tied to the sponsor for an initial six months, after which they can transition into un-sponsored work.
• Temporary Worker Routes (Creative Worker, Charity Worker, Government Authorised Exchange): Short-term routes tailored for specific sectors, subject to distinct Appendix rules under the Immigration Rules.

Salary rules and the Standard Occupational Classification (SOC) 2020

The UK points-based system relies on the Standard Occupational Classification (SOC) system. In April 2024, the Home Office updated the system to the SOC 2020 framework and increased the standard baseline salary threshold to £38,700 per annum, or the 50th percentile (median) of the occupation's going rate, whichever is higher.

Discounts apply under specific tradeable points options:

• New Entrants: Individuals under the age of 26, recent UK graduates, or those working towards recognised professional qualifications can be paid 70% of the standard occupation going rate, subject to an absolute minimum floor of £30,960 per annum.
• Immigration Salary List (ISL): Replaced the Shortage Occupation List. Roles listed on the ISL carry a reduced general salary threshold of £30,960, although the employer must still pay at least the role's specific going rate.
• PhD Qualifications: Applicants holding a relevant STEM or non-STEM PhD related to the job may qualify for a 10% to 20% reduction on the going rate, provided their salary remains at or above £30,960 (or £34,830 for non-STEM PhDs).

Employers evaluating these thresholds should review detailed legal analysis; read our breakdown on Navigating UK Immigration: A Comprehensive Guide to Key Visa Routes and Sponsorship to align job roles with current salary bands.

Step-by-step process for employing overseas staff

Securing a sponsor licence and onboarding non-settled workers requires careful sequencing across administrative, legal, and operational stages.

+--------------------------------------------------------+
| 1. Assess Business Eligibility & Gather Appendix A Docs |
+--------------------------------------------------------+
                           |
                           v
+--------------------------------------------------------+
| 2. Submit Online Licence Application & Pay UKVI Fees   |
+--------------------------------------------------------+
                           |
                           v
+--------------------------------------------------------+
| 3. Home Office Verification / Compliance Audit Visit   |
+--------------------------------------------------------+
                           |
                           v
+--------------------------------------------------------+
| 4. Sponsor Licence Granted (A-Rating Issued)           |
+--------------------------------------------------------+
                           |
                           v
+--------------------------------------------------------+
| 5. Request & Assign Certificate of Sponsorship (CoS)   |
|    - Defined CoS (for candidates outside the UK)       |
|    - Undefined CoS (for candidates switching in the UK)|
+--------------------------------------------------------+
                           |
                           v
+--------------------------------------------------------+
| 6. Pay Immigration Skills Charge (ISC)                 |
+--------------------------------------------------------+
                           |
                           v
+--------------------------------------------------------+
| 7. Candidate Submits Visa Application & Biometrics     |
+--------------------------------------------------------+
                           |
                           v
+--------------------------------------------------------+
| 8. Conduct Pre-Employment Right to Work Online Check   |
+--------------------------------------------------------+

Step 1: Gathering validation documents (Appendix A)

The applicant organisation must review Appendix A of the Sponsor Guidance to select at least four mandatory supporting documents. The exact documents depend on the nature of the entity (e.g., public limited company, private SME, charity, or start-up). Documents must be compiled and ready for electronic submission within five working days of the online application form submission.

Step 2: Online application and Key Personnel registration

The employer submits the online application via the UKVI portal, specifying the routes required (e.g. Skilled Worker, GBM Senior Worker), nominating the Authorising Officer, Key Contact, and Level 1 User, and paying the licence fee.

Step 3: Evidentiary review and pre-licence compliance visit

UKVI assesses the documentation. The Home Office may deploy compliance officers to carry out an announced or unannounced pre-licence audit. The officers inspect HR record-keeping mechanisms, check right to work processes, and interview the Authorising Officer to confirm they understand their legal duties under the sponsor guidance.

Step 4: Obtaining and assigning Certificates of Sponsorship

Once the licence is approved with an 'A-Rating', the organisation gains access to the Sponsorship Management System (SMS). To sponsor an individual, the employer must assign a Certificate of Sponsorship (CoS):

• Defined CoS: Required for individuals applying for entry clearance from outside the UK under the Skilled Worker route. The employer must submit an individual application for each Defined CoS via the SMS, detailing the role, SOC code, working hours, and salary. Approval typically takes 1 to 3 working days, though delays occur if UKVI requests further salary justification.
• Undefined CoS: Used for individuals already inside the UK who are switching from another visa (e.g. Graduate or Student visa) or extending their stay, as well as for all Global Business Mobility applicants. Employers request an annual allocation of Undefined CoS via the SMS during their licence application or at the annual allocation renewal.

For a broader breakdown of how these certificates interface with applicant processing, refer to our article on the UK Visa Application Process: Your Essential Guide.

Step 5: Paying the Immigration Skills Charge and assigning the CoS

When assigning a CoS, the employer must pay the £239 assignment fee alongside the Immigration Skills Charge (ISC), unless an exemption applies. Once assigned, the SMS generates a unique alphanumeric CoS reference number, which is valid for three months from the date of issue.

Step 6: Candidate visa application

The worker completes their visa application online, providing the CoS reference number, proof of identity, English language test results (CEFR Level B1 for Skilled Worker), and a criminal record certificate where required by the SOC code.

Step 7: Statutory Right to Work check

Before the worker's first day of employment, the employer must conduct a formal Right to Work check using the Home Office online checking service. Physical checks of biometric residence cards are no longer legally compliant for establishing a statutory excuse. The employer must obtain the worker's date of birth and share code, generate the profile on the official GOV.UK checker, and retain an electronic or physical copy of the result page with the date the check was conducted.

For further context on structural workflows, consult our guide to Navigating the UK Visa Landscape: Your Comprehensive Guide to Immigration & Sponsorship.

Mandatory documentation and compliance systems

To secure and maintain a licence, employers must meet the evidentiary standards in Appendix A and the record-keeping standards in Appendix D of the sponsor guidance.

Appendix A: Table of required corporate documents

Most UK entities must supply at least four verifiable documents from the following categories:

Appendix D: Sponsor record-keeping duties

Appendix D sets out the exact records an employer must retain for every sponsored employee:

1. Identity and Immigration Status: Copies of the worker's current passport biometric page, immigration status documentation, and history of Right to Work verifications.
2. Current Contact Information: Up-to-date residential address, personal telephone numbers, and private email addresses. Sponsors must maintain a historical log of changes.
3. Absence Management: Electronic tracking systems capturing all sickness absences, statutory leaves, annual leaves, and unauthorised absences. If a sponsored worker is absent for more than 10 consecutive working days without permission, the sponsor must report this via the SMS within 10 working days.
4. Contractual and Remuneration Records: Employment contracts, job descriptions, detailed payroll records (monthly payslips, HMRC RTI submissions), and evidence of any salary deductions permitted under UK law.
5. Skill and Recruitment Evidence: Evidence of the worker's qualifications, professional registrations, and documentation demonstrating how the worker was recruited (even though the formal Resident Labour Market Test was abolished, the employer must still prove the vacancy is genuine).

SMS reporting obligations

Sponsors must use the SMS to notify UKVI of specific events within strict deadlines:

• 10 Working Days: If a sponsored worker fails to start on their agreed start date, resigns, has their contract terminated, changes job title/duties significantly, has their salary reduced, or is absent without permission for more than 10 consecutive working days.
• 20 Working Days: If the sponsor changes its registered name, sells the business, undergoes a corporate merger or acquisition, enters administration, ceases trading, or changes its appointed Key Personnel.

Costs, financial thresholds, and processing timelines

Employing overseas workers involves both upfront infrastructure fees and recurring per-worker statutory levies.

Breakdown of sponsor licence and visa fees

+------------------------------------------------------------------------------------+
|                                 EMPLOYER COSTS                                     |
+------------------------------------------------------------------------------------+
| 1. Sponsor Licence Application Fee:                                                |
|    - Small / Charity: £536                                                         |
|    - Medium / Large: £1,476                                                        |
|                                                                                    |
| 2. Certificate of Sponsorship (CoS) Issuance Fee:                                  |
|    - £239 per candidate                                                            |
|                                                                                    |
| 3. Immigration Skills Charge (ISC):                                                |
|    - Small / Charity: £364 (Year 1) + £182 per subsequent 6 months                 |
|    - Medium / Large: £1,000 (Year 1) + £500 per subsequent 6 months                |
+------------------------------------------------------------------------------------+

+------------------------------------------------------------------------------------+
|                                 APPLICANT COSTS                                    |
|                      (Often covered by employer by agreement)                      |
+------------------------------------------------------------------------------------+
| 1. Visa Application Fee (Skilled Worker, up to 3 years):                           |
|    - Outside UK: £719 | Inside UK: £827                                            |
|                                                                                    |
| 2. Visa Application Fee (Skilled Worker, over 3 years):                            |
|    - Outside UK: £1,420 | Inside UK: £1,636                                        |
|                                                                                    |
| 3. Immigration Health Surcharge (IHS):                                             |
|    - £1,035 per year of visa validity                                              |
|                                                                                    |
| 4. Priority Processing (Optional):                                                 |
|    - Priority (5 working days): £500                                               |
|    - Super Priority (Next working day): £1,000                                     |
+------------------------------------------------------------------------------------+

Small vs medium/large company definitions

Under the Companies Act 2006 (Sections 382 and 465), a business qualifies as a small sponsor if it satisfies at least two of the following conditions in a financial year:

1. Annual turnover of £10.2 million or less.
2. Balance sheet total (gross assets) of £5.1 million or less.
3. Average number of employees not exceeding 50.

If an organisation exceeds two or more of these criteria, or is a public company, it must pay the medium/large fees for licence applications and the Immigration Skills Charge. Charities registered with the Charity Commission automatically qualify for the lower fee tier regardless of size.

The Immigration Skills Charge (ISC)

The ISC is levied on employers assigning a Skilled Worker or Senior/Specialist Worker CoS for more than six months. For a medium or large sponsor bringing a worker to the UK on a five-year visa, the charge is £5,000 (5 × £1,000). For a small or charitable sponsor, the charge is £1,820 (5 × £364).

Exemptions from the ISC include:

• Sponsoring an individual switching from a Student visa into the Skilled Worker route inside the UK.
• Specific SOC codes, such as chemical scientists (SOC 2111), biological scientists (SOC 2112), and higher education teaching professionals (SOC 2311).
• Workers sponsored under the GBM Graduate Trainee route or Scale-up route.
• Assignments under six months where the CoS explicitly sets the duration accordingly.

Employers must ensure they do not attempt to recoup the Immigration Skills Charge from the worker. UKVI sponsor guidance strictly forbids clawing back the ISC via payroll deductions or contractual indemnities; doing so is grounds for mandatory licence revocation.

For a detailed evaluation of sponsorship financial management, read our analysis on Navigating UK Visa Sponsorship: A Comprehensive Guide for Individuals and Businesses.

Realistic onboarding timelines

+-------------------------------------------------------------+
| Task                                            | Duration  |
+-------------------------------------------------+-----------+
| Internal HR Review & Document Compilation       | 2-3 Weeks |
| UKVI Sponsor Licence Application Assessment     | 8 Weeks*  |
| Defined CoS Allocation Request                  | 1-3 Days  |
| Visa Application & Biometric Appointment        | 1-2 Weeks |
| UKVI Visa Processing (Standard Entry Clearance) | 3 Weeks** |
| Total Estimated Project Timeline                | ~3-4 Mos  |
+-------------------------------------------------------------+
* Can be expedited to 10 working days via the £500 Pre-Licence Priority service.
** Can be expedited to 5 working days (£500 Priority) or 24 hours (£1,000 Super Priority).

Selecting legal representation for business immigration

Securing a sponsor licence and managing international staff involves continuous regulatory compliance under UK administrative law. As a result, businesses often retain external legal counsel.

Regulated advisors vs unregulated entities

In the UK, providing immigration advice is a criminal offence under Section 84 of the Immigration and Asylum Act 1999 unless the advisor is properly regulated. Businesses should only engage professionals authorised by:

1. The Immigration Services Commissioner / Immigration Advice Authority (IAA / OISC): Specialist immigration practitioners assessed against statutory competency standards. Wesbridge Associates is regulated by the IAA under registration number F202537300.
2. The Solicitors Regulation Authority (SRA): Regulates solicitors and law firms in England and Wales.
3. The Bar Standards Board (BSB): Regulates independent barristers.
4. The Law Society of Scotland / Law Society of Northern Ireland: Regulates legal practitioners in those respective devolved jurisdictions.

Identifying the right legal counsel

When searching for the best UK immigration law firm for businesses, an immigration lawyer in London, or an immigration solicitor in the City of London, business leaders should focus on regulatory compliance and technical expertise rather than broad claims.

An effective business immigration lawyer or corporate advisor provides distinct operational benefits:

• Audit Readiness: Conducting pre-application compliance mock audits to inspect personnel files, Right to Work check systems, and contract templates before UKVI compliance officers arrive.
• SOC Code Matching: Preventing refusal by matching complex, multidisciplinary roles (such as software architects, private equity analysts, or executive directors) to the correct SOC 2020 four-digit classification code, ensuring salary thresholds match standard weekly working hours.
• Key Personnel Support: Acting as a registered Level 1 User or Legal Representative on the SMS to draft reports, submit Defined CoS requests, and handle annual Undefined CoS allocation renewals.
• Strategic Corporate Restructuring Advice: Guiding businesses through mergers, demergers, asset sales, and share transfers where Transfer of Undertakings (Protection of Employment) (TUPE) regulations trigger mandatory 28-day SMS reporting and licence restructuring.

For further background on choosing suitable advisory structures, read our overview of Navigating UK Visa & Immigration: Your Expert Guide to Sponsorship Success.

Common refusal reasons, compliance pitfalls, and how to avoid them

UKVI assesses sponsor licence and visa applications against strict technical rules. Minor clerical or structural errors can lead to immediate refusal or post-licence enforcement action.

+------------------------------------------------------------------------------------+
|                       CRITICAL COMPLIANCE FAILURE POINTS                           |
+------------------------------------------------------------------------------------+
| 1. GENUINE VACANCY REJECTION                                                       |
|    - Job duties do not match business scale or trading model                       |
|    - Exaggerated job descriptions designed to fit a higher SOC code                |
+------------------------------------------------------------------------------------+
| 2. INCORRECT SOC 2020 CODE & SALARY PRO-RATING ERRORS                              |
|    - Failing to pro-rate the going rate based on weekly hours above 37.5           |
|    - Choosing an ineligible lower-skilled code to bypass salary minimums           |
+------------------------------------------------------------------------------------+
| 3. INELIGIBLE KEY PERSONNEL                                                        |
|    - Appointing an Authorising Officer based overseas                              |
|    - Nominated officers with unspent convictions or previous licence revocations  |
+------------------------------------------------------------------------------------+
| 4. APPENDIX D MONITORING & ABSENCE FAILURES                                        |
|    - Unmonitored hybrid/remote working arrangements                                |
|    - Failure to notify UKVI of 10-day unauthorised absences within 10 days         |
+------------------------------------------------------------------------------------+
| 5. ILLEGAL CLAWBACK OF STATUTORY LEVIES                                            |
|    - Requiring employees to pay back the Immigration Skills Charge via contract    |
+------------------------------------------------------------------------------------+

1. Failure of the Genuine Vacancy test

A frequent reason for the refusal of a Skilled Worker CoS or licence application is the Genuine Vacancy test. Caseworkers evaluate whether the role realistically exists to serve the genuine operating needs of the business.

The Pitfall: A micro-business with five staff members applying to sponsor an executive Director of Marketing, or a small takeaway applying for a Specialist Executive Pastry Chef without possessing the commercial facilities or client base to justify the position.
The Solution: Submit detailed organizational charts, commercial contracts demonstrating workflow, premises floor plans, and evidence of how the role integrates into daily commercial operations.

2. Standard Occupational Classification (SOC) code misallocation

Using the incorrect four-digit SOC code is a primary ground for refusal under paragraph SW 5.6 of Appendix Skilled Worker. Caseworkers will refuse the application if they believe the employer selected a code that does not match the actual duties, or assigned a code simply because it carries a lower going rate.

The Pitfall: Categorising a routine administrative assistant under SOC 2424 (Business and Financial Project Management Professionals) to avoid lower skill boundaries.
The Solution: Draft job descriptions using clear operational terminology rather than copy-pasting standard text from the ONS coding tool. Review both the day-to-day duties and the required qualifications to ensure they align directly with the selected SOC code's baseline profile.

3. Salary calculation and pro-rating errors

The standard going rate for a SOC code is based on a 37.5-hour working week unless otherwise specified in the Immigration Rules tables. If the sponsored employee works longer hours, the going rate must be pro-rated upwards.

$$\text{Required Minimum Salary} = \max\left( £38,700, \text{Going Rate} \times \frac{\text{Actual Weekly Hours}}{37.5} \right)$$

The Pitfall: An employer offers a salary of £39,000 for a job with a going rate of £38,700, but sets the contractual hours at 42 hours per week. Pro-rating the going rate for 42 hours requires a minimum salary of:

$$£38,700 \times \left(\frac{42}{37.5}\right) = £43,344$$

Because the offered salary of £39,000 is below £43,344, the visa application will be refused.
The Solution: Calculate the hourly rate explicitly. The absolute minimum hourly rate for a standard Skilled Worker is £15.88 per hour (£38,700 ÷ 52 weeks ÷ 37.5 hours). Ensure both the gross annual pay and the hourly rate meet or exceed the pro-rated thresholds.

4. Poor Appendix D record-keeping and unmonitored hybrid work

During an on-site or digital compliance audit, UKVI inspectors will examine HR files for all sponsored staff.

The Pitfall: The business cannot produce contact details, updated residential addresses, or historic Right to Work verification logs, or has no record of the physical working locations for staff working under remote or hybrid working arrangements.
The Solution: Implement a centralised HR management system that logs home working addresses alongside office desk bookings. Automate calendar notifications for visa expiry dates 90, 60, and 30 days in advance, and carry out regular internal audits of all sponsored personnel files.

Licence suspensions, revocations, and refusal remedies

If an employer fails to meet its sponsorship obligations or has an initial application refused, specific administrative and legal avenues are available.

+------------------------------------------------------------------------------------+
|                         CHALLENGING UKVI DECISIONS                                 |
+------------------------------------------------------------------------------------+
| PRE-LICENCE REFUSAL                                                                |
| - 6-month standard cooling-off period before a new application can be submitted   |
| - Pre-Action Protocol (PAP) / Judicial Review if decision involved public law error|
+------------------------------------------------------------------------------------+
| POST-LICENCE ACTION PLAN (B-RATING DOWNGRADE)                                      |
| - Triggered by minor administrative and tracking breaches                          |
| - Sponsor must pay £1,476 for a mandatory 3-month UKVI Action Plan                 |
| - Failure to clear Action Plan results in licence revocation                       |
+------------------------------------------------------------------------------------+
| POST-LICENCE SUSPENSION LETTER                                                     |
| - CoS allocation frozen; business cannot sponsor new workers                      |
| - 20 working days to submit detailed representations and evidentiary proof         |
+------------------------------------------------------------------------------------+
| FINAL LICENCE REVOCATION                                                           |
| - 12-month cooling-off period applies automatically                                |
| - Visas of all current sponsored staff curtailed to 60 days                        |
| - No statutory right of appeal; challenge via Judicial Review (High Court) only     |
+------------------------------------------------------------------------------------+

Navigating licence suspensions and B-ratings

If UKVI identifies compliance failures, it can issue a suspension letter or downgrade the licence to a B-rating:

• B-Rating Downgrades: Issued for minor administrative breaches (such as late SMS reporting of address updates or minor record-keeping gaps). The sponsor must pay a fee of £1,476 and adhere to a strict three-month Action Plan designed by UKVI. If the business meets all targets in the plan, its A-rating is restored. If it fails, the licence is revoked.
• Suspension Letters: Issued for serious breaches, such as employing un-sponsored illegal workers, clawing back the Immigration Skills Charge, or failing the genuine vacancy test. The sponsor has 20 working days from the date of the letter to submit written representations alongside documentary evidence showing why the licence should not be revoked.

The impact of licence revocation

Revocation has severe consequences:

1. The organisation is removed from the public Register of Licensed Sponsors.
2. All current Certificates of Sponsorship are cancelled.
3. UKVI curtails the visas of all sponsored employees to 60 days, during which they must find a new sponsor or leave the UK.
4. A mandatory cooling-off period of at least 12 months applies, during which the organisation cannot apply for a new sponsor licence.

Legal remedies for challenging adverse decisions

There is no statutory right of appeal against the refusal, suspension, or revocation of a sponsor licence. However, employers can pursue several legal remedies:

1. Error Correction Request: Available if UKVI refused an initial licence application because of an obvious caseworking error (such as failing to open an uploaded Appendix A document). This must be submitted within 14 calendar days of the refusal notice.
2. Pre-Action Protocol for Judicial Review (PAP): If the decision was unlawful, irrational, procedurally unfair, or disproportionate under UK public law, the business can instruct legal counsel to issue a formal Letter Before Claim to the Home Office. This gives the Home Office 14 days to reconsider the decision before formal court litigation begins.
3. Judicial Review (High Court): If the Home Office maintains its decision following the PAP letter, the employer can apply to the Upper Tribunal (Immigration and Asylum Chamber) or the Administrative Court of the High Court for permission to bring a Judicial Review. The court reviews the lawfulness of the decision-making process rather than the underlying commercial merits.

Employers navigating enforcement action should review our detailed analysis on Navigating UK Immigration: Expert Sponsorship Guidance from Wesbridge Associates.

Frequently asked questions

Can a start-up business obtain a UK sponsor licence?

Yes. There is no legal requirement for an organisation to have traded for a specific number of years before applying for a sponsor licence. However, start-ups must demonstrate they have an active UK bank account, registered employer taxes with HMRC, corporate insurance, and can provide at least four verifiable documents under Appendix A.

What happens to sponsored workers if a sponsor licence is revoked?

If a licence is revoked, UKVI writes to all sponsored employees curtailing their leave to remain to 60 calendar days (or to the date their visa naturally expires, whichever is shorter). During this period, the worker must secure alternative sponsorship with an A-rated sponsor, switch into another legal visa category, or leave the UK.

Is the Resident Labour Market Test (RLMT) still mandatory?

No. The formal Resident Labour Market Test, which previously required advertising vacancies for 28 days on specific platforms, was abolished under the points-based immigration system. However, employers must still satisfy the Genuine Vacancy test by showing that the role is legitimate, meets the required skill and salary levels, and was not created solely to facilitate a visa.

What is the difference between a Defined and an Undefined Certificate of Sponsorship?

A Defined CoS is used exclusively for candidates applying for entry clearance from outside the UK under the Skilled Worker route, and each certificate requires individual approval from UKVI before assignment. An Undefined CoS is drawn from an annual allocation granted to the sponsor to employ individuals who are already legally in the UK switching routes, or for all candidates under the Global Business Mobility routes.

Can an employer pass the Immigration Skills Charge on to the sponsored employee?

No. UKVI sponsor guidance strictly prohibits employers from recouping or passing on the cost of the Immigration Skills Charge, or any associated licence application costs, to the sponsored worker. If an employer uses payroll deductions or clawback agreements for these specific fees, UKVI can immediately revoke the sponsor licence.

What are the standard weekly working hours used to calculate minimum salary rates?

UKVI going rates listed in the Immigration Rules are based on a standard 37.5-hour working week unless explicitly stated otherwise in the SOC code tables. If an employee works more than 37.5 hours per week under their employment contract, the minimum salary threshold must be pro-rated upwards to match their actual hours.

Sources

• GOV.UK: UK visa sponsorship for employers — Guidance on licence tiers, eligibility, and core sponsor rules (Updated April 2024).
• GOV.UK: Workers and Temporary Workers: guidance for sponsors part 1 - Apply for a licence — Technical guidance on organisational eligibility, Key Personnel, and structural criteria (Updated March 2024).
• GOV.UK: Workers and Temporary Workers: guidance for sponsors part 2 - Sponsor a worker — Comprehensive rules on CoS allocation, assignment, and the Immigration Skills Charge (Updated April 2024).
• GOV.UK: Workers and Temporary Workers: guidance for sponsors part 3 - Sponsor duties and compliance — Rules governing reporting, record-keeping, suspensions, and revocations (Updated April 2024).
• GOV.UK: Sponsor guidance appendix A - Supporting documents for sponsor applications — Complete schedule of mandatory documents required for UK organisations (Updated April 2024).
• GOV.UK: Sponsor guidance appendix D - Keeping records for sponsorship — Comprehensive statutory list of employee personnel records, absence management documents, and Right to Work logs (Updated April 2024).
• GOV.UK: Skilled Worker visa - Your job and eligible occupation codes — Statutory rules governing SOC 2020 codes, going rates, and the £38,700 baseline threshold (Updated April 2024).
• GOV.UK: Landlord and employer right to work checks — Official online service and employer guidance for statutory Right to Work share codes (Updated February 2024).

Written and reviewed by Wesbridge Associates – IAA regulated (Level 1, F202537300). Last reviewed 23 October 2026. Editorial policy

Frequently asked questions

Common questions on this topic, answered by our advisers.

Can a start-up business obtain a UK sponsor licence?

What happens to sponsored workers if a sponsor licence is revoked?

Is the Resident Labour Market Test (RLMT) still mandatory?

What is the difference between a Defined and an Undefined Certificate of Sponsorship?

Can an employer pass the Immigration Skills Charge on to the sponsored employee?

What are the standard weekly working hours used to calculate minimum salary rates?