Legal > Sponsor Licences – Unleashing the Power

Sponsor Licences – Unleashing the Power

With the end of free movement of workers following the UK’s exit from the European Union, we are seeing a significant increase in businesses wanting to recruit non-UK nationals to live and work in the UK. According to the UK Visas and Immigration (UKVI) sponsorship transparency data, the number of businesses obtaining a sponsor licence has more than doubled since the end of free movement on December 31, 2020 – increasing sharply from 30,278 in Q4 2020 to 61,153 in Q1 2023 registered sponsors.

This is a similar trend for work-related visas, with 299,891 work visas granted in the year ending March 2023, 61% higher than the previous year and more than double compared to 2019, just before the pandemic.

However, there are still a significant number of businesses who are struggling to fill roles and who may benefit from looking further afield.

Back to basics

Where an employer wishes to employ non-UK resident skilled workers, they will need to first apply for permission from the Home Office, through obtaining a sponsor licence, to do so. A business is eligible to become a licensed sponsor if it fulfils the following criteria:

  • It is a genuine organisation operating lawfully in the UK. To show this, the business must provide certain information and documents in support of its application
  • It is honest, dependable and reliable. To judge this, UKVI will look at the business’s history and background, the key personnel named on the application and any people involved in the day-to-day running of the business
  • It is capable of carrying out the duties imposed as a sponsor. To judge this, the UKVI will look at the business’s current human resources and recruitment practices to make sure that it will be able to fulfil its sponsor duties and may visit before the licence is granted
  • It can offer genuine employment that meets the requirements of the skilled worker route, including being able to show that the role is required in the UK and meets the skill level and salary requirements.

A privilege not a right

Significant trust is placed in sponsors, who are effectively seen as an extension of border control. As such, licensed sponsors are required to comply with certain duties in terms of reporting obligations, record-keeping duties, complying with immigration laws – including the UKVI guidance – and not engaging in behaviour or actions that are ‘not conducive to the public good’. The repercussions of getting it wrong can be severe and the UKVI may take action, up to and including revocation of the business’s sponsor licence.

The benefits

A sponsor licence is beneficial to businesses as it provides access to a much wider, global talent pool from which they can select those with the best skills and experience for the job. This both plugs skills gaps that a business has been unable to fill from within the UK and helps the business achieve a competitive advantage. With the increase in costs associated with sponsorship, it is a way of securing long-term loyalty and committed employees which helps to drive business growth.

The UK skills shortage crisis is making the news on an almost daily basis. If you feel that you are finding it increasingly challenging to recruit into certain job roles, or you are lacking in specific skills, consider if it is time to look at expanding your talent search to the global stage by applying for a sponsor licence.

For more information, contact Lynne Adams, Legal Director, Head of Immigration on 01908 247 025 or 07769 217 784 or email ladam@hcrlaw.com

Lynne Adams
Legal Director
HCR Hewitsons

Find out more at www.hcrlaw.com