For UK businesses, access to global talent is often critical to growth and competitiveness. To employ workers from overseas, companies must hold a valid Sponsor Licence issued by UK Visas and Immigration (UKVI). This licence gives employers the legal authority to sponsor Skilled Worker visa applicants and other eligible routes. This guide sets out the application process, compliance duties, and strategic considerations for employers in 2025.

A Sponsor Licence allows a UK employer to hire non-UK nationals in roles that meet the Skilled Worker or Global Business Mobility visa requirements. Without a licence, businesses cannot issue Certificates of Sponsorship (CoS), which are mandatory for Skilled Worker visa applications.

Employers must prove they are legitimate organisations, able to meet Home Office compliance standards, and capable of carrying out sponsorship duties effectively.

• Worker Licence – Covers long-term roles, including Skilled Worker and Global Business Mobility routes.

• Temporary Worker Licence – Covers short-term roles such as charity work, seasonal work, or youth mobility schemes.

Many employers apply for a Worker Licence if their objective is to recruit skilled staff from abroad.

When applying for a Sponsor Licence, businesses must demonstrate:

• Genuine Trading Presence: Proof that the business is legally operating in the UK.

• Appropriate Systems: HR and record-keeping systems that allow compliance with sponsorship duties.

• Fit & Proper Personnel: Key staff (Authorising Officer, Key Contact, Level 1 User) must be reliable and free from relevant criminal convictions.

• Job Suitability: Sponsored roles must meet skill and salary thresholds under immigration rules.

Applications are submitted online, supported by specified documents such as bank statements, VAT registration, and evidence of premises.

Holding a Sponsor Licence comes with ongoing obligations. Employers must:

• Check Eligibility: Ensure workers have the right skills, qualifications, and salary.

• Record-Keeping: Maintain up-to-date records of sponsored employees’ details, contracts, and absences.

• Reporting Duties: Notify UKVI of changes, including non-attendance, early termination, or changes to job roles.

• Compliance Monitoring: Be prepared for Home Office audits, announced or unannounced.

Failure to meet these duties can result in licence suspension, downgrading, or revocation.

A Sponsor Licence enables employers to issue Certificates of Sponsorship, electronic documents required for visa applications.

There are two types:

• Defined CoS – For overseas applicants applying from outside the UK.

• Undefined CoS – For applicants already inside the UK switching into the Skilled Worker route.

Employers must request and allocate CoS through the Sponsor Management System (SMS).

From 22 July 2025, Skilled Worker visa eligibility has narrowed to RQF Level 6 roles and above, with higher salary thresholds. This makes sponsor compliance more important than ever: incorrect coding or salary errors may result in refusals or compliance action against employers.

The Home Office has also increased scrutiny of sponsor licence holders, carrying out more compliance visits and audits to ensure businesses meet their obligations.

For employers, holding a Sponsor Licence is now not just about meeting a legal requirement — it is a competitive advantage in accessing global talent. However, the administrative burden is significant, and non-compliance carries serious risk.

Many organisations choose to appoint specialist legal advisers to manage their applications and maintain compliance. This reduces risk, streamlines recruitment, and ensures that when audits occur, systems are robust and defensible.

• Inadequate HR Systems: Employers failing to track absences or maintain records risk losing their licence.

• Incorrect Job Codes: Using the wrong occupation code leads to visa refusals.

• Key Personnel Issues: Appointing unsuitable individuals as Authorising Officers or SMS users.

• Failure to Report: Missing deadlines for reporting changes to employee status.

A Sponsor Licence is essential for any UK employer wishing to hire international talent. While the application process and compliance duties are demanding, the rewards are significant: access to a wider pool of skills and the ability to grow with confidence.

At Manak Solicitors, we support businesses through every stage of the sponsor licence journey — from initial application and HR compliance to ongoing management and audit preparation. Our role is to give you peace of mind so you can focus on building your workforce.