Sponsorship

What a sponsor licence is

A sponsor licence is permission granted by the Home Office (UK Visas and Immigration) that allows an organisation to employ people from outside the UK. As a general rule, an employer needs a licence to sponsor a worker who does not already have the right to work in the UK. This includes EU citizens who arrived after 31 December 2020.

Some people do not need to be sponsored at all, so an employer would not need a licence to hire them. This includes Irish citizens and people with settled or pre-settled status under the EU Settlement Scheme.

Sponsor licences fall under two broad categories: the Worker routes (for longer-term employment, such as the Skilled Worker route) and the Temporary Worker routes (for temporary or specific types of work). An employer chooses the licence type that matches the roles it wants to fill.

• The employer holds the licence, not the applicant, so you cannot obtain a sponsor licence for yourself as a job seeker.
• Once approved, a licence is generally valid for as long as the employer keeps meeting the eligibility and compliance requirements.
• Licences to sponsor Scale-up Workers or UK Expansion Workers are valid for 4 years.

Cost of a sponsor licence (paid by the employer)

The employer pays the licence fee, and the amount depends on the route and the size of the organisation. These are the current figures on GOV.UK.

• Worker route licence, small or charitable sponsor: £611
• Worker route licence, medium or large sponsor: £1,682
• Temporary Worker route licence (all organisation types): £611

Small sponsor vs medium or large sponsor

An organisation usually counts as a small sponsor if at least two of the following apply, which reduces the Worker route licence fee. Registered and other recognised charities also qualify for the small-sponsor fee.

• Annual turnover of £15 million or less
• Total assets worth £7.5 million or less
• 50 employees or fewer

What a Certificate of Sponsorship (CoS) is

A Certificate of Sponsorship is not a paper certificate. It is an electronic record created by the sponsoring employer through the Sponsorship Management System (SMS). Each CoS has its own unique reference number, which the worker enters when they apply for their visa.

The CoS records key details of the job being sponsored, such as the role and start date. It confirms to UK Visas and Immigration that a licensed employer is genuinely offering the worker a specific job.

• The worker must apply for their visa within 3 months of being assigned the CoS.
• The worker cannot apply more than 3 months before the job start date shown on the CoS.

Defined and undefined Certificates of Sponsorship

There are two kinds of CoS for the Skilled Worker route, depending on where the worker is applying from.

A defined CoS is for a Skilled Worker applying from outside the UK. The employer requests it through the Sponsorship Management System, and requests are usually approved within one working day.

An undefined CoS is for a Skilled Worker applying from inside the UK, and for workers on certain other routes. Employers estimate how many undefined certificates they will need when they apply for their licence, and can request more later through SMS. Additional requests are usually decided within 12 weeks, or within 5 working days if the employer pays for a faster decision.

Cost of assigning a Certificate of Sponsorship

A separate fee applies each time the employer assigns a CoS to a worker. The amount depends on the route.

• Worker routes (except International Sportsperson): £525 per certificate
• Temporary Worker routes: £55 per certificate
• International Sportsperson for more than 12 months: £525; for 12 months or less: £55

Who is responsible for what

Sponsorship splits responsibilities between the employer and the applicant. Understanding the split helps set realistic expectations before you accept a job offer.

The employer is responsible for holding a valid licence, choosing appropriate staff to manage sponsorship duties, assigning the CoS, and meeting ongoing compliance and record-keeping duties. Failing these duties can lead to the licence being downgraded or revoked. Importantly, the employer must pay the licence and CoS fees itself. Asking the sponsored worker to cover these specific costs risks the licence being revoked.

The applicant is responsible for using the CoS reference number to submit their own visa application in time, paying their personal visa costs (such as the application fee and the immigration health surcharge), and meeting the requirements of the route, such as salary and English language rules where they apply.