Managing a UK sponsor licence is a major responsibility for any organisation. A licence allows access to global skills but it also brings strict compliance duties and the risk of enforcement if those duties are not met.
Employers need to treat licence management as a core compliance function, integrated into HR and business governance rather than as a one-off application exercise.
This guide explains the sponsor licence framework, how the system operates, what employers must do to stay compliant, and practical steps for effective licence management. It also highlights the wider risks for employers if duties are not met, including immigration enforcement, reputational damage and disruption to business operations.
Understanding the Sponsor Licence Framework
A sponsor licence allows an employer to recruit workers under the UK points-based immigration system. Employers with a licence appear on the official register of licensed sponsors UK, also known as the UK sponsor list, which the Home Office publishes. Candidates also search the list when shortlisting employers and will often look for a list of companies that can sponsor visa in UK to validate whether an offer is viable.
Sponsor licence applications are made through the official portal to complete the online sponsor licence application, which is different to the UK visa application login. Supporting documents are required to show trading presence, compliance systems and genuine need.
The Home Office issues detailed sponsor guidance which sets out the rules for licence holders. The guidance is updated frequently and employers are expected to keep up to date to remain compliant.
Applying for a Sponsor Licence
Employers must apply for a sponsor licence before they can lawfully employ most overseas workers. The process requires evidence that HR and compliance systems are robust enough to meet immigration control requirements.
Budgeting should account for the sponsor licence application fee and for the immigration skills charge where Skilled Worker sponsorship is used. Employers sometimes compare figures they see referenced as self sponsorship visa UK cost, but internal costs for employer sponsorship will also include personnel training, systems and audit activity.
Timeframes matter to workforce planning and leadership often ask how long does it take to get a sponsorship licence in UK. Standard applications take weeks, though urgent hiring may justify the sponsor licence application priority service for faster consideration. If an application is rejected or a sponsor licence refused, the organisation may face a sponsor licence cooling off period before reapplying, which can derail recruitment campaigns.
For eligibility and documentary requirements refer to Appendix A of the Immigration Rules, which sets out the evidential standards for different organisation types.
Sponsor Licence Categories
There are several licence types under the UK sponsorship regime. The most commonly used is the skilled worker sponsor licence which lets employers hire for eligible roles that meet skill and salary thresholds. High growth businesses may qualify for the scale up sponsor licence. Overseas companies establishing a presence in Britain can use the UK expansion worker sponsor licence to deploy senior staff in the set up phase. Historic references to the PBS licence and Tier 2 framework still exist and some users search for the Tier 2 sponsor list to locate legacy information.
Alternative sponsorship models like third party or umbrella company visa sponsorship UK arrangements require careful oversight to ensure contractual and compliance obligations are met. As these models are not formally recognised in law (only licensed employers can directly sponsor workers), these arrangements carry high compliance risks and may breach guidance. Professional advice is recommended.
Managing the Licence Day to Day
Licence holders use the sponsor management system to assign Certificates of Sponsorship and to meet reporting requirements. Access is controlled through the SMS login and limited to nominated key personnel. Every organisation must appoint an authorising officer with overall responsibility for the licence, supported by a key contact and level 1 and level 2 users. Formal training helps reduce errors and UKVI recommends SMS level 1 & 2 user training to embed core processes. Employers must also be able to provide their sponsor licence number when asked, as this links to the entry on the public register. There is no longer a requirement for sponsor licence renewal but the licence must be actively managed.
Compliance Duties
Holding a licence brings mandatory obligations. Employers must carry out compliant right to work checks, maintain records of employment terms, salaries and absences, and report significant changes through the SMS within strict deadlines. These duties are described in detail under sponsor duties and compliance and in the official sponsor licence compliance guidance. Organisations must notify UKVI of relevant changes using the SMS, or in some cases the sponsor change of circumstances form, such as a change of address, a restructure or a change in ownership. All documents should be retained in line with Appendix A and related record keeping rules.
Enforcement and Risks
UKVI enforces compliance through on site and desk-based audits. Employers should be prepared for a UKVI compliance visit where officers review HR records, interview staff and test right to work checks. If issues are identified, the licence may be sponsor licence downgraded to a B rating with an action plan. More serious concerns can result in sponsor licence suspension.
While there is no official Tier 2 sponsor licence suspended list or revoked sponsor licence list, absence from the Register of Licensed Sponsors indicates an organisation does not hold permission to sponsor workers.
Sponsored workers may have questions such as can my sponsor cancel my visa in UK which illustrates the importance of clear internal processes for reporting cessations and material changes.
Common Challenges for Employers
Employers face practical challenges in day to day management. One issue is system errors where information stored in HR or payroll systems does not match what is recorded in the SMS. Even minor discrepancies, such as mismatched job titles or salary figures, can cause problems during a compliance visit.
Another difficulty is resourcing. Many organisations rely on one or two individuals to manage the licence. If these staff leave or are absent the business can find itself without the necessary expertise. Employers should ensure more than one trained individual has SMS access and that knowledge is retained internally.
Communication gaps also create risk. Business changes such as restructuring, opening new sites or altering sponsored roles may not be communicated to HR or compliance teams. If these changes are not reported to UKVI in time the licence can be penalised.
Finally, over reliance on external support can create exposure. While sponsor licence solicitors or a sponsor licence lawyer can add value, UKVI expects employers to retain accountability and operational capability.
Practical Compliance Section
Employers can adopt a structured plan to ensure licence management remains efficient and compliant. Start by integrating sponsorship obligations into HR policy. Embedding requirements in staff handbooks and internal processes builds organisation wide awareness of immigration compliance.
A compliance calendar is essential. Record deadlines for reporting changes, allocations of Certificates of Sponsorship and renewal milestones, and where needed consult the post licence priority service guidance to expedite case handling.
Internal audits should check that records across HR, payroll and immigration functions align. Tools such as the daily licence checker help confirm ongoing licence status and identify issues early.
Communication channels must be clear. Managers should notify HR of any changes affecting sponsored workers, including salary adjustments, changes in work location or role modifications.
Staying informed is also important. Subscribe to legal and policy updates so changes are implemented quickly across processes and templates. Keep track of routes such as the sponsorship visa UK and the wider sponsorship regime so hiring teams are briefed on options.
Where urgent recruitment needs arise use the CoS allocation priority service to obtain Certificates at short notice.
Global teams should also understand obligations under the global mobility sponsor licence so multi country projects remain compliant.
Broader Considerations
Licence management should align with right to work processes and with visitor policy. Employees should not travel to the UK under a visitor category to perform work that needs sponsorship. Employers should also consider tax, social security and employment law exposures where staff spend extended time in the UK under sponsored roles or visitor permissions. Reputational impact matters too. Appearing on a suspended or revoked list signals failure to meet regulatory standards and can deter candidates and clients.
Conclusion
Sponsor licence management is an ongoing responsibility. Treat the licence as a compliance critical asset with clear ownership, trained personnel, proactive reporting and regular internal audits. By embedding obligations into HR and governance structures, using tools such as the daily licence checker and planning for renewals and priority services, employers can maintain access to international talent while managing risk.
Author
Anne Morris is the founder and Managing Director of DavidsonMorris. A highly experienced lawyer, she is recognised by Chambers & Partners and the Legal 500 UK as a trusted adviser to multinationals, large corporates and SMEs, delivering strategic immigration and global mobility advice. Anne is also an active commentator on UK immigration and HR matters.
