Written by Gemma Tracey, Partner in Immigration Law at JMW Solicitors
To sponsor workers under the Skilled Worker route, an organisation must first secure a sponsor licence from the Home Office. To obtain this licence, organisations must demonstrate a genuine need for a sponsor licence, proving that they have – or are likely to have – vacant positions suitable for sponsorship under the Skilled Worker route. The application process involves providing detailed information about the company, including its operations, financial standing, and the roles it intends to fill with sponsored workers.
The organisation must also show that it will be able to meet the specific compliance obligations expected of sponsors, such as keeping accurate records of sponsored workers, undertaking lawful Right to Work checks, and reporting any changes in the worker’s or organisation’s circumstances to the Home Office. Failure to meet these compliance duties could result in the sponsor licence application being refused, or if discovered when a sponsor licence is held, suspension or revocation of the sponsor licence.
Once the sponsor licence is granted, the organisation is able to issue Certificates of Sponsorship (CoS) to prospective employees who meet the criteria for the Skilled Worker route. A CoS is an electronic document that confirms the organisation’s intention to employ the individual and provides information about the role, including the job title, salary and working hours. The role being offered must meet the skill level and salary requirements set out by the Home Office for Skilled Workers.
The sponsorship process also involves ongoing responsibilities for the organisation. These include ensuring that sponsored workers continue to meet the visa conditions throughout their employment, such as maintaining their job role and salary in line with their CoS. Any changes, such as reductions in salary or changes in job role, may need to be reported to the Home Office. As mentioned above, non-compliance with these sponsorship duties can lead to the suspension or revocation of the sponsor licence.
Organisations considering sponsorship should ensure that they have the necessary systems and resources in place to manage their sponsorship duties effectively. This includes training HR personnel on the requirements of the sponsor licence and establishing clear procedures for record-keeping and reporting. Failure to comply with these requirements can result in significant operational disruptions and potential legal liabilities.
How Long Will It Take for the Home Office to Issue a Decision on Our Sponsor Licence Application?
It usually takes the Home Office up to eight weeks to issue a decision on a sponsor licence application. Organisations seeking to expedite this process can purchase a priority service, available for an additional fee of £500, which should result in a decision being issued within ten working days. This service is beneficial for businesses needing to fill vacancies promptly, as it significantly reduces the standard processing time.
It is important to understand that the decision-making process may be delayed if the Home Office decides to conduct a pre-licence compliance visit. Such visits are undertaken to verify that the organisation meets all the necessary requirements to act as a sponsor, including having appropriate systems in place to monitor and manage sponsored workers. During these visits, the Home Office assesses the organisation’s HR practices, record-keeping, and overall ability to comply with sponsor licence obligations. The length of time required to arrange and complete these visits can extend the decision-making period beyond the expected timeframe.
It is important for organisations to prepare thoroughly before submitting their sponsor licence application. This includes ensuring that all required documentation is accurate and complete, as incomplete applications or discrepancies in the information provided can lead to further delays or the application being rejected or refused. Being well-prepared can help avoid unnecessary complications and ensure a smoother application process.
Is There Any Way We Can Reduce the General Salary Threshold of £38,700?
The general salary threshold for sponsoring a Skilled Worker from 4 April 2024 is set at £38,700. However, there are specific circumstances where this threshold can be lowered, depending on the attributes of the worker and the role they are being sponsored for. For instance, if the worker holds a PhD in a subject relevant to the job, the salary threshold can be reduced to £34,830. For those with a PhD in a Science, Technology, Engineering or Mathematics (STEM) subject relevant to the job, the threshold is further reduced to £30,960.
The salary threshold can also be lowered to £30,960 if the worker is being sponsored for a role that appears on the Immigration Salary List, which includes roles that the UK Government believes should benefit from a reduced salary threshold. Another scenario where the threshold can be reduced to £30,960 is if the worker qualifies as a new entrant at the start of their career. This classification typically applies to individuals who are under 26 years of age, recent graduates, or those switching from a graduate visa.
In addition to complying with the general salary threshold, the worker must also be paid the appropriate going rate for the role they are undertaking. The going rate payable will be between 70-100%; the rate payable will depend on the attributes of the worker, and whether they are able to benefit from a reduction to the general salary threshold. By way of example, new entrants benefit from a general salary threshold of £30,960 and need to be paid 70% of the going rate specified in Immigration Rules. Unlike the general salary threshold, the going rate payable varies depending on the specific occupation.
Transitional provisions apply to those who were sponsored as Skilled Workers before the increased salary thresholds came into force on 4 April 2024. Such workers must comply with a general salary threshold between £23,200 and £29,000. Going rates will also apply to these Skilled Workers, but going rates for such workers are calculated based on the 25th percentile of Annual Survey of Hours and Earnings (ASHE) data. On the other hand, Skilled Workers sponsored since the increased salary thresholds came into force must comply with going rates based on median ASHE data.
Organisations must carefully assess the eligibility of each potential worker against these criteria before proceeding with the sponsorship process. Misunderstanding the requirements or failing to meet the specified salary levels can lead to visa applications being refused and could impact the organisation’s sponsor licence status.
My Organisation Wants to Sponsor a New Care Worker. What Is the Minimum Salary Payable?
Care workers are included on the Immigration Salary List, and their role is classified as a recognised Health and Care ASHE salary job. The minimum salary threshold and the going rate for this occupation is set at £23,200 per year, or £11.90 per hour. This lower threshold recognises the essential nature of care work and the ongoing shortage of workers in this sector within the UK.
Care workers sponsored under the Health and Care Worker visa route also benefit from reduced visa application fees, as well as an exemption from the Immigration Health Surcharge. This makes it a more accessible and cost-effective option for both employers and workers. The Health and Care Worker visa is designed to facilitate the recruitment of healthcare professionals, including Care Workers, to address staffing needs in health and social care settings.
Employers looking to sponsor a Care Worker must ensure that the role meets the specified skill and salary criteria, and must be able to provide a Certificate of Sponsorship confirming the details of the employment. The worker identified can then proceed to submit their visa application.
As noted above, employers must maintain accurate records and comply with all reporting obligations associated with the sponsorship, as non-compliance can lead to the suspension or revocation of the sponsor licence.
UKVI guidance sets out clear requirements for employers looking to sponsor Skilled Workers. Those that hold a sponsor licence must follow sponsorship duties to avoid penalties, and must ensure that compliant Right to Work checks are being undertaken. Individuals must also meet the criteria that will apply to their visa application. Each immigration route requires adherence to specific guidelines, and failure to comply can lead to an application being refused. Understanding relevant Rules and guidance, and preparing accordingly, allows organisations and individuals to meet immigration obligations without facing unnecessary complications. Organisations must ensure that they stay up-to-date with immigration policies and maintain detailed records to help fulfil sponsorship responsibilities.
