What Is a Skilled Worker Sponsor Licence?

A Skilled Worker Sponsor Licence, issued by UK Visas and Immigration (UKVI), empowers UK employers to legally sponsor non-UK nationals, including EU citizens arriving after 2020, to work in roles that are eligible and skilled. Without this critical licence, not only is your business unable to assign Certificates of Sponsorship (CoS), but it also risks hefty fines, reputational damage, and operational disruption. Employers will need to ensure that they complete the appropriate form online and pay the appropriate office fees.

New for 2025: Sponsors are now prohibited from passing on the cost of the licence or Certificates of Sponsorship to sponsored workers with breaches having severe consequences including immediate licence revocation.

What civil penalties can employers face for illegal working?

Civil penalties for employing someone who does not have the right to work in the UK have increased significantly. Employers can now be fined up to £45,000 per illegal worker for a first breach and up to £60,000 per illegal worker for repeat breaches.
In addition to these fines, the Home Office can suspend or revoke your sponsor licence, restrict your ability to sponsor new workers and publish your business details on the list of employers who have received civil penalties. This can have serious operational and reputational consequences.

Who Needs a Sponsor Licence?

UK businesses that intend to hire non-settled workers, including most EU/EEA/Swiss nationals arriving after 31 December 2020. The licence is required to employ both permanent and temporary employees. This licence is essential for employers in healthcare, IT, engineering, construction, hospitality, finance, and more. Furthermore, organisations looking to fill either permanent or temporary skilled roles should secure this licence.

Skilled Worker sponsor licence at a glance

• Who it’s for: UK employers who want to sponsor non‑UK, non‑Irish workers in skilled roles

• Key benefit: Ability to recruit and retain overseas staff under the Skilled Worker visa route

• Licence cost: £536 (small/charity sponsors) or £1,476 (medium/large sponsors)

• Typical decision time: 8-12 weeks for straightforward applications

• Licence validity: 4 years (renewable)

• Main risks: Refusal of the licence, tougher Home Office scrutiny and potential suspension or revocation if you do not meet your sponsor duties

Eligibility & Required Documents

Simply being in operation isn’t enough. Your business must be genuine, active, and lawfully operating within the UK. Furthermore, robust HR systems must be in place to track and monitor sponsored workers.

Typical documents required:

• Business bank statements or audited accounts
• Employer’s liability insurance with a minimum cover of £5m
• VAT and PAYE registration
• Evidence of trading address (lease or utility bills)

What are the key requirements for a Skilled Worker sponsor licence?

UK employers need to show they are genuine, compliant organisations offering eligible skilled roles and that they can manage ongoing sponsor duties.​

Who can qualify as a sponsor?

• Genuine UK business that is lawfully trading and properly registered (for example with HMRC and any relevant regulator).​

• Able to provide the required supporting documents (usually at least four) under Appendix A to prove trading presence and compliance.​

Requirements for sponsored roles

• Roles must be genuine vacancies that meet the Skilled Worker skill and salary thresholds.​

• Jobs must comply with employment law and must not simply supply workers to a third party for routine roles.​

HR systems and key personnel

• Adequate HR systems to track sponsored workers, keep records and carry out right‑to‑work checks.​

• Appointed Authorising Officer and other key personnel who meet Home Office suitability criteria.​

Compliance: Your Legal Duties

Even after obtaining the license, you have legal obligations to meet to maintain its validity. From continuously monitoring employee statuses to reporting any major changes in job roles or salaries, strict compliance is mandatory.

Common Mistakes That Delay Applications:

1. Incomplete supporting documents – Failing to provide all four required Appendix A documents or submitting poor-quality scans

2. Insufficient HR systems documentation – Not demonstrating adequate systems to track sponsored workers, monitor right-to-work, and maintain records

3. Weak evidence of genuine trading – Providing outdated bank statements or failing to show active business operations in the past 3-12 months

4. Missing key personnel appointments – Not appointing an Authorising Officer, Key Contact, and Level 1 User before applying

5. Vague or generic job descriptions – Submitting role descriptions that don’t clearly match SOC codes or salary thresholds

6. Failing the genuine vacancy test – Unable to demonstrate a real business need for the sponsored role

7. Incomplete application forms – Leaving sections blank or providing inconsistent information across different parts of the application

Start Your Application Today

Don’t put your business at risk of hefty fines and reputational damage. Contact us to start your application for a UK Skilled Worker Sponsor Licence today! Call us directly on 07926172422 or email us at admin@nalawsolicitors.co.uk