Owning a small or medium-sized business is challenging, especially when it comes to finding the right team. And since the UK left the EU, this has become even more difficult.
Recent numbers from the Office for National Statistics say it all: from May to July 2023, job openings shot up to over a million. That’s quite a jump from the 810,000 openings we were used to seeing before Brexit.
Source: Office for National Statistics
As you can see, navigating the hiring scene after Brexit is challenging. The rules for bringing in staff from the European Union have changed, making our hiring pools smaller.
However, there’s one way you can open your doors up to global talent. This way is through getting an employer sponsorship licence. Having this license allows you as a business to hire overseas employees through a “workers” or “temporary workers license”. This massively broadens your talent pool so you can combat the current hiring challenges that all SMEs are facing.
Here at Buckingham Legal Associates, we specialise in helping SMEs and various other businesses gain access to an employer sponsorship licence. Our team are well-versed in UK Visas and Immigration services, ensuring you obtain and maintain your licence, which helps maximise the potential of this very small investment.
What is a UK Employer Sponsorship Licence?
An Employer Sponsorship Licence is the first step to hiring overseas employees. This isn’t just applicable to paid roles; if you’re looking to fill volunteer or unpaid positions, such as those in charitable work, you’ll also need this license. However, there are some exceptions to note. For example, you won’t require the license if you’re hiring someone from Ireland or if the individual already has settled or pre-settled status in the UK.
Sponsorship Licence Requirements
To apply for an employer sponsorship licence, your business must meet specific criteria:
- Your business should be up and running legally within the UK.
- It should be UK-based.
- You’ll also need to show that your business is playing by the immigration rules.
- Your key staff members should have a track record of being trustworthy.
- And lastly, you’ll need a solid HR setup to manage ongoing sponsorship tasks.
Before applying, you must ensure your HR system and finances are in order. This is one of the most significant requirements that the Home Office will inspect. They may even go as far as scheduling an on-site visit to evaluate the “health” of your system and finances.
Here’s where Buckingham Legal Associates really shines. We offer a comprehensive MOT-style check to ensure all systems are in order. We look at everything, from ensuring your staff have the right to work in the UK to keeping a record of when their next visa checks are due. Alongside this, if your HR systems need an upgrade, we can recommend which software to use and even point you towards external HR specialists to ensure you’re fully compliant.
Types of Employer Sponsorship Licences
There are basically two kinds of licences you could go for: Worker Licence and Temporary Worker Licence.
The Worker Licence is the one most businesses usually opt for. This is your go-to if you’re considering hiring overseas employees to fill roles requiring specific skills. This includes the following types of workers:
- Skilled Worker: Ideal for hiring qualified individuals for roles that demand certain expertise.
- Scale-up Worker: Perfect if you’re a growing business looking to add talent quickly.
- Senior or Specialist Worker Visa: When you need someone with a high skill level in a specialised field.
- Minister of Religion: This is for you if you’re a religious organisation.
- International Sportsperson: A great fit for sports clubs or teams looking to draft talent from other countries.
Understanding the categories available for a sponsor licence application is crucial, as it dictates the talent pool you can tap into. Generally, you’d look to hire someone whose specific skills can’t be readily found within the UK talent market.
Employer Sponsorship Licence Cost
When hiring overseas employees, a few types of sponsorship licences exist. However, the Worker Licence is the most popular and versatile choice for many employers. This licence comes with a fee of £536 for small businesses or charitable organisations. For medium to large enterprises, you’re looking at £1,476.
When you weigh the relatively low cost against the massive benefits, acquiring a Worker Licence isn’t just a smart move; it’s an excellent investment for your business. This small financial commitment unlocks opportunities by enabling you to hire overseas employees, making you more competitive today and in tomorrow’s uncertain landscape.
It’s also important to note that this isn’t just about the here and now. Immigration rules change, and having your Worker’s Licence in place sets you up for future success, no matter what changes come down the line.
Plus, you’d be surprised how many businesses in your sector are already licensed to hire globally. You can even check if your competitors have an employer sponsorship licence here. If your competitors aren’t on that list, securing your Worker Licence puts you ahead.
Identifying a Sponsor Size
Earlier, we touched on how the cost of a sponsorship licence for employers can vary based on the size of your business. Here’s how to identify if your business is considered small or a charitable sponsor:
- Annual turnover of £10.2 million or less
- Total assets worth £5.1 million or less
- 50 employees or fewer
Why Consider an Employer Sponsorship Licence?
Now that you have a better grasp of the employer sponsorship process let’s delve into the compelling benefits of acquiring such a licence.
-
Unlock a Global Talent Pool
Securing a sponsor licence application isn’t just about ticking off a legal requirement; it’s a gateway to world-class talent. For many SMEs, finding the right skilled staff locally can be a hurdle. With this licence, you can broaden your search beyond UK borders, giving you a leg up in today’s competitive market.
But let’s look beyond immediate needs. This isn’t just a quick fix for a staffing gap; it’s a strategic move for your business’s future. Being able to tap into a global talent pool means you’re filling roles and injecting new skills and perspectives into your team. In turn, this makes your business more robust and better equipped to handle whatever challenges come.
-
Boost Inclusivity & Diversity
The licence is also an emblem of commitment to building a diverse and inclusive workplace. Research from Great Place to Work shows that inclusivity and diversity significantly benefit companies. It’s known that having a workplace that focuses on this core area have:
- Higher revenue growth
- Better readiness to innovate
- Increased chances to recruit more diverse talent pools
- A 5.4 times higher employee retention rate
This is not a minor detail for UK SMEs but a critical factor in business success and long-term sustainability. A licence doesn’t just prove that a business meets Home Office criteria; it demonstrates to current and prospective employees that they’re committed to fostering a diverse and inclusive environment.
-
Competitive Edge
Having an employer sponsorship licence confers a distinct advantage in a crowded marketplace. At the moment, only 3% of businesses in the UK have this licence. Therefore, businesses can gain a unique position that differentiates them from 97% of their competitors.
With this licence, a UK-based SME can access talent and skills that most other companies cannot. The benefits are manifold, from enhanced productivity and competitiveness to increased innovation and market reach. In a business landscape where every advantage counts, holding an employer sponsorship licence can be an SME’s secret weapon to grow and become more profitable.
How to Obtain an Employer Sponsorship Licence in the UK
An employer sponsorship licence can be secured in just a few steps. Here’s a quick breakdown:
-
Assess Your Business Readiness
The first step in your sponsor licence application is ensuring your business qualifies. This step is less about red tape and more about good practice. You’ll need a clean legal history, meaning you shouldn’t have any ongoing issues with immigration, fraud, or money laundering.
Your business should also have a system to keep tabs on the overseas staff you bring on board. This is very important, as the UK Visas and Immigration office closely examines this. They may even pay you an on-site visit to declare the “health” of your systems.
-
Match the Job with Sponsorship Criteria
The next step is to see if the job you’re offering fits the sponsorship bill. Quite simply, the role needs to have a certain skill level and pay rate to qualify.
If you’re curious about which jobs can be sponsored, there’s a helpful .Gov page that lists them out. Trust us; it’s worth a glance to ensure you can proceed with your sponsor licence application.
-
Select the Type of Licence
Depending on the kind of workers a business plans to sponsor, they’ll need either a Worker’s license or a Temporary Worker’s license:
- Worker’s license: For workers classified as “skilled” or for those requiring long-term employment.
- Temporary Worker’s license: Only for specific types of temporary employment, such as creative and charity workers.
It’s important to note that most businesses will need a worker’s license. A temporary worker’s license is rarely used.
-
Delegate Sponsorship Management Roles
Managing the various roles involved in a sponsorship licence for employers could seem complicated, but it’s quite straightforward when you break it down. As standard, you’d need:
- Authorising Officer: A high-level executive in charge of sponsorship activities.
- Key Contact: Your bridge to the UK Visas and Immigration, making sure everything is in line.
- Level 1 User: This person manages the day-to-day activities through a portal known as the Sponsorship Management System (SMS).
Here’s where Buckingham Legal Associates can make your life easier. Whether you’re a restaurant owner, a carehome or domiciliary homecare business, or the owner or director of any other SME business, our expertise simplifies this crucial part of your sponsor licence application. We’ll guide you through assigning the right roles within your team, ensuring you meet all the Home Office guidelines efficiently.
-
Complete the Application and Pay the Fee
Finally, you’ll need to complete an online application. You must submit a sponsorship sheet and any requested supporting documents upon completion.
As you can see, obtaining an employer sponsorship licence only has a few steps. However, legality and preparedness are the two most important factors of a successful application.
How Can Buckingham Legal Associates Help?
If you’re a company owner or director in the UK, understanding the complexities of obtaining a sponsorship licence for employers is crucial. Buckingham Legal Associates is here to simplify this intricate process and help your business grow.
Expert Guidance is Key
Navigating the procedures for hiring overseas employees can be challenging. A misstep can lead to delays, added costs, and missed opportunities. With Buckingham Legal Associates, your sponsor licence application is in capable hands. Our team’s deep understanding and high success rate ensure a smooth process and full compliance with all requirements.
Preparing Your Business for Success
Obtaining a sponsorship licence involves more than just completing forms. It requires a full review of your business to ensure it meets all the legal criteria. Buckingham Legal Associates meticulously prepares every aspect of your application, from confirming your eligibility to ensuring you have the right systems to monitor employees. With our help, you can enhance your chances for a successful application and long-term business growth.
Partner with Buckingham Legal Associates today and confidently step towards your business’s future success.
In need of experienced immigration advisers? Buckingham Legal Associates excels in immigration law, providing support for sponsor licence, partner visas, and skilled migrant visas.