Sponsoring Overseas Workers: A Guide to UK Business

Employing foreign skilled workers can be a savior for UK companies with shortages of skills. Sponsoring workers, on the other hand, is regulated by intricate immigration law, which must be obeyed and sponsorship duties met.

This guide is meant to present UK companies with an informative overview of the important details of sponsoring foreign workers, such as how to apply for a sponsor license, compliance, visa types, fees, and frequent legal matters.

Why Sponsor Foreign Workers?

UK companies are unable to get suitable employees within the country, especially from health care, IT, engineering, and hospitality industries. The British government permits companies to employ foreign staff via an employer sponsorship system that allows companies to hire overseas staff legally.

Most significant benefits of sponsoring foreign workers:

•Tapping into a broader pool of talent, which fills skills gaps across key sectors.

•Facilitating diversity of view, enhancing creativity and efficiency.

•Streamlining business development through filling skill shortages.

•MDP in UK immigration legislation, lowest chances of illegal workers.

Sponsor License:

For their search for foreign workers to employ, UK employers have to apply for a Sponsor Licence with the Home Office. This is for lawful employment of non-UK staff on skilled worker visa categories.
Eligibility requirements for a Sponsor Licence:
•It must be a genuine, UK registered business.
•No history of immigration offence, fraud, or past revocation of sponsor licenses.
•A satisfactory HR system in place for tracking and tracing sponsored employees.
•Satisfaction that the job role meets the skilled worker visa requirement.

How to Apply:

I. Online Application – The firm needs to complete the sponsor license application form on the UK government website.

II. Provide Supporting Documents – Including proof of trading presence, bank statements, PAYE registration, and details of HR procedures.

III. Pay the License Fee – Fees vary according to business size:

Small or charitable organizations: £536
Medium or large organizations: £1,476

IV. Home Office Assessment – The Home Office will make an on-site compliance visit prior to issuing the license.

Processing Time:

• Standard processing time is 8 weeks.

• Priority service (if available) can speed up approval to 10 working days for a fee.

Types of Sponsored Workers’ Work Visas:

Various classes of work visas exist in the UK immigration system. Businesses must choose the correct type of visa in accordance with the job title and level of skill.

Important Visa Types:

I. Skilled Worker Visa (previously Tier 2 General):
– For veteran positions on the Shortage Occupation List or above the salary rate.
– Minimum wage: £26,200 a year (£20,960 for shortage occupations).
– Length of visa: Up to 5 years, extendable.
II. Global Business Mobility Visa:
– For international business transferring employees to UK operations.
– Contains subgroups like Senior or Specialist Worker Visa and Graduate Trainee Visa.
III. Scale-up Worker Visa:
– For UK high-growth businesses to employ skilled professionals.
– Employees need to have an employment from a scale-up company and a minimum salary of £34,600 a year.
IV. Health and Care Worker Visa:
– For healthcare and care professions.
– Lower visa costs and exclusion from Immigration Health Surcharge.
V. Temporary Worker Visas:
– Comprises Seasonal Worker Visa (for farmworkers) and Creative Worker Visa (for workers in the arts and entertainment industry).

Sponsorship Fees and Financial Commitments:

Sponsorship of overseas employees is with some fees that employers should prepare for.

Employer Costs:
• Sponsor License Fee: £536 – £1,476 (based on business size).

• Certificate of Sponsorship (CoS) Fee: £199 per employee.

• Immigration Skills Charge (ISC):

→ Small businesses/charities: £364 a year per worker.

→ Large businesses: £1,000 a year per worker.

Employee Fees (usually paid by the employee):

• Visa application fee: £610 – £1,500 (based on visa type and duration of stay).
• Immigration Health Surcharge (IHS): £624 a year (unless exempt).

Read Also: Family Visas: Bringing Your Loved Ones to the UK

Sponsorship Legal and Compliance Requirements:

Once they have a sponsor license, businesses must comply with strict compliance measures from the Home Office. Failure to comply will lead to license suspension, penalties, or disallowance from hiring foreign workers.

Key Compliance Measures:

• Record-Keeping: Maintain adequate records of sponsored workers, e.g., photocopies of passports, visa conditions, and employment contracts.
•Reporting Requirements: Inform the Home Office of any changes (e.g., resignation of an employee, change of job, or prolonged absence of more than 10 days).
•Monitoring Staff Activity: Ensure sponsored staff are working in authorized jobs and meeting visa conditions only.
•Avoidance of Illegal Working: Conduct right-to-work checks before employing any staff.

Common Compliance Issues and How to Avoid Them:

I. Failure to Notify Changes in Time – Change in the job, salary, or status of the employee must be notified within 10 working days.
II. Flawed HR Systems – Ineffective recording can lead to failure of Home Office audits.
III. Hiring into Ineligible Job Posts – Hiring workers into undeservedly entitled jobs can lead to penalties.

What to Do if a Sponsor License is Revoked:

If an employer fails to fulfill sponsorship responsibilities, the Home Office is able to withdraw or suspend the license. Sanctions are:
• Loss of ability to hire new overseas staff.
• Sponsored staff losing visas and having to leave the UK.
• Fine and reputational risk potentiality.
To prevent withdrawal:
• Frequent in-house audits.
• Acquaintance with developments in immigration law.
• Seek legal advice if facing compliance issue.

How to Renew a Sponsor License:

The sponsor license is for 4 years and must be renewed before it expires. Renewal involves:
•Reapplying online via the Home Office website.
•Payment of the renewal fee.
•Uploading proof of continued compliance.

Conclusion:

Sponsoring employees abroad can profit UK businesses to get needed skill, but that would only happen if one understands the rules of immigration and sponsorship compliance requirements well. With due process, maintenance of proper records, and continuous update about amendments in sponsorship policy, businesses may effectively manage the sponsorship process without letting legal challenges prevail.

In order to get expert advice regarding sponsorship applications, checks for compliance, or how to handle issues at the Home Office, consultation with an opinion from an immigration lawyer is highly recommended.

For further advice please get in touch with our team today by calling 020 8538 0182 or +44 7857 809932, or you can email us on [email protected].

Please note these blogs are to enhance your knowledge and are not tailored advice, for specific advice please get in touch with our outstanding team.