A UK Sponsor Licence is the permission granted by UK Visas and Immigration (UKVI) to an employer who wishes to recruit and employ overseas nationals on routes that require sponsorship, including the Skilled Worker, Senior or Specialist Worker (ICT), and Graduate Trainee routes. Without a licence, an organisation cannot issue Certificates of Sponsorship (CoS), which are mandatory for visa applications. The application fee for a small or charitable sponsor is £574; for medium and large organisations it is £1,579 (effective April 2025; check current gov.uk figures for latest fees).
To obtain and maintain a licence, employers must demonstrate that they are a legitimate operating business, have genuine vacancies at the required skill and salary levels, and have robust HR systems capable of monitoring sponsored workers. UKVI assesses compliance through document checks during the application and may conduct unannounced on-site audits thereafter. Employers must designate Authorising Officers, Key Contacts, and Level 1 Users in the Sponsorship Management System (SMS) who are responsible for day-to-day management of sponsorship activity.
Licence holders have ongoing duties including reporting certain events (such as a sponsored worker not starting, being absent without authorisation, or resigning) within prescribed timeframes and retaining specified records for each sponsored employee. Breaches can lead to downgrading to a B-rated licence, suspension, or revocation. Revocation means existing sponsored workers lose their immigration permission and must leave the UK or switch to another route, making compliance a significant operational and reputational risk.