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The United Kingdom has seen a notable increase in sponsor license applications, with a reported increase of 744%. While the unprecedented rise reflects the evolving field of immigration and employment in the UK, understanding the reasons behind this surge is crucial for clients seeking to navigate this complex environment.

Several factors have contributed to the significant rise in sponsor license applications. Firstly, Brexit has fundamentally altered the UK’s immigration system, ending the free movement of workers from the European Union. As a result, many businesses that previously relied on EU workers now need to obtain sponsor licenses to hire from abroad.

Secondly, the post-Brexit points-based immigration system, which came into effect on January 1, 2021, has streamlined the process of hiring skilled workers from outside the UK. This system makes it more attractive for businesses to hire international talent, necessitating a sponsor license

Additionally, the ongoing global talent shortage has driven companies to seek skilled workers from a broader pool, including non-EU countries. The pandemic has also played a role, as businesses adapt to new operational norms and seek to bring in specialized talent to support recovery and growth efforts.

Applying for a sponsor license involves several steps. Businesses must complete an online application form and submit it along with the required supporting documents to prove their legitimacy and ability to meet sponsorship duties. Key documents typically include proof of business registration, financial records, and evidence of genuine job vacancies that meet the skill and salary thresholds.

The application also requires payment of a fee, which varies depending on the size of the business and the type of license (Tier 2 or Tier 5). Once submitted, the Home Office may conduct a compliance visit to ensure the business can fulfill its sponsorship obligations. If approved, the license is granted, and the business can issue Certificates of Sponsorship to prospective employees.

The surge in applications has been accompanied by a notable increase in suspensions and revocations of sponsor licenses. The primary reasons for this include non-compliance with sponsorship duties, such as failing to keep accurate records of sponsored employees or not reporting significant changes in circumstances.

Another contributing factor is stricter enforcement and auditing by the Home Office to ensure sponsors adhere to the regulations. Businesses that do not maintain high standards of compliance face penalties may face penalties and these penalties prevents the businesses from sponsoring new employees and could impact existing sponsored workers. Also, during this last year period, there have been 300 suspensions and 200 revocations implemented on the businesses that have obtained sponsorship licenses. Therefore, it is crucial to work with an experienced immigration advisor to complete the process smoothly. We have a proven track record of making successful sponsorship license applications since 2017 therefore we recommend you to follow up and choose Lex Legal Ltd as your immigration advisor for your company to obtain a sponsorship license without any problems or issues in the application process.

Halil İbrahim Koca

Immigration Adviser

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