Sponsor Licence Applications –
A New Approach
to Assessment

6 January 2015

Although the recently updated guidance for all Tier 2 and Tier 5 applications provided some insight into UK Visas & Immigration’s (UKVI) new approach to assessing sponsor licence applications, it doesn’t tell the whole story.

The 149 page guide, published on 6 November 2014, announced the introduction of a new ‘cooling off’ penalty period that can be applied to UK companies which have a UK sponsor licence application refused. Whilst it was previously possible to re-apply immediately after receiving a rejection to a sponsor licence application, the authorities will now prevent a company from re-filing for a licence for six months where the original application was refused for one of the following reasons:

  • You did not meet the requirements to be a sponsor in the category under which you applied;
  • You submitted false documents;
  • You did not have the processes necessary to comply with your sponsor duties;
  • You have an unspent criminal conviction for a relevant offence;
  • You are legally prohibited from becoming a company director; or
  • You have no trading presence in the UK.

Whilst it can be argued this new measure has been introduced to ward off ‘sham’ employers from securing a licence under false pretences, given the subjective nature of some of the transgressions listed, it is clear that many genuine employers could find themselves inadvertently caught up by the measure and effectively banned from sponsoring migrant workers for a significant period. This new provision should therefore be considered very seriously by all those UK employers seeking to secure a new sponsor licence.

Steps to follow when applying for a licence

The process for applying for a new sponsor licence has not fundamentally changed since the scheme was introduced in 2008. The steps outlined in the guidance include using the online application form and supplying prescribed documents to show your organisation is genuine and trading lawfully in the UK.

In the past, the next step would routinely be for the application to be assessed by the authorities and a decision made as to whether the licence should be awarded based on the information provided or for a pre-licence visit to take place by a Compliance Officer. Such visits to the employer’s trading premises enables the UKVI Officer to assess the suitability of the would-be licence holder and gain an understanding of the employer’s future recruitment plans. However, during the past two months, a new approach has been adopted which puts a greater emphasis on the UK company supplying additional supporting evidence which has not been detailed in the latest guidance.

New approach takes effect

Within the last two months and since the new guidance was published, Smith Stone Walters has assisted a number of companies in filing their sponsor licence applications. Upon filing the online application, each organisation received a communication from the UKVI requesting the submission of additional supporting information within five working days. This new automated request is seemingly being generated upon the UKVI’s receipt of the online application form. The information requested included the need for companies to provide the following information:

  • Why you have applied for a licence.
  • A full description of the nature of your business and hours of operation.
  • A detailed description of the post(s) you intend to assign to migrant workers including: job title, details of duties, salary and details of the skill, experience and qualifications required for the post on offer.
  • A full, up-to-date hierarchy/organisation chart detailing all relevant persons and everyone currently working for you and their position in your hierarchy.
  • Evidence to demonstrate why settled workers from the UK/EEA labour market who are not subject to immigration control cannot meet recruitment needs for this role, including copies of advertisements placed, and details of any applicants and why they were or were not suitable for the post on offer.
  • Details of the migrants you intend to sponsor between now and 5 April 2015: migrant name, date of birth, nationality, current immigration status and current job title and duties.
  • 3 x Monthly Payslips.

On the face of it, requesting this information as part of the overall application process makes perfect sense. It allows the authorities to weigh up the legitimacy of a sponsor licence application more readily and subsequently determine whether to award a licence without further consideration or whether to obtain further information by conducting a pre-licence visit.

Since it appears this information is now being requested in all new sponsor licence applications, we question why this new approach is not fully set out in the published guidance. Unless UKVI is specifically looking to be unsupportive to employers and catch them out by asking them to provide a significant level of additional information within a short time-frame, it makes no sense to omit from the guidance now that this additional request seems to form part of the general licence application process.

 

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