What are the compliance requirements for UK Tier 2 and 5 Sponsor License?


It is important for UK employers to hold Sponsor License in order to hire foreign skilled nationals from outside the European Economic Area (EEA) and Switzerland. The sponsor license is granted under the new UK immigration points-based system by the UK Visas and Immigration, a division of the Home Office. 

UK employers can employ and sponsor the non-EEA migrants under Tier 2 and Tier 5 subcategories where Tier 5 has been confined in scope for years. This article highlights UK Tier 2 Sponsor License, UK Tier 5 Sponsor License and sponsor duties and responsibilities that are supposed to be complied by the Sponsor License holder. If not complied, the Home Office can suspend or officially cancel the sponsor license. 

What is UK Tier 2 Sponsor License? 

As soon as the UK Tier 2 Sponsor License is approved, employers are eligible to issue Certificates of Sponsorship to sponsor foreign migrants. However, one must understand that the process of UK Tier 2 Sponsor License is an intricate process. The process involves the submission of right documents and evidence to substantiate with an ultimate objective to comply UKVI requirements. 

Tier 2 Sponsor Documentation Requirements 

  • Lease or Rental agreement for office premises 
  • Business Bank Statement from last three months 
  • Latest Annual accounts 
  • Employers liability Insurance Documents worth £5 million
  • VAT and PAYE registration document 

What is a Tier 5 Sponsor License? 

The Tier 5 visa (Points Based System) permits entry to work (students, volunteers, and apprentices) in the UK from overseas non-EEA in different circumstances such as charity workers, diplomatic staff, entertainers, and sportspeople entirely on the basis of European Voluntary Service Scheme. A Tier 5 Sponsor License (duly obtained from the UKVI) empowers employers to employ Tier 5 workers. 

The applying organisation needs to satisfy the following requirements in order to be eligible for the Tier 5 Sponsor which includes: 

  • The organisation must be UK-based and legally operating in  the UK

  • It must have an effective HR system who will be responsible to carry out the obligations of a licensed sponsor with utmost proficiency. 
  • The organisation must not pose any threat to immigration control. 

Ratings for Tier 2 and 5 Sponsor Licences 

You can start issuing certificates of sponsorship as soon as your application for a Sponsor License is accepted and you receive an A-rating. However if you do not meet your sponsor duties properly, you will end up downgrading to a B-rating which implies your certificate of sponsorship will most likely be suspended until you make the upgrade to bring your rate back to an A. 

Duties and Responsibilities contained in the Sponsor Guidance (SG) Tier 2 and 5 of the Point-Based System.

  • An adequately trained team must be set up who can accept the responsibilities for maintaining the compliance. Their roles and responsibilities must be clearly mentioned in the employment contract. 
  • The team should keep an eye on the changes taking place at the SG and must be reported to the concerned personnel. You can undoubtedly engage an experienced immigration lawyer in order to keep you updated with any developments. 
  • A slightest change to a sponsored worker’s job having the possibility to impact the compliance of the organisation needs to be discussed with the accountable personnel. 
  • There must be a well-organized record-keeping and reporting system as per the type and size of the business. 

Role of A Y & J 

A Y & J is an award-winning UK Immigration law firm with a team of competent solicitors who are legally proficient entitled to provide immigration advice and services encompassing immigration matters and applications. Our qualified and experienced lawyers have developed a niche expertise in assisting UK Investor Visa, tier 2 visa extension and other UK immigration matters and applications. Our regulated and multilingual immigration lawyers keep a close eye to the ever-changing immigration rules and policies.  

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