In the UK, businesses that wish to employ non-UK nationals need to hold a valid sponsor license. This license, issued by the Home Office, allows companies to sponsor skilled workers and various other categories of migrant workers. Ensuring the timely renewal of this license is essential to maintain compliance and continue sponsoring employees without interruption.

1. Renewal Timeline and Process

When to Apply: Sponsors can start the renewal process up to 90 days before their current license expires. It is crucial to apply early to avoid any gaps in sponsorship capability. The Home Office sends reminder notifications at various intervals (120, 90, 60, 30, and 14 days) before the license’s expiration date to ensure sponsors do not miss the deadline.

Application Submission: The renewal application must be submitted through the Sponsor Management System (SMS), an online platform provided by the Home Office. This system is used for all sponsorship-related activities, including the issuance of Certificates of Sponsorship (CoS).

2. Validity Period

A sponsor license is typically valid for four years. For specific routes, such as the UK Expansion Worker route and the Scale-up route, the validity does not exceed four years.

Once the renewal application is approved, the license validity is extended, and the new expiration date is updated in the SMS.

3. Requirements for Renewal

Compliance with Duties: To successfully renew their sponsor license, businesses must continue to meet all the requirements that were necessary for the initial license application. This includes maintaining accurate records and fulfilling reporting duties.

Home Office Review: The Home Office will review the sponsor’s activities to ensure they have complied with their sponsorship duties. Any breach of these duties, such as failing to report significant changes or maintaining proper records, could lead to the refusal of the renewal application.

4. Consequences of non-renewal

If a sponsor license expires without renewal, the business will be removed from the register of licensed sponsors. This will result in the immediate loss of the ability to assign CoS, which is essential for non-UK employees to maintain their work authorization. Current sponsored workers’ visas will eventually be curtailed, leading to significant operational disruptions.

5. Guidelines and Compliance

• Record-Keeping: Sponsors must keep detailed records of their sponsored employees, including contact details, job roles, and salary information. These records must be kept up-to-date and readily available for Home Office inspections.
• Reporting Duties: Sponsors must report certain changes to the Home Office, such as changes in an employee’s job role, salary, or immigration status. Any significant changes in the organization’s circumstances, like mergers or changes in business address, must also be reported through the SMS.
• Regular Audits: Conducting internal audits can help identify and correct any potential compliance issues. Regular checks ensure that all sponsorship duties are being met and prepare the business for any Home Office compliance visits.

6. Latest Updates from the Home Office

• Enhanced Compliance Checks: The Home Office has increased the frequency and rigor of its compliance checks to ensure that sponsors adhere to their duties. This includes on-site visits and detailed audits.
• Digital Right to Work Checks: As of April 2022, the Home Office has implemented digital right-to-work checks, which sponsors must use to verify the immigration status of their employees.
• Streamlined Processes: The Home Office has introduced several measures to streamline the sponsor license renewal process. Improved guidance and support are available to help businesses navigate the process more efficiently.

7. Fees for Sponsor License Renewal

• Application Fee: The fee for renewing a sponsor license depends on the size of the business. For small or charitable sponsors, the fee is £536. For medium or large sponsors, the fee is £1,476.
• Additional Costs: Sponsors may incur additional costs related to compliance activities, such as conducting internal audits or seeking legal advice to ensure that their renewal application meets all necessary requirements.