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UK: Sponsor License Holders – Latest Changes To Sponsor Duties

This blog brings an outlook on the recent modifications to the sponsor responsibilities that were released on November 9, 2022. In case you are looking for a job in the UK, then this is for you to read. 

Sponsor license holders must adhere to a number of obligations and requirements in order to keep their licenses. It’s crucial for holders of sponsor licenses to be aware of their responsibilities and to have the necessary mechanisms in place to ensure compliance. 

Some serious repercussions could occur if the company or migrant employees fail to maintain any sort of compliance. If the Home Office determines that the license holder has disobeyed, it may opt to suspend, degrade, or revoke the license. 

We will be looking at the main aspects that include:

  • ISC Exemption
  • Salary Payments
  • Changing start-dates
  • Requesting defined CoS allocations
  • Unpaid leave

When a sponsor gives a migrant a Certificate of Sponsorship (CoS), the Immigration Skills Charge (ISC) is due. It applies to both the Global Business Mobility – Senior or Specialist Worker route and the Skilled Worker route. The sponsored worker cannot be charged for this.

The payment amount varies according to the size of the employer sponsoring the employees and the period of employment specified on the CoS. While small or charity organizations must pay £364 annually for sponsorship, large organizations must pay £1,000 annually. Organizations must declare their organization’s size when applying for sponsor licenses. The size of an organization should be disclosed if it changes within 10 working days.

The ISC fee is exempt in certain circumstances, including:

  • Employees requesting entrance approval for less than six months
  • Sponsored workers include those in the following professions: 
  • 2111
  • 2112
  • 2113
  • 2114 
  • 2150
  • 2444
  • 3441
  • 3442
  • Workers assigned a CoS under the Tier 2 (General) or Tier 2 (ICT) route prior to April 6, 2017, 
  • Students and Graduate switchers
  • Workers assigned a CoS under the Tier 2 (General) or Tier 2 (ICT) route but not yet sponsored by the sponsor (where certain conditions apply).

The list above has been updated to include a new exemption for senior or specialized personnel who:

  • Possess a CoS that was assigned on or after January 1, 2023
  • Are a citizen of the European Union or a non-citizen of Latvia (this exclusion does not apply to citizens of Iceland, Norway, Liechtenstein, or Switzerland); and
  • Been delegated to the UK by a company based in the EU and belonging to the same sponsor Group.

The termination date of the assignment, as noted on the CoS, must not be more than 36 months (3 years) after the start date in order to qualify for the new exemption mentioned above.

Before they can sponsor a migrant in this category to benefit from the exemption, the UK company must become associated as a member of the sponsor group, if it is not already doing so. The process could take up to 18 weeks.

Salary Payments

The employee’s salary might be deposited into a UK or foreign bank account. The updated advice shows that:

  • They must deposit their salary into their own account;
  • Cash payments are not permitted (doing so may result in the license being revoked);
  • If the employee receives payment by check, the check must be deposited into their personal bank account.

Payroll deductions made from the sponsor’s bank account should be easily traceable. It is recommended that the sponsor keep track of every payment it makes to the migrant worker while they are employed by them.

Changing the start-dates

Prior to this change, the advice stated that sponsorship should end if a migrant’s start date was delayed by more than 28 days from the start date specified on the CoS, the validity date of the vignette, entry as a Creative Worker, or the date the migrant received notice of their grant, whichever came later. 

The permit of some workers was revoked only because of this rule, which was widely considered as being inconsistent. To soften this approach, this guideline has been changed. Start dates can be modified via the SMS system by either adding a sponsor note to the CoS (where the migrant has not yet submitted an application for a visa or immigration) or by reporting migrant activities (where the migrant has made their application, but it remains pending).

When the migrant starts working more than 28 days after the aforementioned start date, the Sponsor can now provide an explanation by reporting the new start date via the SMS system. This blog offers further details about this modification. 

However, it should be remembered that the Home Office is not required to accept the delays; in that case, the authorization of the immigrant may be revoked.

When the migrant starts working more than 28 days after the aforementioned start date, the Sponsor can now provide an explanation by reporting the new start date via the SMS system. This blog offers further details about this modification. However, it should be remembered that the Home Office is not required to accept the delays; in that case, the authorization of the immigrant may be revoked.

Requesting Defined CoS Allocations

For entrance clearance from outside the UK, a skilled worker must submit a Defined Certificate of Sponsorship.

There are zero restrictions on the number of Defined Certificates that may be issued. They are not allotted from the sponsor’s yearly allotment. A request for a Defined CoS allocation must be made by sponsors. 

Contrary to requests for Undefined CoS allocation, particular information on the migrant must be given. The CoS can only be given to the migrant for whom the request was filed once the allocation has been received.

The guidance has been amended to state that the number of working hours must now be provided as part of the job description summary supplied in the request when requesting a Defined CoS allocation. If this is missing, the allocation request is probably going to be turned down.

Since this information is not specifically sought when making the allocation request, Level 1 users should be careful to include it.

Unpaid Leave

Previously, unless an exception applied, a migrant could only take up to four weeks of unpaid leave (prorated for part-time employees). Statutory parental leave, paternity leave, parental or joint parental leave, sick leave, participating in legally sanctioned industrial action, and aiding in a national, international, humanitarian, or environmental disaster were among the exclusions. If an unpaid leave lasted longer than four weeks without an exemption, sponsors were obligated to end their sponsorship.

The guidance has now been updated to state:

“If you believe there are compelling or exceptional circumstances as to why you should not stop sponsoring a worker who has been absent from work without pay for more than 4 weeks (and an exception does not apply), you must report the absence and reasons via the ‘Report migrant activity’ function in the SMS for UKVI to consider.”

This is undoubtedly a positive development, but there is no assurance that the Home Office would accept the justifications. If they do not, they may decide to cancel the migrant’s status.

About the Company

Headquartered in Dubai, with offices in 13 countries spread across UK, Europe, Middle East and South Asia, Dynamic Staffing Services is an industry leader within its niche space of international recruitment. Over the last 45 years, DSS has successfully places over 450 000 candidates in the engineering, healthcare, hospitality, IT and manufacturing sector. Please visit us as www.dss-hr.com to learn more about us. We pride ourselves in being an ethical recruitment services provider following the stringiest regulations towards code of conduct. We recruit talent from Eastern Europe, India, Philippines, Vietnam, Indonesia, Africa, Egypt, Bhutan, Nepal, Bangladesh, Malaysia among other nationalities and place them into 24+ countries. Each year we give jobs to about 12 000 candidates.

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