Sponsorship licence system

The sponsorship licence system is an employer-led system that requires employers to hold a sponsorship licence and issue certificates of sponsorship (CoS) to foreign nationals from outside the European Economic Area (EEA) and Switzerland who they wish to employ. Tier 2 of the points-based system went live on 27 November 2008, so employers need to be registered as a sponsor before they are allowed to employ migrant workers in their organisation.

• Introduction
• What is sponsorship?
• Responsibilities of sponsorship
• The licence
• Umbrella bodies
• What do I need to do to get a licence?
• How much does a licence cost?
• How will your application be assessed?
• Nominating key personnel
• What happens if a licence application is refused?
• Support for employers

Introduction

Under the points-based system, the UK Border Agency (UKBA) decides who is admitted to, or allowed to stay in the UK. In order to assess this, the migrant needs to provide evidence of a sponsor in the UK who possesses a sponsorship licence issued by the UKBA. In the case of the NHS, the sponsor is the NHS trust.

The sponsorship licence and accompanying sponsor management system has replaced the work permit process and is less bureaucratic as the NHS organisation can issue a CoS directly to the migrant. The CoS is not an actual document but a unique reference number which the migrant can use to apply for leave to remain in, or entry to, the UK. Although less bureaucratic, the system raises a number of issues for employing organisations which will need addressing to ensure the risks associated with the change are managed appropriately.

The sponsor register for Tiers 2, 4 and 5 of the points-based system are now open. Tiers 2 and 5 opened on 27 November 2008 and Tier 4 is expected to open in spring 2009. Employers need to make sure they have their sponsorship licence granted to allow them to act as a sponsor. The duration of the licence starts when the relevant tier opens and not when the licence is approved.

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What is sponsorship?

Sponsorship has two main purposes:

• it provides evidence that the migrant has a genuine job in the UK
• it acts as a pledge from the sponsor that it will accept the responsibilities of sponsorship in respect of the migrant.

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Responsibilities of sponsorship

In applying for a licence and subsequently issuing CoS to migrants, the employing organisation accepts that they will comply with a number of requirements. These include:

• record keeping
• reporting duties
• compliance
• co-operation with UKBA requests.

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The licence

A licence, when granted, will last for four years unless it is withdrawn by the UKBA. The organisation will need to renew the licence prior to the expiry date in order to continue to act as a sponsor. Reminder notices will be issued by the UKBA but the responsibility to remain licensed will lie with the organisation.

There are two categories of sponsor. Organisation will be either rated A or B. Most sponsors will be A-rated but if the UKBA assesses your organisation as posing a risk to recruiting illegal migrants you may be awarded or downgraded to a B-rating. If you receive a B-rating, you will also receive a time-oriented action plan outlining what you must do to regain an A-rating. Failure to comply with the plan may result in loss of licence and therefore an inability to recruit non-EEA nationals. The UKBA may remove your sponsorship licence at any time if you are in breach of the legislation.

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Umbrella bodies

Employers will not be able to group together to act as one sponsor. This decision has been made in order for the sponsor to be able to fulfil their duties.

If you have a bureau or shared service which provides recruitment services for various NHS organisations in your locality, each separate organisation will need to be registered as a sponsor with a separate licence.

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What do I need to do to get a licence?

You will need to apply for a licence by completing the online application form on the UKBA website. Prior to submitting the form, NHS Employers is advising organisations to ensure that they have all the appropriate systems in place to ensure an A-rated licence is granted.

A checklist is available to assist employers to complete their sponsorship application.

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How much does a licence cost?

There are different fees for each tier category and employers must ensure that they send the appropriate payment when submitting their application. UKBA will only accept the following methods of payment:

• cheque in sterling on a UK bank account
• credit or debit card.

The fees are:

Tier 2 - skilled worker

• £300 if you are a small sponsor
• £1,000 for all other sponsors

You do not have to pay a fee if you have previously registered under another tier and paid either the £400 or £1,000 fee.

Once registered, an organisation will be in a position to issue a CoS to individuals under Tier 2. Each CoS will cost £170.

Further information can be found on the UKBA website.

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How will your application be assessed?

The UKBA will assess your application for a licence by looking at three main questions.

• Is the organisation bona fide, operating lawfully in the UK?
• Is the organisation trustworthy?
• Is the organisation capable of carrying out its duties as a sponsor?

Each application will be assessed against eligibility and suitability criteria.

The following guidance will outline how each of these criteria can be demonstrated to ensure you maximise the opportunity to be granted a licence.

Eligibility

As all NHS trusts are public bodies and feature in the Public Bodies' Directory issued annually by the Cabinet Office, your application will not have to be supplemented with documentary evidence to prove you are a bona fide organisation.

However, the UKBA will check whether your organisation has a history of unlawful recruitment and whether the key personnel nominated in the application form have been convicted of a criminal offence (see nominating key personnel section below). If any of these aspects are proven, your application may be refused.

Suitability

This aspect of the assessment will dictate whether your application will be granted an A or B rating or be refused.

Each organisation will need to demonstrate that:

• they have effective HR systems in place
• they not have been issued with a Civil Penalty for Immigration Offences.
• the authorising officer, key contact and level 1 user have no criminal convictions in their name.

The list of convictions that may affect your application are featured on the UKBA website.

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Nominating key personnel

Each employing organisation must nominate the following personnel, who will be responsible for different aspects of the licence system. The four roles can be undertaken by different people or the same person.

Authorising officer (AO)

The sponsor (ie the NHS trust) will be held responsible for its actions through the AO and therefore it is advisable that this person is a senior member of the trust (director level). They must be a permanent employee. The role itself does not guarantee access to the sponsor management system and therefore if the AO wants to have access they will also need to register as a level 1 or 2 user.

Level 1 user

This role allows the individual to undertake the day-to-day operational activity through the sponsor management system. This includes adding or removing other users to the sponsor management system, assigning CoS to migrants, requesting any increases in the number of certificates required and notifying the UKBA of changes in the organisation relevant to the licence.

Currently you can only have one level 1 user in your organisation.

Level 2 user

Depending on its size and needs, an organisation can choose to have any number of level 2 users. They have a more restricted range of permissions than a level 1 user but they will be able to issue CoS to migrants and report migrant activity to the UKBA.

Key contact

This person is the main point of contact between the employing organisation and the UKBA during the licence application process. This person will be contacted if there are any queries with the application form, supporting documents or payment. It could be that the authorising officer is also the key contact or it could be a different individual. This person will not be given access to the sponsor management system, so if the key contact needs to also be a user they will need to be named as a level 1 or level 2 user.

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What happens if a licence application is refused?

Organisations do not have a right of appeal against refusal for a licence but they can reapply at any time unless the organisation has been issued with the maximum civil penalty (£10,000 fine) for employing illegal workers within the previous six months.

Reasons for the refusal will have been outlined in the formal decision correspondence and it is advisable that an organisation rectifies these issues prior to submitting a further application.

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Support for employers

To familiarise yourself with the online application process, the UKBA have placed the application form questions on their website for employers to view and prepare prior to submission.

To support the implementation of the points-based system, the UKBA has set up regional offices which are staffed to advise local employers on generic issues and more specific application queries. If you do not know who your local account manager is, you will need to email account.management@ind.homeoffice.gsi.gov.uk.

There are also guidance documents on the UKBA website which provide further detail.