Sponsor Licence Checker UK 2026 — Hiring Overseas Workers & Your Duties
Since the end of free movement in December 2020, UK businesses wanting to hire workers from outside the UK (including the EU) generally need a sponsor licence from the Home Office. Getting it wrong can result in licence revocation and civil penalties of up to £45,000 per illegal worker. This guide explains who needs a licence, how to apply, and the ongoing compliance duties.
Civil penalty for employing illegal workers: up to £45,000 per worker (from 2024). Sponsor licence revocation: your sponsored workers lose their right to work. Right to work checks are mandatory for all workers. Use the online right to work check service at gov.uk/legal-right-work-uk. Always seek specialist immigration advice for complex cases.
Who Needs a Sponsor Licence?
You need a sponsor licence to sponsor workers under the Skilled Worker route, Global Business Mobility routes, Temporary Worker routes, and several other immigration routes. You do not need a licence if the person already has the right to work in the UK. Always check a worker’s right to work before they start — use the online checking service where possible (share code) as this provides a statutory excuse against civil penalty.
Skilled Worker Salary Thresholds (from April 2024)
| Worker type | Annual salary threshold |
|---|---|
| Standard Skilled Worker (established) | £38,700 or going rate, whichever higher |
| New entrant / some shortage occupations | £30,960 or going rate, whichever higher |
| Healthcare and education roles | Specific going rates (often lower) |
These represent a significant increase from the previous thresholds. The “going rate” for each occupation is set by the Home Office and published in the Skilled Worker guidance appendices.
Civil Penalties — The Cost of Getting It Wrong
Employing someone who does not have the right to work in the UK can result in a civil penalty of up to £45,000 per illegal worker (increased from £20,000 in 2024) for businesses without a statutory excuse. Criminal prosecution is possible in the most serious cases. A statutory excuse is obtained by conducting a right to work check and retaining a copy before the person starts work. Follow-up checks are required for workers with time-limited leave.
Your Ongoing Duties as a Licensed Sponsor
Getting a sponsor licence granted is only the start — the Home Office expects licensed sponsors to actively meet a range of ongoing duties, and failing to do so can lead to a downgrade, suspension, or outright revocation of the licence, even without any deliberate wrongdoing. Key duties include reporting specific changes to the Sponsorship Management System within 10 working days, such as a sponsored worker not turning up for their first day, resigning, being dismissed, or significantly changing their role or salary. You must also keep accurate records of each sponsored worker's contact details, right-to-work documents, and absences, and cooperate fully with any Home Office compliance visit, which can happen unannounced. Many licence revocations stem not from deliberate abuse of the system but from administrative lapses — missed reporting deadlines or incomplete records — so having a dedicated, competent Level 1 User managing sponsorship compliance is genuinely important, not just a box-ticking requirement.
What Happens If Your Sponsor Licence Is Revoked
If your licence is revoked, every worker you currently sponsor has their permission to work curtailed, typically with a short grace period (usually 60 days) to find a new sponsor or leave the UK — meaning revocation doesn't just affect your ability to hire new sponsored workers, it puts your existing sponsored employees' immigration status at immediate risk too. This makes licence compliance a matter of real responsibility towards your existing staff, not just a regulatory checkbox for future hiring. A revoked licence also generally makes it very difficult to obtain a new sponsor licence again for a significant period afterwards, so the consequences of losing compliance extend well beyond the immediate loss of sponsorship rights.
Frequently Asked Questions
Standard processing takes around 8 weeks. A priority service is available for an additional £500 (processing in 10 working days). Once the licence is granted, you receive a licence rating (A-rated) and can begin assigning Certificates of Sponsorship. Licences are valid for 4 years. The Home Office may conduct compliance visits before or after granting the licence.
Yes. There is no minimum size requirement for a sponsor licence. However, the Home Office assesses whether the business is genuine and operating lawfully. Indicators of genuine trading (trading history, HMRC registration, premises, existing employees) are important. Start-ups with no employees or trading history can find it harder to obtain a licence. Maintaining proper HR systems and a Level 1 User on the Sponsorship Management System are key requirements.
The fee depends on your organisation's size and licence type: small or charitable sponsors pay a lower fee than medium or large sponsors, and the fee also varies between Worker (long-term skilled roles) and Temporary Worker licences. On top of the licence fee itself, you'll also pay a separate Certificate of Sponsorship fee each time you actually sponsor a worker, plus the Immigration Skills Charge for most Skilled Worker sponsorships — so the total cost of sponsoring even a single employee is meaningfully higher than the headline licence application fee alone.
Yes, provided they hold an eligible visa category that allows switching, such as a Student visa (after completing their course, in most cases), a Graduate visa, or certain other work visas. Switching from a Visitor visa to a sponsored worker route is not normally permitted and generally requires the person to leave and reapply from outside the UK. Whether switching is possible depends on the specific visa category the worker currently holds, so it's worth checking eligibility carefully before assigning a Certificate of Sponsorship.