Overview
The first quarter of 2024 has shown significant growth for start-ups in the UK, with a 10% increase in new business registrations compared to the previous year, according to Companies House data. Despite challenging economic conditions, this surge in entrepreneurial activity persists. However, many start-ups face a significant skills shortage, prompting them to look beyond UK borders for top talent. This guide outlines how your start-up can secure a Sponsor Licence to hire skilled workers from abroad.
The International Labour Market and Skills Shortage
Nearly one-third of UK businesses report experiencing a labour shortage, as highlighted by the Office for National Statistics (ONS). This shortage is exacerbated by various factors, including high energy prices, rising borrowing costs, and international conflicts. The Federation of Small Businesses reports that 80% of small firms struggle to recruit candidates with the necessary skills. As a result, many start-ups are seeking talent from overseas to meet their business needs.
Understanding the Sponsor Licence
A Sponsor Licence permits UK employers to hire workers from outside the UK, including the EU. It also covers unpaid roles, such as charitable work.
Exceptions
There are exceptions based on agreements between the UK and specific countries. Consult with an immigration solicitor to determine if you qualify for an exemption.
Steps to Obtain a Sponsor Licence
- Eligibility Check: Verify if your start-up qualifies for a Sponsor Licence.
- Role Suitability: Ensure the position you intend to fill is eligible for sponsorship.
- Licence Type Selection: Choose the appropriate type of licence based on the role.
- Sponsorship Management: Designate individuals responsible for managing sponsorship within your start-up.
- Online Application: Complete the application online and pay the applicable fee.
Eligibility Criteria
To be eligible, your start-up must meet specific conditions demonstrating good business and employer conduct:
- No unspent criminal convictions, especially related to immigration offences, fraud, or money laundering.
- No Sponsor Licence revocation in the past 12 months.
- Adequate systems to monitor sponsored workers, including staff to manage sponsorship and a track record of reliability and compliance.
Role Suitability for Sponsorship
The role you wish to sponsor must meet the UK Immigration Rules. For instance, roles must comply with minimum wage and working time regulations. Specific salary thresholds apply depending on the visa category:
- Skilled Worker Visa: Generally, £38,700 per annum.
- Scale-up Worker Visa: Generally, £36,300 per annum.
Quastels’ experienced advisers can assist you in navigating these requirements.
Types of Sponsor Licences
Your choice of licence will depend on the nature of the employment:
- Temporary Worker Licence: For short-term roles such as volunteering or job-shadowing.
- Worker Licence: For employing skilled workers in short-term, long-term, or permanent roles. This excludes certain roles like the Scale-up Worker, intended for supporting fast-growing businesses.
Sponsorship Management
Your start-up must appoint individuals and establish systems to manage the sponsorship process and the sponsored workers. Key roles include:
- Authorising Officer
- Key Contact
- Level 1 User
These individuals must pass suitability checks, such as having no unspent criminal convictions and not being fined by UKVI in the past 12 months. They should also be based in the UK and not subject to bankruptcy restrictions. Quastels can help assess your compliance with these requirements.
Application Process
The final step involves completing the application, submitting supporting documents, and paying the relevant licence fees.
Conclusion
Securing a Sponsor Licence is essential for start-ups looking to hire international talent. By following these steps and ensuring compliance with UK immigration regulations, your start-up can successfully navigate the process. For personalised assistance, consider consulting with Quastels’ experienced immigration advisers.
If you or your connections require legal advice, please contact Jayesh Jethwa or fill out our enquiry form below.
