Navigating UK business immigration: Key updates to Sponsor Licences in 2024

2024 has already seen many immigration measures which impact employers recruiting and retaining international staff. From the 65% increase of the Immigration Health Surcharge fee, to the 47% increase of the minimum salary threshold, we have seen the previous UK government implement steep measures to reduce net migration, which have negative impacts on individuals and employers. The second half of 2024 will have eyes firmly focused on any opportunities to positively influence immigration law and policy.  

For UK employers who sponsor individuals on a UK work visa, or those looking to submit a a UK sponsor licence application, there have been welcome changes on both the validity period and the removal of the periodic renewal processes. 

Prior to April 2024, a UK sponsor licence would be valid for a period of 4 years upon issuance, followed up by the renewal process on a four yearly basis, incurring a government fee for each renewal.

As of April 2024, employers who already hold a valid sponsor licence have seen their sponsor licences automatically extended for a period of 10 years, and those businesses that successfully apply for a licence after April will also receive a licence for a period of 10 years. 

The UKVI have not confirmed if the licences will automatically be extended further, however the 10 year validity period is a welcome breath to UK employers, who may now switch their focus on additional fees associated with sponsoring migrant workers and reviewing the policies and procedures in place to ensure that they continue to meet the duties of being a sponsor licence holder.

As UK employers embrace the positive updates to the sponsor licence, employers must also be mindful of the increase in penalties for employing someone without the right to work in the UK. This situation could include not conducting the correct right to work checks or not conducting them properly. Staggeringly the fines for this have seen a 200% increase from GBP 20,000 to GBP 60,000 per worker without the right to work in the UK. This highlights the onus on employers to maintain compliance with UKVI guidance.

Typically, UK employers utilised the renewal cycle of four years as a check in on their sponsor licence, ensuring the information remained accurate and would allow the business to complete an internal review of any change, within both the sponsored population and from an organisation level. Any changes highlighted could then be rectified with the relevant notifications submitted to the UKVI.

Now that sponsor licences are valid for a period of 10 years, its important that employers complete regular health checks, either independently or with the assistance of a legal representative, to avoid any such fines or implications to the sponsor licence itself.

The UKVI advise that they will complete an audit on each sponsor licence within their lifecycle, further emphasising the importance for any UK employer who holds a sponsor licence, regardless of the volume of sponsored employees, to remain vigilant and regularly maintain their licence.