Sponsor Licence, Immigration and UK IT Industry

By Sanwar Ali:

Table of Contents

1. Introduction
2. The Impact of Immigration on the UK Tech Industry
3. Understanding Sponsor Licences
4. The Process of Acquiring a Sponsor Licence
5. Sponsoring Foreign Workers
6. Addressing the Skills Gap with Immigration
7. The Role of the Shortage Occupation List
8. The Timeframe for Sponsor Licences
9. The Responsibilities of a Sponsor Licence Holder
10. Conclusion

Introduction

The tech industry, particularly in the United Kingdom, has undergone a significant transformation in recent years. This rapid evolution has been greatly helped by the influx of skilled IT professionals from across the globe. As the UK continues to solidify its position as a global tech hub, it is increasingly important to understand the intersection between IT and immigration, particularly with regard to the process of obtaining a sponsor licence to employ foreign talent.

The Impact of Immigration on the UK Tech Industry

The UK's tech industry has flourished due to the diverse range of talent it has attracted from around the world. Immigrants bring with them a wealth of knowledge, expertise, and unique perspectives that significantly contribute to the dynamic growth of the sector. They have filled the crucial skills gaps in the industry, particularly in areas such as emerging technologies, programming languages, and data analysis methodologies. In addition, they have introduced original work procedures, supervisory approaches, and entrepreneurial mindsets, challenging customary conventions and inspiring organizational originality.

Moreover, the UK tech industry has been fortunate to witness the rise of startups and scale-ups led by immigrant entrepreneurs who possess an unwavering passion to disrupt industries and create extraordinary solutions. A hunger for success, a tolerance for risk, and a global perspective are essential ingredients that these ambitious innovators possess to create successful ventures.

Understanding Sponsor Licences

To employ foreign workers in the UK, companies must in many cases first obtain a sponsor licence from UK Visas & Immigration (UKVI). This licence enables the company to sponsor individuals to apply for immigration permission to work in the UK. However, the process of acquiring a sponsor licence involves providing several documents to the UKVI to demonstrate that the business is genuine, trading (Skilled Worker visa), and capable of performing the sponsor duties it will assume.

The Process of Acquiring a Sponsor Licence

When applying for a sponsor licence, companies would typically provide documents such as a UK bank account statement, evidence of registration with HM Revenue and Customs (HMRC) for Pay As You Earn (PAYE), a VAT certificate, and an Employers' Liability Insurance certificate. Companies will also need to provide details about their operations and the type of role they wish to sponsor.

Additionally, a UK resident, usually a director or an employee will need to undertake the role of Authorising Officer and the other sponsor management roles. This individual is ultimately responsible for the sponsor licence and the company's compliance with its sponsor duties.

Once a company has its sponsor licence, it remains valid for four years, enabling the company to sponsor individuals during that time.

Sponsoring Foreign Workers

Only certain types of jobs, meeting a minimum skill and salary requirement, can be sponsored under the UK's immigration system. To qualify for a Skilled Worker visa, the role's skill level must be equivalent to an A-level. Determining the minimum salary requirement can be quite complex, as it depends on several factors, including the employee's age, previous immigration status, and the type of role they will perform.

You will need to obtain a Certificate of Sponsorship to employ the candidate. You would apply this using the sponsor management system for the sponsor licence. The candidate can then apply for immigration permission, either from inside the UK or at a visa application centre outside the UK.

Addressing the Skills Gap with Immigration

One of the most significant challenges that the tech sector faces is the acute skills shortage. Addressing domestic labor market gaps can be achieved by bringing in specialized skills through immigration. Additionally, immigrants have a crucial role to play in rejuvenating the workforce and maintaining economic growth, particularly as the UK confronts demographic hurdles like an ageing population.

The Role of the Shortage Occupation List

The UK government has developed the Shortage Occupation List, a compilation of roles that are in high demand in the UK. Sponsoring workers for roles on this list is often easier due to the shortage of settled UK workers available to fill these roles. Additionally, roles on this list are awarded a higher allocation of points, making it more likely for an application for a Defined Certificate of Sponsorship (RCoS) to be successful.

The Timeframe for Sponsor Licences

UKVI may take 8-10 weeks to process the sponsor licence application after receiving the required documentation and the online application. A 10-day priority service is available. Once granted a sponsor licence, the process of sponsoring an individual and obtaining permission for them may take around 1-4 weeks, assuming a priority service is used.

The Responsibilities of a Sponsor Licence Holder

As a sponsor licence holder, the company assumes ongoing obligations and duties to UKVI. These duties include record-keeping, migrant tracking and monitoring, and reporting certain changes to the business or its sponsored workers to UKVI. Failure to meet these obligations and duties can result in enforcement action, and the sponsor licence could be downgraded or revoked.

Conclusion

The symbiosis between the UK's tech industry and immigration is undeniable. The influx of skilled migrants has propelled the industry forward, filling critical skill gaps and driving innovation. However, navigating the immigration process, particularly the acquisition of a sponsor licence, can be a complex and often costly endeavour. While the system has proven to be effective in attracting foreign talent, it is not without its challenges. The key to fostering a thriving tech industry in the UK lies in the country's ability to simplify this process, making it accessible and affordable for companies of all sizes and stages. As the UK continues to solidify its position as a global tech hub, it must strive to create an environment that values diversity, fosters collaboration, and celebrates the united power of innovation, regardless of borders.

How Workpermit.com Can Help with Sponsor Licences

If you need help with employing Skilled Workers and help to apply for a Sponsor Licence, including complying with your Sponsor Licence obligations, Workpermit.com can help.

For more information and advice, please contact us at 0344 991 9222 or at london@workpermit.com(link sends e-mail)