⚡ April 2026: Per-pay-period salary checks now mandatory. Audit your sponsored workers' contracts now.  Details →

Employer Guide to Skilled Worker Sponsorship

Everything UK employers need to know about obtaining a sponsor licence, assigning Certificates of Sponsorship, and meeting your ongoing compliance duties.

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Per-pay-period salary compliance — urgent action required

From 8 April 2026, sponsors must meet salary thresholds in every individual pay period. Annual salary averaging is no longer acceptable. Review all sponsored workers' pay structures immediately.

1. Obtaining a Sponsor Licence

To sponsor overseas workers on the Skilled Worker route, your organisation must hold a valid Skilled Worker sponsor licence issued by the Home Office. Without this, you cannot legally hire someone on a Skilled Worker visa.

Eligibility to apply

To be eligible for a licence, your organisation must:

  • Be a genuine trading business with a lawful presence in the UK
  • Have no unspent criminal convictions for immigration offences, fraud, money laundering or similar crimes
  • Offer genuine skilled employment (the roles must meet the skill and salary requirements)
  • Have appropriate HR systems and processes to meet sponsor duties
  • Appoint key personnel (see below)

Key personnel you must appoint

RoleResponsibilitiesNotes
Authorising Officer (AO)Overall responsibility for the licence. Signs the licence application.Must be a senior member of staff or a director. Cannot be the same person as Level 1 User.
Key ContactMain point of contact with the Home OfficeCan be the same person as the AO
Level 1 UserDay-to-day management of the Sponsor Management System (SMS)Can assign CoS, update records, report changes. At least one must be a settled worker.
Level 2 User (optional)Limited SMS access — typically line managersOptional — can be overseas nationals

Applying for a licence

Apply online via the Home Office's Sponsor Management System (SMS). You will need to provide supporting documents including evidence of your business activities, HR systems and key personnel. As of 2026, the application fee is £536 for small/charitable sponsors and £1,476 for medium/large sponsors. Licences are typically granted within 8 weeks (or 2 weeks with priority).

2. Certificate of Sponsorship (CoS)

Once licensed, you assign a Certificate of Sponsorship (CoS) to each worker you wish to sponsor. A CoS is a digital record — it has a unique reference number but is not a physical certificate.

Types of CoS

TypeUsed forValidity
Defined CoSApplicants applying from outside the UK, or switching from most UK visa routesMust be used within 3 months of assignment
Undefined CoSApplicants already in the UK on a Skilled Worker visa (extension or same-employer switch)Assigned from your annual allocation

What the CoS must contain

  • Worker's name, nationality and date of birth
  • Job title and SOC code
  • Annual gross salary and hourly rate
  • Work location and start date
  • Employment type (full-time, part-time) and hours per week
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Errors on a CoS can lead to visa refusals. Double-check all details — especially SOC code, salary and start date — before assigning.

3. Salary Compliance

Meeting salary requirements is one of your most critical compliance duties. From 8 April 2026, the rules became more stringent:

ThresholdRequirement
Standard going rateMust meet or exceed the going rate for the worker's SOC code
Standard minimum£41,700/yr — must be met in every pay period from April 2026
Discount route minimum£33,400/yr — only if worker qualifies for a tradeable route
Absolute salary floor£25,000/yr — no exceptions

Immigration Skills Charge (ISC)

You must pay the ISC when assigning a CoS. It is charged per year per worker:

Organisation typeISC per year per worker
Medium / Large employers£1,320 (increased December 2025)
Small employers & charities£660

For a worker sponsored for 5 years, a large employer pays £6,600 in ISC alone.

4. Ongoing Sponsor Duties

Holding a sponsor licence comes with significant ongoing obligations. Failure to comply can result in your licence being suspended, downgraded or revoked.

Record-keeping duties

  • Keep copies of each sponsored worker's passport and visa
  • Maintain records of any qualifications relied upon in the CoS
  • Keep a record of contact details (phone, address) for each sponsored worker
  • Retain payslips and evidence of pay for each sponsored worker

Reporting duties — notify the Home Office of:

  • Worker fails to turn up for first day of work
  • Worker's employment is terminated (for any reason)
  • Worker changes their job title, salary or work location significantly
  • Worker is absent from work without pay for more than 4 consecutive weeks
  • Worker's contact details change and you cannot locate them
  • Significant organisational changes (mergers, TUPE transfers, change of address)
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Home Office compliance visits

The Home Office can conduct unannounced compliance visits at any time. You must be able to produce all required documentation on demand. Ensure your records are always up to date and accessible.

5. Costs Summary

CostAmount (2026)Paid by
Sponsor licence application (medium/large)£1,476Employer
Sponsor licence application (small)£536Employer
Certificate of Sponsorship fee£239Employer
Immigration Skills Charge (medium/large, per year)£1,320Employer (cannot pass to worker)
Immigration Skills Charge (small/charitable, per year)£660Employer
Visa application fee (worker, from outside UK, up to 3 years)£719Employer or worker
Immigration Health Surcharge (per year)£1,035Employer or worker

Always verify current fees on GOV.UK. Note: employers cannot pass the ISC or CoS fee to workers.