Visa sponsorship for many businesses in the UK is a necessity, particularly for those industries that usually suffer from substantial skill shortages. However, this comes with a load of challenges that either deter businesses from sponsoring visas or make it more burdensome for those who do. Being cognizant of these challenges is very important to companies that want to navigate through them successfully in their bid to employ workers from abroad. This article also talks about the complexity of sponsor licence requirements.
The Complexity of Sponsor Licence Applications
One of the major challenges faced by UK companies is securing a sponsorship license. In order to legally hire international workers, a company has to obtain a sponsor licence from the Home Office of the United Kingdom. The application also requires additional factors. For instance, the company has to demonstrate that the need for foreign workers in the company is necessary, show the capacity to perform the sponsor responsibilities and have a sound human resource management system in place.
Meeting Requirements from the Home Office
The Home Office requires an extremely wide scope of documentation for businesses, proving the credibility of the business and its financial stability and further providing proof of capability with respect to monitoring and support for sponsored employees. Any oversight in the application, even on small or minute grounds, can result in delays or refusals that may be extremely costly, both from a time and resource perspective. Furthermore, such an organisation must be ready for possible on-site inspections from the Home Office just to validate the information provided.
Ongoing Sponsor Duties
Once the company gains a sponsor licence, the challenges continue. UK companies will need to comply with many ongoing sponsor duties, which are defined as keeping proper records about sponsored employees, checking that these employees perform the roles they have been sponsored for, and reporting changes in the employee’s circumstances to the Home Office within the specified timelines.
This video from A Y & J Solicitors briefs on the basics of the sponsor licence application duties.
Consequences of Non-Compliance
Non-compliance with these responsibilities carries serious repercussions, including suspension or revocation of a sponsor licence. A sponsor licence suspension simply prevents an organisation from sponsoring new employees for a period of time and can harm the company’s reputation. Even worse, revocation of a sponsor licence entails the fact that an organisation cannot sponsor any workers internationally. This can result in business interruptions and loss of staff.
Cost of the Immigration Skills Charge
Another hurdle UK firms encounter regarding sponsoring visas is the Immigration Skills Charge (ISC). Introduced in April 2017, the ISC applies to every worker sponsored under Tier 2 (General) and Tier 2 (Intra-company Transfer). The ISC tries to incentivise businesses to train UK workers instead of depending on international labour.
Cost Implications for Businesses
The ISC is an additional, substantial cost to the company, especially to those companies that sponsor multiple employees or rely on international talent. However, because the cost of the ISC is prohibitively expensive, this may very well prevent SMEs from pursuing sponsorship in the first place. Large corporations are more able to absorb the charge but may still find the charge a high addition to the recruitment costs.
Facing a Sponsor Licence Suspension
Correspondingly, the sponsor licence suspension is among the major concerns of all UK companies that rely on international talent. It’s considered to happen when the Home Office discovers a potential non-compliance with sponsor duties. Such a consequence of suspension impairs the company’s ability to function and work properly. During this period, companies will not be able to sponsor new employees. This can affect growth and project timelines, especially in those sectors facing shortages.
Strategies for Suspension Risk Mitigation
To mitigate the risk of a sponsor license suspension, investment in appropriate, robust compliance systems and ensuring that all HR practices are aligned with Home Office requirements will have to be made. Another way of avoiding suspension is by conducting regular audits, and conducting continuous training for the HR personnel, and by having an open line of communication with the sponsored employees.
Brexit and the Changing Immigration Landscape
Brexit has significantly changed the immigration environment in the United Kingdom and has posed new challenges to organisations which act as visa sponsors. The cessation of free movement between the UK and the European Union essentially means EU nationals are subject to visas for working in the UK, adding an extra layer of intricacy to the sponsorship process.
Understanding the Points-Based Immigration System
Whereas the previous immigration system, the so-called Tier 2 system, has now been replaced by the new points-based immigration system, companies have to go through various different criteria when considering a worker for eligibility. While the new system seeks to attract highly skilled workers into the UK, it has also placed an increasing administrative burden on employers to ensure they meet the points requirements for each sponsored worker.
Attracting and Retaining International Talent
While UK companies need to attract international talent, retention is a true challenge in today’s competitive global market. Companies should offer very attractive salaries, benefits, and working conditions to employ skilled workers who may have more than one option in different countries.
Visa Conditions and the Role They Play in Retention
Retaining sponsored employees is equally challenging. Visa conditions often inhibit an employee from changing their role or employer, thus creating dissatisfaction and turnover. Therefore, companies have to create a welcoming and inclusive workplace that provides equal opportunities for professional development and career growth to retain the best of their talents.
Get Guidance on Sponsor Licence
Sponsorship in the UK can be extremely challenging, from preparing the complex sponsor licence application to fulfilling the ongoing duties and dealing with the additional cost of the Immigration Skills Charge. Other challenges arising from Brexit serve to exacerbate the reasons for seeking to acquire and retain talent from different parts of the world. Nonetheless, UK firms have a genuine shot at success in the sponsorship arena with the right strategies, sound compliance systems in place, and an approach that anticipates these challenges as barriers that are sure to be encountered. Businesses which require legal advice on how to counter these issues should consult A Y & J Solicitors.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with your sponsor licence application. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!