Agencies that source appropriate candidates for businesses all over the UK are known as Recruitment Agencies. They play an imperative role in lessening the stress of other firms by recruiting.
Candidates can either belong to the UK or can be sponsored globally. When businesses face a shortage of skilled workers, these agencies go international and give a list of suitable applicants to these businesses to sponsor their visa.
What is a sponsorship license?
A sponsorship license is a licence that gives permission to the companies running in the UK to recruit non-British skilled workers living outside or within the UK (but only those who are switching their visa type).
After the UK government reviews and grants you a sponsorship licence, it is usually valid only for 4 years and after that, you have to make an application again for the renewal.
To get a sponsorship license, your business should be in the UK operating legally. You’ll have to prove this by submitting the right evidence and additionally, you’ll have to show that your business is capable of offering genuine employment with the correct pay scale.
The home office provides Certificates of Sponsorship with a unique reference number to companies who have successfully obtained a licence and have started hiring. Every skilled worker gets a unique CoS reference number.
The fees of a sponsor license rely upon the size and type of business. You’ll be asked to pay £1,476 if you don’t fall into the category of “small” business. Firms considered as “small” would be required to submit the fees of £536.
You can fall into the category of “small” business, if:
- Your yearly revenue is not more than £10.2 million
- Your total assets are equal to or not more than £5.1 million
- Your business contains not more than 50 employees.
Also See: How to Start a Recruitment Agency?
How can you apply for a sponsor licence?
Obtaining a sponsor license is not an easy task. You‘ll have to support your application with multiple documents. Your business will be asked to submit 4 documents stating your business has legal trading in the UK along with the online application form. A cover letter will also be submitted regarding your business’ background information.
The Home Office may also need extra documents about your business’ HR policies to understand whether compliance needs and sponsor licence duties would be met or not. Also, the Home Office holds the right to give a compliance visit any time at your office.
What documents do you need?
As mentioned earlier, a minimum of 4 different types of documents will have to be submitted along with the cover letter. The document list depends on whether you’re a start-up, SME, franchise and public body. Some common documents are:
- VAT registration certificate
- Employer’s liability insurance of more than or equal to £5 million.
- Businesses’ Bank Statements
- Proof of registration with HMRC (like - PAYE id and Accounts office reference number)
- Rent or lease or ownership of business premises.
- If your business needs monitoring/inspection by a regulatory body then evidence of your registration.
- Updated audited or unaudited accounts.
Can a Recruitment Agency apply for a Sponsor Licence?
Yes, a recruitment agency can apply for this licence but to hire staff members for their own business. They can not hire skilled lakers for other businesses.
Your licence will be revoked and your business will face penalties if the HMRC finds out that you’re hiring for different organisations secretly.
As a recruitment agency, you can just give a list of qualified candidates to these businesses and take interviews of these candidates on their behalf. The duty of sponsoring their visa will fall upon the actual business for whom you’re hiring for.