Sponsor Licence Checker UK 2025 — Hiring Overseas Workers & Your Duties
Since the end of free movement in December 2020, UK businesses wanting to hire workers from outside the UK (including the EU) generally need a sponsor licence from the Home Office. Getting it wrong can result in licence revocation and civil penalties of up to £45,000 per illegal worker. This guide explains who needs a licence, how to apply, and the ongoing compliance duties.
Civil penalty for employing illegal workers: up to £45,000 per worker (from 2024). Sponsor licence revocation: your sponsored workers lose their right to work. Right to work checks are mandatory for all workers. Use the online right to work check service at gov.uk/legal-right-work-uk. Always seek specialist immigration advice for complex cases.
Who Needs a Sponsor Licence?
You need a sponsor licence to sponsor workers under the Skilled Worker route, Global Business Mobility routes, Temporary Worker routes, and several other immigration routes. You do not need a licence if the person already has the right to work in the UK. Always check a worker’s right to work before they start — use the online checking service where possible (share code) as this provides a statutory excuse against civil penalty.
Skilled Worker Salary Thresholds (from April 2024)
| Worker type | Annual salary threshold |
|---|---|
| Standard Skilled Worker (established) | £38,700 or going rate, whichever higher |
| New entrant / some shortage occupations | £30,960 or going rate, whichever higher |
| Healthcare and education roles | Specific going rates (often lower) |
These represent a significant increase from the previous thresholds. The “going rate” for each occupation is set by the Home Office and published in the Skilled Worker guidance appendices.
Civil Penalties — The Cost of Getting It Wrong
Employing someone who does not have the right to work in the UK can result in a civil penalty of up to £45,000 per illegal worker (increased from £20,000 in 2024) for businesses without a statutory excuse. Criminal prosecution is possible in the most serious cases. A statutory excuse is obtained by conducting a right to work check and retaining a copy before the person starts work. Follow-up checks are required for workers with time-limited leave.
Frequently Asked Questions
Standard processing takes around 8 weeks. A priority service is available for an additional £500 (processing in 10 working days). Once the licence is granted, you receive a licence rating (A-rated) and can begin assigning Certificates of Sponsorship. Licences are valid for 4 years. The Home Office may conduct compliance visits before or after granting the licence.
Yes. There is no minimum size requirement for a sponsor licence. However, the Home Office assesses whether the business is genuine and operating lawfully. Indicators of genuine trading (trading history, HMRC registration, premises, existing employees) are important. Start-ups with no employees or trading history can find it harder to obtain a licence. Maintaining proper HR systems and a Level 1 User on the Sponsorship Management System are key requirements.