A sponsored walk?

14 April 2008

Employers wanting to take part in the Government’s new sponsorship arrangement to bring non-EEA migrants into the UK for employment can now make their application to register and obtain a licence. However, there is no need to run as the scheme will not become fully operational until the autumn. Although you can go at your own pace, you must take several important steps along the way. Will the sponsorship process be a walk in the park for your organisation?

The existing Work Permit Scheme is being replaced by a new points based immigration system, under which a worker from overseas must obtain a minimum score to be allowed entry to the UK. Points will be awarded for personal attributes as well as according to the rating of their sponsor, with whom they have an offer of employment. In order to sponsor individuals, employers must first register with the Home Office and satisfy certain criteria before being granted a licence. Employers can currently apply for a licence, which will last for up to 4 years, under Tier 2 for skilled workers in the General category and/or Intra Company Transfers (ICT).

Before making an application, employers will need to take the time to ensure they have all the necessary information that is required:

Step 1 - Devise a strategy

Employers will need to consider what licence they require and how many.

The licence fee for Tier 2 is £1000, or £300 if the employer is a charity or a small employer as defined by the Companies Act 2006; namely that it satisfies two or more of the following conditions:

Turnover not more than £5.6 million
Balance sheet not more than £2.8 million
Number of employees not more than 50

The fee will cover both a licence for Tier 2 (General) and Tier 2 (ICT), even though they are separate and distinct licences. Employers can apply for both at the same time or apply for one later, at no additional cost, if their needs change.

However, more importantly, employers will need to decide if they need a single body licence or, where applicable, if they want to apply for individual licences for different locations, branches etc. Multiple individual licences will incur extra cost as each one will attract the licence fee. However, they have advantages over a single licence if penalties arise. In a multiple license scenario, if one branch loses its licence or is downgraded from A to B, the other license holders are not automatically affected, although an investigation may be triggered.

Step 2 – Appoint key personnel

Employers will also need to decide how the system will operate in relation to their current recruitment procedures. In order to obtain a licence, employers must allocate certain roles to one or more members of staff situated in the UK.

The “Authorising Officer” must be a permanent member of staff who is responsible for the sponsor licensing application and ensuring that the organisation meets its sponsorship duties. He/she will not have access to the sponsor management system, unless they are also appointed as a Level 1 User (see below), but will ultimately be responsible for the activities of anyone issuing certificates of sponsorship.

You must also designate a “Key Contact” who will be the main point of contact for all enquires by the Border and immigration Agency and will act as a liaison with their account management and compliance teams. This can be the Authorising Officer or another named individual.

Organisations must then appoint Level 1 and Level 2 users, who will have access to the sponsor management system and are therefore subject to criminal checks. For the time being, organisations can only appoint a Level 1 User who will be given access to:

create and remove users and remove other Level 1 Users;
apply and assign certificates of sponsorships to migrants;
change some sponsor details, for example fax number;
raise change of circumstances requests;
report migrant activity, for example no shows or leaving employment;
request additional certificates of sponsorship allocation;
withdraw a certificate of sponsorship;
withdraw sponsorship of a migrant.

When the system becomes fully operational, sponsors will then be able to appoint additional Level 2 Users, who will have restricted access, only allowing them to apply and assign certificates of sponsorships to migrants or report on migrant activity.

Step 3 – Equip yourself

Make sure you have read the guidance notes and have all the information to hand to answer the 39 questions before you go online. This will include:

organisation details and the names of the authorising officer etc.
the number of certificates of sponsorship you need and your reasons for this number
the names and trading dates of your organisation if it has traded under another name in the last four years
your organisation's size and sector
the name and registration number of any accrediting or governing body
the name and registration number of any stock exchange your organisation is registered with
details of any criminal convictions or civil penalties

The guidance notes, which can be downloaded at www.ukba.homeoffice.gov.uk, explain the eligibility criteria and the list of supporting documents that you will need, depending on your type of organisation. You must send in certified copies (i.e. signed by either the issuing authority or by a solicitor or notary as being an accurate copy of the original document) of all documents needed within 10 working days of your application online or, your application may be refused.

Finally, remember, it doesn’t finish there. Once you have submitted your application be prepared for a visit or further enquiries from the BIA who, not least of all, will want to ensure that you have effective HR systems in place, which can directly effect your application and/or the rating you are given.