Certificate of Sponsorship

What is a Certificate of Sponsorship?

• A Certificate of Sponsorship (CoS) is an electronic document issued by an employer to confirm that the conditions of the relevant visa have been met. Created through the Sponsor Management System (SMS) by licensed sponsors, the SMS is an online portal provided by the UK Home Office for organisations holding a Sponsor Licence.

When an employer obtains a sponsor licence, you can apply for one or more Certificate of Sponsorship via the SMS. The employer will receive an allocation of the number of CoS they are permitted to assign to foreign workers.

The CoS proves an applicant’s suitability for a specific role and the proposed employment conditions comply with the relevant visa route requirements. It is applied for once the job offer has been made and includes detailed information about the prospective employee's role.

This CoS contains a unique reference number that UK Visas and Immigration (UKVI) uses to verify the applicant’s eligibility for the requested visa. Whether applying for a Skilled Worker Visa, Temporary Worker Visa or one of the Global Business Mobility Visas, a valid Certificate of Sponsorship is required for anyone planning to work in the UK.

Types of Certificates of Sponsorship

Since 2020, the UK immigration system has 2 types of Certificates of Sponsorship (CoS) issued by employers holding a Sponsor Licence:

Defined Certificates of Sponsorship

• Defined certificates (DCoS) are issued to Skilled Worker visa applicants applying from overseas.
• After obtaining the sponsor licence, employers apply through the Sponsorship Management System (SMS) for each Defined CoS.
• Applications are typically processed and approved within one working day, or more if the Home Office requires further verification.

Undefined Certificates of Sponsorship

• Undefined Certificates (UCoS) are issued to Skilled Worker visa applicants already in the UK and to applicants on the Global Business Mobility: Senior or Specialist Worker Visa route. Employers must estimate the number of Undefined certificates you expect to need for their first year.
• This approach allows employers to have a pool of certificates ready to be assigned as needed throughout the year.
• Employers can apply for additional CoS allocation via the SMS if the initial allocation is used within 12 months, if the reasons are justified.

Obtaining a Sponsor Licence

Before an employer can issue Certificates of Sponsorship (CoS), you must hold a Sponsor Licence. Without this licence, companies cannot sponsor foreign workers who do not have valid right to work or issue CoS.

There are 2 types of sponsor licences:

1. Worker Licence: For hiring candidates with long-term job offers, including:

• Skilled Workers
• Senior or Specialist Worker visa holders
• Ministers of Religion
• International Sportspersons

2. Temporary Worker Licence: For transferring staff temporarily or recruiting ad-hoc workers, including:

• Scale-Up Workers
• Graduate Trainees
• Service Suppliers
• UK Expansion Workers
• Secondment Workers

While securing a Sponsor Licence is essential for business growth, employers must thoroughly prepare to meet the eligibility criteria and requirements. The Sponsorship Licence application process includes providing documentation and evidence such as:

• Demonstrating that the organisation is operating lawfully in the UK.
• Providing supporting documents such as business bank statements and employer’s liability insurance.
• Appointing Key Personnel within the organisation to manage the sponsorship process, including an Authorising Officer, Level 1 User and a Key Contact to ensure compliance with sponsorship duties.

The Home Office conducts thorough checks, and if an organisation fails to meet the eligibility criteria, fails their pre-licence compliance visits, or needs appropriate controls, the application could be refused. In such cases, there is a risk of a 6 or 12 months' cooling-off period being enforced before reapplication. Therefore, a comprehensive preparation with thorough legal advice and ensuring the organisation meets all necessary criteria before applying is essential.

Using the Sponsorship Management System (SMS)

Once an UK business has secured a Sponsor Licence, the Sponsorship Management System (SMS) becomes accessible to nominated individuals within the organisation. Only a select few users are permitted to access and utilise the SMS. These are designated as:

• Authorising Officer: The senior person involved in hiring foreign employees and ensuring the company meets its sponsor obligations. This officer decides who can access the SMS, their level of access, and monitors all SMS activities.
• Key Contact: The main liaison between the sponsoring organisation and the Home Office.
• Level 1 Users: This is the main company user for managing daily sponsorship tasks. External third parties, like our QC Immigration team, can be added with access to help with Sponsor Licence compliance.
• Level 2 Users: Perform daily sponsorship tasks but have fewer permissions and responsibilities than Level 1 users.

The Sponsorship Management System is the central government portal for managing Certificates of Sponsorship, enabling sponsors to request and assign CoS to sponsored workers and report changes to the Home Office. Through the SMS, companies can:

• Manage or renew your organisation’s licence and services.
• Issue Certificates of Sponsorship (CoS) to new employees, whether they are Workers or Temporary Workers.
• Issue Confirmations of Acceptance for Studies (CAS) to new students.
• Report any changes in the status of your sponsored employees or students, such as if you stop sponsoring them.
• Report any changes in your organisation, like a new owner or a new location.

How to Assign a Certificate of Sponsorship

Employers can apply for a Certificate of Sponsorship (CoS) with their sponsor licence in hand and access to the Sponsorship Management System (SMS). CoS can be created and assigned individually or in batches.

1. The sponsor’s nominated Level 1 or Level 2 user should log in to the SMS and select the appropriate route, e.g. Skilled Worker, or Senior or Specialist Worker.

2. Submit the relevant information about the prospective employee and role into the SMS. This includes specifics such as:

• name
• date of birth
• nationality and passport details
• job description
• working hours
• work location(s)
• job duration
• salary

3. Read and sign off on the terms and conditions and declaration.

4. Make the online payment.

5. Obtain the CoS number.

The process is similar for undefined CoS, but you’ll draw from your pre-allocated pool of certificates. In both cases, the SMS is your platform for creating and assigning the CoS for your prospective employees.

CoS for UK Expansion Workers

One particular case is the UK Expansion Worker visa, which is designed for employees sent to the UK to establish a new branch or subsidiary of an overseas business.

Employers with a provisional Sponsor Licence rating can initially assign only one Certificate of Sponsorship (CoS) to their appointed Authorising Officer for entry to the UK.

After the Authorising Officer obtains their visa, the sponsor licence can be upgraded to an A-rating. This upgrade enables the employer to request up to 4 more Certificates of Sponsorship using the SMS.

Costs Associated with Certificates of Sponsorship

The costs associated with Certificates of Sponsorship (CoS) can vary based on factors such as the type of CoS being issued and your sponsor licence type.

If you assign a Certificate of Sponsorship to a worker on a Skilled Worker Visa or Senior or Specialist Worker Visa, you might also need to pay the Immigration Skills Charge.

When a CoS is assigned to a Skilled Worker or Senior/Specialist Worker, the sponsoring organisation must also pay the additional Immigration Skills Charge (ISC). Introduced in April 2017, this charge aims to incentivise UK employers to train domestic workers before investing in talent from overseas.

The Immigration Skills Charge is paid in advance based on an annual or half-yearly calculation, and the fee depends on the size of the organisation and the length of the employee's stay.

Companies must already have a Sponsor Licence, which comes with its own application fees as below. These fees are separate from the fees for the Certificate of Sponsorship.

The Immigration Skills Charge charged to the Employer is based on:

• the size of your organisation
• how long the worker will work for you, based on the start and end dates on their Certificate of Sponsorship

To qualify as a Small Sponsor, check if your business is eligible under the small companies regime of the Companies Act 2006 and if at least 2 of the following apply:

• your annual turnover is £10.2 million or less
• your total assets are worth £5.1 million or less
• you have 50 employees or fewer

You may also pay a Small Sponsor fee if you are Charitable Sponsor as:

• a registered charity in England or Wales
• a registered charity in Scotland
• a registered charity in Northern Ireland - if you’re not on the register, you must provide proof of your charitable status for tax purposes from HM Revenue and Customs (HMRC)
• an excepted charity
• an exempt charity
• an ecclesiastical corporation established for charitable purposes

If the size or nature of your business does not fall under the above, the Medium or Large sponsor fee of the Immigration Skills Charge will apply.

Processing Time

The processing of Certificates of Sponsorship (CoS) is generally quite swift. Applications for Defined CoS are typically processed within one working day, allowing employers to secure the necessary documentation for their prospective employees quickly. However, if the Home Office requires additional information, the processing time may be extended to days or weeks.

Annual CoS Allocation

When applying for a Sponsor Licence, you must indicate the number of undefined certificates you anticipate needing for your first year. Each year, you will make an annual allocation request for the upcoming CoS year. The number of certificates allocated to your organisation depends on several factors, including your business operations and track record.

Factors Affecting Undefined Certificate Allocation

• The size of your workforce
• The nature of your business
• How long you have been operating
• The specific activities your business engages in
• The justification for the increase in CoS request
• Your previous record with the UKVI

Employers must provide evidence to support the requested number of certificates and the necessary information and documentation for each role.

It's important to note that unused certificates do not roll over to the following year. Any unused CoS by the end of your CoS year will be removed from your SMS account and cannot be used in subsequent years. If you have requested to renew your Annual CoS Allocation, a new batch of CoS will be provided.

Switching Jobs and New CoS Requirements

Sponsored employees may change jobs or roles, and employers must understand the requirements for Certificates of Sponsorship (CoS) to remain compliant with immigration rules.

A new CoS is required when a worker:

• Changes to a new role with a different employer
• Moves to a role with a different Standard Occupation Code (SOC) within the same company
• Changes from a job on Immigration Salary List to one not on the list

If a worker changes jobs within the same employer, a new CoS may not be needed if the new role:

• Has the same occupation code (SOC)
• Is still the same job on the Immigration Salary List
• Reduces the salary but allows the worker still to score 70 points under the Skilled Worker application process

If you need to submit a Change of Employment application to the Home Office, you must meet the general eligibility requirements for a Skilled Worker Visa or your relevant route, as you did initially. You can apply to update your visa up to 3 months before the intended start date of your new job. Typically, you'll receive a decision within 8 weeks of your application date or sooner if you opt for Priority or Super Priority service.

Cancelling or Correcting a Certificate of Sponsorship

If you need to cancel an assigned CoS, you can do so through the SMS by selecting 'Manage live CoS' and then 'withdraw CoS'.

Error in Assigned CoS?

For minor errors and discrepancies, such as a mistyped name or incorrect date of birth, you can add a 'sponsor note' via SMS to clarify or correct the information.

However, for significant errors, such as an incorrect SOC code or assigning a Defined CoS under the wrong tier or category, the assigned CoS must be cancelled and a new one created.

Get Support with a Certificate of Sponsorship

A Certificate of Sponsorship (CoS), issued by licensed employers, verifies job and applicant compliance with immigration laws. It is crucial to ensure the CoS is assigned correctly, as the Work Visa applicant has just 3 months to use it and the CoS affects the success rate of the worker's Skilled Worker Visa, Temporary Worker Visa or Global Business Mobility Visa.

QC Immigration has many years of experience helping companies issue the mandatory CoS to hire foreign workers in the UK.

Employers also need a valid Sponsor Licence from the UK Home Office to issue a CoS, and we can assist you in applying for this licence. Our team of immigration lawyers ensures that your application is properly prepared, whether you are applying for a Defined CoS for overseas applicants or an Undefined CoS for those already in the UK.

Our Certificate of Sponsorship services include:

• Guidance on selecting the appropriate type of Certificate of Sponsorship
• Expert advice on points-based visa requirements, including minimum salary thresholds
• Integration of CoS requirements into your existing HR processes
• Assistance in matching the job role to the correct Standard Occupation Code (SOC)
• Issuance of CoS for visa extensions

We can guide you through managing the Sponsorship Management System (SMS) or partner with you to handle the issuance of CoS, renew licences, and report changes. This ensures you can effectively hire foreign talent to meet your business expansion and timeline.