Why Hospitality Companies Need a Sponsor Licence

• Talent Shortages: The hospitality sector experiences high turnover rates and skill gaps, particularly in roles such as chefs, hotel managers, and specialised service staff. A Sponsor Licence allows you to legally recruit overseas workers, ensuring you have the right personnel to maintain high-quality service.
• Skilled Worker Visa Route: To bring in staff from abroad, you’ll need to sponsor them under the Skilled Worker Visa route (formerly Tier 2 General). Only employers with an approved Sponsor Licence can issue Certificates of Sponsorship (CoS) to overseas candidates.
• Legal Compliance: Employing non-UK residents without a Sponsor Licence can lead to severe Home Office penalties, including fines, licence revocation, or reputational damage. Having a valid licence safeguards your business from legal complications.
• Enhanced Customer Service: International hires can bring unique skills, language capabilities, and cultural insights, helping your establishment stand out in a competitive market. A diverse team also reflects positively on your brand and can improve the customer experience.

Roles in Hospitality That May Require Sponsorship

The Skilled Worker Visa typically covers roles at RQF Level 3 (A-level equivalent) and above. Within the hospitality sector, examples of eligible positions include:

• Head Chefs and Sous Chefs
• Restaurant Managers
• Hotel Operations Managers
• Event Coordinators
• Specialty Cuisine Chefs
• Catering Managers

While some entry-level roles may not meet the skill threshold, certain roles deemed “specialist” or requiring a higher level of expertise are more likely to be eligible for sponsorship.

Eligibility Criteria for obtaining a Sponsor Licence

To successfully obtain a Sponsor Licence for your hospitality business must meet the following conditions:

• Legitimate Operation in the UK: You must be operating lawfully within the UK. This is evidenced through Companies House registration, VAT certificates, and proof of business premises (such as restaurant or hotel leases).
• Robust HR Systems: The Home Office wants to see that your business has effective procedures for recruiting, monitoring, and managing sponsored workers. You’ll need to show you can track attendance, maintain proper documentation, and promptly report any changes to roles or employee status.
• Compliance History: A history of compliance with employment laws and immigration regulations strengthens your application. Past violations or unspent criminal convictions could jeopardize your chances of obtaining a Sponsor Licence.
• Genuine Vacancy: You must prove that there is a genuine vacancy for which you’re hiring internationally. Typically, this role should be at an appropriate skill level as defined by the Skilled Worker Visa framework.

Steps to Apply for a Sponsor Licence to hire Hospitality Workers

To successfully obtain a Sponsor Licence for your hospitality company, you must demonstrate:

• Gather Essential Documents:
  • Certificate of Incorporation or proof of company registration
  • Evidence of premises (lease or ownership documents)
  • Financial records (e.g., audited accounts or bank statements)
  • HR policies outlining how you’ll manage and monitor sponsored workers
• Assign Key Personnel
  • Authorising Officer: The individual accountable for the organisation’s actions in relation to the licence
  • Key Contact: Primary liaison with the Home Office
  • Level 1 User: Responsible for daily operations in the Sponsor Management System (SMS)
• Submit Your Online Application
  • Complete the online Sponsor Licence application via the UK Visas and Immigration (UKVI) portal and pay the relevant fee, which varies based on your company’s size.
• Home Office Compliance Visit
  • The Home Office may conduct a pre-application compliance audit to verify your HR systems, documentation, and capacity to fulfil Sponsor Licence obligations.
• Sponsor Licence Approval
  • If granted, your Sponsor Licence is typically valid for four years. You’ll then be able to issue Certificates of Sponsorship (CoS) to qualified international candidates so they can apply for a Skilled Worker Visa.

Typical Timeframes for the Sponsor Licence Process

• Application Review Period: The standard processing time for a Sponsor Licence application is usually up to 8 weeks. However, the Home Office may extend this period if they require additional documentation or decide to carry out a more in-depth review.
• Priority Service: In some cases, you may be able to use a priority service for faster processing (often 10 working days). This service has limited availability and requires an additional fee.

Note: During high-volume periods or if the Home Office requests further information, the timeline may be longer. Always submit your application well in advance of any planned recruitment to avoid delays.

Costs Associated with a Sponsor Licence to Hire Hospitality Workers

The fee structure for obtaining a Sponsor Licence depends on your business size:

•  Small or Charitable Organisations: £536
• Medium or Large Organisations: £1,476

Other potential expenses include:

• Immigration Skills Charge: A per-year, per-employee charge for sponsored workers.
• Visa Application Fees: Your sponsored employees will have their own Skilled Worker Visa fees and healthcare surcharge obligations

What to Do If Your Sponsor Licence Application Is Refused

Although many Sponsor Licence applications are approved, refusals can happen due to insufficient documentation, non-compliance with sponsor requirements, or inaccuracies in the application. If your application is refused:

• Review the Refusal Letter: Carefully read the Home Office refusal letter. It should detail the reasons your application did not meet the requirements.
• Address the Issues: Evaluate each reason for refusal, ensure you correct any inaccuracies, improve HR systems if needed, and gather missing or updated documentation.
• Consider a Fresh Application: Depending on the complexity of the refusal, you may need to reapply. There is typically a cooling-off period of up to 6 months before you can submit a new application if your licence is refused.
• Seek Professional Advice: At Gateway Immigration Services, our immigration experts can guide you on addressing the Home Office concerns and improving your chances of a successful application next time.

Compliance Obligations for Hospitality Companies

Once you obtain a Sponsor Licence, you must maintain strict compliance:

• Record-Keeping & Reporting
  • Retain robust HR records for each sponsored worker, including contact information, contract details, and job duties.
  • Report changes such as job promotions, salary adjustments, and resignations to the Home Office within 10 working days.
• Monitoring and Oversight
  • Track sponsored employees’ attendance, absences, and visa validity.
  • Ensure workers adhere to their Skilled Worker Visa conditions

Failure to comply can result in penalties, suspension, or even revocation of your Sponsor Licence.

Common Challenges When Applying for a Sponsor Licence

Once you obtain a Sponsor Licence, you must maintain strict compliance:

• Incomplete Documentation: Missing or incorrect files can delay your application or lead to a refusal.
• Weak HR Compliance: Inadequate systems for tracking sponsored workers can undermine your credibility.
• Misunderstanding Sponsor Duties: Many hospitality companies underestimate the compliance obligations linked to a Sponsor Licence.