Certificate of Sponsorship (COS)

What is a Certificate of Sponsorship (CoS) in UK?

A Certificate of Sponsorship or CoS is a digital record that confirms the sponsored status of a foreign worker under employment by a UK company with official sponsor status. It is a mandatory requirement for most UK work visas. Employers must apply for and assign a CoS to a worker only after offering a qualifying job.

Sponsorship certificates must be assigned to each individual employee who is coming to the UK on a sponsor-required visa. It will be the employer’s duty to maintain up-to-date records and to report any changes in the employee’s or company’s circumstances.

Who Needs a Certificate of Sponsorship (CoS)?

Workers from overseas who are coming to the UK on an employment visa will usually require official sponsorship from their employer to qualify for the appropriate visa. Sponsor-required visa pathways include:

• Skilled workers
• Scale Up visas (only for the first 6 months, after which sponsorship is no longer required)
• Visas for religious workers or ministers of religion
• Creative workers
• International sportspeople
• Seasonal workers
• Workers employed under an International Agreement visa
• Professionals on a Global Business Mobility visa

The type of CoS required depends on the worker’s visa category and location at the time of application.

Defined Certificates and Undefined Certificates of Sponsorship for Skilled Workers

When assigning a CoS to a foreign Skilled Worker, there is a distinction between a defined and undefined CoS, depending on the current residential status of the prospective employee.

The Defined Certificate of Sponsorship

A defined CoS can be issued to a foreign Skilled Worker who is currently located outside of the UK.

The Undefined Certificate of Sponsorship

An undefined CoS is appropriate for a Skilled Worker who is already in the UK or for employees on any other work visa irrespective of whether they are already in the UK or not. This may be needed if a worker needs a new sponsorship certificate due to a switch of employers, for example.

Eligibility Requirements for a Certificate of Sponsorship (CoS)

When applying to issue a Certificate of Sponsorship, it will be essential that both the employer and employee meet the relevant eligibility requirements. As an employer, it will be your duty to make sure that you have a genuine need to hire a sponsored worker and that the job role qualifies for the chosen employment path. It will also be required of both, the employer and employee, to make sure that the prospective worker qualifies for their chosen employment visa.

Eligibility Requirements for Employees

Employees who are applying for a sponsor-required employment visa in the UK will need to meet certain eligibility requirements for their choice of visa. This usually includes having an appropriate offer of employment from a UK company that has a valid sponsor licence and agrees to issue a Certificate of Sponsorship under the applied-for pathway. This position will need to comply with salary requirements and adhere to any limitations for the duration of employment, contracted work hours, or type of work undertaken.

Additionally, workers will need to show that they have the necessary skills, qualifications, or experience, showing their suitability for the role they have been hired for. Depending on circumstances this might include additional clearances or certifications.

Employees will also usually need to show evidence of their planned accommodation.

If you are unsure about the requirements for a particular sponsorship pathway, it can help to contact an experienced immigration lawyer. At IAS, we have years of experience in navigating UK employment-based immigration and can help with all aspects of the sponsorship process for employers and workers alike. You can call us today at +44 (0)333 414 9244 for immediate advice.

Eligibility Requirements for Employers

To sponsor foreign talent, UK employers must first apply for the appropriate sponsorship licence. You will usually need to show that your company has the required systems in place, meaning that there must be a functional HR department with assigned staff to arrange, manage, and oversee all sponsored employees.

Companies must have been trading officially and legally to qualify for a sponsor licence. They must not have carried out any unlawful practices or have been convicted of any instances of fraud, immigration offences, or money laundering.

Key Roles for Managing Sponsorship

To qualify as a sponsor, a company should have a functioning HR department with at least three key roles to oversee the sponsorship process. At a glance, there must be an Authorising Officer, a Key Contact, and at least one Level 1 User. 

The Authorising Officer

Your Authorising Officer carries the most responsibility in overseeing the sponsorship aspects of a business. They are in charge of foreign recruitment and hiring and should usually already be part of the HR department. Authorising Officers may additionally be a Level 1 User, which will grant them access to the sponsorship management system (SMS).

The Key Contact

The Key Contact will handle any communications with the Home Office if there are problems with your sponsorship licence.

The Level 1 User

Level 1 Users will use the sponsor management system (SMS) to assign or cancel sponsorship certificates. They will also be responsible for reports, such as when you or your sponsored employee’s circumstances change. You may have one or more Level 1 Users and this role may be covered by your Authorisation Officer.

Documents Required for a Certificate of Sponsorship in the UK

When applying for a sponsor licence, you will need to provide documents that show the nature of your business and reasons for sponsoring foreign talent. You will also need to show that the offered job position is suitable for sponsorship and that you meet all the employer criteria such as having assigned the appropriate staff to oversee sponsorships.

At a glance, you must provide the following:

• General details about your company and trading practices, employees, annual turnover, and your UK footprint
• Annual reports and Investor information, if applicable
• Specific details about your company that show eligibility under specific sponsorship pathways, such as evidence of your status as a religious or charitable institution
• Details of a planned expansion to the UK, if applicable
• Details of any foreign company associations or trading presence such as branches, partner companies, and subsidiaries (relevant for Global Business Mobility pathways)
• Details about the job you are hiring for including the job title and occupation code, associated duties, salary, and job location
• If you are applying with the knowledge of the worker who you will be sponsoring you will need to provide their personal details including their current immigration status and preceding job description.

You may also need to prove that the job you are hiring for meets sustainability requirements and isn’t taking a reasonable chance of employment away from a local worker. Additionally, you may need to show details of any past, present, or future recruitment campaigns.

Applying for a Certificate of Sponsorship (CoS)

When hiring a sponsorship-required foreign worker, employers must first obtain the appropriate sponsor licence to issue the necessary Certificate of Sponsorship to the worker.

To apply for a sponsor licence, the employer must complete the online application and submit all required documents, which may be supplied in a PDF, JPEG or PNG format. Keep in mind that documents must be in English or Welsh, or you will be required to provide a certified translation.

You will also need to pay the appropriate sponsor licence application fee, which will depend on company size and the type of licence that you are applying for.

Costs of a Certificate of Sponsorship (CoS)

UK sponsorship certificates come with a fee that is payable by the employer. Sponsorship costs depend on the CoS that you are assigning. In general, you should expect to pay the following:

• £525 – For a standard Worker CoS (excluding workers who have an International Sportsperson visa that is valid for less than a year)
• £55 – For a Temporary Worker CoS
• £55 – For an International Sportsperson CoS that is assigned for no more than 12 months
• £525 – For an International Sportsperson CoS that is assigned for longer than one year

Immigration Skills Charge

Keep in mind that certain employment paths will additionally require you to pay an immigration skills charge. The Immigration Skills Charge (ISC) is a fee that employers in the UK are required to pay when hiring skilled, senior, or specialist workers from overseas to work in the UK. If the worker is applying for a visa from outside the UK, the charge will apply for employment periods of at least 6 months. If the worker is already in the UK, any employment duration may be liable for this fee.

The amount of the immigration skills fee depends on the size and nature of your company and the conditions of employment for the worker you are hiring. In general, you might expect to pay £364 for the initial one-year period if you are classed as a small or charitable sponsor and £1,000 if you are a medium or large sponsor. Following the first 12 months, you will need to pay for each additional 6-month period.

Types of Sponsorship Licences

Depending on your company’s business model and the type of workers that you will usually need to hire, you will need to select and apply for the correct type of sponsorship licence. At a glance, the two options include:

• A sponsorship licence for ‘workers’, which covers most long-term or skilled work
• A sponsorship licence for ‘temporary workers’, which covers various limited-duration or seasonal employment

If you need to sponsor workers from both categories, you may be eligible to obtain a joint sponsor licence that allows you to issue sponsorship certificates for both employment types.

The Worker Licence

The Worker licence is required when sponsoring long-term employees who are coming to work for you on a skilled worker visa, or a skilled worker or senior worker permission, among others. The worker sponsor licence is divided into four categories including the following:

• Sponsorship for a Skilled Worker visa – the role that you are hiring for will need to meet the skilled worker conditions, including job sustainability requirements
• Sponsorship for a Senior or Specialist Worker visa (this is part of the Global Business Mobility scheme) – this sponsorship licence permits international employee transfers and has replaced the Intra-company Transfer visa
• Sponsorship for a Minister of Religion visa – this licence is granted to religious organisations that need to sponsor foreign individuals to carry our official work for the religious institution at the approved level
• Sponsorship for an International Sportsperson visa – this sponsorship path is required when bringing elite athletes and coaches to the UK 

The Temporary Worker Licence

If you are hiring foreign workers on a Temporary Worker visa, you will need a Temporary Worker licence to issue the certificate of sponsorship that will be required when hiring a new employee.

The Temporary Worker licence consists of the following sub-categories:

• Sponsorship for Scale-up Workers – this will be required when you are hiring talent as a fast-growing UK enterprise. This sponsorship is only required for the initial 6-month period after which scale-up workers will be free from any sponsorship requirements
• Sponsorship for a Creative Worker – this covers various employment paths in the creative sector, including artists, musicians, or other entertainers
• Sponsorship for a Charity Worker visa – this covers unpaid workers and can only be issued by an approved charitable company
• Sponsorship for a Religious Worker – this may be issued to workers who are coming to work for a religious institution in the UK but don’t qualify for the Ministry of Religion pathway
• Sponsorship under the Government Authorised Exchange scheme – This facilitates temporary work placements for up to 12 months or training/research for up to 24 months.
• Sponsorship for an International Agreement – this route is geared towards workers who are coming to the UK to carry our work on behalf of overseas governments
• Sponsorship for Seasonal Workers – this will be required when you are hiring workers to come to the UK on a seasonal employment contract. Common examples include workers in horticultural, agricultural

The Temporary Worker licence also covers several Global Business mobility pathways, which include:

• Sponsorship for a Graduate Trainee – this is for international employee transfers for training purposes
• Sponsorship for a Service Supplier – this covers workers on a 6-month to 12-month contract who are providing a service in the UK
• Sponsorship for a UK Expansion worker – this sponsorship will be needed for workers who are coming to the UK to set up a new branch or subsidiary of an existing foreign company
• Sponsorship for a Secondment Worker – this covers international workers who are transferring to a UK business on a ‘high-value’ contract

Cost of a Sponsorship Licence for Employers

Depending on company size and the type of employees that will require sponsorship, employers will need to pay the appropriate sponsor licence application or renewal fees. In general, key distinctions are made between small or charitable companies and medium or large companies.

Small or Charitable Sponsors

Companies with lower annual turnover or assets or fewer employees may be classed as a small sponsor with lower fee requirements. 

In general, this applies to companies with an annual turnover of under £10.2 million, total assets of less than £5.1 million, and no more than 50 employees.

Charitable sponsors will need to be a registered charity in England, Wales, Scotland or Northern Ireland, an excepted or exempt charity, or an ecclesiastical corporation with charitable purposes.

Sponsors who fall under this category usually need to pay £611 to obtain any of the single or combined sponsor licences. Adding the other licence category to an existing sponsorship licence is free.

Medium or Large Sponsors

Medium or large sponsors will not be eligible for the small or charitable sponsor fee reductions. As such, the sponsorship licence fees are the following:

• £1,682 for a Worker or combined Worker and Temporary Worker licence
• £611 for a Temporary Worker licence

Adding a Worker licence to an existing Temporary Worker licence will cost £940 but adding a Temporary Worker licence to an existing Worker licence is free.

How Long Does It Take for a Certificate of Sponsorship to be Issued?

If you have already applied and been approved for your sponsorship licence, then the actual process of assigning a Certificate of Sponsorship can be fairly swift. In general, it might take one day for a CoS to be issued. However, you should always factor in the possibility of delays, especially if there are any unusual circumstances that may require extra consideration.

Keep in mind that your initial sponsor’s licence application may take longer than this. Sponsor licence applications are typically processed within 8 weeks. Delays may occur if documents are unclear, incomplete, or require additional verification.

Managing and Using a Certificate of Sponsorship 

The Certificate of Sponsorship will need to be kept up-to-date and accurate for the entirety of the ongoing sponsorship. This is usually managed by the appropriate staff in the HR department who may log changes through the sponsorship management system.

As a sponsor, you will have reporting duties of any significant changes to the company or employee’s activities, but beyond this, you will also be expected to keep an eye on the employee’s actions and report if there is anything that goes against their visa and conduct requirements.

How to Make Changes to a Certificate of Sponsorship Once Assigned

In time, the circumstances of your worker or your business may change. If this happens, it will be your duty as a sponsor to record and report these changes. Keep in mind that this must be reported within 10 working days if the changes concern your employer. If there are changes to your business structure or trading activities, you will have 20 working days to make the report.

Keep in mind that changes that you need to report on may vary greatly depending on many different factors. But at a glance, possible changes that affect your employee may entail reductions of your worker’s salary, unauthorised absences for 10 days in a row or over four weeks in a year, promotions or changes of the assigned work duties. You must also report if your prospective employee did not start working for you within 28 days.

Changes will usually need to be reported by the appropriate Level 1 User via the sponsorship management system.

You should note that the employee will need to apply for their visa within three months of receiving their Certificate of Sponsorship. Simultaneously, workers are usually not permitted to apply for their visa more than three months before the expected start-date of employment so it is important to consider the timing when issuing a CoS.

 How Can IAS Help?

Hiring foreign talent to come and work for you in the UK can be a beneficial arrangement for your company and the prospective employee, but it is essential that you understand the complex requirements for assigning a Certificate of Sponsorship, as well as the legal implications for you as the sponsor.

Whether you have concerns about a specific employee’s application circumstances or would like to get started by applying for your sponsorship licence, our team of immigration lawyers at IAS can help you overcome any of the sponsorship application challenges. You can call us today at +44 (0)333 414 9244 for immediate help.