Business Immigration: Managing Foreign Workers & Business in the UK

Business immigration is a broad term that describes the migration of foreign workers from one country to another.

The issues relating to business immigration can be complex and intricate, meaning that leaders and managers often have to account for significant time and effort in making sure that the correct policies and procedures are followed.

This has been especially the case in recent years, with Brexit culling opportunities for EU workers to come to the UK without having to apply through convoluted visa and immigration routes.

However, there are many simple things that your business can do if you want to invest in foreign workers.

Some of these, such as obtaining sponsorship licences and carrying out right-to-work checks, is an integral part of any business immigration plan. Meanwhile, others, such as organising the right type of employment contracts or HR policies, might not be so evident at first glance.

Page Contents

• What is Business Immigration?
• Sponsoring Foreign Workers to the UK: Obtaining a Sponsor Licence
• Sponsoring Foreign Workers to the UK: Visa Management
• Sponsoring Foreign Workers to the UK: Certificates of Sponsorship
• HR Support and Policies for Foreign Workers
• Right-to-Work Checks and How to Conduct Them
• Which Contract Types Are Right for You?
• What Are Licence Ratings?
• What Are the Penalties for Employing Illegal Workers?
• How Can IAS Help?
• Frequently Asked Questions

Sponsoring Foreign Workers to the UK: Obtaining a Sponsor Licence

The very first step in being able to sponsor foreign workers to come and work for you in the UK is to obtain a sponsor licence.

There are two types of licences: Worker licences, which cover most forms of skilled and long-term employment, and Temporary Worker licences, which cover specific types of temporary employment and visas.

In order to be eligible for a licence, you must first confirm that you both:

• Do not have unspent criminal convictions for immigration offences or certain other crimes, such as fraud or money laundering
• Have not had a sponsor licence revoked in the last 12 months

You must also demonstrate that you have adequate systems in place to monitor sponsored employees and that you have staff who will be able to manage the sponsorship process by filling certain roles.

These roles include the following:

• Authorising officer – a senior employee who manages and oversees the staff using the sponsorship management system (SMS)
• Key contact – your main point of contact with UK Visas and Immigration (UKVI)
• Level 1 user – an employee responsible for the day-to-day management of your licence using the SMS

You will need to apply for your sponsor licence online through the Gov.uk website. Licences cost between £536 and £1,476, depending on the size of your business and the type of worker you wish to sponsor.

Sponsoring Foreign Workers to the UK: Visa Management

Most foreign workers will need to use a certificate of sponsorship in order to obtain a valid UK work visa.

You will need to ensure that the foreign worker you are sponsoring will be working in a job that: meets the minimum rate of pay and skill level for their visa and also meets the other criteria necessary for their visa.

These may include specific eligibility criteria that you will need to be aware of during the sponsorship and hiring process.

For example, one of the stipulations of the Skilled Worker visa is that only certain occupation codes on the ONS occupation coding tool are eligible to be offered as positions.

Meanwhile, sponsorship on the Creative Worker visa route means that you must either comply with the creative workers code of practice or ensure that the job is on the shortage occupations list.

Other visas, such as the Representative of an Overseas Business visa, may not require sponsorship at all.

It’s important that you’re aware of each visa type and its own specific restrictions and requirements when being used for business immigration.

Sponsoring Foreign Workers to the UK: Certificates of Sponsorship

Issuing certificates of sponsorship to each and every foreign worker you hire is a crucial step in business immigration employment.

Each certificate comes with its own unique reference number that the foreign worker must use when applying for a visa. The visa application must also be made no more than three months from the date the certificate was issued.

There are two main types of certificates of sponsorship: defined certificates and undefined certificates.

Defined certificates are for workers applying on a Skilled Worker visa from outside the UK. Meanwhile, undefined certificates are for Skilled Workers applying from inside the UK or applicants on all other visas, such as those on Global Business Mobility routes.

Certificates of sponsorship cost between £21 and £199 to obtain, depending on the type of worker you wish to sponsor.

Note that if you’re sponsoring someone on a Skilled Worker visa or a Senior or Specialist Worker visa, you may also have to pay the immigration skills charge.

HR Support and Policies for Foreign Workers

The regulations and policies relating to the recruitment and management of foreign workers are numerous.

However, there are a few fundamental policies that all businesses must follow when employing foreign workers. These include:

• Checking that your foreign workers have the necessary skills or qualifications to perform their roles, and keep copies of documents demonstrating this
• Only granting certificates of sponsorship to workers when the job is suitable for sponsorship
• Informing UK Visas and Immigration (UKVI) if your sponsored workers are not complying with the conditions of their visa

In addition to this, you are obligated to have HR systems in place that allow you to:

• Monitor your employees’ immigration status
• Keep copies of relevant documents for each employee, including passport and right to work information
• Track and record your employees’ attendance
• Keep employee contact details up to date
• Report to UKVI if there is a problem, such as if your employee stops coming to work

You must also use the UK visa sponsorship management system to manage your business’ sponsorship licence and sponsorship activities.

Which Contract Types Are Right for You?

It may be the case that the type of contract you offer will be dictated by the requirements and restrictions of the specific visas your foreign workers apply for.

In addition, you must ensure that the type of employment contract you offer fits within the guidelines of any specific visa.

For instance, there is no explicit rule stating that workers on a Skilled Worker visa must be sponsored for a job with a specific type of contract.

However, there are strict Home Office guidelines on the type of work that may be considered to be acceptable if the foreign worker is working contractually or as a self-employed individual, as opposed to being a full-time employee.

In most cases, the sponsor must always retain primary responsibility for all of the duties, functions and performances that the worker will be carrying out.

The basic requirements of minimum salary expectations must also be adhered to, including if the worker is employed on a part-time basis.

Whether you wish to employ people on a full-time, part-time, fixed-term, self-employed or permanent basis will very much depend on your own business needs and requirements. Regardless of how you employ people, however, you must always stay within the relevant Home Office guidelines.

What Are Licence Ratings?

There are two licence ratings that businesses can have. These are the A-rating and the B-rating.

Most businesses will receive an A-rating after successfully applying for a sponsor licence. This means that you will be able to start issuing certificates of sponsorship to foreign workers.

Your business will only be downgraded to a B-rating if you don’t meet your sponsorship responsibilities, such as not adhering to Home Office guidelines on HR policies.

If your business is at a B-rating, you won’t be able to issue new certificates of sponsorship until you’ve made the necessary improvements and been upgraded to an A-rating again.

To be upgraded back to an A-rating, you’ll have to purchase an action plan from UKVI and follow the necessary steps to bring your business back up to regulations. Action plans cost £1,476 each.

However, if you still need to make other improvements, you’ll be given a second B-rating and will have to follow a new action plan.

If you still need to make improvements after receiving your second B-rating in the space of 4 years, you will lose your sponsorship licence.

What Are the Penalties for Employing Illegal Workers?

There are strict penalties in place to ensure that businesses carry out adequate right-to-work checks and deter illegal working.

If you’re found to be employing someone who you knew didn’t have the right to work in the UK, you could face a jail sentence of up to 5 years, plus an unlimited fine.

You may also be penalised if you had ‘reasonable cause to believe’ that someone didn’t have the right to work in the UK. This includes if:

• They did not have permission to enter or remain in the UK
• Their immigration permission had expired
• They were not allowed to do certain types of work within the immigration rules
• Their papers were incorrect or false

You may also be penalised if you did not properly carry out the necessary right-to-work checks on an employee.

If this occurs, you may receive a referral notice and be forced to pay a fine of up to £20,000 for each illegal worker you’ve employed.

You will then be sent a civil penalty notice, and your business’ details may be publicly published by Immigration Enforcement as a deterrent to other businesses.