Do You Need To Hire Staff From Outside The UK? As A Business Here Is What You Need To Know

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Employing Overseas Workers in the UK: A Guide for Businesses (October 2025 Update)

Hiring skilled workers from abroad is a strategic move for UK businesses aiming to fill talent gaps, diversify their workforce, and drive innovation. However, navigating the UK’s immigration system requires careful planning and strict adherence to legal requirements. Recent changes have made it even more challenging to keep up. This article takes a step-by-step approach for employers seeking to sponsor international talent, covering the entire process from application to compliance.

What Are Foreign Workers?

Foreign workers or often referred to as migrant workers are individuals who are not citizens or permanent residents of the UK and require a visa to work legally. They can be:

  • Skilled Workers: Professionals with specific qualifications or expertise.
  • Temporary Workers: Individuals employed for short-term roles.
  • Students: Enrolled in educational institutions while working part-time.
  • Dependants: Family members accompanying a primary visa holder.

Step 1: Apply for a Sponsor Licence

Before you can hire a foreign worker, your business needs a sponsor licence from the Home Office. This licence is essentially your authorisation to employ non-UK citizens and assign them Certificates of Sponsorship (CoS), which are required for visa applications.

What Are the Costs Involved?

  • Small or Charitable Sponsors: £574
  • Medium or Large Sponsors: £1,579

These fees are non-refundable, even if your application is unsuccessful. It’s crucial to ensure your business meets the eligibility criteria and can demonstrate compliance with sponsorship duties.

What Are the Eligibility and Requirements for A Business Looking to Sponsor a Foreign Employee?

To qualify for a sponsor licence, your business must be able to demonstrate that it:

  • Is a genuine organisation operating legally in the UK.
  • Has systems in place to monitor sponsored employees, including HR processes, record-keeping, and reporting structures.
  • Can meet all compliance obligations, such as conducting Right to Work checks and reporting absences or changes in employee circumstances.
  • The Home Office may even conduct a compliance visit to verify your systems and ensure your business is ready to manage sponsored workers properly.

Tips for a Smooth Application:

To make the sponsor licence application process easier, start by gathering all necessary documents in advance, including proof of your business’s registration, financial accounts, and HR policies. Designate key staff members to take responsibility for managing the sponsor licence and assigning Certificates of Sponsorship (CoS). It is important to be thorough and accurate throughout the application, as mistakes can delay approval or even result in rejection. You should also plan ahead for timelines, since the application process can take several weeks, especially if you have a hiring schedule to meet. Remember, obtaining a sponsor licence is the first and most crucial step in bringing international talent to your business, and doing it correctly sets the foundation for a smooth hiring and compliance process.

Step 2: Assign a Certificate of Sponsorship (CoS)

Once your business has obtained a sponsor licence, you can assign a Certificate of Sponsorship (CoS) to a foreign worker. This certificate is a crucial part of their visa application and serves as proof that the job you are offering is genuine and meets the required skill level and salary threshold.

The cost of a CoS depends on the type of visa being sponsored.
For a Skilled Worker visa, the fee is £525 per certificate, while for a Temporary Worker visa, it is £55 per certificate.
These fees must be paid each time you assign a CoS to a new employee.

Step 3: Immigration Skills Charge

Employers are required to pay the Immigration Skills Charge when sponsoring a worker. This charge contributes to the UK’s skills development initiatives and helps fund training programs to support the UK workforce. It is a mandatory cost for most businesses sponsoring Skilled Worker visa applicants and must be paid upfront for each sponsored employee.

Charges

  • Small or Charitable Sponsors: £364 per year
  • Medium or Large Sponsors: £1,000 per year

The total amount depends on the length of the worker’s employment contract. For example, a three-year contract would incur a charge of £1,092 for small sponsors and £3,000 for medium or large sponsors. This means it’s important to budget for the full duration of employment when planning to hire international talent.

Tip: Paying the charge promptly ensures there are no delays in the visa application process and helps maintain your compliance as a licensed sponsor.

Step 4: Right to Work Checks Explained

Even though your business is hiring the employee, UK law makes employers responsible for verifying that each worker has the legal right to work in the country. This requirement applies to all employees, whether they are from the EU, non-EU countries, or British/Irish citizens.

Under the Immigration, Asylum and Nationality Act 2006, it is a criminal offence to employ someone who does not have the right to work in the UK. Employers can face fines of up to £60,000 per illegal worker, making these checks essential for compliance and risk management.

How It Works Post-Brexit

  • EU, EEA, and Swiss nationals who arrived before 31 December 2020: Must have settled or pre-settled status under the EU Settlement Scheme. Employers can check this status online or via the digital status code.
  • EU, EEA, and Swiss nationals arriving after 1 January 2021: Treated the same as non-EU nationals. They generally require a Skilled Worker visa or another valid work visa.
  • Non-EU nationals: Must have a valid visa or Biometric Residence Permit (BRP) confirming their eligibility to work.

Employer Responsibilities

As an employer, it’s your responsibility to make sure every employee has the legal right to work in the UK. This starts before employment begins, by conducting thorough Right to Work checks. You can do this manually, by inspecting original documents, or digitally using the Home Office online service.

It’s important to keep copies or detailed records of these checks for at least two years after employment ends, as the Home Office may request evidence during audits or compliance visits.

You should also monitor the expiry dates of visas, permits, or digital status for all employees. This ensures that your workforce remains compliant and prevents any unintentional breaches of immigration law.

By carrying out these checks diligently, employers can establish a “statutory excuse”, protecting themselves against potential fines or penalties. Beyond legal protection, these steps also help your business maintain a trustworthy and well-managed hiring process for international talent, giving you peace of mind as you grow your team.

Step 5: Visa Application and Processing

After assigning a Certificate of Sponsorship (CoS), the foreign worker can apply for their visa. The application process and associated costs vary depending on the type of visa and the length of the employment contract. It’s important to ensure that all documents are submitted accurately to avoid delays, as mistakes can lead to longer processing times or even refusals.

Skilled Worker Visa Costs (as of July 2025)

  • Application Fee:
    • Up to 3 years: £769
    • Over 3 years: £1,519
  • Healthcare Surcharge: £624 per year
  • Processing Time: Typically, 3 weeks for applications made outside the UK, however immigration professionals across the board have cited the Home Office is taking much longer for some industries.

These fees apply to both the main applicant and any dependants included in the application. Depending on the employee’s circumstances, priority or super-priority services may be available for an additional fee to speed up processing. Planning ahead and coordinating with your employee ensures a smoother visa process and helps your business maintain continuity in staffing.

Step 6: Compliance and Ongoing Duties

As a sponsor, your responsibilities extend beyond the initial application process.
You must:

  • Monitor and Report: Keep records of your sponsored workers and report any significant changes in their circumstances.
  • Conduct Audits: Regularly audit your HR systems to ensure compliance with sponsorship duties.
  • Cooperate with Inspections: Allow Home Office officials to inspect your records and premises when requested.

Failure to comply can result in penalties, including revocation of your sponsor licence.

Commonly Asked Questions About UK Sponsor Licence

1.  How Much Does It Cost to Sponsor a Foreign Employee in the UK?

The total cost includes the sponsor licence fee, CoS fee, Immigration Skills Charge, visa application fee, and healthcare surcharge. These costs can accumulate, so it’s advisable to budget accordingly.

2.  Who Pays for a Sponsored Visa in the UK?

The employer is responsible for paying the sponsor licence fee and the Immigration Skills Charge. The foreign worker typically bears the cost of the visa application fee and healthcare surcharge, although this can vary depending on the terms of employment.

3.  What Is a Tier 2 Visa?

The Tier 2 visa was the UK’s previous system for skilled workers, covering roles that required specific qualifications and experience. In 2021, it was replaced by the Skilled Worker visa, which provides more flexibility for both employers and employees. The new system covers a broader range of eligible occupations, including healthcare professionals, engineers, IT specialists, and certain teaching roles.

Unlike the Tier 2 system, the Skilled Worker visa allows for longer visa durations, easier extensions, and the ability for workers to bring eligible dependants. This change was designed to make it simpler for UK businesses to recruit international talent while ensuring that sponsored roles meet the required skill and salary thresholds.

Tip: For businesses, this means you now have more options to fill talent gaps with skilled international workers, but it’s important to ensure the roles you offer meet the Home Office’s eligibility criteria.

4.  What Jobs Qualify for a Skilled Worker Visa?

Eligible jobs are those that meet the required skill level (RQF Level 3 or above) and salary threshold. The Home Office provides a list of eligible occupations and their corresponding codes.

5.  What Are the Processing Times for a Skilled Worker Visa?

Processing times vary:

  • Outside the UK: Approximately 3 weeks
  • Inside the UK: Approximately 8 weeks

Priority services can reduce waiting times for an additional fee.

6.  What Do Businesses Have to Check When Hiring EU Workers Post-Brexit?

Post-Brexit, EU workers no longer have automatic right to work in the UK. Employers must ensure that EU nationals have valid immigration status, such as settled or pre-settled status under the EU Settlement Scheme , or a valid visa.

7.  What Is the Right to Work?

The right to work refers to an individual’s legal entitlement to be employed in the UK. Employers must verify this status before offering employment to ensure compliance with immigration laws.

Jobs in Demand and Eligibility

In 2025, the UK continues to face shortages in several sectors. Key roles in demand include:

  • Healthcare professionals (nurses, doctors, carers)
  • Engineering and construction specialists
  • Information technology and software development
  • Secondary school teachers in maths, science, and computing
  • Skilled trades (electricians, mechanics, chefs)

Jobs qualifying for a Skilled Worker visa must meet skill level and salary thresholds, which vary by occupation. Employers can check the Home Office occupation codes to confirm eligibility.

Compliance Tips for Licensed Sponsors

  • Report Changes Quickly: Resignations, absences, or role changes must be reported within 10 working days.
  • Maintain Accurate Records: Keep all employee and sponsorship documents up-to-date.
  • Prepare for Audits: Home Office inspections can occur at any time.
  • Avoid Licence Suspension: Non-compliance can lead to suspension or revocation, affecting your ability to sponsor staff.

Why Work with Immigration Lawyers

Employing overseas workers involves multiple stages, each with its own legal and procedural risks. Mistakes at any point whether it’s during the sponsor licence application, assigning Certificates of Sponsorship, or conducting Right to Work checks can lead to delays, fines, or even licence revocation.

Immigration solicitors help businesses navigate this complex process with confidence. They ensure that sponsor licence applications are submitted accurately, increasing the likelihood of approval, and that Certificates of Sponsorship are valid, compliant, and issued correctly. They also provide guidance on conducting Right to Work checks thoroughly and advise on maintaining HR systems that can withstand Home Office audits.

Beyond compliance, working with experts allows businesses to focus on growth and operational priorities, knowing that they are fully meeting their legal obligations. Immigration lawyers can also offer practical tips, audit preparation, and ongoing support, making the entire process smoother, faster, and less stressful for both employers and employees.

Tip: Even experienced HR teams benefit from specialist guidance, as immigration rules can change quickly and errors can have serious consequences.

About the Author: Mulgrave Law

Mulgrave Law is a London-based immigration law firm supporting both individuals and businesses across the UK. Our Lawyers and solicitors advise companies on all aspects of sponsor licence management, from initial applications and renewals to compliance checks and defending against suspensions or revocations. We provide practical guidance on HR systems, Right to Work checks, record keeping, and mock audits, ensuring employers remain compliant with Home Office requirements.

Beyond business immigration, our team also specialises in spouse and family visas, Skilled Worker routes, settlement, and British citizenship. Our clients include UK employers, entrepreneurs, charities, start-ups, and international talent across healthcare, technology, academia, and the arts. Known for meticulous preparation and clear, solution-focused advice, Mulgrave Law helps businesses recruit international talent lawfully while supporting individuals and families to achieve stability and success in the UK. If you need help with a immigration matter book a free initial consultation with one of our immigration experts by calling 
0207 253 7248 or email info@mulgravelaw.co.uk, alternatively fill out our simple enquiry form.