Sponsorship licence system

The sponsorship licence system is a new innovation that will allow NHS employers to act as a sponsor and issue a certificate of sponsorship (CoS) to individual migrants who they want to employ. This will be an employer-led system for skilled migrants with a job offer. It is intended that the system will go live in November 2008 and employers will need to be registered as a sponsor before they will be allowed to employ migrant workers in their organisation.

A checklist is available to assist employers to complete their sponsorship application.

Introduction

Under the points-based system (PBS), the UK Border Agency (UKBA) will decide who is admitted to, or allowed to stay in the UK. In order to assess this, the migrant will need to provide evidence of a sponsor in the UK who will have been licensed by the UKBA. In the case of the NHS, the sponsor will be the employing organisation.

The new system will see the removal of Work Permits (UK) as the organisation who issues work permits and is intended to be less bureaucratic for the employer as it will be the employer who issues the CoS directly to the migrant. The migrant will then apply for entry clearance to the UK, as they do currently. The CoS will not be an actual document but a unique reference number which will be used by the migrant to apply for leave to remain or entry to the UK. Although less bureaucratic, this development raises a number of issues for employing organisations which will need addressing to ensure the risks associated with the change are managed appropriately.

The sponsor register for Tiers 2, 4 and 5 of the points-based system are now open. Tiers 2 and 5 are expected to open in November 2008 and Tier 4 in spring 2009. Employers need to make sure they have their sponsorship licence granted in time for the opening of each tier to allow them to act as a sponsor. The duration of the licence starts when the relevant tier opens and not when the licence is approved.

What is sponsorship?

Sponsorship has two main purposes.

• It provides evidence that the migrant has a genuine job in the UK.
• It acts as a pledge from the sponsor that it will accept the responsibilities of sponsorship in respect of the migrant.

Responsibilities of sponsorship

In applying for a licence and subsequently issuing CoS to migrants, the employing organisation accepts that they will comply with a number of requirements. These include:

• record keeping
• reporting duties
• compliance
• co-operation with UKBA requests.

The licence

A licence, when granted, will last for four years unless it is withdrawn by the UKBA. The organisation will need to renew the licence prior to the expiry date in order to continue to act as a sponsor. Reminder notices will be issued by the UKBA but the responsibility to remain licensed will lie with the organisation.

There are two categories of sponsor. You will be either rated A or B. Most sponsors will be A-rated but if the UKBA assesses your organisation as posing a risk to recruiting illegal migrants you may be awarded or downgraded to a B-rating. If you receive a B-rating, you will also receive a time-oriented action plan outlining what you must do to regain an A-rating. Failure to comply with the plan may result in loss of licence and therefore an inability to recruit non-EEA nationals. The UKBA may remove your sponsorship licence at any time if you are in breach of the legislation.

Umbrella bodies

Employers will not be able to group together with one of the number acting as the sponsor. This decision has been made in order for the sponsor to be able to fulfil their duties.

If you have a bureau or shared service which provides recruitment services for various NHS organisations in your locality, each separate organisation will need to be registered as a sponsor with a separate licence.

What do I need to do to get a licence?

You will need to apply for a licence by completing the online application form on the UKBA website. Prior to submitting the form, NHS Employers is advising organisations to ensure that they have all the appropriate systems in place to ensure an A-rated licence is granted.

How much does a licence cost?

There are different fees for each tier category and employers must ensure that they send the appropriate payment when submitting their application. UKBA will only accept the following methods of payment:

• cheque in sterling on a UK bank account
• UK postal order
• credit or debit card.

The fees are:

Tier 2 - skilled worker

• £300 if you are a small sponsor
• £1,000 for all other sponsors

You do not have to pay a fee if you have previously registered under another tier and paid either the £400 or £1,000 fee.

Once registered, an organisation will be in a position to issue a CoS to individuals when Tier 2 comes into effect in November 2008. Each CoS will cost £170.

Further information can be found on the UKBA website.

How will your application be assessed?

The UKBA will assess your application for a licence by looking at three main questions.

• Is the organisation bona fide, operating lawfully in the UK?
• Is the organisation trustworthy?
• Is the organisation capable of carrying out its duties as a sponsor?

Each application will be assessed against eligibility and suitability criteria.

The following guidance will outline how each of these criteria can be demonstrated to ensure you maximise the opportunity to be granted a licence.

Eligibility

As all NHS trusts are public bodies and feature in the Public Bodies' Directory issued annually by the Cabinet Office, your application will not have to be supplemented with documentary evidence to prove you are a bona fide organisation.

However, the UKBA will check whether your organisation has a history of unlawful recruitment and whether the key personnel nominated in the application form have been convicted of a criminal offence (see key personnel section below). If any of these aspects are proven, your application may be refused.

Suitability

This aspect of the assessment will dictate whether your application will be granted an A or B rating or be refused.

Each organisation will need to demonstrate that:

• they have effective HR systems in place
• they not have been issued with a Civil Penalty for Immigration Offences.
• the authorising officer, key contact and level 1 user have no criminal convictions in their name.

The list of convictions that may affect your application are featured on the UKBA website.

Nominating key personnel

Each applicant will have to nominate the following personnel on the form who will be responsible for different aspects of the licence system. The four roles can be undertaken by different people or the same person.

Authorising officer (AO)

The sponsor (ie the NHS trust) will be held responsible for the actions of the authorising officer and therefore it is advisable that this person is a senior member of the trust. The authorising officer will be accountable for the organisation's actions. They must be a permanent employee. The role itself does not guarantee access to the sponsor management system and therefore if you wish to have access you will also need to register as a level 1 or 2 user.

Level 1 user

This role allows the individual to undertake the day-to-day operational activity through the sponsor management system. This includes, adding or removing other users to the sponsor management system; assigning CoS to migrants; requesting an increase in the number of certificates required; notifying the UKBA of changes in the organisation relevant to the licence.

Currently you can only have one level 1 user in your organisation.

Level 2 user

Depending on the size and needs of the organisation you may choose to have any number of level 2 users. They have a more restricted range of permissions than a level 1 user but they will be able to issue CoS to migrants and report migrant activity to the UKBA. The responsibilities you are required to report upon are listed in the duties of a sponsor section.

Key contact

This person is the main point of contact between the employing organisation and the UKBA during the licence application process. This person will be contacted if there are any queries with the application form, supporting documents or payment. It could be that the authorising officer is also the key contact or it could be a different individual. This person will not be given access to the sponsor management system so if you wish the key contact to also be a user they will need to be named as the level 1 nominee or a level 2 user.

What happens if a licence application is refused?

You do not have a right of appeal against refusal for a licence but you can re-apply at any time. The one exception is if your licence is refused because you have been issued with the maximum civil penalty (£10,000 fine) for employing illegal workers within the previous six months.

Reasons for the refusal will have been outlined in the formal decision correspondence and it is advisable for these reasons to have been rectified prior to submitting a further application. Support can be provided from your regional account manager at the Home Office.

Support for employers

To familiarise yourself with the online application process, the UKBA have placed the application form questions on their website for employers to view and prepare prior to submission.

To support the implementation of the PBS, the UKBA has set up regional offices which are staffed to advise local employers on generic issues and more specific application queries. If you do not know who your local account manager is, you will need to email account.management@ind.homeoffice.gsi.gov.uk.

There are also guidance documents on the UKBA website which provide further detail.