Points Based System - sponsorship and licensing
In order to sponsor an employee or student, businesses and education establishments in the UK will need to be approved in advance by the Border and Immigration Agency (BIA). This licensing process is one of the fundamental changes under the Points Based System. The PBS will see licensed sponsors issuing potential employees and students with a certificate of sponsorship. Anyone seeking to come to the UK under the PBS will need to obtain entry clearance, and a certificate of sponsorship is required before an entry clearance application can be made. The certificate of sponsorship does not in any way guarantee or secure the visa if the supporting documentation for an application cannot be verified independently.
How will the employer licensing system work?
All sponsors will first need to apply for the license to the BIA. The BIA will assess the sponsor to ensure that they don't have a questionable immigration related history or that the persons managing/controlling the system are not a threat to it. Sponsors will need to comply with specific duties and responsibilities when they sign up to become a licensee.
The BIA will monitor licensees to ensure they are fulfilling the requirements of the points based system. This will involve BIA staff making visits to sponsors (pre-arranged or not). The BIA may conduct visits as part of the investigations to ensure that employers have adequate systems set in place. Reviews will be conducted and checks made to ensure that the requirements of the system are not being abused. Penalties will be issued in instances where noncompliance issues are identified.
Sponsors will be issued with an 'A' or a 'B' rating when they register. The majority of sponsors will achieve an 'A' rating, however in circumstances where an assessment concludes that the sponsor may pose a risk to the system, a 'B' rating will be imposed. 'B' rated sponsors will need to comply with a time-limited action plan that sets out the steps it must take in order to achieve or regain an 'A' rating. If an 'A' sponsor is found to be abusing the system they will be downgraded to a 'B' rating. If a 'B' rated sponsor cannot achieve an 'A' rating after following the prescribed action plan it is likely that they will lose their licence and no longer be allowed to bring overseas nationals to the UK.
How do employers/sponsors apply for a licence?
Applications to the BIA will be made online, with supporting documentation to be forwarded to the BIA within 14 days of making an application. Applicants will need to stipulate on the application form which tiers of sponsorship they require. The BIA will assess the applications and investigate employers to ensure that only licenses are issued to bona fide employers.
A 'B' rating will be issued where the sponsor/person managing the process has a previous record of non-compliance or poor compliance. A 'B' rating will also be issued if the sponsor is deemed not to have adequate facilities to cope with the PBS system, for example, adequate processes, procedures and communications to inform the BIA of employees leaving or failing to report to work.
Under what circumstances will a licence be withdrawn?
Circumstances in which a sponsor will normally have their licence withdrawn include:
- If it ceases to trade or operate, whether as a result of insolvency or for any other reason
- It ceases to be accredited or registered with any body that it needs to be accredited/registered with in order to obtain a licence
- If the prospective sponsor or another appropriate agency is an undischarged bankrupt, or legally prohibited from becoming a Company Director.
- If the sponsor has provided forged, falsified documents or information to the BIA
- If the sponsor does not have adequate facilities to cope with the increased staff and no evidence has been provided regarding expansions.
What penalties will apply for illegally employing migrant workers?
In line with the unveiling of the Points Based System, a new penalty system relating to the employment of illegal migrant workers will also be introduced. The new penalty regime consists of a civil penalty for employers who employ illegal migrant workers as a result of negligent recruitment and employment practices, and a criminal offence for those employers found to be knowingly employing migrant workers illegally. Each penalty carries a maximum two year prison sentence and/or an unlimited fine.
Licensing and sponsorship costs
An initial registration fee will be payable and will be renewable every four years. On top of this, a set fee will need to be paid when a sponsor issues a certificate of sponsorship.
