PBS Licence UK

The UK operates a Points Based System (PBS) for immigration, which regulates how overseas nationals can come to the UK to work. For employers wishing to hire non-UK nationals under the PBS, a sponsor licence is required. The licence grants permission to lawfully sponsor migrant workers and forms the foundation of the UK’s employer sponsorship framework.

What this article is about:
This guide explains the PBS sponsor licence for UK employers. It sets out what a PBS licence is, who needs one, the application process, the compliance duties for licence holders, and how to manage the licence over time. It is written for organisations that are considering applying for a licence, those who already hold one, and HR professionals seeking to ensure compliance with UK immigration rules.

Employers must understand that holding a PBS licence carries significant responsibilities. The Home Office expects licence holders to have suitable systems in place to monitor sponsored workers and to comply fully with immigration rules. Failure to do so can result in penalties, reputational harm, or even the loss of the licence.

This article provides a comprehensive overview of the PBS licence, helping employers to understand their obligations and to navigate the practical and legal complexities of sponsorship.

Section A: What is a PBS Licence?

A PBS licence is the authorisation granted by the Home Office allowing UK employers to hire and sponsor overseas workers under the UK’s Points Based System. It is the legal gateway through which an organisation can access skilled global talent to fill roles that cannot be met from the resident labour market. Without a valid PBS sponsor licence, an employer cannot issue Certificates of Sponsorship or support a visa application for a migrant worker.

1. Definition and Purpose

The Points Based System (PBS) was introduced in 2008 as the UK’s primary immigration framework. It covers a range of visa routes based on skills, qualifications, and sponsorship. A PBS sponsor licence is the permission required by UK organisations to act as licensed sponsors of migrant workers.

The purpose of the licence is twofold. Firstly, it gives employers the ability to hire skilled overseas staff. Secondly, it ensures the Home Office can regulate, monitor, and control which organisations are bringing migrant workers to the UK and under what conditions. The licence functions as both a gateway and a compliance mechanism.

2. Types of Workers Covered

The PBS sponsor licence applies across several visa categories. The main route is the Skilled Worker visa, which includes the Health and Care Worker sub-route. Other routes under the PBS sponsor licence framework include:

• Senior or Specialist Worker visa under the Global Business Mobility category
• Graduate Trainee visa under Global Business Mobility
• Minister of Religion visa and Religious Worker visa
• International Sportsperson visa
• Temporary Worker routes, including Seasonal Worker, Charity Worker, and Government Authorised Exchange

Employers must apply for the type of licence appropriate to the categories of workers they intend to sponsor. A business may hold a licence that covers more than one category.

3. Who Needs a PBS Licence?

Any UK-based organisation that intends to employ overseas nationals who are not settled in the UK, and who do not otherwise have permission to work, must apply for a PBS sponsor licence. This applies equally to large multinationals and small businesses.

Employers recruiting EU nationals post-Brexit also need to be aware that free movement ended in December 2020. As a result, most EU, EEA, and Swiss citizens now require sponsorship under the Skilled Worker route if they wish to work in the UK (unless they hold pre-settled or settled status under the EU Settlement Scheme).

Section A Summary
A PBS licence is the legal permission enabling UK employers to sponsor overseas nationals under the Points Based System. It is required for any business that needs to employ migrant workers who do not otherwise have permission to work in the UK. The licence covers a range of worker categories, from skilled professionals to temporary staff, and is a cornerstone of the UK’s immigration sponsorship framework.

Section B: Applying for a PBS Licence

Applying for a PBS sponsor licence is a formal process governed by the UK Immigration Rules and the published sponsor guidance. Employers must demonstrate to the Home Office that they are a genuine and trustworthy organisation capable of meeting sponsorship duties. The application requires detailed information about the business, its HR systems, and its ability to comply with immigration obligations.

1. Eligibility Requirements

To qualify for a PBS licence, an employer must meet the Home Office’s eligibility criteria. These include:

• Lawful operation: The organisation must be legally trading in the UK and registered with the appropriate authorities such as Companies House, HMRC, or the Charity Commission.
• Genuineness: The business must be a genuine enterprise with a verifiable need for overseas staff.
• No relevant criminal history: Key personnel and senior staff must not have unspent criminal convictions for offences such as fraud, money laundering, or immigration breaches. Civil penalties for employing illegal workers within the last 12 months can also lead to refusal.
• Robust HR systems: The organisation must have effective systems to monitor sponsored workers, carry out compliant right to work checks, and keep accurate records.

If an organisation does not satisfy these requirements, its application will be refused.

2. Key Personnel Roles

Every PBS licence application must nominate key personnel who will manage the sponsor licence via the Sponsor Management System (SMS):

• Authorising Officer: A senior person responsible for the licence and compliance with all sponsor duties.
• Key Contact: The main point of contact between the organisation and the Home Office.
• Level 1 User: The person responsible for day-to-day management of the licence through the SMS, including assigning Certificates of Sponsorship.

Employers should choose individuals with integrity and sufficient knowledge of immigration compliance. The Home Office will carry out background checks on nominated personnel.

3. Application Process

The application is made online through the Home Office portal. The process involves:

1. Completing the application form on the Sponsor Management System.
2. Paying the relevant fee, which varies depending on the size and type of organisation (small, charitable, or large sponsor).
3. Submitting supporting documents within five working days of the application. These may include proof of registration, VAT certificate, corporate bank statements, or evidence of HR processes. The exact list is set out in Appendix A of the sponsor guidance.
4. Awaiting a Home Office decision, which may involve a compliance visit to assess systems and procedures.

The standard processing time is usually up to eight weeks, although employers can request a priority service (for an additional fee) that aims to deliver a decision within around ten working days.

Section B Summary
To apply for a PBS sponsor licence, employers must meet strict eligibility criteria, nominate suitable key personnel, and complete the application process with supporting documentation. The Home Office will assess whether the organisation is genuine and capable of fulfilling its sponsorship duties before granting the licence.

Section C: Compliance Duties

Holding a PBS sponsor licence brings with it ongoing compliance obligations. These duties are designed to ensure that only genuine workers are sponsored, that employers act responsibly, and that immigration controls are upheld. The Home Office monitors sponsors closely, and failure to comply can lead to serious consequences.

1. Record-Keeping and Reporting

Licence holders must maintain accurate and up-to-date records for every sponsored worker. These include:

• A copy of the worker’s passport and visa (or biometric residence permit)
• Evidence of the worker’s right to work checks
• Contract of employment and job description
• Current and historic contact details for the worker

Employers are also required to report certain events to the Home Office through the Sponsor Management System within strict time limits, usually ten working days. Reportable events include:

• A sponsored worker failing to start work on the expected date
• A change in the worker’s job role or salary
• Early termination of employment
• Unauthorised absences of more than 10 consecutive working days

2. HR Systems and Processes

Robust HR systems are critical to compliance. Sponsors must have procedures in place to:

• Track and monitor sponsored employees’ attendance
• Conduct and record right to work checks before employment begins
• Keep HR files updated with copies of immigration documents
• Monitor visa expiry dates and ensure renewals are addressed in good time

The Home Office will expect to see these systems during an audit or compliance visit. Weak or inconsistent systems are a common cause of licence downgrading or revocation.

3. Risks and Penalties

If a sponsor fails to meet its duties, the Home Office can take enforcement action. Sanctions include:

• Downgrading the licence rating from A to B, requiring the sponsor to follow an action plan at additional cost
• Suspending the licence, preventing the organisation from assigning new Certificates of Sponsorship
• Revoking the licence, which immediately invalidates all sponsored workers’ visas, potentially leaving them without lawful status
• Financial penalties for employing illegal workers, currently up to £60,000 per worker from 2024
• Reputational damage, which can harm relationships with regulators, clients, and staff

Compliance is therefore not a one-time exercise but an ongoing responsibility throughout the duration of the licence.

Section C Summary
Licence holders must keep detailed records, report specified events promptly, and maintain strong HR systems. Non-compliance exposes the organisation to penalties ranging from licence suspension to revocation, financial fines, and reputational harm. Continuous vigilance and robust processes are essential to safeguard the licence.

Section D: Managing a PBS Licence

Once a PBS sponsor licence is granted, the responsibility does not end there. Employers must actively manage their licence to ensure that it remains valid and that sponsored workers are supported appropriately. Effective licence management requires monitoring Certificates of Sponsorship, keeping the licence up to date, and preparing for Home Office scrutiny.

1. Certificates of Sponsorship (CoS)

A Certificate of Sponsorship (CoS) is a unique reference number that a sponsor assigns to a migrant worker so they can apply for a visa. There are two types:

• Defined CoS: Issued for Skilled Worker applications made from outside the UK. These must be requested from the Home Office each time they are needed.
• Undefined CoS: Issued for Skilled Worker applications made from within the UK, and for other eligible categories. Employers receive an annual allocation of undefined CoS.

Employers must only assign a CoS where there is a genuine vacancy and must include accurate details about the role, salary, and conditions. Misuse of CoS is a serious breach of sponsor duties.

2. Renewals and Variations

A PBS sponsor licence is normally valid for four years. Employers must apply to renew their licence before it expires if they wish to continue sponsoring workers. Failure to renew in time will result in the licence lapsing, leaving sponsored workers without valid sponsorship.

Sponsors may also need to apply for variations to their licence during its validity. Common variations include:

• Adding new visa categories to an existing licence
• Updating business details such as addresses or ownership
• Adding additional branches or linked entities

Timely updates are crucial. Any failure to keep the licence accurate and current can result in Home Office enforcement action.

3. Home Office Audits

The Home Office regularly conducts compliance audits, both announced and unannounced. During an audit, compliance officers will:

• Review HR records and right to work documentation
• Inspect how attendance and absences are monitored
• Interview staff responsible for immigration compliance
• Assess whether the organisation continues to meet its sponsorship duties

Organisations must always be audit-ready. A failed audit can result in licence downgrading, suspension, or revocation. Best practice is to conduct regular internal compliance checks to identify and address weaknesses before a Home Office visit.

Section D Summary
Managing a PBS licence requires careful oversight of Certificates of Sponsorship, timely renewals and variations, and readiness for Home Office audits. Proactive management ensures the licence remains valid and reduces the risk of sanctions.

FAQs

How long does it take to get a PBS sponsor licence?
The standard processing time for a PBS sponsor licence application is up to eight weeks. Employers can request the priority service, for an additional fee, which aims to deliver a decision in around ten working days.

How much does a PBS licence cost?
The fee depends on the size and type of organisation. Small sponsors and charities currently pay £536, while medium or large sponsors pay £1,476. These fees are subject to change, and additional costs apply for services such as the priority processing option.

Can a revoked PBS licence be reinstated?
No, once a PBS sponsor licence has been revoked, it cannot be reinstated. The organisation would have to wait a cooling-off period (usually 12 months) before reapplying, and the refusal reasons would need to be addressed in full to succeed.

Do small businesses qualify for a PBS licence?
Yes, small businesses are eligible to apply for a PBS licence provided they can demonstrate compliance with the Home Office’s requirements, including having the necessary HR systems in place. There is no minimum company size requirement.

What is the difference between a PBS licence and a Skilled Worker sponsor licence?
A PBS licence is the broader framework that covers all sponsorship routes under the Points Based System, including Skilled Worker, Temporary Worker, and other subcategories. The Skilled Worker sponsor licence is a specific type of PBS licence focused on sponsoring skilled employees.

Conclusion

A PBS sponsor licence is the foundation of the UK’s immigration sponsorship framework, enabling employers to recruit overseas talent lawfully. Securing the licence is only the beginning; organisations must maintain strict compliance standards, supported by robust HR systems, to protect their licence status.

For employers, the licence represents both opportunity and responsibility. It allows access to a global talent pool to address skills shortages, but it also imposes regulatory obligations that must be taken seriously. From record-keeping to reporting duties and readiness for audits, every aspect of compliance matters.

Employers considering a PBS licence should invest time in preparing their application carefully, appointing reliable key personnel, and ensuring their HR systems meet Home Office expectations. Existing sponsors must manage the licence proactively through renewals, variations, and internal audits.

In a competitive environment where immigration compliance is closely monitored, a well-managed PBS licence can help organisations attract and retain the skills they need while safeguarding their standing with the Home Office.

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