Expanding your team in the UK and understanding work visas: a guide for employers

As global hiring becomes more common, many businesses are looking to the UK for its skilled workforce, strong infrastructure, and business-friendly environment. However, when it comes to employing non-UK nationals, whether from the EU or beyond, immigration compliance becomes a critical concern. Failing to meet the UK’s legal requirements for sponsorship, work visa management, and reporting duties can result in fines, loss of sponsor licences, and reputational damage.

This guide is written specifically for international employers, not individual visa applicants. Whether you’re hiring remotely or planning a physical presence in the UK, this article will help you understand how to manage the UK immigration system, what compliance looks like in practice, and how British Employer of Record can help you hire legally and efficiently, without needing to set up a UK legal entity.

Why UK immigration compliance matters for employers

Post-Brexit, the UK ended freedom of movement for EU nationals, placing all foreign workers under the same immigration system. As a result, hiring talent from abroad now means dealing with a points-based visa system, sponsor licence applications, Home Office audits, and extensive reporting obligations.

Ignoring or misunderstanding these rules can put companies at serious risk. Non-compliance with UK immigration law can lead to licence revocation, financial penalties, and delays in bringing vital talent into the country.

If you want to hire foreign workers in the UK, even for remote or short-term roles, it’s essential to understand the legal pathways, sponsorship duties, and compliance risks before you begin.

Overview of the UK work visa system for employers

The UK’s immigration system is points-based, meaning that workers must meet specific criteria, such as salary thresholds, skill levels, and English proficiency, to qualify for a visa. The most commonly used work visa routes include:

• Skilled Worker visa: The main route for long-term employment. Requires sponsorship, a job offer in an eligible role, and a salary that meets the minimum threshold.
• Global Business Mobility: For intra-company transfers or secondments from overseas offices.
• Global Talent visa: For highly accomplished professionals in fields like tech, science, or the arts. Does not require employer sponsorship.
• Graduate and Youth Mobility schemes: Limited short-term options that can support hiring in certain industries.

While each visa has different requirements, most employer-driven routes require sponsorship, which comes with significant responsibilities.

Employer sponsorship: what it means and how to apply

For international employers planning to hire non-UK nationals under routes such as the Skilled Worker visa or the Global Business Mobility scheme, securing a sponsor licence from the UK Home Office is a crucial first step.

This licence acts as formal legal authorisation for your business to hire and sponsor foreign employees. It allows your company to issue Certificates of Sponsorship (CoS), which are essential for visa applicants to demonstrate a valid job offer and employer backing.

Without this licence, a company cannot legally sponsor a foreign worker for a work visa in the UK. This applies whether you’re hiring for long-term roles, short-term placements, or intra-company transfers. Even small or newly formed companies are eligible to apply, as long as they can prove legitimacy and compliance.

Understanding sponsor licence types

There are two primary categories of sponsor licences, depending on the nature of the roles you’re looking to fill:

• A Worker licence applies to most long-term employment routes, including the Skilled Worker visa, Senior or Specialist Worker visa, and Minister of Religion. This is the most commonly used licence for companies hiring foreign staff into permanent or extended roles.
• A Temporary Worker licence, designed for short-term work arrangements. This includes categories like the Government Authorised Exchange, Creative Worker, and Charity Worker, as well as internships and graduate training programmes.

Depending on their workforce strategy, companies can apply for one or both licence types.

Steps to become a licensed sponsor

The process of becoming a licensed sponsor involves a thorough review by the Home Office. Your company must show that it has legitimate operations in the UK, the capacity to manage sponsorship duties, and a genuine need to employ foreign talent. This includes demonstrating that a local candidate cannot easily fill the roles you’re hiring for, particularly under the Skilled Worker route.

As part of your application, you’ll need to:

• Submit detailed information about your business, including proof of registration, financial health, and operating history.
• Assign key personnel who will oversee sponsorship duties. This includes:
  • An Authorising Officer, typically someone in a senior HR or legal role.
  • A Key Contact who will liaise with the Home Office.
  • A Level 1 User who will use the Sponsorship Management System (SMS) to manage certificates and report changes.
• Show that your HR systems can track employee status, manage documents, maintain visa records, and report any changes to employee circumstances.

The Home Office may conduct a pre-licence audit to assess your readiness. Your company will be added to the official Register of Licensed Sponsors if the application is approved.

After approval: ongoing sponsor responsibilities

A sponsor licence is valid for four years, but maintaining it requires strict adherence to ongoing responsibilities. These include:

• Monitoring sponsored workers, ensuring they are working in the role listed on their CoS, and flagging any changes to their work conditions, such as job title, salary, or location.
• Keeping accurate records of the worker’s employment contract, attendance, salary, contact details, and immigration documents.
• Reporting changes to the Home Office within set timeframes. This includes resignations, disciplinary actions, early terminations, or changes in the business structure (such as mergers or takeovers).

These duties are not optional. If your company fails to meet sponsorship obligations, the Home Office can downgrade, suspend, or revoke your sponsor licence. This can have serious consequences, including losing the ability to hire new foreign workers, withdrawal of existing visas, and damage to your company’s reputation.

For businesses that are new to UK immigration processes, or lack the internal HR and legal capacity to manage these rules, working with a licensed Employer of Record can help ensure full compliance while removing the administrative burden of sponsorship.

Legal compliance when hiring non-UK nationals

Beyond sponsorship, employers have several statutory duties when hiring foreign workers in the UK.

Before employment begins, you must verify the worker’s right to work in the UK. This includes:

• Reviewing and recording official ID or immigration documents.
• Conducting digital checks for Biometric Residence Permits (BRPs) or EU Settled Status.
• Maintaining copies of all documents securely.

Neglecting these checks can result in civil penalties of up to £20,000 per illegal worker.

Employment contracts

Employment contracts for workers in the UK must include all essential terms in a clear and legally compliant format. These contracts should specify the employee’s job title and responsibilities, the location where the work will be performed, agreed salary, and expected working hours.

They must also outline notice periods and detail the benefits the employee is entitled to. In the case of sponsored workers, it is critical that the job title listed in the contract exactly matches the role described in the Certificate of Sponsorship. If there are any changes to the job role, title, or key employment terms, the employer must report those updates promptly to the Home Office.

Employers must:

• Register with HMRC to operate a UK PAYE (Pay As You Earn) scheme.
• Withhold income tax and National Insurance Contributions (NICs) from employee wages.
• Submit Real-Time Information (RTI) reports to HMRC each time payroll is processed.
• Register foreign employees for National Insurance and provide them with pay statements.

These duties apply regardless of whether your business has a UK entity—non-compliance can lead to audits and fines.

Common compliance risks and how to avoid them

Many businesses underestimate the complexity of UK immigration law. Here are some common mistakes and risks to watch for:

• Expired visa tracking: Failing to monitor visa expiration dates and renewal deadlines.
• Incorrect job roles: Sponsoring someone for a position that doesn’t match the one approved in the CoS.
• Inadequate reporting: Not updating the Home Office when a worker’s circumstances change (e.g. new role, salary change, termination).
• Misclassification: Hiring a foreign worker as a contractor to avoid visa sponsorship responsibilities.

These oversights can lead to sponsor licence suspension, large fines, and even criminal liability. The Home Office regularly audits sponsor licence holders, so maintaining strong internal processes is essential.

Work visa processing times and hiring timelines

Processing times for UK work visas can differ significantly depending on the type of visa and whether the application is submitted from inside or outside the UK. For Skilled Worker visas, applications submitted from abroad are usually processed in around three weeks, while in-country applications may take up to eight weeks.

However, applicants can often opt for priority services, which can reduce the timeline to as little as five working days. Global Business Mobility visas tend to be processed within three to four weeks, offering a relatively predictable timeframe. The Global Talent visa, on the other hand, can be more variable.

Since it involves an endorsement stage before the visa application itself, overall processing times can fluctuate considerably based on the applicant’s profession and the endorsing body’s response time.

To avoid delays:

• Ensure all documents are complete, correctly formatted, and submitted on time.
• Allocate time for sponsor licence approval (up to 8 weeks).
• Schedule visa applications in alignment with hiring cycles to avoid onboarding delays.

Recent changes in UK immigration law

UK immigration law continues to evolve. Key updates include:

• Post-Brexit changes: EU nationals now need work visas unless they have settled or pre-settled status.
• Salary threshold updates: The minimum salary for Skilled Worker visas has increased to £26,200 (or £10.75/hour), except for shortage occupations.
• Shortage Occupation List revisions: New roles are added periodically, allowing for lower salary thresholds and visa fees.

Employers should monitor Home Office updates regularly or consult immigration experts to stay informed.

How British Employer of Record simplifies immigration and workforce compliance

For companies that don’t have a UK legal entity or don’t want to take on the administrative burden of visa sponsorship, the British Employer of Record offers a fully compliant alternative.

As a licensed sponsor and registered UK employer, British Employer of Record can:

• Sponsor foreign employees on behalf of your business.
• Draft and issue compliant UK employment contracts.
• Handle onboarding, HMRC registration, PAYE, National Insurance, and holiday pay.
• Ensure compliance with all Home Office sponsorship duties, including record-keeping and reporting.

For instance, a US-based health tech startup wanted to quickly hire a UK-based software engineer but didn’t have a legal entity in the UK or a sponsor licence. Setting up a subsidiary and applying for sponsorship would have taken months, delaying product development.

By partnering with a British Employer of Record, the company was able to onboard the employee within weeks. The EOR, already a licensed sponsor, handled the work visa process, issued a compliant UK employment contract, managed payroll and taxes, and ensured full alignment with UK immigration and labour laws.

The startup avoided legal risk, reduced administrative complexity, and accessed top UK talent without establishing a local entity.

This solution is ideal for:

• Businesses testing the UK market
• Startups scaling globally without building local infrastructure
• Companies hiring one or two key staff in the UK without needing a subsidiary

By working with a UK EOR, you can quickly hire talent, reduce compliance risk, and expand confidently.

How British Employer of Record simplifies immigration and workforce compliance

For companies that don’t have a UK legal entity or don’t want to take on the administrative burden of visa sponsorship, the British Employer of Record offers a fully compliant alternative.

As a licensed sponsor and registered UK employer, British Employer of Record can:

• Sponsor foreign employees on behalf of your business.
• Draft and issue compliant UK employment contracts.
• Handle onboarding, HMRC registration, PAYE, National Insurance, and holiday pay.
• Ensure compliance with all Home Office sponsorship duties, including record-keeping and reporting.

For instance, a US-based health tech startup wanted to quickly hire a UK-based software engineer but didn’t have a legal entity in the UK or a sponsor licence. Setting up a subsidiary and applying for sponsorship would have taken months, delaying product development.

By partnering with a British Employer of Record, the company was able to onboard the employee within weeks. The EOR, already a licensed sponsor, handled the work visa process, issued a compliant UK employment contract, managed payroll and taxes, and ensured full alignment with UK immigration and labour laws.

The startup avoided legal risk, reduced administrative complexity, and accessed top UK talent without establishing a local entity.

This solution is ideal for:

• Businesses testing the UK market
• Startups scaling globally without building local infrastructure
• Companies hiring one or two key staff in the UK without needing a subsidiary

By working with a UK EOR, you can quickly hire talent, reduce compliance risk, and expand confidently.

Expand your team easily

Hiring in the UK, especially when onboarding non-UK nationals, requires deep understanding of visa sponsorship, employment law, and tax compliance. Even a single oversight in record-keeping, visa tracking, or payroll reporting can lead to significant legal and financial penalties.

If your company is not ready to apply for a sponsor licence or set up a UK entity, a British Employer of Record provides a fast, low-risk way to legally employ foreign workers, meet Home Office obligations, and fully comply with UK labour and tax laws.

Want to hire in the UK without setting up a legal entity? Speak to our team about fast, compliant hiring through our Employer of Record solution.

This article was published in July 2024 and updated in May 2025.