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HOME OFFICE SPONSORSHIP LICENCE & COMPLIANCE REQUIREMENT

7/22/2020

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A UK-based organisation willing to employ a non-EU or non-EEA visa applicant in the UK on a Tier 2 visa must hold the relevant Tier 2 Sponsor Licence. A Sponsorship Licence is also required for educational institutions recruiting students from oversea. Without one, UK companies cannot transfer existing employees to the UK, extend an existing work visa or apply for permission to employ anybody from outside of the EEA.
 
Currently, the requirement to hold a sponsor licence only applies to employers wishing to employ nationals from outside the European Economic Area (EEA). However, with the introduction of a new set of post-Brexit immigration rules due to be implemented on 1st January 2021, all employers who wish to employ EU nationals will need to apply for a sponsor licence.
 
Important action for employers:
 
Non- resident EU nationals who are entering the UK from the beginning of January 2021 will need permission to work. It is essential that you apply for a sponsor licence now should you wish to employ EU nationals from 1st January 2021 without experiencing a delay.
 
How do I apply for a sponsorship licence:
 
The application form is completed online and you will be required to send documents to the Home Office in support of the application within five working days of submission.
 
What documents do I need to prepare to send in support of the application:
 
The documents that a business should send to the Home Office include:

  • Corporate bank statement
  • Vat Certificate
  • Evidence of PAYE registration
  • Employer’s liability Insurance certificate
  • Cover letter explaining your reasons for applying for the licence for example if the vacancy you want to fill with a migrant has been created because you are developing a new in-house product, you might consider submitting an overview of the product.
 
The Sponsorship Licence is valid for 4 years and may be downgraded, suspended or even withdrawn by the Home Office should the company not meet its responsibilities as a sponsor.
 
Once a Sponsorship Licence has been granted, the company will be issued with a licence rating. This enables the employer to begin assigning Certificates of Sponsorship (CoS) which are required as part of each non-EEA individual’s Immigration Application under Tier 2 of the points-based system.

Persons Involved in the Sponsorship Process
A prospective sponsor must allocate responsibilities to ‘key personnel’ in its staff in the following four roles: authorising officer; level 1 user; level 2 user and key contact.  These roles can be filled by the same person or by different staff members.
  • Authorising officer - this must be a paid member of staff or an ‘office holder’ of the organisation.  The person should be a senior and competent person in the establishment as they will be responsible for the activities of all users of the sponsorship management system.  They have ultimate responsibility throughout the process of applying for a licence and also in issuing sponsorships to the prospective employees of the establishment.  This person is responsible for all acts, omissions, compliance and non-compliance performed by the following three personnel:-
 
  • Key Contact - this can be the authorising officer, any other person working for the company or even a legal representative (an OISC registered advisor or a solicitor).  As the name suggests, this is the person who will act as the main point of contact between the sponsor and the Home Office
 
  • Level 1 User - this can be the authorising officer, any other person working for the company or even a legal representative.  This person conducts the day-to-day sponsorship activities using the sponsorship management system, assigns Certificates of Sponsorship/Confirmations of Acceptance for Studies and keeps the Home Office informed of any changes and ‘migrant activity’ (e.g. if a migrant does not run up for work or studies)
 
  • Level 2 User - This can be the authorising officer, any other person working for the company or even a legal representative. This person`s activities are limited to assigning certificates/CASs and to reporting migrant activity to the UK Border Agency
 
To allow for immediate employment to take place, the employer should obtain either a ‘restricted’ or ‘unrestricted’ Certificate of Sponsorship (CoS):

  • Unrestricted CoS apply to new employees earning in excess of £159,600 per annum, who are switching within the UK to the Tier 2 (General) Visa as well as to those applying for extensions. When the company applies for a license, they will be required to estimate how many Tier 2 Certificates they require. They will then be granted a fixed allocation of unrestricted CoS annually as part of their Sponsorship License.
 
  • Restricted CoS apply to new employees applying from outside of the UK for a Tier 2 (General) Visa who will earn less than £159,600 per annum, as well as to individual dependants of Tier 4 students applying from within the UK who wish to switch to a Tier 2 (General) Visa.
 
Once a CoS has been issued, the prospective employee may then apply for a visa to join the company or may then apply for leave to take up employment with the company from within the UK.
 
 
Tier 2 Sponsorship Licence Renewal
 
Tier 2 Sponsorship Licence Renewal falls due every 4 years. Should an organisation employ sponsored migrants, they must renew their Sponsorship License prior to expiration, even if they do not intend to sponsor any further new migrants.
 
Key points about renewing a Sponsorship License:

  • Sponsorship Licenses must be renewed every 4 years
 
  • Sponsors may view their license expiry date and earliest renewal date within their Sponsorship Management System (SMS) account
 
  • Sponsors must apply to renew their license by submitting a renewal application via their SMS account along with remitting the appropriate fee online
 
Compliance visits from UK Visas and Immigration (UKVI) are common when reviewing renewal applications. Visits may or may not be announced, and the attending Home Office Compliance Officer has the right to request access to records. Information which they may request access to will be in order to verify that the employer has been keeping and maintaining appropriate records pertaining to compliance, record keeping and reporting.
 
It is essential that companies can produce such documentation on request and be prepared for the potential of an inspection visit as part of their preparation to submit a Sponsorship License Renewal Application.
 
Resident Labour Market Test
Subject to the exceptions set out below, if a registered employer want to sponsor a migrant from outside the EEA the employer will have to conduct a Resident Labour Market Test and show that no suitable qualified resident worker can fill the job. 

In order to conduct the Resident Labour Market Test the sponsor will have to properly advertise the position for a minimum of 28 calendar days in Jobcentre Plus (with certain limited exceptions) and by using one other method stated in the relevant codes of practice (unless there is no code of practice for the job).  There are certain requirements in respect of the advertisements which have to be met.
The employer does not need to undertake a Resident Labour Market Test if:
  • The job is on the Home Office ‘shortage occupation list’
  • The overseas worker is an existing worker having already been employed by the company at for at least 6 months at the time of their application but only if the worker is on a Tier 1 (Post-Study Work) visa (or under IGS, FT:WISS or SEGS)
  • The job has a gross annual salary of at least £150,000
  • The worker is a Postgraduate Doctor or Dentist who needs further permission to stay under Tier 2 (General) so they can complete further speciality training
  • The establishment is sponsoring an existing employee working for an overseas branch (i.e. Intra-Company Transfer).
Once the Resident Labour Market Test has been completed and no suitable resident worker found, the sponsor is free to offer the job to the migrant worker and assign a Certificate of Sponsorship, subject to the other Tier 2 requirements.
We can advise and represent our clients throughout this procedure.
What services we can offer?
We can advise on the procedure for applying for a sponsor licence
  • We can act as the Key Contact or Level 1 User or Level 2 User of the establishment
  • We can be in direct contact with the Home Office with regards to assigning certificates of sponsorship and keep them updated on behalf of our client (the employer) regarding any changes or migrant activities
  • We can make representations to increase the limit of the sponsorship certificates, if there is a genuine need
  • We can assess the job and the applicant and advise on the likelihood of getting the applicant sponsored under Tier 2
  • We can advise and represent our clients in making their leave to remain/entry clearance applications in line with the certificate of sponsorship
  • We can advise and represent our clients’ dependants to seek dependant visas in line with the visa of the main applicant.
  • We can lodge an appeal (in-country only) or make a request for an administrative review if the applicant`s application is refused
  • We can advise in making applications for indefinite leave to remain (ILR) for those who have already completed their five years’ qualifying period in the UK
Whatever the case, we are here to assist, advise and represent our clients in relation to obtaining the licence, maintaining the licence, upgrading the licence and also in relation to the immigration matters of its existing or prospective workers.
For further information and free assessment please contact us.

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​IMMIGRANTS DESERVES BETTER TREATMENT

5/26/2020

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Our caseworkers at Alpha Shindara Legal have identified a lot of failings of the Home Office immigration system as we deal with Immigration cases every day. We have undertaken
distressing, urgent and sometimes emotive immigration cases.

When we begin to make a case often times the Home Office’s approach is to leave urgent enquiries unanswered for months and when they answer, devastating mistakes are commonplace. Immigrants who have submitted a charged application deserves better treatment in the UK.

Applicants are made to wait several months for a decision on their application. Families which comprise parents and their children in active education. The parents are often prevented from working and children unable to proceed to higher education during very long waiting period, only for them to find out that their application has been rejected and for them to have to go through very expensive appeal process.

Following rejections, people have been driven to homelessness after the Home Office have decided they had no access to public funds and there is no legal help further their case through the court, especially following a long period of being unable to work and unable to
earn a living.

Reports have revealed that there is backlog of cases at the Home Office and that Home Office resources are overstretched, there are not enough caseworkers and there seems to be a high turnover of staff members. 

The official line from the Home Office is that “This case is complex and falls out of our normal service standards”

ASYLUM SYSTEM

Data reveals that Home Office in the past 4 years have turned away over 2,000 gay and bi asylum applications. The Home Office officials turned down genuine asylum applications and advised them to go home and “act discreetly” or even suggested religion can cure them. Government need to enact an immediate moratorium on deporting or detaining any asylum seekers.

As independent inquiry is needed, so that everyone else will provide evidence to that inquiry. The recommendation from such an inquiry should be used to enact changes to ensure the asylum system is fair to all LGBT and other asylum seekers in the future. Case workers should be provided with dedicated training and guidance to handle claims based on sexual orientation.

The Home Office should work collaboratively with a diverse range of organisation specialising in LGBT human rights protection and have developed with them a wide-ranging Equality Action Plan which is regularly reviewed by our Strategic Engagement Group of partners.

Home Office staff should stop making arbitrary decisions on the basis of homophobic, biphobic or transphobic views. Claimants should be given opportunities to disclose information relevant to their claims before a decision is taken, even where that information may be sensitive or difficult to
disclose. The Home Office should adopt transparent bespoke guidance for immigration and asylum decision makers on gender identity and expression issues raised in asylum claims.

The current Home Office system is not transparent. We therefore recommend better training with transparency. Without transparency we cannot guarantee that training is put into practice. The government must deal with the ‘Hostile Environment Policy’. The Home Office staff operates under the direction of a government that has created a ‘Hostile Environment’ for Immigrants and Refugee. Government policy under the ‘Hostile Environment framework’ combines cruelty and
incompetence.

It is the government target to cut the number of immigrants granted residence in the UK. Officials are therefore under huge pressure to meet these targets and consequently they treat every immigration application and asylum application with disbelief assuming they are fake and frauds.

MP David Lammy told the Home Office officials in no uncertain terms that their organisation is plagued by chronic mismanagement and ineptitude. The Home Office appears to be dysfunctional to be effectively held accountable by MPs. If your MP is unable to effectively hold the Home office to account who can. The concept of reasoned argument and consultation does not exist. The Home Office has no interest in the argument put forward. They just wish to proceed with their own policy. Home Office interpreters are a major problem with no training on sexual orientations and gender identity issues.

Many are originally from the Homophobic countries that LGBT refugees have fled from. They share the anti-LGBT attitudes of their homelands. They are biased and unfit to interpret for LGBT applicants. The current system of Immigration in the UK is not fit for purpose. The entire Immigration system needs a massive overhaul. It is far too complex and too lengthy. The complex system allows abusers on all sides.

NEW IMMIGRATION SYSTEM

From 1 January 2021, free movement will end and the UK will introduce a point based immigration system. The new system will treat EU citizens equally and transform the way in
which all immigrants come to the UK to work.

Under the new point based immigration system, points are assigned for specific skills, qualifications salaries and shortage occupations. Visas are then awarded for those who gain
enough points. The point based system will provide simple, effective and flexible arrangements for skilled workers from around the world to come to the UK through an employer-led system. This represent a significant change for employers in the UK who will need to adapt.



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​CHANGES TO TIER (1) VISA CATEGORY UK

5/22/2020

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​CHANGES TO TIER (1) VISA CATEGORY

The UK government has made changes to Tier (1) visa category, the changes include the following:
  •  Introduction of new start-up and innovation visa categories to replace the Tier 1 (Graduate Entrepreneur and Tier 1 (Entrepreneur) routes with application in these categories assessed by trusted endorsement bodies vetted by the UK government.
  •  Investment threshold will be removed for the start-up visa and reduced to GBP 50,000.00 for the innovator category.
  •  English language level for both categories will be set at B2 (higher than B1 for the former category).
  •  There will be increased scrutiny over the source of funds for Tier 1 investor applicant by extending the requirement to hold the investment funds from 90 days to two (2) years and by restricting the rules to make it explicit that banks must carry out a due diligence checks before opening accounts for potential applicants and,
  •  Investments in UK government bonds would be excluded for all new Tier 1 Investor applicants to encourage investment in alternative forms. 

The proposed changes have taken effect on March 29, 2019. Applications under the existing Tier 1(Graduate Entrepreneur route has ended on July 5 2019.


THE START UP VISA
  •  Tier 1 (Graduate Entrepreneur) route has been closed. The start-up visa would replace the Graduate Entrepreneur route which has since closed to new applicants as from 5 th July 2019.
  • Expand eligibility- The category would be open to applicants starting a new business for the first time in the United Kingdom not just recent graduates.
  •  Removal of funding requirements- Applicants would not need to have secured any initial funding for the proposed business.
  •  New endorsement bodies-Applicants would need to be endorsed by an independent endorsing body which has been vetted and approved by the UK.
  •  Longer visa validity- The visa will be granted for two (2) years initially (doubled from one (1) year under the Graduate Entrepreneur category) and applicants will be able to switch into the innovator category to continue processing their business.
  •  Effect on existing Tier 1(Graduate Entrepreneur). Transitional provisions would allow Tier 1 (Graduate Entrepreneur) to switch into the start –up route or alternatively continue to switch into Tier 1 (Entrepreneur) category until July 5 2021.


THE INNOVATOR VISA
  •  Tier 1 (Entrepreneur) is closed. The innovator visa would replace the Tier 1 (Entrepreneur) route which has now been closed to new applicants on March 29, 2019.
  •  New expert endorsement requirement- Applicants would need to be endorsed by designated endorsing bodies approved by the government, who would assess whether the applicant proposed business is innovative, viable, or scalable. The Home Office has not confirmed which bodies would be authorised to issue endorsement yet, but has set out criteria with which the endorsing bodied must comply.
  •  Eligibility for Indefinite Leave to Remain (Settlement) - Innovators which satisfy at least two of the Home Office new criteria may qualify for settlement after 3 years (Down from five years under the former route). The criteria include:
  1.  Investing at least 50,000.00 GBP into a business in the UKo Doubling the business customers
  2.  Apply for intellectual property after research and development activities.
  3.  Generating an annual gross revenue of 1 million GBP.
  4. Creating 10 full-time jobs for resident workers.

  •  Effect on existing Tier 1 (Entrepreneur). Existing Tier 1 (Entrepreneurs) can continue to extend their visa under the current rules until April 5, 2023, but would be required to provide more detailed information on their role in the business and the jobs they have created. Settlement applications for existing entrepreneurs will remain open until April 5, 2025.


THE INVESTOR VISA
  •  Increased scrutiny over funding – New investor visa application would need to prove they have had control of the required GBP 2,000,000 investment funds for the last 2 years (up from 90 days under the former rules). If funds have been held for a shorter period, applicants would need to demonstrate the source of the investment funds.
  •  An expanded test will allow the Home Office to refuse application where there are grounds to believe the investment funds have been transferred intentionally by unlawful means.
  • Further rules are been restricted to make it explicit that banks must carry out all due diligence checks before opening accounts for potential applicants.
  •  Investment in government bond no longer accepted. Under the new guidance investment in government bonds has been precluded to incentivise investment in active and trading UK companies.
  • Effective date- The changes has become effective on March 2019. Transitional provisions are in place to protect existing Tier 1 Investors, who can apply to extend their visa under the existing rules (subject to some minor alterations) until April 5, 2023, and apply for settlement until April 5 2023.

The above proposal do not affect the Tier 1 (Exceptional Talent) category.


IMPACT

The changes should broaden the scope for overseas entrepreneurs to start a business in the United Kingdom with reduced or no prior funding. The changes would also place the role of assessing the viability of any proposed business on new endorsing bodies, rather than Home Office officials. By contrast, the changes require prospective Tier 1 Investors to demonstrate the source of their funds over a much longer period. The changes should also encourage direct investment in the UK companies rather than via government bonds.
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    Olu Ogunyanwo    ​ Immigration/Employment Consultant

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