1. What is a Certificate of Sponsorship (CoS)?

A Certificate of Sponsorship (“CoS”) is an electronic certificate which must be assigned for each migrant worker who wishes to apply under a relevant sponsored worker route. Applicants under the Skilled Worker route cannot make their visa or permission to stay application without a Certificate of Sponsorship as the unique reference number must be inputted on the application form.

2. What Is the Purpose of a Certificate of Sponsorship (CoS)?

The purpose of the Certificate of Sponsorship is for the licensed sponsor to confirm:

• That they wish to sponsor the worker; 
• That they are satisfied that the worker can meet the relevant immigration requirements for the route they are applying under;
• That they are eligible to sponsor the worker on the relevant route; and 
• That they agree to abide by the terms of conditions as stated on the SMS.

Having a valid CoS does not, however, guarantee that the worker will be granted entry clearance, permission to enter, or permission to stay. Applicants under this route must ensure that they meet the requirements of the sponsored route under which they apply. 

3. What Is an Undefined CoS and Who Needs One?

Undefined Certificates of Sponsorship must be assigned to Skilled Workers applying for permission to stay in the UK, from within the UK.

Undefined Certificates of Sponsorship must also be assigned to workers applying on any other sponsored route, such as the Global Business Mobility or Temporary Worker routes. This is regardless of whether they are applying for entry clearance, permission to enter, or permission to stay. 

4. How Do I Obtain an Undefined Certificate of Sponsorship?

Undefined Certificates of Sponsorship must be assigned to a migrant from the sponsor’s annual allocation. 

5. What Is an Annual CoS Allocation?

When employers apply for a Sponsor Licence, they will be asked for an estimate of the number of Undefined Certificates of Sponsorship they may wish to assign in their first year in each route for which they are applying to be licensed. This must be justified and further information can be requested. 

Each year, the Sponsor will be asked to make an annual allocation request for the next CoS year. The Sponsor will be required to provide details of their hiring plans for the upcoming year, with justifications for the roles that they wish to sponsor. 

Any Certificates of Sponsorship granted will be valid for 12 months. Any unused CoS will be removed from the SMS account, they cannot be carried over. 

6. What Is an Annual Allocation Request?

Each year sponsors are asked to request an annual allocation for the next year. This can be a manual or automated request, depending on the sponsor’s circumstances (you can log on to the SMS to check this). This request is made through the SMS system and should be made prior to the end of the allocation year. 

The allocation year will depend on when the sponsor licence was obtained. Sponsors should check the SMS system to see when their allocation year runs. 

7. What if I Need More Undefined CoS Allocations During the Allocation Year?

If a sponsor needs more Certificate of Sponsorship allocations in their allocation year, they can request an in-year allocation increase by making an application through the SMS system. Reasons must be provided for requesting an increase to the allocation.

An in-year allocation increase request can take up to 18 weeks to be decided, unless priority services (which have limited availability) are obtained. Sponsors will need to factor this timeframe in for any workers who need to extend their permission. In order for an application for permission to stay to be valid, an applicant must provide a valid CoS reference number. Therefore, it is essential that Sponsors are organised and keep track of any visa expiry dates. 

8. What Does the Home Office Consider in a CoS Allocation Application?

The Home Office will consider a number of factors, including, but not limited to:

• Any agents you will use to recruit workers and whether they have been linked to immigration abuse in the past;
• Your previous record in dealing with the Home Office, including under the current sponsorship arrangements, the previous Tier 2 and Tier 5 arrangements, or the work permit arrangements that were in place before the introduction of Tier 2 and Tier 5;
• The number of workers employed at your organisation;
• The kind of business you conduct;
• The extent of the business you conduct; and
• The length of time you have been trading.

For the Expansion Worker route, the Home Office will also consider whether the Authorising Officer is based in the UK or overseas. 

The same considerations apply for requests for Undefined or Defined CoS allocations.

The Home Office is not obligated to grant a CoS allocation application. If it is not adequately justified, or insufficient reasoning/evidence is provided, they can refuse an allocation grant, or grant fewer than the number requested. Sponsors may wish to seek legal advice when making their CoS allocation application, particularly as we have seen huge increases in requests for further information from Sponsors requesting CoS allocations.

9. How Do I Assign a Certificate of Sponsorship?

Certificates of Sponsorship must be assigned to the migrant using the SMS system. A CoS can only be assigned by a person who has access to the SMS as a Level 1 or Level 2 user. A CoS cannot be assigned more than three months in advance of the migrant’s start date. 

10. What Is a Defined CoS and Who Needs One?

A Defined Certificate of Sponsorship is required by a Skilled Worker applying for entry clearance from outside the UK. 

A Defined Certificate of Sponsorship is not assigned from the sponsor’s annual allocation – there are no limits to the number of Certificates available. Sponsors must make a request for a Defined CoS allocation on a role-by-role basis. Contrary to the Undefined CoS allocation requests, specific details of the role must be provided. Once the allocation is received, the CoS can only be assigned for the role that the request was made for. 

Defined Certificate of Sponsorship allocation requests take around 24-48 hours to be processed, however, we have seen delays where the Home Office wishes to request further information which is becoming more and more commonplace. 

11. What Information Must Be Included on the Certificate of Sponsorship?

The Certificate of Sponsorship must include: the route on which the migrant is being sponsored, the migrant’s personal information, contact details, work address(es) in the UK, job description, occupation code, hours, salary, and start and end date of employment. The Certificate of Sponsorship must include the same details as stated in the applicant worker’s passport.

Where an agent was used to find the worker (including a recruitment agency, employment business, or other intermediary) details of this agent must be provided. 

Sponsors will also be asked to confirm whether they certify maintenance for the worker and whether an ATAS certificate is required. 

If the worker is related to any other worker/office holder in the business, this must also be declared on the CoS by the addition of a sponsor note after assignment. You should note that a Level 1 or Level 2 user cannot assign a CoS to a family member and the definition of this is broadly construed – if this occurs, this is a mandatory ground for revocation under Annex C1 of the Part 3 guidance.

For the Skilled Worker route, the CoS must also confirm:

• Under which salary Option the migrant intends to rely – details of how the migrant meets the criteria (other than under Option A) must be included;
• Whether the job role is on a client contract and, if so, details of the client contract;
• Whether the role is on the Immigration Salary List or Temporary Shortage List;
• Professional registration details of the worker, if applicable; and 
• Any additional relevant information. 

12. What Happens if I Assign the Wrong Type of CoS?

It is very important that the correct type of Certificate of Sponsorship is assigned to a migrant and that Sponsors understand the difference between Defined and Undefined CoS. If an Undefined CoS is assigned to a migrant who requires a Defined CoS, this is a ground for revocation. 

Annex C2 of the Part 3 guidance contains “circumstances in which we will normally revoke your licence”. It lists the following as a ground for revocation:

“Reference u: You assign an undefined Skilled Worker CoS (or an unrestricted Tier 2 (General) CoS) to a worker who requires a defined (or restricted) one.”

Sponsors should seek legal advice if they are not sure. 

13. How Much Does a Certificate of Sponsorship Cost?

Sponsors must pay a fee each time they assign a Certificate of Sponsorship. If the correct fee is not paid, then the Home Office may cancel the CoS. 

It costs £525 to assign a Certificate of Sponsorship, unless the migrant is applying as a Temporary Worker or as an International Sportsperson (for up to 12 months) in which case it costs £55. 

Sponsors may also need to pay the Immigration Skills Charge.

14. Contact Our Immigration Barristers

For expert advice and assistance in relation to Certificates of Sponsorship, contact our immigration barristers in London on 0203 617 9173 or via the enquiry form below.