Having a sponsor licence does not automatically mean that a business can sponsor any overseas worker it wishes to employ.
The job itself must qualify for sponsorship.
One of the first questions an employer must answer is which occupation code applies to the proposed role.
Getting that decision wrong can lead to a visa refusal, delays in recruitment and, depending on the circumstances, compliance action against the sponsor.
With changes to the Skilled Worker route already in force and further decisions expected about the Temporary Shortage List, employers should review proposed vacancies before assigning Certificates of Sponsorship.
What is an occupation code?
Every job sponsored under the Skilled Worker route must be assigned an appropriate four-digit occupation code.
These codes form part of the Standard Occupational Classification system, known as SOC 2020.
They identify different occupations and help determine whether a job qualifies for sponsorship and which salary requirements apply.
Employers must select the code that most accurately reflects the work the employee will actually perform.
The job title is relevant, but it is not decisive.
Two businesses may use the same job title for positions involving substantially different duties. Similarly, calling somebody a manager does not necessarily mean their responsibilities correspond with a managerial occupation code.
The code must fit the job as actually described and performed.
Why does the correct code matter?
The occupation code affects several important aspects of sponsorship.
First, it helps establish whether the job is eligible under the Skilled Worker route.
Second, it identifies the applicable salary going rate.
Third, it may determine whether an exception or transitional provision is available.
Employers are responsible for selecting an appropriate occupation code.
Where UKVI considers that the selected code does not accurately reflect the job, the worker's application may be refused.
Separately, inaccurate or misleading sponsorship information may raise compliance concerns. Whether enforcement action is appropriate will depend on the facts and the applicable sponsor guidance.
A visa refusal and action against a sponsor licence are distinct matters and should not be treated as automatic consequences of every coding error.
The skill requirements changed in July 2025
Since 22 July 2025, jobs sponsored under the Skilled Worker route have generally needed to be skilled to RQF level 6 or above.
This is broadly equivalent to graduate-level work.
It does not mean that every sponsored employee must hold a university degree. The requirement concerns the skill level of the job.
Some occupations below RQF level 6 remain eligible through the Immigration Salary List, Temporary Shortage List or applicable transitional provisions.
Employers cannot assume that a role which qualified for sponsorship under earlier rules remains eligible for a new applicant today.
What salary must the employer pay?
The occupation code also affects the salary requirement.
Under one of the standard Skilled Worker salary options, the applicant must normally be paid at least £41,700 per year and the applicable going rate for the occupation, whichever is higher.
However, £41,700 is not a universal minimum for every Skilled Worker application.
The Immigration Rules contain different salary options for qualifying applicants, including certain new entrants, relevant PhD holders, occupations on the Immigration Salary List, specified health and education occupations and workers covered by transitional provisions.
Employers must establish which salary option applies before assessing the proposed salary.
Working hours also matter.
For many occupation codes, the published going rate is based on a 37.5-hour working week. Where the worker's hours differ, the applicable going rate may need to be adjusted in accordance with the relevant Rules.
Separate calculations may apply to certain health and education occupations.
An employer should therefore not assume that offering £41,700 automatically makes every eligible job suitable for sponsorship.
What is happening to the Temporary Shortage List?
This is an important issue for employers planning recruitment towards the end of 2026.
The Temporary Shortage List includes specified occupations below graduate level, but eligibility is time-limited.
Under the current Immigration Rules, an application relying on the list must be made using a Certificate of Sponsorship issued before 31 December 2026.
The Rules may change, but employers should not assume that an occupation currently on the list will remain eligible under the same arrangements after that date.
The Migration Advisory Committee has considered the future of the Temporary Shortage List. Its recommendations should not be treated as amendments to the Immigration Rules.
Any extension or other change must be implemented through the Rules before employers can rely on it.
Businesses considering recruitment into these occupations should check the precise requirements and applicable dates before committing to a recruitment timetable.
What about workers already sponsored?
The position may be different for an employee who already holds Skilled Worker permission.
Transitional arrangements allow some existing Skilled Workers to continue being sponsored in occupations below RQF level 6, provided the relevant requirements are satisfied.
That can be important when an employer wishes to extend an existing employee's permission or consider another worker with previous Skilled Worker sponsorship.
However, eligibility depends on the worker's immigration and sponsorship history and the particular transitional provision being relied upon.
Simply holding Skilled Worker permission does not automatically establish eligibility under the earlier occupation or salary arrangements.
Salary requirements must also be considered separately.
What is the difference between Defined and Undefined Certificates of Sponsorship?
Once an employer has established that the role is eligible, it must use the correct type of Certificate of Sponsorship.
A Defined Certificate of Sponsorship is generally required where a Skilled Worker is applying for entry clearance from outside the UK.
An Undefined Certificate of Sponsorship is generally used where a Skilled Worker is applying for permission to stay from within the UK.
Undefined Certificates are normally assigned from the sponsor's allocation.
Defined Certificates must be requested through the Sponsorship Management System.
Using the incorrect type of Certificate can affect the worker's application and may raise sponsor compliance concerns.
Employers should therefore establish the applicant's immigration position and the correct Certificate type before requesting or assigning sponsorship.
What information should the employer check?
Before assigning a Certificate of Sponsorship, the employer should establish the actual duties of the proposed job.
The job description should accurately explain the work the employee will undertake.
The employer should then identify the appropriate SOC 2020 occupation code and confirm that the role qualifies for sponsorship.
The proposed salary and working hours must meet the applicable requirements.
The employer should also consider whether the applicant is applying from inside or outside the UK, whether any transitional arrangements apply and whether the business has sufficient sponsorship allocation.
Where the proposed role falls within a regulated occupation, additional requirements may need to be satisfied.
These matters should be resolved before the Certificate of Sponsorship is assigned.
Can an employer correct an incorrect occupation code?
Not every error on a Certificate of Sponsorship is dealt with in the same way.
Some errors may be capable of correction through a sponsor note, while others may require the Certificate to be withdrawn and replaced.
An incorrect occupation code can be a significant problem because it may affect the job's eligibility and salary requirements.
Employers should not assume that adding a sponsor note will resolve every coding error.
The appropriate procedure depends on the nature of the error, the stage reached in the immigration application and the Home Office guidance applying at that time.
Where an incorrect code has been identified, the employer should establish the correct procedure before attempting to amend or replace the Certificate.
The better approach is to select the correct code before sponsorship is assigned.
Planning recruitment for 2027
Businesses expecting to recruit overseas workers during 2027 should begin reviewing their requirements now.
Particular attention should be given to occupations currently relying on the Immigration Salary List or Temporary Shortage List.
Employers should also review whether existing sponsored workers need extensions and whether transitional provisions apply.
Where a business is recruiting for a new position, it should establish the immigration requirements before making a firm commitment to the candidate.
The availability of a sponsor licence is only one part of the process.
The employer must also be able to demonstrate that the proposed role meets the requirements of the Skilled Worker route.
How Flashpoint Legal can help
Flashpoint Legal advises UK businesses on sponsor licences, Skilled Worker applications, Certificates of Sponsorship and ongoing sponsor compliance.
We can review proposed job descriptions, assess occupation-code eligibility, advise on applicable salary requirements and assist employers with sponsorship applications.
We also advise businesses employing existing sponsored workers who need to extend their immigration permission or change employment.
If your business is planning to sponsor an overseas worker, contact Flashpoint Legal for advice before assigning the Certificate of Sponsorship.
This article provides general information about the Immigration Rules and Home Office guidance as at 19 October 2026. It is not legal advice. Eligibility depends on the proposed employment, the worker's immigration circumstances and the applicable Rules.
Related reading: Skilled Worker sponsorship is getting harder; Immigration and workforce planning before 2027.