Certificate of Sponsorship (CoS) is an electronic work permit setting out the details of the specific migrant worker and the specific job they will be doing in the UK. There are two types of CoS certificates: Defined and Undefined. CoS first needs to be granted by Home Office as a blank permission called ‘allocation’. This way Home Office controls the number of CoS certificates sponsors issue to migrant workers.
After the sponsor licence application is granted, sponsor employer will receive an approval letter from the Home Office and the appointed Level 1 user will receive an email with login details to access the Home Office online Sponsor Management System (SMS). This will allow sponsor employer to start hiring workers from around the world by issuing them with electronic work permits Certificate of Sponsorship (CoS certificate) via online SMS account.
Defined and Undefined CoS
Defined (used to be called ‘Restricted’) and Undefined (used to be called ‘Unrestricted’). It is important to assign the correct CoS, as otherwise the work visa application is likely to be refused, and it may also cause the employer’s sponsor licence to be revoked (taken away/cancelled) by the Home Office. Workers applying for a Skilled Worker visa from outside of the UK need a Defined CoS. Those are usually granted after one working day and will appear in your SMS. It can take longer if Home Office decides to do additional checks/request further information.
Those who apply from inside the UK need an Undefined CoS. You can request a yearly allocation of Undefined CoS certificates. You can ask for additional allocation at any time. There is an expedited request but it requires an extra £350 payment to the Home Office. Such requests should be decided within about 1-2 weeks from when the extra payment is received by Home Office.
Why it is so important to understand the CoS allocation process
To employ a migrant worker on skilled worker, health and care visa, or other sponsored visas, sponsor employer’s must first obtain CoS allocation from the Home Office. Processing time of CoS allocation requests can be significant, it can take months.
Processing of Defined CoS request it can be anything from 1-2 working days to a few months. The specific timeline depends if Home Office requests additional information and/or documents before making their decision. For Undefined CoS it can take even longer.
The standard Undefined CoS allocation processing time is stated by Home Office as up to 18 weeks. There is priority option with 5 working days processing time but due to high demand it is difficult to get one. Then even if you are lucky with the priority service the Home Office may request additional documents/information which in most cases delay the Home Office decision. Such as business contracts, bank statements, payslips and employment contracts of current migrant workers. Only once CoS allocation is granted by Home Office sponsor employer can assign it a migrant worker.
So what if you want to employ a new migrant worker urgently? Firstly, you need to think strategically and aim to request Undefined CoS allocations in good time before your migrant workers current visa expiry, make assessment of your business needs and request CoS allocation for the estimated number of certificates.
Your CoS year
Once we have decided your CoS allocation, Home Office will allocate them (if any) to your SMS account. You will then have up to 12 months to use them. This is known as your ‘CoS year’ (or ‘allocation year’). Your CoS year runs as follows:
If you held a valid Tier 2 (General) or Tier 2 (Intra-Company Transfer) licence on 30 November 2020 and this was converted into a Skilled Worker or Intra-Company routes licence on 1 December 2020 and your allocation renewal has been automated: from 6 April in one year to 5 April the following year
If you held a valid Tier 2 (General) or Tier 2 (Intra-Company Transfer) licence on 30 November 2020 and this was converted into a Skilled Worker or Intra-Company routes licence on 1 December 2020 and your allocation renewal has not been automated: 12 months from the date your allocation renewal request was granted in 2021 and, in subsequent years, 12 months from the date your allocation renewal request is granted
In all other cases: 12 months from the date your licence was granted and, in subsequent years, 12 months from the date an allocation renewal request is granted.
Renewing your annual CoS allocation
Your CoS allocation will need to be renewed each year while your licence is valid. Any CoS that remain unused at the end of your CoS year will be removed from your SMS account. You cannot carry over any unused CoS to the next CoS year.
At the end of your CoS year, you will either:
• receive an automatic allocation for the following CoS year equal to the number of CoS you assigned during the previous CoS year
• have to make a ‘manual’ request via your SMS account for a further allocation (also known as a ‘follow-on’ allocation).
An ‘eligible route’ is any Worker or Temporary Worker route, except for the following routes (which are ineligible for automatic renewal):
• Seasonal Worker
• Secondment Worker
• Service Supplier
• UK Expansion Worker
If you are eligible for automatic renewal, you will receive an annual allocation equal to the number of CoS you assigned during the previous CoS year. For example, if your allocation for one CoS year was 15, and you assigned 10 of those CoS, you will receive an allocation of 10 for the following year. If you need any more CoS, you will have to make a manual request to increase your allocation.
If you are licensed on the Skilled Worker route, you will only receive an automatic allocation of Undefined CoS – you will need to continue to request Defined CoS as and when you need them, using the process set out in section SK12 of Sponsor a Skilled Worker.
If you do not meet the eligibility criteria for automatic renewal, you will need to submit a manual request via your SMS account (which will be considered by a UKVI caseworker). You can submit your request up to 3 months before the end of your CoS year.