Employer Sponsorship Rules

Employer Sponsorship Rules define how companies can legally hire and support foreign workers across different jurisdictions.

Global employers increasingly hire across borders, but immigration pathways differ widely. Two important systems—the U.S. PERM labor certification and the U.K. sponsorship licence framework—shape how employers can legally sponsor foreign workers. While both aim to balance labour market needs with worker protections, the rules, timelines, and employer obligations vary significantly.

Below is a practical, side-by-side breakdown to help HR professionals, recruiters, and business owners navigate these systems more confidently.

1. Core Purpose of Each System

U.S. PERM (Program Electronic Review Management)

The PERM process is part of the employment-based green card route. It requires employers to prove that no qualified U.S. workers are available for the role before sponsoring a foreign worker for permanent residence.

U.K. Sponsorship Licence

The U.K. system focuses on granting employers permission to hire international workers under temporary or long-term work visas, such as the Skilled Worker visa. The goal is to ensure only compliant employers can sponsor migrants and that roles meet eligibility criteria.

Key difference:
PERM tests the labour market to protect U.S. workers; the U.K. approach certifies employers and job roles through a regulatory licensing structure.

2. Employer Eligibility Requirements

U.S. PERM

Employers must:

• Have a bona fide job opening.
• Pay at least the prevailing wage set by the Department of Labor.
• Conduct mandatory recruitment steps.
• Demonstrate sufficient financial capacity to hire.

U.K. Sponsorship Licence

Employers must show:

• They are genuine, operating, and lawfully established.
• They have HR systems to monitor sponsored workers.
• A history of compliance—no prior immigration violations.
• A designated Authorising Officer, Key Contact, and Level 1 User.

Summary: The U.K. focuses on organisational compliance; the U.S. focuses on labour market testing and wages.

3. Labour Market Testing & Job Advertising

U.S. PERM

Advertising is mandatory and strictly regulated:

• Two Sunday newspaper ads.
• Job Order with State Workforce Agency.
• Additional recruitment steps (e.g., job fairs, professional journals).
• Detailed recruitment reports documenting results.

U.K. Sponsorship Licence

Labour market testing was largely removed in 2021 for Skilled Worker visas.
Employers only need to:

• Offer a genuine vacancy.
• Meet salary thresholds.
• Ensure the role is at the appropriate skill level.

Bottom line:
PERM requires extensive and prescriptive advertising; the U.K. has no formal recruitment requirement except showing the role is genuine.

4. Processing Steps & Timelines

U.S. PERM

1. Prevailing Wage Determination (6–12 months)
2. Recruitment (2–3 months)
3. PERM Filing (decision can take 6–12+ months)
   Optional: Premium Processing recently became available for some PERM-related steps—but not for the labor certification itself.

Total average timeline: 1–2 years, depending on audits.

U.K. Sponsorship Licence

1. Application for sponsorship licence (typically 8 weeks; priority service available)
2. Once approved: Employer can assign Certificates of Sponsorship (CoS)
3. Worker applies for visa (3–8 weeks)

Total timeline: 2–10 weeks, significantly faster than PERM.

5. Costs to Employers

U.S. PERM

Common expenses include:

• Recruitment advertising costs
• Attorney fees
• Filing fees for subsequent stages (I-140, Adjustment of Status)
• Prevailing wage compliance obligations

U.K. Sponsorship Licence

Costs can include:

• Licence fee (varies by business size)
• Immigration Skills Charge (ISC) per worker, per year
• CoS assignment fees
• Legal/consultancy fees
• HR compliance costs

Observation: The U.K. has recurring costs (like ISC), whereas U.S. costs are heavier upfront.

6. Compliance Monitoring & Audits

U.S. PERM

• Department of Labor can issue audits, either random or targeted.
• Employers must retain recruitment documentation for five years.
• Green card sponsorship is employer-specific and job-specific.

U.K. Sponsorship Licence

• The Home Office may conduct announced or unannounced inspections.
• Employers must track absences, keep copies of right-to-work checks, and update sponsorship management systems.
• Licences can be downgraded, suspended, or revoked.

Takeaway: The U.K. system emphasizes continuous compliance; U.S. PERM emphasises documentation during the application period.

7. Worker Benefits & Outcomes

U.S. PERM

• Leads to a permanent resident status pathway.
• Worker can later change jobs under specific conditions (after green card stages).

U.K. Sponsorship

• Leads to temporary visas that may allow settlement (typically after 5 years), depending on the visa category.
• Changing employers requires a new Certificate of Sponsorship.

Which System Is More Employer-Friendly?

• U.K. Sponsorship Licences are faster, more flexible, and easier for ongoing hiring—ideal for fast-growing companies or sectors with labour shortages.
• U.S. PERM is more stringent due to labour-market protections and the permanent residency outcome, making it slower and more complex.

Ultimately, global employers must evaluate:

• Their timeline for hiring
• The skill level of the role
• Budget for compliance
• Long-term workforce plans

Both systems can be navigated successfully with proactive planning, robust HR procedures, and legal guidance.