Types of UK Employer Sponsor Licenses: Tier 2 vs. Tier 5 Explained

ATHILAW

Sep 9

7 min read

The old Tier 2 and Tier 5 sponsor categories are no longer the framework employers apply under. Since the post-2020 immigration system was introduced, sponsored work routes have been grouped for licensing purposes into Worker and Temporary Worker routes.

The distinction is not simply permanent versus temporary employment. Some Worker routes, such as Global Business Mobility – Senior or Specialist Worker, do not lead directly to settlement, while the Scale-up route is classified as a Temporary Worker route for sponsor-licensing purposes but can lead to settlement for the worker. The correct licence therefore depends on the specific immigration route you intend to use.

From 8 April 2026, a Worker sponsor licence costs £611 for a small or charitable sponsor and £1,682 for a medium or large sponsor. A Temporary Worker licence costs £611 regardless of organisation size. Certificate of Sponsorship fees are generally £525 for the main Worker routes and £55 for Temporary Worker routes, although International Sportsperson fees depend on the period of sponsorship.

What the old names map to

Old route	Current closest equivalent	Sponsor licence category
Tier 2 (General)	Skilled Worker	Worker
Tier 2 (Intra-Company Transfer)	Senior or Specialist Worker	Worker
Tier 2 (Minister of Religion)	T2 Minister of Religion	Worker
Tier 2 (Sportsperson)	International Sportsperson	Worker
Tier 5 Charity Worker	Charity Worker	Temporary Worker
Tier 5 Creative and Sporting	Creative Worker / International Sportsperson	Temporary Worker / Worker
Tier 5 Religious Worker	Religious Worker	Temporary Worker
Tier 5 Government Authorised Exchange	Government Authorised Exchange	Temporary Worker
Tier 5 International Agreement	International Agreement	Temporary Worker
Tier 5 Seasonal Worker	Seasonal Worker	Temporary Worker

The current Temporary Worker sponsor category also includes Global Business Mobility – Graduate Trainee, UK Expansion Worker, Service Supplier and Secondment Worker, as well as Scale-up.

An organisation can be licensed on multiple routes at the same time. A theatre, for example, could hold Skilled Worker permission for an eligible long-term finance role while also using the Creative Worker route for qualifying visiting performers. Our overview of what an employer sponsor licence involves covers the wider responsibilities.

The Worker licence, in practice

For many employers, Skilled Worker is the main Worker route. Since 22 July 2025, new sponsorship is generally restricted to occupations skilled at RQF Level 6 or above, although there are exceptions for eligible jobs on the Immigration Salary List or Temporary Shortage List and transitional provisions for some workers already in the route.

The usual Skilled Worker salary requirement is at least £41,700 a year or the applicable going rate for the occupation, whichever is higher. Lower thresholds can apply under specific points options, including some PhD holders, new entrants and qualifying shortage roles, so £41,700 is not a universal minimum for every Skilled Worker application.

For applications under the rules applying from 8 January 2026, new Skilled Worker applicants normally need English at B2 level in reading, writing, speaking and listening. A person whose most recent Skilled Worker permission was granted under the earlier B1 requirement can continue to rely on the transitional B1 standard when extending or updating that permission.

Five years on qualifying routes can potentially lead to indefinite leave to remain. Our guide to sponsoring under the Skilled Worker route explains the process, while the April 2026 Skilled Worker salary rules covers the current pay requirements.

Senior or Specialist Worker is different. It is part of the Worker licence category but is a temporary Global Business Mobility route and does not lead directly to settlement. The worker normally needs at least 12 months' previous employment outside the UK with the sponsor group unless an exception applies, including the high-earner provisions.

Our comparison of Skilled Worker, Senior or Specialist Worker and Expansion Worker routes explains when each route fits.

Getting the occupation code right remains essential because it affects eligibility, the going rate and any available salary option. Our guide to genuine vacancies and SOC codes explains why misclassification can create compliance problems.

The Temporary Worker licence, in practice

Temporary Worker is an administrative sponsor category covering several different immigration routes rather than one generic short-term visa.

The main routes include:

Charity Worker – voluntary, unpaid charitable work for up to 12 months.
Creative Worker – eligible creative-sector employment, generally granted for up to 12 months and potentially extendable to a maximum of 24 months with the same sponsor.
Religious Worker – qualifying non-pastoral religious work, generally for a maximum of two years.
Seasonal Worker – work under an approved horticulture or poultry scheme.
Government Authorised Exchange – approved work experience, research, training or exchange schemes, commonly for 12 or 24 months.
International Agreement – qualifying work covered by international law or treaty obligations.
Scale-up – qualifying high-growth employers sponsoring highly skilled workers for an initial six-month sponsored period.
Several Global Business Mobility routes, including UK Expansion Worker and Graduate Trainee.

Most of these routes do not lead directly to settlement, but Scale-up is an important exception. A Scale-up worker can potentially qualify for settlement after five years if the relevant requirements are met.

It is also incorrect to assume that everyone holding Temporary Worker permission must leave the UK before switching to Skilled Worker. Current Skilled Worker rules specifically prevent in-country switching from certain categories, including Seasonal Worker, Visitor, Short-term Student and Domestic Worker in a Private Household. Other Temporary Worker holders may potentially switch to Skilled Worker from within the UK if they meet all the requirements.

Cost comparison

Cost	Worker routes	Temporary Worker routes
Sponsor licence application	£611 small/charitable; £1,682 medium/large	£611 regardless of size
Certificate of Sponsorship	Usually £525	Usually £55
Immigration Skills Charge	Applies to Skilled Worker and Senior or Specialist Worker in relevant cases	Generally not payable
Settlement	Depends on route; Skilled Worker can lead to settlement	Most do not, but Scale-up can
Duration	Depends on the individual route	Depends on the individual route

The Immigration Skills Charge currently costs £480 for the first 12 months for a small or charitable sponsor and £1,320 for a medium or large sponsor. Each additional six months costs £240 or £660 respectively.

For example, a large employer sponsoring a Skilled Worker for three years would pay £3,960 in Immigration Skills Charge plus the £525 Certificate of Sponsorship fee, before considering the sponsor licence fee or the worker's visa-related costs. By contrast, a qualifying Creative Worker Certificate of Sponsorship costs £55 and does not attract the Immigration Skills Charge.

Our article on using the Immigration Skills Charge in workforce planning covers the main exemptions, while the costs of sponsoring foreign workers gives the broader picture.

What is the same either way

Worker and Temporary Worker sponsors remain subject to substantial compliance duties. You need suitable key personnel, including an Authorising Officer, Key Contact and Level 1 User, and must maintain appropriate HR systems, conduct right-to-work checks where required, report relevant changes through the Sponsor Management System and retain the documents required by Appendix D.

Our guides to maintaining an A rating and passing a UKVI compliance audit cover what UKVI expects.

Certificate management varies by route. Our notes on assigning Certificates of Sponsorship and annual allocations, defined and undefined Certificates explain the mechanics. Defined and undefined CoS terminology applies particularly to Skilled Worker sponsorship.

Most sponsor licence applications are dealt with in less than eight weeks. Eligible applicants may pay £750 for the pre-licence priority service, under which UKVI aims to consider the application within 10 working days. The service is limited and some routes, including UK Expansion Worker, Scale-up, Government Authorised

Exchange, International Agreement and Seasonal Worker, are currently excluded.

Our guide to preparing a successful sponsor licence application covers the evidence required, while current charges are published on the GOV.UK sponsorship pages.

Frequently asked questions

Can I still apply for a Tier 2 licence?

No. The old Tier 2 sponsor category is no longer used. An employer recruiting under the route that replaced Tier 2 (General) now applies to be licensed for Skilled Worker. The current system does, however, retain the name T2 Minister of Religion for that specific route.

Can I hold both licence types?

Yes. An organisation can apply to be licensed on multiple Worker and Temporary Worker routes. They do not necessarily require completely separate sponsor licences or separate full fees. The applicable fee depends on the combination of routes and the organisation's size or charitable status.

Does a Temporary Worker visa count towards settlement?

Most Temporary Worker routes do not themselves provide a direct settlement route. Scale-up is an exception and can lead to settlement. Time spent lawfully on some routes may also be relevant to other settlement provisions, such as long residence, depending on the rules applying to the individual.

How do I check whether a company is licensed?

The Home Office publishes a register of licensed sponsors, which is updated regularly.

Which licence do I need for a six month contract?

It depends on the immigration route and the work, not simply the contract length. A genuinely temporary role must meet the requirements of a relevant Temporary Worker route. An eligible Skilled Worker job can also be sponsored for a shorter period where the Skilled Worker requirements are met.

Choosing correctly the first time

Applying under the wrong route can waste both time and the application fee. A refused sponsor licence application will usually trigger a six-month cooling-off period, although current guidance contains exceptions where no cooling-off period applies and longer periods can apply after licence revocation or other compliance action.

Athi Law's immigration solicitors advise employers across Sheffield, Dronfield and West Bromwich on sponsor licence applications and compliance. Where sponsored staff are relocating, our conveyancing solicitors can assist with property matters, our family law solicitors can advise on family issues, and our child custody solicitors in Sheffield can advise on arrangements for children.

Business owners may also wish to consider a lasting power of attorney as part of wider business-continuity planning. An LPA does not, however, replace the need to maintain compliant sponsor-licence key personnel and Sponsor Management System access.