Overview of the Sponsor Licence Compliance
Holding a UK Sponsor Licence gives a business the ability to sponsor eligible workers, but it also creates ongoing legal responsibilities. Employers must continue to meet the Home Office’s sponsor duties throughout the period they hold their licence.
Sponsor Licence compliance involves maintaining accurate records, monitoring sponsored workers, reporting relevant changes and ensuring that sponsorship is used correctly.
Businesses that fail to meet their responsibilities may face enforcement action, including restrictions on their sponsorship activities, suspension or revocation of their licence.
Understanding Sponsor Duties
A sponsor must be able to demonstrate that it understands and complies with its responsibilities.
These responsibilities can include:
- Keeping required records
- Monitoring sponsored workers
- Checking right to work
- Keeping worker contact details up to date
- Monitoring attendance
- Reporting relevant changes to UKVI
- Ensuring sponsored workers undertake the work for which they were sponsored
- Cooperating with Home Office compliance checks
The exact obligations can vary depending on the type of sponsorship and immigration route.
Record Keeping
Good record keeping is an important part of sponsor compliance.
Employers must retain relevant information about sponsored workers, including evidence of right to work checks and other documents required by the sponsor guidance.
Businesses should have a clear process for storing and updating these records.
Poor record keeping can create problems even where the underlying employment is genuine and the worker is otherwise compliant.
Monitoring Sponsored Workers
Sponsors are expected to have HR systems that allow them to monitor sponsored workers.
This includes keeping contact details up to date and tracking attendance.
Where a worker stops attending work, is absent without permission or does not start employment as expected, the sponsor may have reporting obligations.
Businesses should ensure that HR staff understand when immigration issues need to be escalated.
Reporting Changes to UKVI
Certain changes must be reported through the Sponsorship Management System.
This may include changes to:
- A sponsored worker’s role
- Salary
- Work circumstances
- Start date
- Employment status
- The organisation’s circumstances
- Business address or other relevant details
Sponsors must also report significant organisational changes, such as mergers, takeovers, insolvency or substantial changes to the nature of the business where the rules require reporting.
Home Office Compliance Checks
UKVI may carry out compliance checks to assess whether a sponsor is meeting its duties.
The Home Office may review the organisation’s records, HR systems, sponsored workers and business operations.
A compliance check may take place at the business premises or involve requests for information and documents.
Businesses should therefore maintain their sponsorship systems continuously rather than preparing only when they receive a compliance notification.
Sponsor Licence Ratings
A sponsor’s compliance can affect its licence status.
Where UKVI identifies concerns, it may take action depending on the circumstances.
Possible consequences can include:
- Reducing the number of Certificates of Sponsorship available
- Downgrading the licence rating
- Suspending the licence
- Revoking the licence
- Further enforcement action in serious cases
UKVI states that it may take action where a sponsor fails to meet its duties or where there are reasonable grounds to suspect non-compliance.
Compliance After a Business Change
Corporate changes can create immigration issues.
A merger, acquisition, change in ownership, restructuring or change in relationship with an overseas business may affect sponsorship arrangements.
Employers should review their sponsor obligations before implementing significant corporate changes.
This is particularly important for businesses sponsoring workers through Global Business Mobility routes where the relationship between UK and overseas entities can be relevant.
Internal Compliance Reviews
Businesses can reduce risk by regularly reviewing their sponsorship systems.
An internal review can consider:
- Sponsored worker records
- Right to work documentation
- Attendance records
- Job descriptions
- Salaries
- Certificates of Sponsorship
- Reporting procedures
- Key personnel
- SMS access
- HR processes
Regular reviews can identify potential issues before they become serious compliance concerns.
Responding to Home Office Concerns
If UKVI raises concerns about a sponsor licence, the business should respond carefully and within the required timeframe.
We can review the concerns, assess the evidence and advise the business on an appropriate response.
How We Can Help
SWM Solicitors advises businesses on sponsor licence compliance and ongoing sponsorship responsibilities.
We can assist with internal compliance reviews, reporting obligations, changes to sponsored employment, Home Office correspondence and compliance checks.
Effective sponsor management should be treated as an ongoing business responsibility. By maintaining appropriate systems and obtaining advice when circumstances change, employers can better protect their ability to sponsor international workers.