Sponsor Licence Compliance
Is your business prepared for a Home Office compliance audit? Worried about Home Office checks? If you don’t follow sponsor Licence rules, your Licence can be downgraded or removed. That puts your business and your sponsored workers at risk. You must keep the correct records and report any changes. The Home Office can visit at any time, so staying ready is essential.
Your company must apply for a sponsor Licence before hiring skilled workers outside the UK. Only Licenced sponsors can bring in talent from overseas. Need help with your sponsor Licence application? Call us at +447561699666. We’re here to help online, by phone or in person.
What are the sponsor Licence duties?
Sponsors must adhere to the following to benefit from employment sponsorship and gain access to the worldwide talent market:
- Determine that the foreign employees you plan to sponsor has the necessary training, expertise, or credentials to perform the position for which they are being hired, and keep records and copies of the supporting documents.
- Foreign employees should only be granted Certificates of Sponsorship for positions eligible for sponsorship.
- Keep track of your sponsored personnel and contact the Home Office if they violate their visa or sponsorship terms.
The following are some practical ways to expand the duties:
- Sponsor Licence holders must send the Home Office certain information or events by Text within predetermined deadlines.
- Sponsors are in charge of keeping data for each employee they assist.
- Maintaining compliance with UK immigration laws and the Worker and Temporary Worker Sponsor Guidance.
- Holders with sponsor Licences are required to follow UK law in general, excluding immigration law.
- Every sponsor must act in a way that aligns with their basic beliefs and does not undermine society's overall well-being by abstaining from activities or behaviors that are detrimental to it.
The Home Office may downgrade, suspend, or cancel your Licence if it believes you have violated any of these obligations.
Why Sponsor Licence Compliance Matters for UK Employers
Sponsor Licences allow companies to hire qualified non-UK residents and access the global talent market, but they also impose significant compliance obligations on the employer/sponsor. These requirements are essentially meant to impose on businesses the responsibility for stopping illegal work in the UK.
To fulfill your responsibilities as a sponsor Licence holder, you must be aware of the regulations and have the resources, time, and dedication to ensure your company complies.
Although your Licence cannot be left to operate, it will unlikely need daily care in practice, depending on the number of sponsored workers you hire. In order to prevent accusations of non-compliance, you must comprehend what it means to handle the Licence properly.
Employers who are suspected of violating sponsor duties may be subject to an investigation by the Home Office. They can conduct audits to confirm that sponsors have sufficient human resources processes in place to guarantee compliance, frequently before awarding a sponsorship Licence or at any time while the Licence is in effect. All sponsor Licence holders are expected to always comply with their duties, and site inspections can also be conducted at short notice.
Existing migrant workers’ jobs and immigration status may be jeopardised if the Home Office claims that sponsor Licence duties have not been fulfilled. This could lead to a decrease in the Licence rating, suspension, or revocation of the Licence.
You will have to pay UKVI for an action plan that details the problems you need to fix to upgrade your Licence back to A-status if it is degraded. You might be unable to apply for a new permit for six months if your current one is revoked. This indicates that it is far preferable to proactively fulfil your sponsor obligations rather than face Home Office enforcement action.
When do sponsor Licence duties start?
Your commitment to complying with the requirements as a licenced sponsor begins the moment your licence is issued and continues until you relinquish it, it becomes inactive, or it is terminated. In practice, you must prove that you’ve taken particular steps in preparation for the sponsor Licence application, as the eligibility requirements require organisations to demonstrate specific areas of immigration compliance.
Your obligation for each sponsored employee begins when you assign the Certificate of Sponsorship and ends when one of the following occurs and you disclose it to UKVI:
- When a worker leaves the UK, their entry clearance or Licence expires or is declared invalid
- When their request for entry clearance or authorisation is denied and any administrative review or appeal procedures are completed
- When the worker is allowed to enter or work for another sponsor; when the worker receives compensation or authorisation to continue working on a route without your ongoing sponsorship
- When you inform the Home Office that you no longer sponsor the foreign worker.
How do you comply with your sponsor duties?
To comply with sponsor duties, you must maintain accurate records, report key changes to the Home Office promptly, and ensure sponsored workers meet visa conditions. The level of compliance required depends on your organisation’s size and structure. Regular internal checks and clear procedures help ensure ongoing adherence.
Here’s an outline of how you fulfil such responsibilities based on the size and structure of your organisation:
Keeping thorough records for every sponsored employee is a significant component of sponsor Licence responsibilities. A photocopy or electronic copy of the following documents is one of the documents listed in Appendix D of the Immigration Rules, together with the duration for which they must be kept:
- Copies of the pertinent passport pages for the sponsored worker, including the length of leave to remain, immigration status, leave stamps, and personal identification information.
- Proof of the employee's eVisa (digital immigration status) or, if they had one before, their Biometric Residence Permit (BRP).
- Evidence of the employee's National Insurance number includes a payslip with the number on it, a copy of their NI card, or a notice letter.
- current and historical records of the employee's contact details, such as their home address, phone number, and email address
- If applicable, provide a copy of the worker's DBS check.
- A complete record of the employee's absences, including sick days and yearly leave.
- A copy of the employee's employment contract outlines the position, responsibilities, and compensation.
- Documents such as degree certificates or professional accreditations attesting to the employee's suitability for the position.
- The documentation you used to submit your sponsor Licence application must also be retained.
You should also maintain up-to-date records of your sponsored employees’ pay rates (paystubs, bank transfers, employment contracts, and evidence of benefits) and sufficient documentation to demonstrate that the position and the candidate have the necessary skill level.
These documents must be kept on file for whichever is shorter:
- One year from the day you stop sponsoring the employee.
- The date on which a compliance officer reviewed and approved the documents, provided such review and approval occurred within one year before the termination of the sponsorship.
However, some papers would need to be retained for extended periods to meet other regulatory obligations and prevent civil penalties for illegal employment.
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In addition to maintaining documentation, sponsor Licence holders should notify the Home Office via the SMS Portal within ten business days if any of the following circumstances have taken place:
- On their first day, a sponsored employee fails to attend work.
- The contract of a sponsored employee is ended early.
- A sponsored employee misses ten or more days of work without authorisation. The sponsors must approve all sponsored employee absences, including those for illness, yearly leave, study leave, and international travel.
- Substantial modifications have been made to a sponsored worker's employment contract, such as when the employee has been transferred to a new sponsor.
Employers are also required to monitor their workers’ immigration status, record any changes, and alert the Home Office to any suspicions or proof that a person is violating the terms of their stay in the UK.
According to a change in sponsor guidance made in November 2022, sponsors are no longer required to inform the Home Office if a sponsored person begins employment before the planned date indicated on their Certificate of Sponsorship, as long as the new start date occurs after their visa was issued.
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Reporting organisational changes
The Home Office requires these organisations to notify certain personnel and organisational changes to maintain current records and implement immigration laws.
Any changes to the organisation’s size or that affect its charity status must be disclosed within ten days.
You have 20 working days to report the following changes:
- Changing the name of the organisation
- Taking over or selling all or a portion of the company
- The business has stopped operating.
Additional modifications that need to be recorded include:
Change of company address
Opening or closing a foreign branch, subsidiary, or linked company.
Opening or closing a UK branch
Change of Authorising officer
Other significant changes to the company
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It is important to remember that one of your duties as a sponsor is to abstain from actions that are harmful to the general welfare. Sponsors should only hire registered, experienced, and qualified individuals for the position in question. You cannot sponsor the employee or assign a CoS if the vacancy is not legitimate.
You should maintain documentation attesting to the employees’ suitability for the job and monitor each worker’s immigration status to prevent unlawful labour. Remember to adhere to UK employment laws and ensure the national minimum wage is paid.
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CoS applications & renewals of certificates
An organisation has three months from when a sponsorship certificate is assigned to a person to give to the employee.
Unrestricted certificates of sponsorship are awarded annually and expire at the conclusion of each fiscal year. Organisations are required to request a new certificate every year, and they can do so starting on January 5.
Employers must ensure that their staff members possess the required credentials and only award certificates for positions that qualify for sponsorship.
Appointing key personnel
Another requirement for sponsors is to designate specific key persons who will manage their sponsor Licence and ensure the organisation is carrying out its obligations.
One individual or a group may be given these responsibilities, and outside advisors may occasionally be brought in. The HR manager typically takes on all significant personnel responsibilities for smaller businesses with fewer sponsored employees. Larger companies with a large number of sponsored employees will normally give each member of the HR team a particular responsibility.
You must designate an Authorising Officer when applying for a sponsor Licence. Throughout your Licence, you must always have an authorised officer on staff.
The senior employee having the power to hire overseas personnel should be the authorising officer. The sponsorship Licence is ultimately their responsibility.
The AO will be your organisation’s first and foremost point of contact with UKVI. They will receive emails about modifications to sponsors’ responsibilities, the need to renew sponsorship certificates, or the Licence itself. Additionally, they must approve most Licence updates or changes, such as informing UKVI of a new branch.
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Level 1 and Level 2 users use the online Sponsorship Management System to carry out the daily tasks expected of the sponsor Licence holder.
You will typically have one or more Level 1 Users handling your daily immigration tasks.
Level 2 User positions are being phased out as the new Sponsor UK system is implemented. The only users who will switch to this new platform are Level 1. In order for sponsors to prepare, all required persons must meet the expanded Level 1 user criteria.
Level 1 Users must have settled worker status, such as British citizenship or indefinite leave to remain, and be at least one director, employee, or partner of the organisation as of January 1, 2025. Different people may have satisfied these conditions in the past; presently, only one person needs to complete both.
They have complete access to the SMS, which is where all of your Licence’s features are operated:
- Assigning Certificates of Sponsorship (CoS), reporting migrant activity and changes in circumstances, requesting CoS, applying for and assigning limited CoS, and doing other standard sponsorship tasks
- Viewing details about your Licence
- Inform UKVI of any organisational changes.
- Applying to renew your Licence and monitoring its status
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Your key contact is the other primary point of contact for the Licence from UKVI. They are in charge of communicating with the Home Office. If the Home Office has any questions concerning your sponsor Licence application, the provided paperwork, or the payment, they will contact them.
You must designate a key contact when you apply for a Licence and keep one on hand at all times while you have one.
If they are situated in the UK, your main contact may be a legal representative or an officer or employee of the business.
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Many sponsors fail to fulfil their compliance obligations because of problems with the key staff. In general, sponsors should conduct routine checks on important personnel appointments and Licence management activity, as we have outlined some frequent risk factors below.
Additionally, employers need to know that essential people must fulfil specific requirements and will be subject to background checks. If there are problems with your suggested key personnel’s appropriateness, the organisation may be subject to enforcement action.
When submitting a sponsorship application, the Home Office will confirm that none of the essential persons threaten immigration control.
Typically, a paid employee or office holder, Directors, the firm’s owners, and the company secretary are among the office holders. Your essential staff members cannot be:
- An agent who is not based in the UK
- A consultant or contractor who was hired for a particular project
- Subject to a bankruptcy restriction order or undertaking was legally prohibited from serving as a company director.
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UKVI has the right to downgrade your Licence, charge you to upgrade it again, or even cancel it completely if one of your key individuals departs the company and you don’t find a replacement or if the person doesn’t fit the requirements.
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All Key Personnel’s contact information must be included when you apply for a Licence and in case anything changes later.
Each of your key personnel’s contact information must be one of the following:
- Your home address
- Your licensing includes a branch or main office.
- The business address of your representative
If your company moves, you must update the Licence address and the contact information for your key personnel.
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Every email address you give to key personnel needs to be private and secure, and only the designated person may access it. Additionally, each Level 1 User’s log-in information is unique and cannot be used or accessed by anybody else.
When UKVI finds a violation of either of these regulations, they have the authority to suspend a Licence.
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What Does the Home Office Do When a Sponsor Fails Their Duties?
At any time throughout the four-year Licence validity period or prior to awarding or renewing a sponsorship Licence, the Home Office may conduct investigations to confirm that an organisation has adequate HR procedures in place to guarantee compliance. All sponsor Licence holders are expected to always comply with their duties, and site inspections can also be conducted at short notice.
Existing migrant workers’ jobs and immigration status may be jeopardised if the Home Office claims that the organisation has not complied with sponsor Licence responsibilities. This could lead to a decrease in the organisation’s Licence rating or the suspension or revocation of the Licence.
How can we assist?
If you don’t follow your Licence obligations, the Home Office may take enforcement action against you, including suspending or revoking your Licence. This could interrupt your business operations and affect the visas of your sponsored employees.
A neglected Licence could be problematic if the Home Office shows up at your place without warning or if you want to obtain a CoS. If you stay on top of your sponsor Licence obligations and compliance, you can avoid problems, scrutiny, and penalties. As UK company immigration experts, we offer sponsor Licence holders continuous compliance support and advice. Contact Immigration Solicitors UK at +447561699666 if you want to know anything about Sponsor Duties.
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FAQ
Sponsor Licence duties FAQs
What are the main duties of a sponsor Licence holder?
As a sponsor, you must ensure your organisation complies with UK immigration laws. This includes verifying that sponsored workers have the correct skills and qualifications, maintaining accurate records, reporting key changes to the Home Office, and monitoring employee activity. These duties begin when your Licence is issued and continue until it is surrendered, made inactive, or revoked.
What documents must I keep for each sponsored worker?
You are required to keep copies of key documents for every sponsored worker. These include passport ID pages, evidence of immigration permission such as a Biometric Residence Permit (BRP) or eVisa, the worker’s National Insurance number, their signed employment contract, qualifications, and a full absence record. You must also keep current and historical contact details, including residential address, phone number, and email. In some cases, you may also need to retain evidence such as a DBS check or professional accreditations, depending on the role.
How long must I retain records?
Records must be kept for at least one year after sponsorship ends or until a compliance officer has reviewed them, whichever is sooner. However, you may need to keep some records for longer if required by tax, employment, or other regulatory obligations..
Do I need to update the contact details for sponsored workers?
Yes, you are required to maintain accurate and up-to-date contact details for each sponsored worker, including their residential address, telephone number, and email. These records must be current and readily available for inspection during any Home Office compliance visit.
What is the action plan if my Licence is downgraded?
If downgraded to a B-rating, you must:
- Pay for a UKVI-issued action plan
- Follow the required steps to address breaches
- Pass a reassessment to regain an A-rating
While downgraded, you cannot assign new Certificates of Sponsorship.
Do sponsor Licence duties differ by organisation size?
Yes. Larger organisations may divide sponsor duties across departments, while smaller businesses may rely on one person. Regardless of size, sponsors must maintain systems for:
- Record-keeping
- Internal compliance checks
- Timely reporting