Sponsor licence compliance advice for employers
A sponsor licence is a valuable business asset. It allows your organisation to recruit eligible overseas workers, but it also brings ongoing legal and regulatory responsibilities.
Sponsor licence compliance must be maintained throughout the life of the licence. Failure to comply with Home Office requirements can lead to serious consequences, including licence downgrading, suspension, revocation, reduced Certificate of Sponsorship allocation and disruption to sponsored workers.
Templeton Legal Services helps employers understand, manage and evidence their sponsor duties. We advise on compliance systems, internal audits, reporting obligations, Home Office visits and remedial action where concerns arise.
What are sponsor duties?
Sponsor duties vary depending on the licence and route, but generally include:
Record-keeping duties
Sponsors must keep accurate records for sponsored workers, including identity documents, right to work evidence, contact details, role information, salary records and other documents required by Home Office guidance.
Good record-keeping is a core part of sponsor licence compliance and may be reviewed during a Home Office audit or compliance visit.
Reporting duties
Sponsors must report certain changes or events to the Home Office within the required timeframe.
This may include changes to:
- a sponsored worker’s role;
- salary;
- work location;
- absences;
- employment status; or
- the organisation’s ownership, structure or key personnel.
Failure to report changes on time can place the sponsor licence at risk.
Monitoring duties
Sponsors are expected to monitor sponsored workers and ensure they are carrying out the role for which they were sponsored.
This includes maintaining appropriate systems to monitor attendance, absences, contact details and changes to employment.
Compliance with immigration rules
Sponsors must comply with the Immigration Rules and Home Office sponsor guidance.
This includes requirements relating to:
- genuine employment;
- eligible roles;
- salary;
- working arrangements;
- Certificates of Sponsorship; and
- ongoing eligibility of sponsored workers.
Compliance with wider UK law
Sponsors must also comply with wider legal obligations, including:
- employment law;
- PAYE and tax requirements;
- National Minimum Wage requirements; and
- applicable sector regulation.
Poor compliance in these areas can raise wider concerns about whether the organisation remains suitable to hold a sponsor licence.
Acting in a way that is conducive to the public good
Sponsors must conduct their business in a manner consistent with the public good and the standards expected of licensed sponsors.
Home Office compliance checks
The Home Office can check sponsor compliance before granting a licence, during the life of the licence, or where concerns arise.
A compliance check may involve:
- a site visit
- interviews with key personnel
- interviews with sponsored workers
- review of HR systems
- review of right to work processes
- requests for additional documents
- checks with HMRC or other government bodies
- review of sponsored roles, salaries and work locations
Some visits may be announced. Others may be unannounced.
What happens if sponsor duties are breached?
If the Home Office believes a sponsor has breached its duties, possible action may include:
- reducing Certificate of Sponsorship allocation
- downgrading the licence rating
- requiring an action plan
- suspending the licence
- revoking the licence
- reporting concerns to other authorities
- affecting sponsored workers’ visas
For businesses that rely on sponsored workers, enforcement action can have immediate operational and reputational consequences.
Common compliance risks
Common issues include:
- incomplete right to work checks
- poor record-keeping
- failure to report changes on time
- sponsored workers carrying out different duties
- salary or working hours not matching sponsorship records
- unclear hybrid or remote working arrangements
- weak absence monitoring
- key personnel not understanding their duties
- business changes not reported to the Home Office
- poor preparation for Home Office audits
Many of these issues can be prevented with regular internal reviews and proper training.
How we can help
Speak to a sponsor compliance lawyer
Sponsor compliance should not be left until there is a Home Office visit or enforcement issue.
A proactive review can identify weaknesses before they become serious problems and help protect your organisation’s ability to sponsor overseas workers.
Our sponsor licence compliance solicitors can review your systems, advise on your duties and help your organisation prepare for Home Office scrutiny.
Contact Templeton Legal Services to arrange a sponsor licence compliance review.
