Sponsor Licence Responsibilities: What Employers Need to Know to Stay Compliant
It is a requirement for UK employers looking to hire non-UK workers to apply for a sponsor licence under the Skilled Worker route or any other visa route. A licence, however, comes with significant obligations, which employers are expected to adhere to carefully by integrating UKVI standards. Failure to meet these obligations will attract harsh penalties, such as having their sponsor licence suspended or revoked. This guide covers all the most important obligations employers must uphold to remain compliant and penalised.
Overview of Sponsor Licence Obligations
A sponsor licence application allows the employer to sponsor foreign workers to come and work for them. Still, this licence has ongoing obligations beyond an application for a sponsor licence. The Home Office expects all licence holders to meet specific standards throughout the period. Compliance ensures that the visa system is not exploited or used in a way that has employees working under illegal conditions.
The Home Office streamlined licence renewals in April 2024. It abolished the renewed four-year licensing and extended licences for ten years automatically. This change puts more attention on continuous compliance because, with frequent audits, companies are held accountable for all sponsorship duties.
Responsibilities for Licence Holders
- Conducting Right to Work Checks
Employment Rights Employers are legally required to check that all workers they hire from, whatever country, have the right to work in the UK. The right-to-work checks will inspect the passport, visa, or other paper of those on whom such checks are made and retain copies thereof for record purposes. Certain applicants will be searched using the available manual checking services. Others will be searched on the online checking services provided by the Home Office. These must be done before a person starts working and at reasonably frequent intervals also, to prevent people from legally working more than one day if the visa is expiring.
The most common reason a sponsor licence is suspended is due to failure to comply with these controls. To make sure compliance is maintained in this area, periodic audits and HR training are required.
- Record-Keeping and Documentation
All sponsored employees must be kept up-to-date records in relation to their employment on the part of the employer. These should consist of:
- Photocopies of passports, visas, and Certificates of Sponsorship (CoS)
- Job descriptions, employment contracts, and payslips
- Documentation of all recruitment activities and evidence that the applicant meets the 'English language requirement' where this applies
Proper record-keeping plays a pivotal role because false or missing records have been the main reason for sponsor licence suspension. Organisations should have neat and orderly HR systems. All the relevant documents must be updated or made available during UKVI's audit.
- Communication of Change in Employment
All significant changes affecting the employment of sponsored workers should be reported to UKVI using the Sponsor Management System (SMS) within ten working days. This includes title, salary, work location changes, and contract termination before the job's end date. If such changes are not reported within the stipulated ten working days, UKVI shall suspend or revoke the sponsor licence.
This is a way of implementing plain internal procedures to monitor any change among employees. It ensures that all change reports reach the authority in time and that there are no untoward problems or conflicts with compliance in any given situation.
- Legitimate Employment and Appropriate Use of CoS
The roles of a sponsored worker should be legitimate and add up to the skill and salary thresholds of the relevant category for the visa. Issuance of a CoS for non-essential roles or even roles that do not meet the requirements set in the visa is definitely a breach of a sponsor's responsibilities. This abuse triggers red flags on checks and may land penalties or suspension.
Another area that employers must pay attention to is that the duties indicated on the CoS should be the same as those being performed. In other cases, this will lead to non-compliance.
- Providing Equal Employment Conditions
Sponsored employees should have equal employment rights as all other household workers. They should receive reasonable wages, proper working time must be applied to them, and they are entitled to receive statutory benefits, such as sick pay, leave on holidays, or parental leave. The sponsors must not discriminate against their sponsored employees. They must provide equal chances of promotion and career development in the company.
This would expose them to having their sponsor licence suspended and may also result in legal action under UK employment law.
Continuous Compliance Under New Rules
The discontinuation of four-year renewals has made it an obligation for employers to constantly maintain compliance, with no reliance on the renewal application to improve their records. The department monitors unannounced and announced audits carried out by UKVI, so it is essential that businesses are always prepared.
To maintain compliance, employers should:
Regular Internal Audits: The HR processes are audited regularly to see whether they meet the requirements of UKVI.
Use the SMS System Properly: Key persons who handle SMS are trained to report changes promptly and correctly.
Status of the employees: The visa expiration dates for all employees are tracked. Before they expire, reminders are given to employees in case their immigration status lapses.
Meet an Immigration Lawyer: working with professionals in the field avoids pitfalls and ensures that the business keeps abreast of changes in immigration legislation.
Check out this success story on how a sponsor licence suspension is overturned.
Legal Effects of Non-Compliance
Failure to comply with the requirements for sponsorship licence will attract suspension whereby no CoS is granted or renewed of those already issued. When sponsor licence suspension is in progress, firms are expected to solve problems identified by the Home Office within a specified time. If not resolved, the licence may be cancelled, and the worker may remain without a valid job and business to seek a new licence.
A licence holder should act quickly with remedial actions when a breach is suspected. For instance, a response within the shortest time will likely revive a suspended licence.
Get Legal Assistance
Sponsor licensing entails much more than just getting the licence. There is an ongoing requirement to adhere to the guidelines of UKVI. Among others, right-to-work checks, record keeping, change in employment, and fair treatment of workers are significant responsibilities of all licence holders. Failure to conform with these stipulations can lead to significant consequences, including suspension of your licence when you are a business looking for sponsorship licence business advice or have difficulty dealing with the various demands of the sponsor licence application.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with a sponsor licence application. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!
