Holding a UK Sponsor Licence gives businesses access to a global talent pool but it also comes with strict compliance duties. A single misstep can result in licence suspension, revocation, or fines of up to £60,000 per illegal worker.
Here, we highlight the most common and costly mistakes employers make, how to avoid them, and the real-world consequences of non-compliance.
1. Inadequate Right to Work Checks (Especially Post-BRP Digitisation)
The Pitfall: Failing to complete a compliant right to work check before the employee starts – particularly for Biometric Residence Permit (BRP) holders, which must now be verified digitally.
Why It Matters: Since October 2022, all BRP holders must be checked online using a share code. Physical BRPs are no longer valid for right to work purposes. Failure to comply can result in civil penalties of up to £60,000 per illegal worker.
How to Avoid It:
- Always request a share code and complete the check online at gov.uk/view-right-to-work before the employee's first working day.
- Retain evidence of the check, including the date and who completed it.
- Train HR staff regularly to ensure they're up to date with the latest requirements.
2. Poor Record-Keeping Practices
The Pitfall: Not keeping compliant records for sponsored workers – such as visa copies, contact details, job descriptions, or absence records.
Why It Matters: The Home Office expects sponsors to maintain comprehensive records to demonstrate ongoing compliance. Missing or outdated files can lead to enforcement action or licence downgrading.
How to Avoid It:
- Align internal systems with Appendix D of the Sponsor Guidance.
- Use digital HR platforms with audit trails.
- Conduct regular file reviews and compliance spot checks.
3. Failing to Report Delays to Start Dates
The Pitfall: Allowing a sponsored worker to begin later than stated on the Certificate of Sponsorship (CoS) and failing to notify the Home Office.
Why It Matters: The Home Office may assume the worker has been underpaid, which is a serious breach. Repeated failures of this kind can result in licence revocation.
How to Avoid It:
- Report any change to the employee's start date via the Sponsor Management System (SMS) within 10 working days.
- Cross-check actual start dates with CoS records.
- Ensure HR and hiring managers communicate clearly and document changes.
4. Assigning CoS for Ineligible or Non-Genuine Roles
The Pitfall: Issuing a Certificate of Sponsorship for a role that:
- Doesn't meet minimum salary or skill thresholds,
- Doesn't genuinely exist,
- Was created solely to facilitate sponsorship.
Why It Matters: The Home Office closely scrutinises whether a role is genuine and needed by the business. Improper CoS use can lead to licence suspension or revocation.
How to Avoid It:
- Retain evidence of recruitment processes and candidate selection.
- Match job roles accurately to Standard Occupational Classification (SOC) codes.
- Avoid assigning CoS pre-emptively or without a clear business need.
5. Insufficient Monitoring of Sponsored Workers
The Pitfall: Failing to track visa expiry dates, absences, or changes in role, salary, working hours, or work location.
Why It Matters: Sponsors must monitor and report changes to ensure workers are operating under the terms of their visa. Any deviation without notification is a breach.
How to Avoid It:
- Use HR systems with built-in alerts for visa and absence tracking.
- Keep detailed logs of all absences and remember to report those over 10 consecutive working days.
- Update the SMS promptly with any material changes.
6. Overlooking Organisational Changes
The Pitfall: Not reporting key changes to your business such as:
- Registered address changes,
- Acquisitions or mergers,
- Changes in ownership or company name.
Why It Matters: These changes can affect your sponsor profile and your licence's validity. Failure to report can result in compliance penalties or suspension.
How to Avoid It:
- Inform the Home Office of changes via SMS within 20 working days.
- Incorporate immigration compliance into Mergers and Acquisitions due diligence.
- Keep the Authorising Officer, Key Contact and Level 1 users aware of business changes.
7. Failing to Declare Family Relationships with Sponsored Employees
The Pitfall: Not declaring when a sponsored worker is a family member of someone in your organisation – especially anyone involved in recruitment, supervision, or immigration matters.
Why It Matters: The Home Office takes conflicts of interest seriously. Undisclosed family ties can appear deceptive and risk your licence being downgraded or revoked.
How to Avoid It:
- Declare any familial connection when applying for or assigning a CoS.
- Ensure the recruitment process is fair, transparent, and documented.
- Where necessary, introduce independent oversight into decisions involving family members.
Conclusion: Prevention is Your Best Protection
Maintaining a Sponsor Licence is about more than avoiding fines – it's about protecting your business's reputation and long-term access to global talent.
Key Reminders:
- Always conduct digital right to work checks using share codes – never rely on expired physical documents.
- Report delays to start dates immediately to avoid accusations of underpayment.
- Be transparent about family ties and any conflicts of interest.
- Review your internal systems regularly or better yet, commission a mock audit.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
