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What does it mean to be sponsor licence compliant?
Being sponsor licence compliant includes consistently meeting the legal requirements and responsibilities set by the Home Office for sponsoring overseas workers in the UK.
This includes record-keeping, reporting changes, conducting right-to-work checks, cooperating with audits and more. Failing to comply with these requirements could lead to licence suspension or revocation, as well as damage to your reputation.
Mistakes to avoid when getting a sponsorship licence
Whilst you're looking to acquire your sponsorship licence, there is a strict process you need to follow, and certain mistakes you need to avoid in order to increase your chances of success:
- Choosing the wrong type of licence - You can achieve a worker licence or a temporary worker licence, and applying for the wrong one will slow down the process, as you'll likely have to start from scratch.
- Missing documentation - Businesses often underestimate the importance of highly accurate and up-to-date documentation when applying for their sponsor licence. Even slight errors or omissions can damage your chances of success.
- Unqualified key personnel - Your authorising officer is a senior figure within your organisation who should be accountable for the management of your licence. The wrong appointment can lead to poor management of all duties.
- Failing 'genuine vacancy' test - To ensure sponsored roles are legitimate and necessary for your organisation, the Home Office requires details about the role, including job descriptions and employment contracts. Without detailed information and proof, you may fail to obtain a licence.
We Can Help to Support you with Sponsor Licence Compliance
Mistakes to avoid when sponsoring an inpidual to work in the UK
UK-based businesses that have been granted a sponsor licence must comply with numerous regulations to maintain that licence. Common compliance issues include, but are not limited to:
1. Record keeping duties:
a. Failing to keep accurate and comprehensive records of sponsored employees, including contact details, work addresses and up-to-date copies of relevant documentation like passports and biometric residence permits.
b. Not maintaining proper records of absences (e.g. holidays, sickness, parental leave).
2. Reporting Duties:
a. Failure to report changes to the business, such as the size of the business, main office address, changes in the status of any registration or accreditation you are legally required to hold to operate or trade in the UK (these changes must usually be reported within 20 working days).
b. Not informing the Home Office about changes in a sponsored worker's circumstances, such as changes in job role, salary or work location, within the required timeframe (usually 10 working days). This also includes not reporting if the sponsored worker breaches the terms of their immigration permission, for instance, by not turning up for work or terminating their employment.
3. Conducting Right-to-Work Checks:
a. Failing to conduct thorough right-to-work checks before employing a sponsored worker or not conducting follow-up checks as required.
b. Allowing sponsored employees to continue working without valid leave or permission to work for your business if they are sponsored by another business.
4. Salary and Job Role Compliance:
a. Employing sponsored workers in roles that do not match what was stated in the Certificate of Sponsorship ('CoS') because their actual job is not listed in Appendix Skilled Occupations of the Immigration Rules.
b. Choosing an occupation code that does not accurately match an employee's job description, as a means of paying them less than the going rate for their actual occupation code.
5. General Compliance Failures:
a. Not having adequate Human Resources systems and processes in place to ensure ongoing compliance with sponsor licence duties.
b. Failing to report changes to any key personnel, and not having at least one level 1 user who is an employee or office holder of the business, etc.
c. Not co-operating with a compliance check carried out by the Home Office.
6. Annual Renewals and Audits:
a. Being unprepared for unannounced compliance visits and audits by immigration authorities, which can lead to the discovery of compliance breaches.
b. Not applying for the renewal of the sponsor licence on time (if your licence is due to expire on or after 6 April 2024, you no longer need to renew your licence).
Secured skilled worker sponsor licence
"I wanted to thank you for your amazing effort! This is a personal achievement for me as a director of a small SME. It feels great that our firm is now able to sponsor workers and we could only do it with your guidance and professional help."
Mr Maida04/2023
Can your sponsor licence be suspended?
Failure to comply with sponsorship duties can result in penalties, including downgrading of the sponsor licence rating, suspension, revocation of the licence and substantial fines.
Keeping up-to-date with your Sponsor Management System (SMS), and regularly updating yourself on the ongoing requirements and guidelines you need to be compliant with, are the best ways to avoid such punishments and being rendered unable to employ overseas workers.
If you're worried about your licence being suspended, speak to specialist immigration lawyers like ourselves at Latitude Law for guidance.
How immigration solicitors can help you keep your sponsor licence
Immigration solicitors understand in detail what is needed in order to obtain and maintain a sponsorship licence. This includes all the small details which may seem minor, but can lead to a revoked licence if missed.
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.
