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The United Kingdom Home Office has increased its compliance activity, using data from across government departments to spot inconsistencies in sponsorship applications. A key focus area has been salary changes for sponsored workers that haven't been reported properly—and this is already leading to enforcement action.
The Home Office is identifying discrepancies between reported salary data and actual payments. Where reductions in salary have not been properly reported via the Sponsor Management System (SMS), enforcement action is being taken. While salary reductions are permitted in limited circumstances (e.g. maternity, paternity, or sick leave, or where minimum thresholds continue to be met), all changes must be reported.
The potential consequences of non-compliance in meeting sponsor duties include:
- Formal compliance requests (including detailed payroll records and supporting documentation)
- Suspension of your sponsor licence
- Revocation of your licence, with associated visa curtailment for sponsored workers
It is recommended that all global mobility and HR teams conduct an internal review of licence details, salary compliance, and record-keeping of SMS updates.
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.
