Importance of Sponsor Licence Compliance

A sponsor licence empowers the employer to sponsor skilled workers lawfully under set visa categories such as the Skilled Worker Visa. By saying that compliance is not a choice, and not qualifying for a sponsorship licence has many serious implications, including sponsor licence suspension. UKVI checks licence holders frequently, and for that matter, businesses have to create systems that follow all quality standards.

Key Compliance Obligations

The Home Office clearly points to some compliance requirements that all sponsors must meet as well. These have been categorised as follows:

1. Record Keeping

Employers need to keep records of all the workers they are sponsoring. This is comprised of photocopies of their passports, visas, biometric residence permits, and contact information as well. They must also retain records of employment contracts, salaries and remuneration, and proof of completed right-to-work cheques. These records shall be open for inspection by UKVI time, and wrongful management may result in a penalty or a downgrade of the licence.

2. Monitoring and Reporting

You are under an obligation to know the immigration status of your sponsored workers as licence holders. If there is any change in employment as such, for example, unauthorised absences, cessation of employment or change of employment, the employee must provide a notification to the Home Office through SMS within 10-20 working days from the actual occurrence of the event. Failure to check in and report contributes to the suspension of a sponsor licence​.

3. Right to Work Checks

You are bound to conduct formal right-to-work checks on all your sponsored staff as you are responsible for ensuring that all the employees are lawfully employed in the UK and maintain a valid immigration status. The check-in should be foolproof and backed by proper documentation so that there is no oversight on your part, which may lead to the illegal employment of a person​.

What If Your Sponsor Licence Is Suspended?

A sponsor licence suspension is actually a very serious warning issued by UKVI, showing that the organisation fails to meet its sponsorship obligations. During your suspension period, you cannot issue any new Certificates of Sponsorship or sponsor any new workers. However, you can continue allowing the sponsored workers to continue working, but the suspension will still stay in place until the wrongdoing is rectified.

Steps to Take After a Suspension

Once your Sponsor licence is suspended, the following should be done immediately:

Examine the Suspension Notice: The paper will explain, in detail, why the Suspension Notice has been issued. Pay attention to the particular breaches identified by UKVI.

Correct the Errors: You must correct the compliance errors pointed out on the suspension notice. This could include updating your record-keeping, strengthening right-to-work cheques at least every three years, and much more that must be updated with employment records.

Submit a Response to UKVI: Ordinarily, you will be given 20 working days to lodge your response to the notice of suspension. Your response should include detailed evidence of the measures taken to rectify all non-compliance issues​.

Failure to adequately address the matters raised in the suspension notice would even call for a worse outcome: revocation of your licence. Revocation of your licence may also attract a "cooling-off" of 12 months before applying for another licence.

Prevention of Sponsor Licence Suspension

An ounce of prevention is worth a tonne of cure. Avoid a sponsor licence suspension by being prepared. Here are some useful tips:

1. Carrying out Regular Audits

It is advisable to conduct internal cheques and reviews of your organisation’s HR and compliance systems at regular intervals to ensure they meet the requirements for a sponsorship licence. When you have a specific date for the assessment by a UKVI, the internal audit will flag off all the compliance issues, and there will be enough time to address them.

2. Be Informed about Changes in Immigration Law

UK immigration rules are constantly changing. Ensuring your organisation is up to date and maintains compliance with these changes. An example of recent reporting responsibilities for offshore workers has just been introduced under SMS. It may be prudent for you to communicate with your employees and inform them of their reporting requirements.

3. Staff Training

All personnel working with the management of the sponsor licence, human resource personnel, and compliance officers should be provided with regular training. This will make it possible for them to appreciate the reporting requirements, record-keeping duties, and their responsibilities while working under UK immigration law.

4. Reporting In a Timely Manner

Report any change within the given period with respect to sponsored employees, either a change of job role or unauthorised absence. This is against the non-compliance and the resulting penalties that will be incurred.

Impact of Non-Compliance

Failure to meet the requirements for a sponsorship licence may attract a significant penalty. If UKVI detects non-compliance during an inspection of your licence, they might downgrade it from an A-rated to a B-rated one, suspend it, or even completely revoke it. Suspension makes it impossible to hire international workers and may cause problems in running your operations. Revocation makes the sponsored employees currently working for you leave the UK altogether.

Watch this video to learn the consequences and the action plan if you are faced with a revoked sponsor licence. 

Get Expert Guidance

Businesses employing skilled people outside the UK must comply with their duties under a sponsor licence. One can avoid having the sponsor licence suspension through proactivity, regular audits, keeping abreast of changes in the law, and proper reporting on time. Do you need help to understand what is expected for a sponsorship licence? You might need professional legal advice from A Y & J Solicitors to ensure your business is compliant and does not commit any penalties. 

A Y & J Solicitors is a specialist immigration law firm with extensive experience with the requirements for a sponsorship licence. 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!