Sectors including IT and communications, transport and storage, healthcare and hospitality rely on foreign workers to fill staff shortages. Acquiring a Sponsor Licence opens up the world to UK businesses looking to hire talent for positions that are difficult to fill locally. However, as the saying goes, with great power comes great responsibility. The Home Office expects approved sponsors to comply with specific sponsor duties, which include maintaining records and keeping to the terms of the sponsor licence.

The recent High Court case, R (on the application of Tendercare Management Ltd) v Secretary of State for the Home Department [2024] EWHC 2154 (Admin), offers critical lessons for companies relying on a UK Sponsor Licence to employ foreign workers.

Key Compliance Failures

Tendercare, a care provider, had its licence revoked after an inspection revealed non-compliance with sponsor duties. The court upheld the decision due to several failings, including:

1. Acting as an employment agency: Tendercare was found to be supplying sponsored workers as labor to third parties, breaching the sponsor guidance.
2. Inadequate record-keeping: The company failed to maintain proper records of absences, such as sickness and holiday tracking.
3. Failure to demonstrate job roles: Tendercare could not provide sufficient evidence that the sponsored roles were genuine, non-routine, or time-bound.
4. Lack of control over employees at third-party sites: The Secretary of State was unsatisfied with Tendercare’s management of sponsored workers at other care providers.
5. Inconsistent contract documentation: There was insufficient documentation regarding agreements with third parties, particularly with verbal agreements not supported by written contracts.
6. Non-compliance with sponsor duties: Tendercare failed to meet several key obligations required of UK sponsor licence holders, including monitoring immigration status and following the guidance on managing workers.

Why Compliance Matters

This case highlights the importance of adhering to the strict obligations of the Sponsor Licence regime. The Home Office places significant trust in employers to uphold immigration control, and failure to do so can lead to severe consequences such as licence revocation, which can severely impact staffing and operations.

What Does This Mean for Employers?

In order avoid disruptions to their operations, approved sponsors must be diligent both in their recruitment efforts and the ongoing duties set out by the Home Office. Likewise, companies considering sponsoring foreign workers need to be aware of ongoing sponsor duties and put systems in place to facilitate compliance.

Sponsors are typically required to comply with the following duties:

• Employee documentation and record keeping
• Proper handling, processing and storage of data

How to Avoid Similar Failures

1. Monitor your staff closely: Ensure that sponsored workers are properly supervised, especially if they are working at client sites.
2. Keep thorough records: Maintain accurate and up-to-date records of all sponsored workers, including their work assignments, absences, and right-to-work documentation.
3. Adhere to contractual obligations: If your business model involves contracts with third parties, ensure that these arrangements are fully documented and in line with sponsor licence requirements.
4. Perform regular audits: Periodically review record-keeping practice
5. Training: Ensure HR staff are trained on Sponsor requirements
6. Stay updated with legal changes: UK immigration law is always changing, sponsors need to stay informed about changes that could have significant impacts to their status.

The Tendercare case is a reminder of the responsibility that comes with a Sponsor Licence. For businesses in sectors like healthcare that rely heavily on international staff, the consequences of non-compliance can be particularly devastating for the company and their sponsored international workers.

This case demonstrates that sponsor licence holders must demonstrate ongoing vigilance in managing their sponsored employees and their compliance duties.

How Gateway Immigration Services Can Help

At Gateway Immigration Services, we provide expert guidance to businesses managing their sponsor licences. From assisting with licence applications to supporting your ongoing compliance, our team ensures that your business remains on the right side of the law.

Get in Touch Today

If you’re a business looking to hire foreign workers, don’t risk non-compliance. Request a call back from our immigration experts. Contact us today! We’ll be happy to discuss your situation and advise you on the best course of action.

Email: info@ukvisagateway.com

Call us on +44(0)2034799979