What is Appendix D?

Appendix D is part of the Home Office’s guidance that specifically details the record-keeping requirements for Sponsor Licence holders. It aims to maintain transparency, integrity, and accountability in the UK’s immigration system, ensuring:

• Sponsors are complying with the rules of sponsorship.
• Sponsored employees have genuine employment and meet their visa conditions.
• The Home Office can inspect and verify records quickly if they need to conduct an audit or compliance visit.

Appendix D covers everything from how long certain records must be retained to the type of evidence needed to prove compliance with various sponsorship duties.

Key Record-Keeping Requirements for Sponsor Licence Holders

Under Appendix D, you are required to keep specific documents and records for each sponsored worker, as well as evidence of your overall recruitment processes. Below, we break down the most critical categories.

A. Employee Right-to-Work Records

One of your primary responsibilities as a Sponsor Licence holder is to ensure that each sponsored worker is lawfully permitted to work in the UK. Appendix D mandates that you keep:

• Copies of Passports or Travel Documents: Including the personal details page, visa vignettes, and any relevant endorsements.
• Biometric Residence Permits (BRP): For those who have them, keep scanned or photocopied evidence.
• Home Office Online Check Evidence: If you use the digital Right-to-Work Checking Service, print or save the check result, including the date you conducted it.

These documents must be clear, legible copies. You should also record the date on which you conducted each right-to-work check, as failing to demonstrate when a check was made can undermine your Statutory Excuse (legal protection against penalties for illegal working).

B. Contact Details and Immigration Status

According to Appendix D, sponsors must maintain up-to-date contact information for every sponsored worker, including:

• Home Address
• Telephone Number
• Email Address

In addition, you should keep a record of the individual’s immigration status: their visa category, visa expiry date, and any restrictions on their work hours or type of employment.

C. Recruitment and Advertising Evidence

For many roles, especially those that need to meet the skill-level requirements, it’s essential to store proof of your recruitment efforts. Appendix D requires sponsors to keep:

• Job Advertisements: Screenshots or printouts showing where and when the vacancy was advertised (e.g., online job boards, newspapers, trade publications).
• Application Forms and CVs: Records of applicants who applied for the role.
• Interview Notes: Brief summaries that help demonstrate the rationale behind your final hiring decision.

These records verify that the sponsored position is genuine and that your organization followed fair recruitment practices, particularly if a resident labour market test was required at any point (or if the Home Office needs evidence of a genuine vacancy).

D. Payment Records and Salary Checks

Sponsors must also keep payment-related documents to show they are meeting the salary requirements for the role, such as:

• Payslips: Regular payslips that align with what you reported on the sponsored worker’s Certificate of Sponsorship (CoS).
• Bank Statements: Company payroll confirmations can support the accuracy of salary payments.
• Employment Contracts and Offer Letters: Ensure these reflect the correct job title, hours, and agreed remuneration.

Maintaining thorough payment records helps prove that your organization is compensating sponsored employees according to the necessary wage thresholds, which can vary by job code and visa route.

D. Historical and Audit Trail Documents

Finally, Appendix D stipulates that you keep an audit trail of sponsorship activity. This could include:

• Certificates of Sponsorship (CoS) Assignments: Details of each CoS reference, start date, and end date.
• Absence Records: Documentation of authorized leaves, vacations, or sickness periods.
• Meeting Notes: Regular performance or catch-up meetings, especially if they relate to job duties or location changes.

You must retain most of these documents for either the duration of the sponsored worker’s employment and for whichever is the longer of one year after their contract ends or the point when a Home Office compliance visit has taken place.te.

Common Pitfalls in Appendix D Compliance

Many Sponsors unintentionally fall short of the Home Office’s requirements. Some frequent oversights include:

• Incomplete Right-to-Work Documentation: Keeping an expired copy of a passport or failing to record the date a check was conducted.
• Outdated or Missing Employee Information: Losing track of updated addresses or failing to remove details when workers leave.
• Poorly Organized Recruitment Records: Not retaining evidence that a role was advertised or failing to keep comprehensive interview notes.
• Inconsistent Payment Logs: Payslip data not matching the original CoS salary details.
• Unclear Audit Trails: Failing to keep a coherent record of all the documents you’ve stored or how these items connect to one another.

Avoiding these pitfalls is crucial for maintaining a pristine Sponsor Licence status and preventing unwanted Home Office scrutiny.sor Licence.Your duties don’t stop at just record-keeping and reporting. The UK Home Office requires sponsors to remain compliant with all relevant immigration and employment rules, including:

Consequences of Non-Compliance

Failing to meet the requirements set out in Appendix D can have serious repercussions:

• Licence Downgrade: An A-rated licence can be downgraded to a B-rating, limiting your ability to recruit new overseas talent
• Suspension or Revocation: Severe breaches can result in the loss of your Sponsor Licence, forcing sponsored workers to find new sponsors or leave the UK.
• Financial Penalties: Employing workers illegally or missing critical documents can lead to hefty fines.
• Reputational Damage: Non-compliance may deter future applicants or business partners, adversely affecting your long-term growth and operations.