Understanding the Basics: Sponsor Licence Overview

A Sponsor Licence is the authorization granted by the UK Home Office that allows UK employers to hire skilled workers from overseas under the Worker or Temporary Worker routes. While the licence opens the door to global talent, it also requires sponsors to adhere to multiple, ongoing responsibilities. These responsibilities revolve around maintaining compliance with UK immigration laws, employment practices, and the Sponsor Licence conditions.

Key points to remember:

• Sponsor Licence holders are monitored by the Home Office.
• Sponsors must use the Sponsor Management System (SMS) to report any relevant changes or events.
• All requirements outlined in the guidance must be followed to retain and renew your licence.

Understanding the expectations laid out in Part 3 of the Guidance for Sponsors is fundamental to remaining a trusted sponsor in the eyes of the Home Office.

Key Sponsor Duties Under the UK Home Office Guidance

The Home Office groups sponsor duties into four main areas: record-keeping, reporting, compliance, and monitoring. Let’s explore each one in more detail.

A. Record-Keeping Duties

One of the principal sponsor duties is record-keeping. You must keep accurate and up-to-date records on each individual you sponsor. This typically includes:]

• Proof of Right to Work: Copies of the sponsored worker’s passport or other valid travel documents, and their immigration status document (e.g., visa vignette or Biometric Residence Permit).
• Contact Details: Current address, telephone number, and email address of the sponsored worker.
• Employment Contracts and Job Descriptions: Official documents outlining the worker’s job title, roles, and responsibilities.
• Payslips and Timesheets: Evidence that you are paying the worker appropriately and in line with the conditions of their visa.
• Attendance Records: Documentation to show the worker’s ongoing attendance and any absences.

Ensuring these records are maintained, secure, and easily accessible for inspection is crucial. The Home Office can request them at any time, and failure to produce valid records can result in non-compliance actions against your licence.

B. Reporting Duties

Sponsors are required to report certain changes or events to the Home Office within specific timeframes using the Sponsor Management System (SMS). These obligations include, but are not limited to:

• Worker Changes: Any changes to a sponsored worker’s employment status, such as a change of job title, salary adjustments (above or below the going rate), or if the worker’s job ends earlier than expected.
• Address or Contact Details: If the sponsored worker updates their address or other personal details, sponsors should update the SMS accordingly.
• Non-Attendance or Absence: Any instance in which a sponsored worker does not commence their role as scheduled, or if they are absent from work without authorization for a specific period.
• Business Changes: If your company undergoes a merger, acquisition, or reorganization that affects your Sponsor Licence, you must report it promptly.

Timely and accurate reporting is vital; late or incomplete reports can jeopardize your licence rating or lead to more severe consequences.

C. Compliance With Immigration Rules

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:

• Carrying Out Right-to-Work Checks: Before and throughout the worker’s employment, verifying they have the legal right to work for you.
• Paying the Appropriate Salary: Ensuring you adhere to the required salary thresholds for the specific role, in line with prevailing guidance and codes of practice.
• Genuine Vacancy Requirements: Demonstrating that the position you’re sponsoring is a real role and not created solely to facilitate immigration.

For Worker routes, roles typically need to meet a certain skill level and salary threshold. Failing to stay informed about legislative changes can place you at risk of non-compliance.

D. Monitoring and Supervision of Sponsored Workers

Sponsors are also expected to monitor their sponsored employees throughout the duration of their employment. This involves:

• Regularly Reviewing Work Hours: Confirming that workers are employed according to the terms of their Certificate of Sponsorship (CoS).
• Ensuring Role Consistency: Making sure the sponsored worker continues to perform the duties stated in their original CoS.
• Spotting and Reporting Unauthorized Changes: If a worker changes their role significantly—e.g., from a software developer to a project manager—this must be reported and may require a new CoS.

Proper oversight helps prevent unauthorized working conditions and protects the integrity of the UK’s immigration system.

The Importance of Genuine Employment and Preventing Illegal Working

A central tenet of sponsoring overseas workers is ensuring genuine employment:

• Avoid Sham Roles: Sponsors must not create fictitious roles to bring a specific individual to the UK.
• Maintain Transparency in Recruitment: You should be able to show evidence of a fair recruitment process, particularly for roles that require advertising under the applicable guidelines.

Preventing illegal working is a key requirement. Sponsors are expected to conduct correct and timely right-to-work checks, maintain relevant documentation, and report any unauthorized employment issues to the Home Office. This not only safeguards the local workforce but also upholds the integrity of your Sponsor 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:

Managing the Sponsor Management System (SMS)

The Sponsor Management System (SMS) is your primary tool for fulfilling many sponsor duties. Through the SMS, you will:

• Assign Certificates of Sponsorship (CoS) to prospective employees.
• Update Sponsored Worker Details (e.g., changes in salary, work location).
• Report Absences and Other Notable Changes in employment status.
• Renew Your Licence and manage other licensing tasks.

Keeping your SMS account secure and up-to-date is paramount. The Home Office expects sponsors to log in regularly and ensure all information remains accurate. Only authorized personnel within your organization should have SMS access, with different levels of user permissions assigned as necessary.

Consequences of Non-Compliance with Sponsor Licence Duties

The Home Office takes any breach of sponsor duties seriously. Depending on the severity of the infraction, penalties can include:

• Downgrading Your Licence Rating: Moving from an A-rating to a B-rating can limit your ability to recruit new overseas workers. You’ll likely need to follow a time-bound action plan to restore your rating.
• Suspension of Your Licence: During a suspension, you cannot sponsor new workers, and existing sponsored workers could be impacted if the suspension is not resolved.
• Revocation of Your Licence: Losing your licence entirely means all your sponsored employees could have their visas curtailed and must find another sponsor or leave the UK.
• Financial Penalties: Employing an illegal worker or failing to conduct right-to-work checks can lead to hefty fines, which could be damaging for any business.

Understanding these risks underscores the importance of maintaining robust HR procedures, staying diligent with updates, and consulting expert advice whenever you face uncertainties.

Common Pitfalls Sponsors Should Avoid

• Inadequate Record-Keeping: Misplacing critical documents or failing to keep them up-to-date is one of the most frequent breaches.
• Late Reporting: Many sponsors fall behind in updating the SMS with employee changes, resulting in negative Home Office feedback
• Insufficient Right-to-Work Checks: Failing to conduct checks at the start of employment or missing follow-up checks can lead to civil penalties
• Neglecting Role and Salary Changes: Any significant change to a worker’s job or salary must be reported promptly and can, in some cases, require a fresh Certificate of Sponsorship.
• Ignoring Communication from the Home Office: Missing deadlines or ignoring requests for information can escalate minor issues into major problems.

Avoiding these pitfalls begins with awareness, training, and implementing systematic processes. Our team at Gateway Immigration Services helps sponsors set up such systems to minimize risk.

Sponsor Licence Compliance Checklist

Below is a concise checklist you can use as a quick-reference guide to ensure your organization remains compliant with Home Office requirements. Adhering to these points will help you maintain your Sponsor Licence and avoid potential sanctions:

1. Maintain Accurate HR Records
   • Keep up-to-date personnel files for all sponsored workers, including right-to-work evidence (passport, visa, BRP).
   • Store employment contracts, job descriptions, payslips, and absence records.
2. Conduct Proper Right-to-Work Checks
   • Verify the individual’s identity using valid and current documents (passport or other accepted ID).
   • Repeat checks at required intervals or when there is any change to immigration status.
3. Keep the Sponsor Management System (SMS) Updated
   • Assign Certificates of Sponsorship (CoS) correctly and in a timely manner.
   • Report any change in work location, job title, salary, or duties for sponsored workers.
   • Add or remove users with SMS access as staff roles change.
4. Report Changes Promptly
   • Notify the Home Office of any sponsored worker who:
     • Does not start work as scheduled.
     • Is absent without permission for a specified period.
     • ends employment earlier than stated on the CoS.
   • Report corporate changes such as mergers, acquisitions, or restructures that affect the licence.
5. Ensure Genuine Vacancies
   • Sponsorship must be tied to a legitimate role that meets the skill and salary thresholds.
   • Keep records demonstrating a fair recruitment process and compliance with advertising requirements (if relevant).
6. Monitor Salary and Working Hours
   • Verify that sponsored workers are receiving the correct salary and are working within the terms of their CoS
   • Update the SMS if salary changes or hours/duties significantly shift.
7. Retain Evidence of Compliance
   • Store all documentation to prove ongoing compliance (e.g., attendance records, proof of progression in the role).
   • Be prepared for unannounced Home Office visits or audits.
8. Conduct Regular Internal Audits
   • Review and update HR processes to ensure they align with the latest rules.
   • Identify and address any weaknesses or inconsistencies in your record-keeping, reporting, or monitoring.
9. Stay Current with Legislation
   • Subscribe to Home Office updates and regularly review guidance for sponsors.
   • Implement policy changes promptly to adhere to new or amended immigration rules.
10. Engage Expert Support When Needed
    • Seek professional advice if you have any doubts about your Sponsor Licence duties.
    • If issues arise (e.g., licence downgrade, suspension), consult immigration specialists immediately to minimize potential damage.

By following this Sponsor Licence Compliance Checklist, you’ll be taking proactive steps to safeguard your sponsor status, reduce the risk of penalties, and maintain your ability to hire skilled workers from abroad.