How to Maintain Compliance with Your Skilled Worker Sponsor Licence

Obtaining a Skilled Worker Sponsor Licence is a crucial step for UK employers who wish to hire skilled international talent. However, holding a sponsor licence is not a one-time task—it requires ongoing commitment to compliance with the UK Home Office’s regulations and requirements. 

Failing to maintain compliance can lead to severe consequences, including suspension or revocation of the licence, penalties, or even legal action. To avoid these risks, businesses must stay vigilant in adhering to their responsibilities as sponsors. Here’s a guide on how to maintain compliance with your Skilled Worker Sponsor Licence.

1. Understand Your Sponsor Duties:

Once granted a Skilled Worker Sponsor Licence, it’s essential to fully understand the responsibilities that come with it. As a sponsor, you are legally obligated to:

• Monitor and report on employees: Keep track of the immigration status, attendance, and conduct of your sponsored workers.

• Cooperate with the Home Office: Be prepared to provide information when requested, and comply with any audits or inspections.

• Ensure proper record-keeping: Maintain accurate records of all sponsored workers, including their details, employment history, and compliance status.

Familiarizing yourself with these duties early on will help ensure you stay compliant throughout the duration of your sponsorship.

2. Keep Accurate and Up-to-Date Records:

One of the most important elements of maintaining compliance is keeping thorough and up-to-date records. These records should include:

• Personal details of sponsored workers: This includes their full name, date of birth, nationality, and details of their visa and employment.

• Employment status and job details: Track the start and end dates of employment, the role, salary, work hours, and any changes to the worker's job description or contract.

• Visa and immigration status: Ensure that the visa details are accurate and check regularly for any expiry dates, renewals, or changes to conditions.

• Absence records: Keep records of any absences, including sickness, holidays, or unauthorized leave.

The Home Office may ask to see these records during audits, and failure to maintain them properly could lead to issues with your sponsor licence.

3. Report Any Changes to the Home Office:

Your obligations as a sponsor don’t stop at monitoring your workers. You must report any significant changes to the Home Office, including:

• Changes in the employee’s role or salary: If a sponsored worker’s job changes, or their salary no longer meets the required threshold, you must inform the Home Office within 10 working days.

• Employee absences: If a worker has been absent for more than 10 consecutive days without approval or explanation, you must notify the Home Office.

• Termination of employment: If a sponsored worker leaves or is dismissed, you need to report it within 10 working days of the end of employment.

• Failure to meet sponsorship conditions: If a worker is not complying with visa requirements (such as working outside their role or breaching visa conditions), this must be reported.

Timely and accurate reporting ensures that you are seen as a responsible sponsor and reduces the risk of penalties.

4. Ensure the Role Meets the Skill and Salary Requirements:

To maintain compliance with your sponsor licence, you must ensure that the job roles you sponsor meet the Home Office’s skill and salary requirements. If there are any changes to the role, such as a promotion or change in responsibilities, you must reassess whether the position still meets the criteria.

• Skill Level: The position must be at RQF Level 3 or above, which is equivalent to A-level or higher.

• Salary Threshold: The salary must meet the Home Office’s minimum salary requirements, which usually start at £26,200 annually, though some roles may have different thresholds.

If the job does not meet the criteria anymore, you need to inform the Home Office and may need to cease sponsoring the worker or adjust the terms of employment.

5. Conduct Regular Internal Audits and Reviews:

Regular internal audits are an essential practice for businesses holding a sponsor licence. By regularly reviewing your processes, you can identify any compliance gaps or risks before they become issues. During an internal audit, you should:

• Check if all sponsored workers are properly recorded and monitored.

• Verify that all necessary documents are up to date.

• Ensure that HR systems are compliant with sponsor licence requirements.

• Review compliance training for staff responsible for immigration matters.

It’s also a good idea to appoint a Compliance Officer or someone responsible for ensuring the business follows the sponsor licence requirements. This will help maintain focus and reduce the risk of non-compliance.

6. Provide Training to Key Staff Members:

The success of maintaining compliance with a Skilled Worker Sponsor Licence depends heavily on the knowledge and actions of your employees. Ensure that those involved in immigration and HR processes are properly trained on the responsibilities and legal requirements associated with sponsoring foreign workers.

Regular training should cover:

• The importance of compliance and the potential consequences of failing to meet the obligations.

• How to properly track and report sponsored workers.

• How to use the Sponsor Management System (SMS) to manage sponsored employees and report changes.

• Updates on any changes to immigration laws or procedures.

Training your HR and compliance teams ensures that everyone is on the same page and understands how to uphold the business’s sponsorship duties.

7. Monitor the Immigration Status of Sponsored Workers:

The immigration status of your sponsored workers is one of the most critical aspects of compliance. It is your responsibility to ensure that all sponsored employees maintain valid visas and work within the conditions of their visas. Regularly check for:

• Visa Expiry: Ensure that workers’ visas are up-to-date and renew them if necessary.

• Working Conditions: Ensure that workers are only performing duties that fall within the scope of their visa (e.g., job role, location, and hours).

• Compliance with Home Office conditions: If workers do not comply with visa conditions, you must report it to the Home Office and take corrective action.

Failure to ensure workers maintain legal immigration status could result in the loss of your sponsor licence.

8. Stay Updated on Immigration Law Changes:

UK immigration laws and regulations are constantly evolving. As a sponsor, it is essential to stay up-to-date with any changes to the immigration rules, particularly those that affect sponsorship obligations. This could include changes to:

• Salary thresholds for different roles.

• Skill levels required for certain occupations.

• Visa requirements or changes to the rules governing the Skilled Worker Visa.

• Reporting and compliance obligations.

By staying informed and adjusting your practices accordingly, you will be better equipped to maintain compliance with your sponsor licence.

9. Prepare for Home Office Audits and Inspections:

The Home Office may conduct random compliance checks or audits to ensure that sponsor licence holders are fulfilling their obligations. Being prepared for these inspections is critical to demonstrate your compliance.

• Ensure that all records are readily available and accurate.

• Double-check that the workers’ records and immigration statuses are up to date.

• Have a clear process in place for managing any issues that may arise during an audit.

A proactive approach will help you manage audits smoothly and avoid any penalties or issues with your sponsor licence.

Conclusion:

Maintaining compliance with your Skilled Worker Sponsor Licence is an ongoing responsibility that requires careful planning, regular audits, and diligent record-keeping. By understanding your sponsor duties, keeping accurate records, reporting changes promptly, and staying informed about immigration law updates, you can ensure that your business continues to meet the requirements set out by the UK Home Office.

Failure to maintain compliance can result in severe consequences, including the suspension or revocation of your sponsor licence, which would severely limit your ability to hire skilled foreign workers. By staying proactive and committed to compliance, you can continue to leverage the benefits of hiring talented international workers while safeguarding your business’s reputation and legal standing.