It is time to reconsider sponsor licence compliance – here is why

November 15, 2024

Sponsorship is a privilege, not a right. Considering this, UK sponsors are required to uphold various sponsor compliance duties in line with UK Visas & Immigration (UKVI) requirements.

The responsibilities as a sponsor start on the day a sponsor licence is granted and will continue until:

• the licence is surrendered;
• the licence is made dormant; or
• the licence is revoked by UKVI.

In recent months, it has become clear that UKVI is further focusing its efforts on ensuring UK sponsors adhere to their sponsor obligations. Where sponsors are found to fall short of upholding their sponsor obligations, we are seeing a significant increase in compliance action taken by UKVI.

Recent statistics published by UKVI confirm that, between April 2024 and June 2024, 499 Skilled Worker licences were revoked and 524 were suspended by UKVI. This is a stark increase on compliance action compared with previous years.

Please find outlined below a reminder of sponsor obligations, the implications of non-compliance, recommendations and useful updates.

Sponsor obligations

In light of the above, it is vital that sponsors and organisations considering applying for a sponsor licence are aware of the compliance requirements imposed by UKVI.

In broad terms, the obligations imposed on sponsors are as follows:

• prevention of illegal working;
• reporting duties;
• record-keeping duties;
• complying with UK immigration laws;
• complying with wider UK law; and
• not engaging in behaviour or actions that are not conducive to the public good.

Implications

There are severe implications for sponsors if their licence is suspended as the sponsor would not be able to sponsor new migrants. In order for the licence to be reinstated, sponsors would need to demonstrate progress against an action plan within a prescribed timeframe - otherwise, the licence could be revoked.

In the event that a sponsor has their licence revoked, the ramifications would be as follows:

• the leave for all current sponsored migrants would be curtailed;
• the sponsor would be prohibited from applying for a new licence for a specified cooling-off period of 12 months from the date the sponsor licence was revoked; and
• reputational damage.

Considering the above, the suspension or revocation of a sponsor licence can have severe and detrimental impacts on business operations.

Sponsors who have not carried out a correct right to work check and established a statutory excuse for each employee could also face fines and be ordered to pay a civil penalty for an illegal worker.

Recommendations

In light of UKVI's increased focus on immigration compliance, we would advise that sponsors ensure that:

• they are aware of their sponsor licence obligations, in line with UKVI requirements;
• they are aware of the record-keeping and reporting requirements as these tend to be common areas where sponsors fall short on immigration compliance;
• they have systems in place internally which ensure that any reporting on which UKVI is required to be informed is captured;
• they ensure the knowledge management and internal training of internal staff is kept up to date where staff are involved with sponsored employee management;
• key personnel and corporate details on the sponsor licence are accurate and up to date;
• they have robust right to work check processes which adhere to UKVI guidance;
• they ensure that the corporate documents submitted as part of the sponsor licence application are held on file and can be presented to UKVI if required; and
• they are prepared for a UKVI audit which can take place on an announced or unannounced basis.

Useful updates

Please note the useful updates for sponsors outlined below.

• We are seeing increased diligence on the part of UKVI in relation to sponsored employees working at client sites.
• UKVI is continuing to exercise discretion in relation to accepting remotely sworn affidavits, such as when adding new branches and entities to a licence, post Covid. However, it still remains best practice, where possible, for affidavits to be sworn in person.
• Over the next two/three years it should become possible to see a list of branches/entities added to a sponsor licence within the Sponsor Management System. For now, it remains that sponsors should hold documents on file, so they know what has been linked to the licence.

We offer a variety of UK immigration and compliance services, including preparation for audits and training for internal stakeholders. Therefore, if you have any concerns with regards to your sponsor licence compliance, please do not hesitate to contact us.