Employers holding Sponsorship Licences have several core duties they must discharge to demonstrate their compliance with UK Visa & Immigrations (“UKVI”) expectations, failure to do so could result in the sponsor's permission to employ migrant workers being modified or revoked entirely.
The Government recently published a report on the number of sponsor applications that were made as well as action taken against sponsors. The data highlights that the highest number of skilled worker sponsorship licences were revoked in 2024 considering the last 12-year period. Most notably, the figures outline that in 2024, 709 sponsorship licences were revoked compared to only 177 in 2012. This is likely due to the rise in compliance checks that are now being undertaken by the Home Office compared to previously. Accordingly, we provide a useful reminder to employers (particularly those who sponsor migrant workers or wish to employ non-UK nationals in the future) of their duties as a sponsor as failure to fulfil these responsibilities can lead to severe consequences, including the revocation of the sponsor licence, financial penalties, and reputational damage.
Sponsor Duties
Sponsor licence holders have several core duties that they must comply with.
- Compliance with Immigration Law and wider UK law
A key responsibility of a sponsor licence holder is to ensure full compliance with immigration rules. This involves ensuring that all employees sponsored under the licence are eligible for the specific visa category they hold. The sponsor must ensure that workers have the correct right to work and remain in the UK. Further, the sponsor must also ensure that they abide by UK law more generally.
- Record Keeping and Reporting
Another significant duty is maintaining accurate and up-to-date records of sponsored employees. This includes retaining copies of key documents such as the worker’s passport, visa details, and proof of their right to work in the UK. The sponsor must also document the work performed by employees, ensuring that they are fulfilling their roles according to the conditions set out in their visa. These records must be readily available for inspection by the Home Office during audits or investigations.
Sponsors are also required to report to the Home Office any significant changes regarding their sponsored employees within a certain timeframe. This includes notifying the Home Office of any worker absences, changes in employment status, or if the employee leaves their job. They must also track and report any changes in the worker’s circumstances, such as a change of role, salary, or location. Further, a sponsor is also required to report any significant changes to the sponsor’s organisation such as changes to the company name, if it sells all or part of the business, or changes in the nature of the business or the appointed personnel under the licence.
- Cooperation with Inspections and Audits
The Home Office has the authority to conduct regular audits and inspections of sponsor licence holders to ensure compliance with immigration rules. Sponsors are expected to cooperate with these investigations, providing all necessary documentation and access to their records.
Implications
The consequences of failing to meet sponsor duties are severe. A failure to adhere to these responsibilities can result in the revocation of the sponsor licence or the licence rating being downgraded, which would prevent the organisation from sponsoring any further migrant workers. In some cases, businesses may also face significant financial penalties, if for example they are found to have breached immigration laws. Additionally, employers may suffer significant reputational damage, as being associated with non-compliance or exploitation of migrant workers can damage a brand’s image and credibility. In the worst-case scenario, the organisation could face criminal charges for knowingly employing individuals without the right to work or for participating in exploitative practices. This could result in further legal consequences, including hefty fines and even imprisonment.
With the increase in compliance checks and the possible repercussions of non-compliance, it is important that sponsor licence holders review whether they are compliant with their duties and put effective measures in place to ensure their compliance going forward.
For advice and support in discharging these duties, or on the benefits of being a Sponsor Licence holder generally, speak to our Business Immigration Advisers.
