Compliance – Reporting Duties and Obligations for UK Sponsor Licence Holders

Compliance – Reporting Duties and Obligations for UK Sponsor Licence Holders
Reporting Duties and Obligations for UK Sponsor Licence Holders

Holding a Sponsor Licence comes with significant responsibilities to uphold the integrity of the UK’s immigration system.

The Home Office entrusts sponsors with the ability to recruit migrant workers, and in return, expects them to play a vital role in preventing abuse by ensuring that sponsored individuals are genuinely filling skilled roles, are paid appropriately, and are not breaching the terms of their visa.

Compliance helps protect both the sponsor and the migrant worker by promoting transparency, accountability, and lawful employment practices.

Failure to meet these duties can result in severe consequences including licence suspension or revocation, civil penalties, reputational harm, and disruptions to business operations.

Fundamentally, the purpose of these duties is to place the onus on employers to play their part in preventing illegal working in the UK.

Potential Consequences for Non-Compliance
  • Revocation of Sponsor Licence – A complete loss of the ability to sponsor migrant workers under current Sponsor Licence
  • Suspension of licence – A temporary block from sponsoring migrant workers
  • Downgrade of licence rating – Typically, this involves moving from an A to B rating. Which requires a time-limited action plan to regain full A-rating status. This process may also involve additional costs before the sponsor can be considered for an upgrade back to A-rating
  • Civil penalties – Civil Penalties of up to £60,000 may be imposed for employing individuals without the right to work or for breaching immigration compliance requirements
  • Refusal of future Sponsor Licence applications – Especially if a previous licence was revoked for serious breaches
  • Increased Home Office scrutiny – Including unannounced compliance visits and audits
  • Reputational damage – Which can affect business relationships and recruitment
  • Operational disruption Loss of key sponsored staff due to visa curtailment or refusal

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Changes in the Organisation

UK Sponsor Licence holders must promptly report significant key organisational changes to the Home Office, such as updates to company structure, key personnel, or business address.

Business/organisation changes must be reported within 20 working days of the event taking place:

  • Registered address, organisation address, business details
  • Removing or adding additional branches, sites or overseas entities on the licence (if applicable)
  • Changes to your business name such as registered name and trading name
  • Ownership changes, mergers, takeovers, or changes to group structure. i.e. changes to direct ownership of Sponsor Licence holders
  • Changes in the status of any registration or accreditation
  • Ceasing trading or entering insolvency procedures
  • Changes to your organisation’s size or charitable status
  • Substantial changes to the nature of your business
  • Updating the licence when there are changes to key personnel – e.g. Authorising Officer, Level 1 user, Key Contact. During the validity of the licence there must always be an active Authorising Officer/Level 1 user
Sponsored Workers

UK Sponsor Licence holders must report significant changes relevant to a sponsored workers employment. These updates must be reported to the Home Office within 10 working days to ensure ongoing compliance with sponsorship duties.

The following should be reported

  • Submitting end of sponsorship reports for sponsored workers
  • Changes to job title, duties, work location, salary (especially a reduced salary)
  • Unauthorised absences or extended leave
  • Terminations or early resignations for sponsored workers
Changes in Worker Circumstances
  • Reduced working hours or pay below the level stated on the Certificate of Sponsorship
  • Significant salary increases due to a promotion
  • Changes to job title, duties or location including promotions and demotions
  • Unauthorised absences of 10 consecutive working days or extended leave for 4 weeks or more
  • When a worker fails to turn up within 28 days to start work
  • Authorised permissible absences e.g. Maternity/Paternity Leave and the impact of salary as a result of the leave
Worker Leaving Employment Early

If a sponsored worker’s employment ends earlier than stated on their Certificate of Sponsorship, whether through resignation, dismissal, or redundancy, the Sponsor Licence holder must immediately report this to the Home Office within 10 working days from the last date of employment:

The sponsor must report this on the SMS along with the sponsored worker’s personal information such as telephone and email address. The Home Office will then contact them directly regarding the curtailment of their leave.

Non‑Attendance or Prolonged Unexplained Absence

If a sponsored worker fails to attend work or has repeated unexplained absences, this includes situations where the worker is absent without permission or fails to start their role as expected. The sponsor must report the absence on the SMS to ensure compliance with sponsorship duties and protect the integrity of the licence.

Record-Keeping and Audit Compliance
  • While not strictly a “report,” you must maintain accurate records for each sponsored worker – and make these available upon inspection
  • Sponsor Licence holders are expected to have adequate HR systems in place to track and monitor their employees
General Documents to Have on File are as Follows
  • Passport and visa copies of employees
  • Up to date Right to Work checks for all employees
  • Salary details and payslips
  • Absence records
  • Job descriptions and employment contracts
  • Recruitment records including qualification of workers required for their role
  • Emergency contacts for each employee
  • Up-to-date contact details for each employee
  • All documents submitted as part of the sponsor licence application
OCS Immigration Compliance Service

At Oury Clark Solicitors, our dedicated immigration team possesses extensive knowledge and practical experience in navigating the complex sponsor compliance requirements set out by the Home Office. Due to the increased number of audit checks, we offer tailored, ongoing support to ensure UK Sponsor Licence holders fully understand and meet their legal obligations, responsibilities, and duties as a sponsor.

Our comprehensive service is specifically designed to help sponsors remain fully compliant with the ever-evolving rules of the UK immigration system. Whether you’re managing your Sponsor Licence for the first time or looking to strengthen your internal systems and procedures, we provide clear guidance and proactive assistance. This includes advice on maintaining accurate records, reporting duties, managing sponsored workers appropriately, and preparing for Home Office audits or compliance visits.

Sponsors can gain peace of mind that their compliance processes are not only aligned with legal requirements but also implemented effectively across their organisation.

For more information, contact immigration@ouryclark.com.

FAQs

Record-keeping involves maintaining accurate, up-to-date records for each sponsored worker including their passport, visa, Right to Work check, salary, contract and absence details, to remain fully compliant.

You must have robust HR systems to track and monitor all your UK staff (not just sponsored workers), maintain audit-ready records and be prepared for compliance visits from the Home Office.

You must ensure you have robust HR and record-keeping systems which are consistently maintained, schedule regular internal audits to ensure all data matches what is recorded in the Sponsor Management System (SMS), train key personnel on reporting deadlines and responsibilities, and keep communication open between HR, management, and sponsored employees.

The consequences are very serious.  Failure to comply could result in losing your Sponsor Licence (and the staff you sponsor), unlimited fines and even imprisonment. and be subject to unlimited fines and/ or imprisonment.

Don’t worry, we have you covered. We provide a sponsor licence compliance service.

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