As businesses look to hire skilled talent from abroad, holding a sponsor licence is a vital part of navigating the UK’s immigration system. With the new Labour government taking office, there’s been an increased focus on immigration compliance, particularly for businesses that rely on the points-based immigration system to hire international workers.
This article will break down the key sponsor licence compliance duties, outline the risks of non-compliance, and explain how our leading London law firm can assist you with mock audits and compliance support.
Key Sponsor Licence Compliance Duties
Reporting Duties
Sponsor licence holders must report certain events to the Home Office in a timely manner. This includes changes in the employment terms of sponsored workers, such as:
- Changes in job title, salary, or work location
- Instances of non-compliance with visa terms
- Absences: If a worker is absent for more than 10 consecutive days without permission, this must be reported.
Record-Keeping Responsibilities
Maintaining accurate records for each sponsored worker is a fundamental part of holding a sponsor licence. This includes:
- Personal Information: Copies of passports, biometric residence permits, and contact details
- Employment Records: Contracts, job descriptions, and salary details
- Right to Work Checks: Documentation proving that each sponsored worker has the legal right to work in the UK.
The Home Office is phasing out Biometric Residence Permits (BRPs) by the end of 2024, and sponsors must transition to eVisas for future hires.
Monitoring and Reporting Business Changes
Sponsor licence holders must notify the Home Office of any significant changes to the business, including:
- Changes in ownership, mergers, or acquisitions
- Relocation of the business or establishment of additional sites
- Changes in the key personnel responsible for managing the sponsor licence.
Cooperation with the Home Office
Sponsors are required to fully cooperate with the Home Office during inspections, including:
- On-Site Audits: Allowing officials to conduct site visits, which may be unannounced.
- Providing Information: Submitting requested documents or details promptly during compliance checks.
Consequences of Non-Compliance
Failure to meet compliance duties can result in serious penalties, including:
- Downgrading of the licence status
- Suspension or revocation of the licence
- Fines for illegal working
- Cancellation of sponsored workers’ visas
The consequences of non-compliance are not limited to just financial losses. For example, the inability to sponsor international workers could severely impact your business operations and talent pipeline.
How Our Expert Immigration Team Can Help
At LEXVISA, our specialist immigration solicitors are leaders in sponsor licence compliance. Our expert immigration team provides tailored support, including:
- Mock Audits: We carry out detailed mock Home Office audits to ensure your business is prepared for inspections.
- Compliance Training: We provide training sessions for HR teams and key personnel on compliance and reporting obligations.
- Document Reviews: Our team will review your records to ensure they meet Home Office requirements, safeguarding your business from potential breaches.
Frequently Asked Questions (FAQs)
1. What happens if I fail a sponsor licence compliance audit?
If your business fails a compliance audit, the Home Office may take action, including downgrading, suspending, or revoking your licence. You may also face fines for non-compliance.
2. How long does it take to get a sponsor licence?
The application process typically takes 8 to 12 weeks. However, delays can occur if your application is incomplete or if the Home Office requires further information.
3. What are the record-keeping requirements for a sponsor licence?
Sponsors must keep accurate records of all sponsored workers, including copies of their passports, visas, and employment contracts. You must also maintain records of right-to-work checks.
4. Can I appeal if my sponsor licence is revoked?
If your licence is revoked, you do not have a right of appeal. However, you can challenge the decision via judicial review, and our team can advise you on the best course of action.
5. How can I prepare for a Home Office compliance visit?
You can prepare by ensuring that your records are accurate and up to date, and that key personnel are trained on compliance duties. Our expert immigration team can conduct mock audits to identify any potential issues.
Contact Our Specialist Immigration Solicitors Today
At LEXVISA, our leading London law firm specialises in sponsor licence compliance. Whether you need help with mock audits, training, or document reviews, our expert immigration team is here to support you. Contact us today to ensure your business remains compliant and retains its ability to sponsor international talent.