Sponsor licence suspensions and revocations have this year reached an unprecedented high compared to figures from previous years. According to recent Home Office data, there has been a 109% increase in suspensions and a 51% rise in revocations since 2023.
Beyond sponsor-specific obligations, the Home Office is also clamping down on wider immigration and employment law compliance, such as Right to Work checks and National Minimum Wage compliance. Even if an employer meets its sponsor licence duties, breaches in UK employment law (such as failing to verify an employee’s right to work) could still result in licence suspension or revocation.
Right to work is currently an area of notable risk, as employers must ensure their checks comply with the UK’s move to the eVisa system, and the end of BRPs.
The penalties for failing to conduct correct Right to Work checks are particularly high, with fines reaching up to £60,000 per worker in serious cases.
Home Office Focus on Sponsor Licence Enforcement
There are now also more than 100,000 sponsor licence holders in the UK, following a 48% increase in registered sponsor licence holders compared to last year. As a result of this growth in licence holders, a surge in compliance action could be seen as fairly predictable – more sponsors means more employers are subject to audits and compliance checks than in previous years.
However, these figures can also be attributed to shifts in policy.
The new Labour Government pledged in its manifesto to target employers who are misusing the sponsorship system for illegal working, with the Home Office now intensifying its enforcement measures on UK sponsor licence holders, including increasing compliance visits.
This renewed commitment to preventing illegal working and upholding sponsor licence standards is placing sponsor licence holders under heightened scrutiny, affecting employers across multiple industries.
The recent growth in sponsor licence applications reflects the growing reliance on foreign workers across industries, as employers grapple with shortages in the domestic labour market. However, visa sponsorship carries significant compliance obligations, which many new sponsors – in particular smaller employers – may not be properly set up to meet. Common areas of compliance risk include underpayment of wages, non-compliance with working time regulations, and attempts to recover immigration costs directly from employees.
Under the sponsorship regime, regardless of size or budget, all employer/sponsors must ensure their practices align fully with sponsor obligations – as well as broader UK employment law requirements – or risk enforcement action. This includes understanding your full sponsorship commitment, and taking a proactive approach to meeting these duties through measures such as training, record-keeping and correct use of the sponsor management system.
Advice for Employers
In light of the Home Office’s heightened enforcement drive, it is more important than ever for sponsor licence holders to actively manage their approach to compliance. Steps could include:
a. Conduct Regular Audits of Compliance Procedures: Regular internal audits can help businesses identify and correct potential issues before an official Home Office inspection. Audits should assess all aspects of sponsor compliance, from Right to Work checks to record-keeping and reporting requirements.
b. Training for HR and Compliance Teams: Your nominated key personnel, as well as anyone involved in recruiting, onboarding or managing sponsored visa workers, should be trained in all relevant areas of immigration and employment law compliance. This includes ensuring that teams are up-to-date on the latest UKVI guidance and understand the implications of non-compliance.
c. Accurate Record-Keeping and Timely Reporting: Accurate and up-to-date records on sponsored employees, including details of visa status and any employment changes, are essential. Sponsors must also report significant changes in a sponsored worker’s circumstances promptly to UKVI.
d. Mock Audits and Practice Inspections: To prepare for potential unannounced Home Office visits, many sponsors find it helpful to conduct mock audits to ensure compliance and preparation for any official inspections.
e. Review of Job Roles and Duties for Sponsored Employees: It is essential to ensure that sponsored employees’ job roles and responsibilities align with the details specified in their Certificate of Sponsorship (CoS). Changes to a role may necessitate updates to the CoS and, in some cases, a new visa application.
f. Adhere to Right to Work and UK employment law requirements: The Home Office has been clear that it will pursue sponsors for broader employment law breaches, beyond the core sponsorship duties.
Need Assistance?
For sponsor licence holders, meeting sponsor duties and employment laws is now fundamental to avoiding potential penalties or enforcement action. As employer solutions lawyers, DavidsonMorris offer a holistic approach to meeting your compliance obligations as a UK sponsor licence holder. We provide a range of advisory, audit and training services to UK employers, ensuring compliance with the regulations and to minimise the risk of enforcement action. To discuss your organisation’s sponsor licence, contact us.
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
