Holding a sponsor licence is a major step for any UK organisation, granting access to a global talent pool that would otherwise be restricted. However, it is fundamental to understand that a sponsor licence is not a permanent right. It is a privilege granted by the Home Office, conditional upon the sponsor’s continued ability to protect the integrity of the UK immigration system.
The Home Office operates the sponsorship system under two guiding principles. First, sponsorship is a privilege, and those who benefit from it must play their part in guaranteeing the system is not abused. Second, the sponsor must be capable of carrying out their duties and must have systems in place to do so effectively. These duties commence on the day the licence is granted and continue throughout its validity. They effectively turn the employer into an extended arm of immigration control, requiring them to monitor and report on the migrants they employ. Failure to comply with these extensive obligations can lead to punitive measures ranging from downgrading the licence rating to total revocation of the licence, resulting in the curtailment of sponsored workers’ visas.
This article provides an in-depth, elaborated examination of the sponsorship duties, categorized into reporting, record-keeping, compliance with immigration laws, compliance with wider UK laws, and general conduct.
The Management of the Licence and Key Personnel
Before delving into the specific daily duties, it is vital to understand the structural responsibilities related to the licence itself. A sponsor is responsible for the actions of its “Key Personnel” who are the people nominated to manage the Sponsorship Management System (SMS).
The Authorising Officer is the most key role. This individual must be a senior, competent paid staff member who takes personal responsibility for the licence. They are answerable to the Home Office for the organisation’s actions. While they do not need to submit reports personally, they must ensure that those who do, specifically the Level 1 Users, are reliable and competent. The Authorising Officer must ensure that the systems in place are sufficient to meet sponsor duties. If the Home Office finds a breach, the Authorising Officer cannot claim ignorance of the daily operations as a defence.
The Level 1 User is the person who conducts the day-to-day activity on the SMS, including assigning Certificates of Sponsorship (CoS) and reporting worker activity. A sponsor must always have at least one Level 1 User in place. If the only Level 1 User leaves the organisation, the sponsor can no longer access the SMS to fulfill their reporting duties, thereby immediately placing them in breach of their obligations. Therefore, managing these roles and confirming they are filled by eligible, settled workers (with limited exceptions) is the first duty of any sponsor.
Reporting Duties of Sponsors
The most active component of sponsorship duties involves reporting changes in the sponsored worker’s circumstances. These reports are submitted via SMS, and the Home Office enforces a strict deadline: one must report these events within 10 working days of their occurrence.
Absence and Delayed Start Dates
Employers must rigidly monitor attendance. If a sponsored worker does not turn up for their first day of work, employers must report this. This includes situations where the start date is delayed. While a sponsor can allow a worker to start later than the date listed on their CoS, if that delay exceeds 28 days from the original start date or the date their visa was granted (whichever is later), the sponsor must normally stop sponsoring the worker and report this non-start. There are exceptions for valid reasons, such as illness or travel disruption, but these must be documented and reported meticulously.
Furthermore, during employment, if a worker is absent from work without permission for more than 10 consecutive working days, this must be reported. This duty is designed to alert the Home Office to potential visa abuse or individuals who may have gone missing. It requires the employer to have a strong HR system that tracks daily attendance, assuring that any “unauthorised” absence is flagged immediately so the 10-day reporting window is not missed.
Changes in Employment Circumstances
Significant changes to the worker’s job must also be reported within 10 working days. This includes a change in job title or core duties. If the duties change significantly, the role may effectively become a different vacancy. If the new duties fall under a different Standard Occupational Classification (SOC) code, the employer cannot simply report the change; they may need to file a “change of employment” application (often called “switching”) to obtain a new visa for the new role. A sponsor has a duty to understand when a change is a basic administrative update and when it requires a new visa application.
Employers must also report if the worker’s salary is reduced. This is critical because the salary must meet the applicable threshold of the route for which the employer is being sponsored. Prohibited salary reductions, those that take the salary below the minimum requirements listed in the immigration rules, must not be allowed, and if they occur, sponsorship must stop.
Termination of Sponsorship
If the sponsorship relationship ends earlier than the date listed on the CoS, this must be reported within 10 working days. This covers resignations, dismissals, or redundancies. It also covers situations in which the worker changes to a different immigration route. Employers must verify their new status, obtain evidence of it, and then report on the SMS that you are ending sponsorship because they no longer require it.
Changes to Work Location
In the modern era of hybrid working, the sponsorship duty to report changes in work location is frequently overlooked. If a worker’s normal work location changes, for example, if they move to a different branch, a client site, or transition to a purely remote working arrangement, this must be updated on the SMS. The Home Office must always be aware of where the migrant is physically carrying out their work.
Reporting Duties: Changes to the Organisation
In addition to monitoring workers, sponsorship duties include keeping the Home Office informed about its own corporate structure and details. The deadline for these reports is generally 20 working days.
Corporate Details and Size
If the organisation changes its address, main contact email, or trading name, this must be updated. A critical, often-overlooked duty depends on the size of the company. When applying for a licence, an organisation declares if it is “small” or “large” for fee purposes. If a “small” company grows and acquires more than 50 employees or exceeds the turnover threshold to become a “large” company, it must report this change. This is vital because “large” companies pay a higher Immigration Skills Charge (ISC) when assigning a CoS. Failing to upgrade the status to “large” when it is one results in underpayment of government fees, which is a serious compliance breach.
Insolvency and Restructuring
Sponsors must report if they become insolvent, go into administration, liquidation, or enter a CVA (Company Voluntary Arrangement). Furthermore, corporate transactions such as mergers, takeovers, and de-mergers trigger complex reporting duties.
If a sponsor is acquired by another company, they must report the acquisition within 20 working days. Crucially, a sponsor licence is non-transferable. If a sponsor sells their business to a new owner, the licence effectively lapses. The new owner must have their own licence to continue employing the sponsored workers. Failure to report a takeover and transfer the workers to a new licence properly is a common reason for revocation.
Record-Keeping Duties of Sponsors
The sponsorship duties include record-keeping too. A sponsor must act as a record-keeper for the Home Office. Appendix D of the sponsor guidance lists certain documents that must be retained. These can be kept physically or electronically, but they must be accessible for inspection.
Recruitment and Selection
For every sponsored worker, the employer must retain evidence of how the worker was recruited. Even though the Resident Labour Market Test (RLMT) has been abolished for most routes, the sponsor must still prove that the vacancy is genuine. This means retaining copies of job advertisements, screenshots of where they were posted, and records of the number of applicants and shortlisted candidates. This evidence proves that the role was not created artificially for the migrant.
Recruitment and Selection
Sponsors must retain copies of the worker’s passport and biometric residence permit (or digital status). Crucially, a compliant Right to Work check must be conducted before employment starts. For most visa holders, this is now a digital check using a share code. The “profile page” generated by this check must be retained.
Tracking Contact Details
Sponsors must maintain an up-to-date history of the worker’s contact details. This includes their current UK residential address, personal email, and telephone number. It is not sufficient to simply have a current address, the sponsor must be able to show a history of where the worker has lived while sponsored. A robust system must be in place to prompt employees to update their HR details whenever they move.
Salary and Attendance Records
Sponsors must keep copies of payslips showing the salary paid, any allowances, and statutory deductions. These must be consistent with the amounts stated on the CoS. Additionally, detailed attendance records must be kept, or if the worker does not have set hours, a record of holidays and business absences are required to be maintained to verify they are working and not absent without permission.
Complying with Immigration Laws
The duty to comply with immigration laws goes beyond simple reporting; it requires the sponsor to actively ensure they are not facilitating illegal working or abusing the visa routes.
The Genuine Vacancy Test
Sponsors must not assign a CoS unless the job is a “genuine vacancy.” This is a subjective test used by the Home Office. A genuine vacancy is one that requires the jobholder to perform the specific duties and responsibilities for the job and meets all the requirements of the tier and category. It must not be a sham vacancy created effectively to facilitate a visa for a specific person. The job description must not be exaggerated to meet the skill level if the actual work to be done is lower-skilled. If the Home Office determines a vacancy is not genuine, they can suspend or revoke the licence.
Third-Party Working Restrictions
A sponsor generally cannot supply a worker to a third party (like a client) to fill a routine role within that third party’s organisation. If a sponsored worker is placed at a client site, the sponsor must retain full responsibility for their duties, functions, and output. The work must be in connection with a specific contract for services with a definite end date. Sponsors operating as employment agencies or consultancies must be extremely careful not to treat sponsored workers as agency labour, which is strictly prohibited.
Skill and Salary Compliance
The sponsor has a duty to ensure the worker is paid at least the minimum salary required for the route and the “going rate” for the specific occupation code. These rates often change, and sponsors must check the relevant tables in the Immigration Rules before assigning a CoS. Paying a worker less than the amount stated on the CoS is a violation of duty, even if the worker agrees to it, unless specifically permitted (e.g., due to statutory maternity leave or sick leave).
Compliance of Sponsorship Duties with Wider UK Law
The Home Office views a sponsor licence holder as a model corporate citizen. Therefore, a sponsor has a duty to comply with all wider UK laws, not just immigration statutes.
Employment and Tax Law
Sponsors must adhere to National Minimum Wage and National Living Wage regulations. They must comply with the Working Time Regulations, ensuring workers are not forced to work excessive hours. They must be registered with HM Revenue and Customs (HMRC) and pay all necessary PAYE and National Insurance contributions. A finding by HMRC that a sponsor is not paying the correct tax or minimum wage can trigger a compliance visit and the revocation of the licence.
Regulatory Compliance
If the sponsor operates in a regulated sector, they must maintain the appropriate certifications. For example, care homes must be registered with the Care Quality Commission (CQC), and educational institutions must be inspected by Ofsted or corresponding bodies. If a care home loses its CQC registration, it loses its legal basis to operate and, consequently, its ability to sponsor workers.
Conduct and Public Good
Sponsors have a duty to behave in a manner consistent with the “public good.” This is a broad but powerful requirement. It implies that the sponsor must not engage in behaviour that fosters hatred or inter-community division.
Sponsors must not discriminate against any person on the basis of protected characteristics (age, disability, gender reassignment, race, religion, sex, sexual orientation). Evidence of discriminatory recruitment practices or a toxic workplace culture can be grounds for revocation. Furthermore, sponsors must not be associated with extremism or terrorism. The Home Office checks the background of Key Personnel and the business owners; any criminal convictions or associations with non-conducive behaviour will lead to the refusal or loss of a licence. The Home Office expects sponsors to uphold fundamental British values.
Outcomes of Non-Compliance of Sponsorship Duties
The Home Office imposes a range of sanctions on sponsors who fail to meet these duties.
Downgrading (B-Rating)
For minor breaches, a sponsor may be downgraded from an A rating to a B rating. A B-rated sponsor cannot assign new Certificates of Sponsorship to new hires, they can only issue them to existing workers seeking extensions. They must pay for an "Action Plan" to improve their systems. This plan lasts for three months. If the sponsor fails to improve and meet the requirements of the Action Plan, the licence will be revoked. A sponsor cannot remain B-rated indefinitely, they generally have a maximum of two B-ratings within a four-year period before facing revocation.
Suspension
If the Home Office suspects serious breaches, they will suspend the licence pending a full investigation. During suspension, the sponsor cannot assign any CoS. The sponsor has 20 working days to respond to the allegations. This creates significant operational uncertainty and prevents the business from recruiting.
Revocation
This is the ultimate sanction. If a licence is revoked, all CoS assigned by the sponsor become invalid. The visas of all workers sponsored by that organisation are curtailed (shortened), usually to 60 days. These workers must find a new sponsor or leave the UK. Revocation applies across all branches and routes of the organisation. Once revoked, the organisation is subject to a "cooling-off period" (usually 12 months) before they can apply for a new licence.
Conclusion
The sponsorship duties of employers are exhaustive and continuous. They require an employer to integrate immigration compliance into the foundation of their Human Resources and recruitment processes. From the moment a licence is applied for, through the daily monitoring of staff, to the reporting of corporate changes, the sponsor acts as a defender of the immigration system.
Employers must view these sponsorship duties not as administrative hindrances but as essential operational requirements. The cost of compliance is high, requiring time, software, and personnel. However, the cost of non-compliance, loss of staff, damage to reputation, and the inability to hire overseas talent, is far higher. Upon understanding the breadth of these duties, from the “Genuine Vacancy” test to the minute details of record-keeping, sponsors can make sure they remain compliant, securing their employees and their business future.
