A practical guide to reporting, record-keeping, key personnel and Home Office compliance checks
At a glance: A sponsor licence is an ongoing compliance commitment. Worker changes are generally reportable within 10 working days, organisational changes within 20 working days, and some matters must be reported as soon as reasonably practicable. The precise rule depends on the event.
A sponsor licence allows a UK organisation to recruit eligible workers through sponsored work routes. Once the licence is granted, the organisation becomes responsible for maintaining accurate records, monitoring sponsored workers, reporting specified changes and complying with immigration law and wider UK law.
These duties are continuous. The Home Office may assess compliance through requests for documents, checks against information held by other government departments, remote engagement or an announced or unannounced visit. Weak systems, late reporting or inaccurate information can expose the organisation to a downgrade, suspension or revocation of its licence and may affect the immigration position of sponsored workers.
This guide explains the principal duties for Worker and Temporary Worker sponsors and the practical systems employers should maintain. Route-specific requirements may also apply, so sponsors should check the guidance relevant to each worker and route.
What are the main sponsor licence duties?
The Home Office groups sponsor responsibilities into five broad areas:
- Reporting specified changes concerning sponsored workers and the organisation within the applicable deadline.
- Keeping the records required by Appendix D and producing them when requested.
- Complying with UK immigration law, including assigning a Certificate of Sponsorship only where the role and worker meet the relevant requirements.
- Complying with wider UK law, including employment law, National Minimum Wage requirements and working time rules.
- Acting in a manner that supports the public good, including behaving honestly, providing accurate information and co-operating with the Home Office.
The organisation should also be satisfied that the role is genuine and that the worker has the skills, qualifications, experience and any professional registration required for it. Evidence supporting these conclusions should be retained where the guidance requires it.
When do sponsor duties begin and end?
The organisation’s general sponsor duties apply from the date the licence is granted and continue until the licence is surrendered, made dormant or revoked. The systems needed to meet those duties should already be in place when the licence application is made, because the Home Office considers whether the organisation is capable of carrying out its sponsor responsibilities.
Duties relating to an individual worker begin when the sponsor assigns the Certificate of Sponsorship. They continue while the organisation sponsors that worker and until the relevant sponsorship-ending event and any required report have been dealt with. Examples include the worker’s employment ending, the worker moving to another sponsor, switching to a route that does not require sponsorship, being granted settlement, or the sponsor formally ceasing sponsorship.
Which sponsored worker changes must be reported to UKVI?
Unless the guidance specifies another period, a change affecting a sponsored worker must be reported through the Sponsorship Management System (SMS) within 10 working days of the event. Common examples include:
- the worker does not start the sponsored role within the permitted 28-day period;
- the worker’s employment or engagement ends earlier than the end date shown on the Certificate of Sponsorship;
- the worker is absent without permission for more than 10 consecutive working days;
- the worker is absent without pay, or on reduced pay, for more than four weeks in total in a calendar year and no permitted exception applies;
- the worker’s salary is reduced, or another reportable salary or employment change occurs;
- the worker’s normal work location changes, including a permanent or full-time move to home working;
- a professional registration or accreditation required for the sponsored work is withdrawn; or
- the sponsor stops sponsoring the worker for another reason.
Remote and hybrid work: Occasional day-to-day changes of location do not normally need to be reported. A change to the worker’s regular working pattern or normal work location does. The report should explain the new arrangement clearly.
Unauthorised absence
Where a sponsored worker is absent without permission for more than 10 consecutive working days, the sponsor must report this no later than 10 working days after the tenth day of absence. The obligation applies even if the organisation intends to continue sponsoring the worker.
Unpaid leave or reduced pay
The relevant threshold is generally more than four weeks in total during a calendar year, rather than simply one continuous four-week period. Permitted exceptions can include specified statutory or protected forms of leave and other circumstances recognised in the sponsor guidance. The sponsor should check the route-specific rule before deciding whether sponsorship can continue.
A delayed start date
A sponsored worker will normally need to start within 28 days of the latest applicable date under the sponsor guidance. If the start is delayed beyond that period, the sponsor must report the delay and explain the reason. The Home Office may cancel the worker’s permission if it does not accept the reason. A worker may start earlier than the date stated on the Certificate of Sponsorship once they have valid permission to work in the sponsored role.
Suspected breaches and criminal activity
If the sponsor knows or suspects that a sponsored worker has breached their conditions of stay, it must tell the Home Office as soon as reasonably practicable. The guidance also requires sponsors to report information suggesting that a worker may be engaged in terrorism or other criminal activity. These matters should be escalated internally without delay.
Which organisational changes must be reported?
Unless another deadline applies, specified organisational changes must generally be reported within 20 working days. These can include:
- a change to the organisation’s name, address, contact details, head office details or relevant branches and sites;
- a change to the organisation’s structure, including new branches or linked entities where relevant;
- a merger, takeover, de-merger, change of direct ownership, sale of all or part of the organisation, or transfer of sponsored workers under TUPE or similar protection;
- the organisation ceasing to trade, entering insolvency arrangements or liquidation;
- a material change in the nature of the business, its size or its charitable status; or
- changes to required registrations or accreditations.
Changes to key personnel and their contact details must also be made through the SMS. Some events, including relevant criminal convictions or other serious suitability matters, require action sooner than the standard 20-working-day period.
Ownership changes require early advice: A sponsor licence is not transferable. A merger, takeover, change of ownership or TUPE transfer may require a new sponsor licence application or an application to extend an existing licence within 20 working days. The correct action depends on the legal structure of the transaction and which entity will employ the sponsored workers.
What records must a sponsor keep under Appendix D?
Appendix D sets out the records that must be retained. The exact documents depend on the route, the role and how the worker was recruited. A compliant worker file will commonly include:
- evidence of the prescribed right to work check and, where relevant, the worker’s date of entry to the UK;
- evidence showing how the worker was recruited, or a clear explanation where no formal advertising exercise took place;
- a detailed job description and evidence of required skills, qualifications or professional registration;
- the employment contract or written statement of particulars;
- payslips and evidence showing each salary payment into the named worker’s account;
- records of absences and the worker’s up-to-date contact details; and
- any additional evidence required by the relevant route-specific sponsor guidance.
Records may generally be kept electronically or in paper form, provided they are clear, legible and readily available. Sponsors must also keep the documents submitted with the sponsor licence application for as long as they hold the licence.
How long must sponsor records be retained?
Unless the guidance states otherwise, worker-related documents must be retained throughout sponsorship and until the earlier of:
- one year after sponsorship of the worker ends; or
- the date on which a Home Office compliance officer examines and approves the documents, if that occurs less than one year after sponsorship ends.
Other legal obligations may require longer retention. For example, evidence used to establish a statutory excuse against a civil penalty for illegal working must be kept in accordance with the separate right to work guidance. Data protection duties also apply to the collection and retention of worker information.
How should right to work checks be managed?
A sponsor must retain evidence of prescribed right to work checks for workers it employs and for workers it sponsors. In most cases involving an eVisa, the employer should use the GOV.UK online right to work service with the worker’s share code. A general immigration-status view is not a substitute for the prescribed employer check.
Where a worker has time-limited permission, a follow-up check is required at the appropriate time to preserve the employer’s statutory excuse. A correctly completed check for a person with a continuous right to work generally provides a continuous statutory excuse for the duration of employment.
Can sponsorship fees be recovered from the worker?
Sponsors are responsible for the sponsorship fees specified in the Home Office guidance. The rules expressly prohibit recovery of certain fees and associated administrative costs from sponsored workers. These include the Immigration Skills Charge and, depending on the route and assignment date, sponsor licence and Certificate of Sponsorship fees. The Home Office will normally revoke a licence where a sponsor recoups or attempts to recoup a prohibited fee. Employment contracts, repayment clauses and payroll deductions should therefore be reviewed carefully.
How should sponsor licence key personnel be managed?
Sponsors must keep suitable key personnel in place and ensure their details remain current. The core roles are the Authorising Officer, Key Contact and Level 1 User. One person may hold more than one role if they meet the relevant requirements.
Authorising Officer
The Authorising Officer must normally be a paid member of staff or an office-holder within the organisation and should be the most senior person responsible for sponsored recruitment and compliance. The Authorising Officer remains accountable for the activities of people who use the SMS, even if they do not personally carry out routine SMS tasks.
Level 1 and Level 2 Users
The sponsor must maintain at least one Level 1 User throughout the life of the licence who meets the applicable internal and settled-worker requirements, subject to limited exceptions and transitional provisions. After the licence is granted, additional eligible Level 1 Users may include a UK-based representative. The number should be sufficient to cover absence while remaining controlled and proportionate.
Level 2 Users have more restricted SMS permissions. The sponsor should allocate access according to operational need, remove access promptly when a user leaves or changes role, and review user activity regularly.
Key Contact
The Key Contact is the principal liaison with the Home Office. This person can be an eligible internal person or a UK-based representative. The role does not automatically provide SMS access; separate appointment as a Level 1 or Level 2 User is required where access is needed.
How can employers prepare for a Home Office compliance check?
The Home Office can undertake announced or unannounced compliance visits and can request records electronically. It may interview key personnel and sponsored workers, inspect systems and compare the information held by the sponsor with the Certificate of Sponsorship, payroll records and data held by other government departments, including HMRC.
A practical compliance system should include:
- a complete and consistently organised file for every sponsored worker;
- calendar prompts for visa expiry dates, follow-up right to work checks and reportable events;
- clear absence, salary, work-location and contact-detail monitoring;
- a written process for managers and payroll staff to alert the sponsor compliance team before changes are implemented;
- regular checks that SMS data matches HR, payroll and workplace records;
- current key personnel and reliable access to the SMS; and
- periodic internal audits, with identified gaps corrected and documented.
Where the Home Office requests documents, the sponsor should follow the deadline and submission instructions stated in the request. Files should be complete, clearly named and accompanied by concise explanations where the evidence could otherwise appear inconsistent.
Regular reviews for each sponsored worker’s personnel file against the current Appendix D record-keeping requirements can help the employers in long run significantly. This may involve checking right-to-work evidence, recruitment records, employment terms, salary payments, qualifications, contact details, attendance records and any route-specific documents.
What can happen if a sponsor breaches its duties?
The Home Office may take action according to the nature and seriousness of the breach. Possible outcomes include reducing a Certificate of Sponsorship allocation, downgrading an A-rated licence to a B-rating and imposing an action plan, suspending the licence while concerns are investigated, or revoking the licence.
Suspension generally prevents the sponsor from assigning Certificates of Sponsorship to new workers while the Home Office considers the case. Revocation ends the licence. Sponsored workers may then have their permission cancelled or shortened, depending on their circumstances. There is no right of appeal against revocation, and a cooling-off period of at least 12 months generally applies before a fresh sponsor licence application can be made; longer periods can apply in some cases.
How Immigration Connection can assist with sponsor compliance
Sponsor compliance becomes easier to manage when responsibilities are built into the organisation’s ordinary HR, payroll and management processes. Immigration Connection can support employers with:
- Sponsor licence application
- Sponsor licence compliance reviews and internal audits;
- SMS reporting and organisational change planning;
- Reviewing sponsored worker records against Appendix D;
- Key personnel and licence-management guidance;
- Preparation for a Home Office compliance visit or document request; and
- Advice following a downgrade, suspension or threatened revocation.
The appropriate support will depend on the sponsor’s structure, licence routes, workforce and the issue requiring attention. Early review is particularly important where a deadline is running or a corporate transaction may affect the licence.
To discuss sponsor licence compliance or arrange an advice session, contact Immigration Connection or email us at www.immigrationconnection.co.uk.
Sponsor Licence Duties: Frequently Asked Questions
How quickly must a sponsor report a change to UKVI?
Changes affecting a sponsored worker are generally reportable within 10 working days, while specified organisational changes are generally reportable within 20 working days. Some matters have a different deadline or must be reported as soon as reasonably practicable, so the event-specific rule should always be checked.
Does every day of home working need to be reported under sponsor licence duties?
No. Occasional day-to-day changes do not normally require a report. A permanent or full-time move to home working, or another change to the worker’s normal work location or regular working pattern, should be reported.
Does a sponsor have to stop sponsorship after four weeks of unpaid leave?
The general rule concerns more than four weeks in total in a calendar year and permitted exceptions may apply. The sponsor should identify the reason for the absence, check the relevant route guidance and make any required report before deciding whether sponsorship can continue.
Can an immigration adviser act as a Level 1 User?
After a licence is granted, an eligible UK-based representative may be appointed as an additional Level 1 User. The sponsor must still maintain the required internal Level 1 User and remain responsible for activity carried out on its licence.
What is the difference between sponsor licence suspension and revocation?
Suspension is an interim status while the Home Office investigates concerns and generally prevents new sponsorship activity. Revocation terminates the licence and can lead to sponsored workers’ permissions being cancelled or shortened.
How often should a sponsor licence compliance audit be carried out?
The Home Office does not prescribe a single audit frequency for every sponsor. Reviews should be proportionate to the organisation’s size, sponsored population and level of change. Regular audits, together with event-driven checks before material employment or corporate changes, help identify gaps before they become breaches.
