When a UK employer obtains a sponsor licence, they take on several crucial responsibilities known as sponsor duties. These duties are designed to ensure that employers who hire foreign workers do so in compliance with UK immigration laws. Understanding and adhering to these duties is vital for maintaining your sponsor licence and avoiding severe penalties from the Home Office.
What are Sponsor Licence Duties?
Sponsor licence duties encompass a range of obligations that employers must fulfill to retain their ability to sponsor non-UK workers. These duties begin the moment your licence is issued and continue as long as you hold the licence. Failure to comply can result in serious consequences, including the downgrading, suspension, or even revocation of your licence.
When Do Sponsor Licence Duties Begin?
Sponsor duties begin immediately upon the issuance of the sponsor licence. From that point forward, employers must ensure they are fully compliant with all aspects of the sponsor licence agreement, including record-keeping, monitoring sponsored workers, and reporting any significant changes to the Home Office.
Understanding Your Sponsor Licence Duties
Core Responsibilities of a Sponsor
The core responsibilities of a sponsor include keeping accurate records, monitoring the activities of sponsored workers, and ensuring that all relevant changes within the organization are reported to the Home Office in a timely manner. These responsibilities are critical in demonstrating that your organization is compliant with UK immigration law.
Record-Keeping Obligations
Record-keeping is a fundamental aspect of sponsor duties. Employers must maintain up-to-date and accurate records of each sponsored worker, including their contact details, proof of their right to work in the UK, and copies of their passport and visa. These records must be readily available for inspection by the Home Office at any time.
Sponsored Worker Monitoring & Reporting
Employers are required to actively monitor the employment of sponsored workers to ensure they comply with the terms of their visa. This includes tracking their attendance, ensuring they are paid correctly according to their employment contract, and reporting any absences or changes in employment to the Home Office within specified timeframes.
Reporting Organisational Changes
Essential Changes That Must Be Reported
Certain changes within your organization must be reported to the Home Office, as they can impact your sponsor licence status. These changes include, but are not limited to:
Change of Company Address
If your company moves to a new location, you must inform the Home Office of the new address to ensure your records are up-to-date.
Change of Authorising Officer
The authorising officer is the person responsible for ensuring that your company complies with its sponsor duties. Any changes to this role must be reported immediately.
Opening or Closing UK Branches
Opening a new branch or closing an existing one must be reported, as it may affect the sponsorship of your workers.
Establishing or Closing Overseas Entities
If your company expands internationally or closes overseas branches, these changes must also be reported to the Home Office.
Other Significant Changes to the Company
Any other significant changes, such as mergers, acquisitions, or substantial shifts in business operations, should be communicated to the Home Office to ensure compliance.
Compliance with Immigration Rules & UK Law
Maintaining compliance with immigration rules and broader UK laws is an ongoing responsibility for sponsors. This includes ensuring that sponsored workers are employed in accordance with their visa conditions and that the company adheres to all relevant employment laws.
Managing Certificates of Sponsorship (CoS)
CoS Applications & Renewals
The Certificate of Sponsorship (CoS) is a key document that enables a foreign worker to apply for a visa to work in the UK. Employers must ensure that CoS applications are completed accurately and renewed as necessary to maintain compliance.
Appointing and Managing Key Personnel
Key personnel within the company play a crucial role in managing sponsor duties. This includes the authorising officer, level 1 and level 2 users, and the key contact person. These individuals must be adequately trained and informed about their responsibilities.
Role of the Authorising Officer
The authorising officer is responsible for ensuring that your company complies with its sponsor licence duties. This role is pivotal in maintaining the integrity of your licence.
Responsibilities of Level 1 and Level 2 Users
Level 1 and Level 2 users are responsible for the day-to-day management of your sponsor licence and for ensuring that all necessary reporting and record-keeping duties are fulfilled.
Updating Contact Details and Secure Information
It is essential to keep all contact details and secure information, such as email addresses and passwords, up to date to prevent unauthorized access to your Sponsor Management System (SMS).
Preparing for Compliance Visits
What to Expect During a Compliance Visit
The Home Office conducts compliance visits to ensure that employers are adhering to their sponsor duties. During these visits, they may review your records, interview staff, and assess your overall compliance with immigration laws.
Documentation and Records to Keep On Hand
During a compliance visit, it is crucial to have all relevant documentation readily available. This includes records of sponsored workers, proof of their right to work, and any correspondence with the Home Office.
Consequences of Breaching Sponsor Duties
Potential Penalties from the Home Office
Failing to comply with your sponsor duties can lead to severe penalties, including:
Licence Downgrade to B-Rating
If the Home Office finds that your company is not fully compliant, they may downgrade your sponsor licence to a B-rating. This downgrade restricts your ability to sponsor new workers and requires you to take corrective action.
Licence Suspension
In more serious cases, the Home Office may suspend your licence, preventing you from sponsoring any new workers until the issues are resolved.
Licence Revocation
The most severe penalty is sponsor licence revocation, which would permanently remove your ability to sponsor foreign workers. This can have a significant impact on your business, especially if you rely heavily on international talent.
Best Practices for Maintaining Compliance
Tips for Ongoing Compliance
To maintain compliance with your sponsor duties, consider implementing the following best practices:
- Conduct regular internal audits to ensure all records are up-to-date.
- Provide ongoing training for key personnel on their responsibilities.
- Stay informed about any changes in immigration law that may affect your sponsor licence.
How to Avoid Common Pitfalls
Many companies fail to comply with their sponsor duties due to a lack of understanding or attention to detail. Common pitfalls include failing to report changes on time, not keeping accurate records, and not monitoring sponsored workers closely enough. By staying proactive and organized, you can avoid these issues and maintain your sponsor licence in good standing.
Need Help with Sponsor Licence Compliance?
If you need assistance navigating the complexities of sponsor licence duties, Borderless is here to help. Borderless has empowered over 250 employers and supported more than 2,500 individuals by making sponsorship effortless. Combining cutting-edge technology with human expertise, Borderless assists with sponsor licence applications, recruitment, visa processing, and compliance. With thousands of pre-vetted professionals and automated solutions, Borderless is the trusted partner for navigating the complexities of immigration. . Contact us today for a consultation.
For more information on sponsor licence fees and how long it takes to obtain a sponsor licence, explore our additional resources.
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