SMS Level 1 User Guide

When managing a sponsorship licence under the UK’s immigration system, the SMS Level 1 User plays a critical role in ensuring compliance with UK Visas and Immigration (UKVI) regulations. This individual is responsible for overseeing the day-to-day operations of the sponsorship licence, which includes assigning Certificates of Sponsorship (CoS), reporting changes in employee status, and liaising directly with the UKVI through the Sponsorship Management System (SMS).

The SMS Level 1 User ensures the organisation complies with immigration regulations, reducing the risk of penalties such as licence suspension or revocation. In this comprehensive guide, we will explore the responsibilities, qualifications, and best practices for SMS Level 1 Users, along with how Borderless can help you streamline the process.

What is an SMS Level 1 User?

An SMS Level 1 User is responsible for managing the business's sponsorship licence through the UKVI’s online Sponsorship Management System (SMS). The SMS is an essential tool that allows sponsors to handle all immigration-related tasks for sponsored employees, including assigning Certificates of Sponsorship, reporting changes to migrant workers' employment conditions, and ensuring compliance with UKVI rules.

The SMS Level 1 User has full access to the system, with the authority to manage both Level 1 and Level 2 Users within the organisation. The SMS Level 1 User plays a pivotal role in compliance by ensuring that all changes, from employment statuses to job duties, are accurately reported to the UKVI.

Failure to comply with UKVI regulations could lead to penalties, including licence downgrades or sponsor licence revocation, making this role essential for any business sponsoring overseas workers.

Who Can Act as an SMS Level 1 User?

The UKVI imposes strict guidelines on who can be appointed as an SMS Level 1 User. To qualify, the SMS Level 1 User must be:

1. A paid employee, partner, or director of the sponsoring business.
2. Based in the UK for the entire duration they serve as a Level 1 User.
3. Competent and capable of using the Sponsorship Management System effectively.

In addition to internal employees, a UK-based legal representative may be added as a Level 1 User, provided they have been officially appointed as a representative via the SMS. However, at least one SMS Level 1 User must be an employee, partner, or director of the sponsor organisation.

Who Cannot Act as an SMS Level 1 User?

The UKVI also specifies who cannot serve as an SMS Level 1 User:

• Temporary staff, including those hired through an agency.
• Individuals not based in the UK.
• Contractors or consultants working on a project basis.
• Persons with undischarged bankruptcy or relevant criminal convictions.

If the only SMS Level 1 User leaves the organisation or becomes ineligible, the sponsor must immediately appoint a replacement to avoid non-compliance. The absence of a Level 1 User can trigger a sponsor licence revocation process if not rectified promptly.

Responsibilities of an SMS Level 1 User

The role of an SMS Level 1 User comes with several critical responsibilities related to the management of the sponsorship licence. These tasks must be completed in accordance with UKVI regulations, or the sponsor could face enforcement actions.

Key duties include:

1. Assigning Certificates of Sponsorship (CoS): SMS Level 1 Users are responsible for assigning Certificates of Sponsorship to migrant workers. This allows workers to apply for a visa under the skilled worker or other visa categories.
2. Managing CoS Allocations: Level 1 Users request increases in the number of available CoS allocations if the company needs to hire more migrant workers than initially planned. This is crucial for businesses experiencing growth or high demand for skilled workers.
3. Reporting Changes in Worker Status: It’s the responsibility of the SMS Level 1 User to report any significant changes in a migrant worker’s employment status to UKVI. This includes promotions, changes in job title, or if the worker leaves the company. Failure to report these changes can lead to penalties.
4. Overseeing Sponsor Licence Compliance: The SMS Level 1 User is responsible for ensuring the organisation meets all its sponsor duties. This includes updating the sponsor licence with any changes to company details, such as new office locations or key personnel changes.
5. Adding and Removing SMS Users: The SMS Level 1 User is responsible for managing who within the organisation has access to the SMS. They can add and remove both Level 1 and Level 2 Users as needed. Level 2 Users are given limited access to the system compared to Level 1 Users.
6. Renewing the Sponsor Licence: When the sponsor licence is due for renewal, the SMS Level 1 User must ensure that the renewal application is completed on time to avoid any gaps in compliance or issues with hiring overseas workers.
7. Liaising with the Home Office: The SMS Level 1 User serves as the primary point of contact between the sponsor organisation and the Home Office. They ensure that all communications are handled efficiently and that the organisation remains in compliance with UKVI regulations.
8. Handling Compliance Audits: The UKVI may conduct compliance audits to ensure the sponsor organisation is adhering to all immigration rules. The SMS Level 1 User is responsible for ensuring that all records are accurate and readily available for inspection.

Differences Between SMS Level 1 and Level 2 Users

While both SMS Level 1 and Level 2 Users can manage certain aspects of the sponsorship licence, there are key differences between the two roles:

• SMS Level 1 Users have full access to the Sponsorship Management System (SMS). They are responsible for assigning Certificates of Sponsorship, managing other SMS users, reporting changes, and ensuring compliance with UKVI regulations.
• SMS Level 2 Users have more limited access. They can assign Certificates of Sponsorship and report changes in worker activity but cannot manage other users or make significant changes to the sponsorship licence. Level 2 Users cannot renew the sponsor licence or handle requests for increases in CoS allocations.

Having both Level 1 and Level 2 Users in place can help streamline the management of your sponsorship licence, but it’s important to assign roles based on the level of responsibility required.

What Happens if the SMS Level 1 User Fails to Meet Their Duties?

Failing to comply with UKVI’s requirements as an SMS Level 1 User can have serious consequences for your organisation. Some of the potential penalties include:

• Licence Downgrade: The sponsor licence could be downgraded from an A-rating to a B-rating if the organisation fails to meet its sponsor duties. A B-rating would require the sponsor to follow a UKVI-approved action plan to regain its A-rating.
• Licence Suspension or Revocation: In severe cases, the sponsor licence may be suspended or revoked. If the licence is revoked, the business will lose its ability to sponsor overseas workers, which could have significant operational and financial impacts. For more details, read our guide on sponsor licence revocation.
• Fines and Criminal Penalties: Depending on the severity of non-compliance, the business may also face fines or legal action.

To avoid these penalties, it’s crucial that the SMS Level 1 User remains diligent in performing their duties and stays up-to-date with any changes in immigration rules or sponsor licence requirements.

Best Practices for SMS Level 1 Users

To ensure compliance and minimise the risk of penalties, here are some best practices for SMS Level 1 Users:

1. Stay Informed: Immigration rules and sponsor duties can change frequently. SMS Level 1 Users should stay informed about any updates from the UKVI and attend training sessions if needed.
2. Keep Accurate Records: Ensure all records related to migrant workers and sponsorship activities are up-to-date and readily accessible for UKVI audits.
3. Regularly Review SMS Access: Review who within your organisation has access to the SMS. Remove users who no longer need access and add new users as required.
4. Monitor CoS Usage: Keep track of the number of CoS allocations used and request additional allocations in advance if your organisation is planning to hire more migrant workers.
5. Schedule Regular Licence Reviews: Periodically review your sponsor licence to ensure that all details, such as key personnel and office locations, are accurate. This can help avoid issues when renewing the licence.

How Borderless Can Help

At Borderless, we offer full SMS management services, handling everything from CoS requests and renewals to liaising directly with the Home Office, ensuring your business remains compliant with UKVI regulations. With a dedicated account manager, we streamline the sponsorship management process, providing expert guidance and acting as your main point. Book a 15-minute consultation today.

FAQs on SMS Level 1 Users

Who can be an SMS Level 1 User?
A paid employee, partner, or director of the organisation, based in the UK.

Can a legal representative act as an SMS Level 1 User?
Yes, a UK-based legal representative can be added, but at least one Level 1 User must always be a part of the sponsor organisation.

What happens if a Level 1 User fails to perform their duties?
The sponsor may face penalties, including licence suspension or sponsor licence revocation.

How many SMS Level 1 Users can a sponsor have?
Multiple SMS Level 1 Users can be appointed, and it’s advisable to have more than one to ensure coverage during absences.