Sponsor Licence Change of Circumstances: Complete Guide for UK Employers

A Sponsor Licence Change of Circumstances occurs when there are significant changes in your business or to the sponsored workers under your employment. UK Visas and Immigration (UKVI) requires that you report these changes within 10 working days of the change occurring. This is not just an administrative task but a legal obligation, and failure to do so could result in serious consequences.

Reporting changes promptly ensures that your business remains compliant with the UK's immigration rules and avoids potential sanctions, such as having your sponsor licence revoked.

When is There a Change of Circumstances?

There are a variety of circumstances that must be reported to the Home Office when they occur. These changes may involve your organisation, your key personnel, or your sponsored workers. Here's a breakdown of when and what changes need to be reported:

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1. Business or Organisational Changes

Certain organisational changes can have a direct impact on your Sponsor Licence. These include, but are not limited to:

• Change of Address: If your company relocates to a new physical address, you must inform the Home Office. This is crucial even if your business moves within the same city or region.
• Change in Ownership or Business Structure: Any mergers, acquisitions, or changes in business ownership must be reported. For instance, if your company is bought by another entity, or if there is a significant restructuring, this is considered a change of circumstances that needs to be disclosed. Not reporting such changes could lead to non-compliance and a potential risk of losing your licence.
• Changes in Trading Status: If your business enters administration, liquidation, or changes its business model (for example, from a limited company to a partnership), UKVI needs to be informed immediately.

Such changes can have wider implications for your licence, including the need to reapply or restructure your existing sponsorship permissions. You can report these changes via the Sponsor Management System (SMS).

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2. Changes in a Sponsored Worker’s Circumstances

In addition to business changes, you must also report any significant changes in the circumstances of the workers you sponsor. These may include:

• Change in Job Role: If a sponsored worker changes job roles, especially if the new role has different responsibilities or a different Standard Occupational Classification (SOC) code, you must notify the Home Office. Not reporting changes in role can result in penalties.
• Change in Work Location: With the rise of hybrid working models, it is crucial to report if a sponsored worker's primary work location has changed. For example, if a worker moves from the UK to work overseas for a portion of their employment, this needs to be disclosed.
• Unpaid Leave: Sponsored workers are allowed a certain amount of unpaid leave under UKVI rules. If a worker exceeds this, you must notify the Home Office. This is particularly relevant for companies navigating changes in work patterns due to COVID-19 or other external factors.
• Hybrid Working Arrangements: Any change in a worker’s primary place of employment, including hybrid or remote working setups, must be reported to UKVI to avoid penalties. Learn more about reporting changes for hybrid workers on the SMS.
  

3. Key Personnel Changes

The Home Office requires that any changes to key personnel who manage your Sponsor Licence be reported immediately. This includes your:

• Authorising Officer: The individual responsible for the Sponsor Licence.
• Key Contact: The person who communicates with the Home Office on your behalf.
• Level 1 and Level 2 Users: The individuals responsible for managing your Sponsor Management System (SMS).

If any of these personnel leave the company or change roles, you must inform the Home Office. Key personnel changes can be managed through your SMS.

How to Report Sponsor Licence Changes to the Home Office

All Sponsor Licence changes must be reported via the Sponsor Management System (SMS). Here’s a step-by-step guide on how to report changes:

1. Log in to SMS: Access your Sponsor Management System using the credentials provided when you applied for your licence.
2. Select "Change of Circumstances": Choose the appropriate option based on the nature of the change you’re reporting.
3. Complete the Required Forms: Depending on the change, you’ll need to fill out the relevant sections of the form and upload supporting documentation, if necessary.
4. Submit the Changes: Once completed, submit your form and ensure you receive a confirmation of submission from the Home Office.
5. Track Your Application: You can monitor the status of your application within the SMS. In most cases, UKVI will process the change within a few weeks.

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Cost of Reporting a Sponsor Licence Change of Circumstances

Most changes to your Sponsor Licence can be reported free of charge. However, if you opt for priority service, there may be additional costs. To ensure you have the full scope of expenses, you can use a visa fees calculator to estimate your government fees.

The Sponsor Licence Priority Service allows you to expedite the processing of changes for an additional fee. This service is particularly useful for urgent changes that need to be reported immediately to avoid penalties.

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Penalties for Failing to Report a Change of Circumstances

The consequences of failing to report changes on time can be severe. UKVI expects sponsors to manage their licence with diligence, and non-compliance can result in:

• Sponsor Licence Suspension or Revocation: If UKVI finds that your business has failed to comply with its duties, your licence may be suspended or even revoked. This could have a significant impact on your ability to hire overseas workers.
• Financial Penalties: Businesses can be fined for failing to report changes promptly. The exact amount depends on the nature of the violation and whether it is a repeated offense.
• Inability to Sponsor New Workers: If your licence is suspended or revoked, you will not be able to sponsor any new workers until the issue is resolved. Furthermore, your current sponsored workers may be forced to leave the UK.

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Key Sponsor Licence Reporting Duties

As a sponsor, you have a legal obligation to maintain accurate records and report certain changes. This goes beyond just reporting changes in your business or workforce. Your sponsor licence compliance duties also include:

• Monitoring Sponsored Worker Activities: Keep track of your sponsored employees' work duties, and ensure they comply with the conditions of their visa.
• Reporting Delayed Start Dates: If a sponsored worker’s start date is delayed for any reason, this must be reported to the Home Office.
• Reporting Offshore Workers: If your sponsored employees work offshore, you must keep the Home Office informed.

Regular audits and checks of your Sponsor Management System (SMS) records will help you stay compliant with UKVI rules.

Sponsor Licence Change of Circumstances FAQs

To help you further, here are answers to some frequently asked questions about Sponsor Licence Change of Circumstances:

• How do I amend a Certificate of Sponsorship (CoS)?
  ‍You can amend a Certificate of Sponsorship (CoS) via the Sponsor Management System. It's vital to ensure that all CoS details are accurate to avoid penalties.
• Is a Certificate of Sponsorship transferable?
  ‍No, a Certificate of Sponsorship cannot be transferred from one employer to another. If the worker changes employers, a new CoS must be issued.
• What is the cooling-off period for sponsor licence applications?
  ‍If your Sponsor Licence is revoked, there is typically a 12-month cooling-off period before you can reapply.
• How long does it take to increase CoS allocation?
  ‍It usually takes a few weeks to increase your CoS allocation, though this can vary depending on the complexity of your request. For quicker processing, consider using the Sponsor Licence Priority Service.
• Can Level 2 Users report migrant activity?
  ‍Yes, Level 2 Users can report certain changes, including migrant activity, via the SMS.
• What Happens if You Fail to Report a Change?
  If you fail to report a change, UKVI may take enforcement action, which could include suspending or revoking your licence. In addition to the penalties mentioned earlier, you could face difficulty in future applications for a sponsor licence or experience long delays in processing times. To avoid these outcomes, it’s essential to stay on top of your reporting duties.
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Need Assistance?

Managing your Sponsor Licence effectively can be a challenging task. If you’re unsure about how to report changes or need help with your sponsor licence application, don’t hesitate to get in touch with our team. Our experts can provide full Sponsor Management System management and help you stay compliant with UKVI regulations.

By understanding your obligations regarding Sponsor Licence Change of Circumstances and reporting all changes promptly, you can avoid penalties and continue benefiting from a diverse international workforce. For more information on sponsor licence fees, how long does a sponsor licence take, and sponsor licence compliance, explore our additional resources or contact us for tailored advice.