Employers in the UK who sponsor Skilled Workers must make sure they fully comply with their Sponsor Licence duties. Missing salary payments, failing to report changes through the Sponsorship Management System (SMS), or not responding to Home Office requests can result in your Sponsor Licence being revoked.
Businesses that want to employ overseas workers in the UK must hold a Sponsor Licence. However, obtaining a licence does not mean that an employer’s responsibilities towards the Home Office have ended.
Businesses must continue to meet certain reporting, record-keeping and compliance requirements throughout the period they hold their licence. Failure to meet these requirements can result in the loss of their sponsorship rights.
In a Sponsor Licence revocation decision, the Home Office revoked a company’s licence for three main reasons.
In the case reviewed, the sponsored worker’s Certificate of Sponsorship (CoS) stated an annual salary of £34,000. However, HMRC records showed no salary payments for three months.
Under Sponsor Guidance Part 3, Annex C1(aa), paying a sponsored worker less than the salary stated on their CoS may result in licence revocation if the change has not been reported or is not permitted under the relevant rules.
The Home Office can check salary payments through HMRC records. Employers must therefore make sure that their payroll records, bank payments and HMRC submissions are consistent.
The second reason for revocation was the employer’s failure to report the change in the worker’s salary.
Under Sponsor Guidance Part 3, Paragraph C1.15, changes to sponsored workers’ salaries that must be reported should normally be reported through the Sponsorship Management System (SMS) within 10 working days, unless a different timeframe applies.
However, reporting a salary reduction does not automatically mean that it is permitted. Any change must also comply with the Immigration Rules.
In this case, the Home Office requested documents from the employer, including payslips, bank statements, employment contracts and payroll records.
Despite sending two separate emails and allowing additional time, the Home Office received no response.
The Home Office considered this a breach of the employer’s sponsor duties under Sponsor Guidance Part 3, Paragraph C1.38 and Annex C2(a) and C2(e).
As a result, the company’s Sponsor Licence was revoked immediately, without first being suspended.
One of the main responsibilities of Sponsor Licence holders is to report certain changes relating to their sponsored workers and their business to the Home Office.
For example:
These changes must be reported through the SMS within the timeframes set out in the relevant guidance.
For the Home Office, it is not only the change itself that matters, but also whether the employer reports it correctly and on time.
Missing or late reports can amount to a serious breach of sponsor duties.
Yes. Depending on the seriousness of the breach, the Home Office can revoke a Sponsor Licence without suspending it first.
Depending on the circumstances, the Home Office may suspend a licence, downgrade it to a B-rating, or revoke it completely.
However, in serious cases, the Home Office can decide to revoke the licence immediately without taking these steps first.
If a Sponsor Licence is revoked, the employer:
There is also no ordinary right of appeal against a revocation decision. However, other legal options may be available depending on the circumstances.
Regular compliance checks are important for protecting a Sponsor Licence.
Employers should keep their SMS records up to date, submit the required reports on time, and maintain accurate salary and employment records for their sponsored workers.
It is also essential to monitor emails from the Home Office and respond to document requests within the given deadlines.
Remember: Obtaining a Sponsor Licence is only the beginning. Employers are also responsible for maintaining their licence.
For UK businesses holding a Sponsor Licence, managing sponsorship duties properly is important for protecting the immigration status of existing workers and planning future recruitment.
Lex Legal Ltd is an immigration advice firm authorised by the Immigration Advice Authority (IAA), specialising in UK immigration law.
We provide professional advice and support with Sponsor Licence applications, SMS reporting duties, Home Office compliance procedures and maintaining Sponsor Licences.
We also offer a Sponsor Licence Compliance Check service to help businesses review their current sponsorship procedures, identify possible compliance issues and take the necessary steps to address them.
Do not put your Sponsor Licence at risk. Make sure the necessary checks are carried out.
If you would like advice about your sponsorship duties or further information about our Compliance Check service, please contact us.
Relevant provisions: Home Office, Workers and Temporary Workers: Guidance for Sponsors, Part 3 – Sponsor Duties and Compliance, Annex C1(aa), Annex C2(a), Annex C2(e), C1.15 and C1.38
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Lex Legal Limited is an international legal consultancy firm that located in the heart of London. Our areas of expertise and services include legal advice globally as well as immigration consultancy.
Our partner of legal professionals offer considered and comprehensive advice to make an informed decision. We resolve all complex immigration issues and Golden visa programs and work with clients from the initial stages throughout the process which could take up to three months.
Meridien House
42 Upper Berkeley Street
W1H 5PW
London, England
+44 7739 699 968 (Mobile)
+44 20 3988 0575 (Landline)
contact@lexlegal.com