By adhering to best practice when it comes to sponsorship management, you can relax in the knowledge that your ability to hire non-UK workers can continue. Some sponsor licence holders struggle with not carrying out right-to-work checks or keeping up-to-date records. Here, we will look at some of the issues faced by UK sponsor licence holders and how to overcome them.
Challenge 1 – Compliance obligations and the administrative burden
Right to work checks
As a sponsoring employer, you must carry out checks on the right of all employees to work in the UK, no matter where they are from. You will need to check key documents such as passports and visas and recording information accurately for each member of staff, regardless of their nationality. The ongoing nature of these checks, conducted at the time of hiring and periodically for employees with visas, requires significant time and resources.Not carrying out these checks can lead to the loss of your sponsor licence.
Keeping records of sponsored workers
You must keep copies of passports, up-to-date address and phone numbers, and salary detals. This is important because during a compliance audit, if the Home Office discovers that a record is not accurate, it may downgrade, suspend, or even revoke your sponsor licence.
Report changes in circumstances
The Home Office also requires that employers report any significant changes in a sponsored worker’s employment status or circumstances. For instance, if an employee fails to turn up to work, leaves the company, or otherwise breaches the terms of their visa, this must be reported within a specified timeframe. Failure to meet these reporting obligations can lead to licence suspension or revocation.
The demands of right-to-work checks, maintaining accurate records, and meeting reporting duties impose a heavy administrative burden. For some businesses, it may be necessary to have additional staff, systems, or even third-party support.
To overcome the compliance and administrative burdens outlined above, many sponsors now use technology to automate many of the processes. This may include, for example, a calendar system that automatically prompts staff to provide information about their immigration status and reminds key personnel who are due a right-to-work check.
Challenge 2 – Ensuring key personnel have the necessary training and are always in place
The Home Office requires that each sponsor licence holder appoints three types of key personnel: an Authorising Officer, a Key Contact, and a Level 1 User. The Authorising Officer is someone in a senior management role and is responsible for ensuring that the business complies with all sponsor licence duties. The Key Contact acts as the main liaison with the Home Office, while the Level 1 User manages daily sponsorship activities, including updates to the Sponsorship Management System (SMS).
Some sponsors struggle with ensuring that the right people are trained and how to handle the absence or departure of key personnel. Key personnel understand their roles and responsibilities to ensure that they manage sponsorship obligations effectively. Education is essential to keep personnel updated on immigration laws or reporting requirements. Larger companies may include the role of sponsorship key personnel in their HR policies and procedures. This means that if someone new needs to take over the role, it is already thoroughly documented, allowing continuous compliance.
Challenge 3 – Being ready for a Home Office compliance audit at all times
Sponsor licence holders may receive an unannounced desktop or onsite compliance audit by the Home Office at any time. This is a detailed process which involves assessing compliance with immigration regulations and reviewing right-to-work checks, employee records, and sponsorship management practices.
The challenge for employers is being able at all times to demonstrate to UKVI compliance officers that they have conducted accurate right-to-work checks, maintained complete and current employee records, and fulfilled all reporting requirements. This challenge is further compounded by the pressure of knowing that non-compliance could result in the loss of the licence and, subsequently, the sponsored employees.
The key to overcoming this challenge is to have periodic mock audits carried out by an independent third party, such as an immigration law firm. AY&J Solicitors can prepare your business for a Home Office visit by carrying out mock audits. If any compliance gaps are found, we will recommend the best course of action. We will then ensure that the correct changes are put in place so that your sponsor licence is upgraded to an A-rating or suspension is lifted so that you can continue sponsoring team members again.
Final words
As we have outlined in this article, there are several challenges of being a sponsor licence holder in the UK, but they are outweighed by the benefits of being able to hire skilled workers from other countries. Sponsoring organisations that take the time to understand these challenges and how to overcome them tend not to run into problems. They sail through compliance audits and secure new sponsor licences when needed. The net effect is that they can continue to hire overseas workers, and those they have already sponsored can stay in their roles uninterrupted. For guidance on how you can ensure that the ability of your business to sponsor foreign workers is maintained at all times, including how to put in place best practice systems and processes, educate your team members, and carry out routine mock compliance audits, please speak to a member of our expert business immigration team
