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Sponsor Licence Duties

Sponsor Licence Duties for UK Employers in 2026: Your Home Office Compliance Checklist

Jan 02, 2026

Disclaimer: The information in this blog is accurate as of its publication date. Any updates after that date are not reflected here.

Based on Home Office sponsor guidance Part 3 and right to work guidance current at this date.

Holding a sponsor licence brings ongoing legal responsibilities. In 2025, those responsibilities carry higher risk than ever before. While sponsor licences now last ten years, Home Office compliance activity has increased sharply. Employers are facing more visits, tougher enforcement, and significantly higher civil penalties.

This guide explains sponsor licence duties clearly and practically. It is written for HR teams, founders, Authorising Officers, and Key Personnel who need to stay compliant year-round, not just when problems arise.

Quick Summary

  • UK sponsors have four core sponsor licence duties
  • Sponsor licences now have ten year validity with no routine renewals
  • Civil penalties can reach £60,000 per illegal worker
  • Digital eVisa and online right to work checks are now standard
  • Compliance visits are increasing and often unannounced

What Are Sponsor Licence Duties?

Sponsor licence duties are the legal responsibilities that UK employers must meet when sponsoring migrant workers. These duties exist to protect the integrity of the immigration system.

A sponsor licence is a privilege, not a right. The Home Office can suspend, downgrade, or revoke it if duties are not met. There are four core sponsor licence duties:

  • Record keeping
  • Monitoring and reporting
  • Reporting organisational changes
  • Complying with immigration and UK law

Failure in any one area can lead to enforcement action.

What has Changed for Sponsors in 2024–2025?

1. Ten Year Licences and No More Routine Renewals

Sponsor licences expiring on or after 6 April 2024 are automatically extended to a ten year validity. Four-yearly renewal applications and renewal fees no longer apply. However, this has not reduced compliance scrutiny. Instead, Home Office resources have shifted toward more audits and visits. Sponsors must now maintain continuous compliance rather than preparing every few years.

Higher Civil Penalties for Illegal Working

Since February 2024, civil penalties have increased significantly:

  • Up to £45,000 per illegal worker for a first breach
  • Up to £60,000 per illegal worker for repeat breaches

The Home Office is actively issuing penalties. Proper right to work checks remain the main statutory defence.

New Restrictions on Sponsorship and Fees

Sponsors must not:

Breaches can lead to revocation even if the worker is genuine.

Updated Expectations for Key Personnel

At least one Level 1 User must now be:

  • An employee, director, or partner
  • A settled worker

The Home Office also expects real control, accessibility, and oversight of the Sponsor Management System.

The Four Core Sponsor Licence Duties, With Checklists

Record Keeping Duties

What this means in practice

You must keep accurate, up to date records for every sponsored worker.

Key records include:

  • Right to work evidence and share codes
  • eVisa checks and dated screenshots
  • Employment contracts and job descriptions
  • Salary, hours, and payslips
  • Absence records
  • Historic contact details and addresses

Compliance checklist:

  • Monthly: review sponsored worker details and visa expiry dates
  • Quarterly: spot check at least five files for right to work evidence
  • Annually: full internal audit of sponsor files

Common failure example:
An employee changes address. HR updates payroll but not the sponsor file.

Monitoring and Reporting Duties

What this means in practice
You must track sponsored workers and report specific changes within strict time limits.

Reportable events include:

  • Non-attendance or unexplained absences
  • Role, salary, or hours changes
  • Permanent remote working or site changes
  • Termination of employment
  • Working overseas

Routine hybrid working no longer needs reporting, but permanent changes do.

Compliance checklist:

  • Weekly: review absence reports
  • Monthly: confirm roles and locations remain accurate
  • Ongoing: submit SMS reports within 10 or 20 working days

Common failure example:

A worker becomes fully remote. No SMS update is made.

Reporting Organisational Changes

What this means in practice

You must report changes that affect the sponsor organisation itself.

Examples include:

  • Change of ownership or control
  • Mergers or acquisitions
  • Insolvency events
  • Criminal or serious civil proceedings
  • Changes to Key Personnel

Compliance checklist

  • Director level sign-off on all reportable changes
  • Immediate legal review before restructuring
  • SMS updates within required deadlines

Common failure example

A company is acquired. The licence is not updated.

Complying With Immigration and UK Law

What this means in practice
Your sponsorship must be genuine, lawful, and financially compliant.

This includes:

  • Genuine vacancy requirements
  • Correct salary thresholds and going rates
  • Accurate working hours
  • No clawback of sponsor costs
  • No personal capacity sponsorship

Compliance checklist:

  • Pre-CoS salary and role verification
  • Annual salary audits
  • Written policies prohibiting fee recovery

Common failure example:

Sponsor fees are deducted from wages.

Right to Work Checks, eVisas, and Your Sponsor Duties

1. Moving from BRPs to eVisas

Most sponsored workers now prove status digitally using an eVisa and share code. Expired BRPs cannot be relied on.

2. How to Carry Out a Compliant Online Check

To maintain a statutory excuse:

  • Obtain the share code before employment starts
  • Check the online profile yourself
  • Save a dated screenshot or printout

3. When Repeat Checks are Required

Repeat checks are required when permission is time limited. Automated reminders are strongly recommended.

Who Is Responsible for Compliance Inside Your Business?

RoleKey responsibilitiesWhat goes wrong if this fails
Authorising OfficerOverall compliance and oversightLicence suspension or revocation
Level 1 UsersSMS reporting and updatesLate or missing reports
HR teamsRecords, right to work checksCivil penalties
Line managersAbsence and role monitoringBreach goes unnoticed
FinanceSalary accuracySalary threshold breaches

Clear role allocation is essential.

Home Office Compliance Visits in 2026

1. When and Why Visits Happen

Visits may be announced or unannounced. They are increasing and are often intelligence-led.

2. What Happens During a Visit

  • File and document review
  • Interviews with HR and sponsored workers
  • Site walk-through and spot checks

3. Mock Audits and Preparation

Regular mock audits identify risks early and reduce enforcement exposure.

What Happens If You Do Not Meet Your Sponsor Duties?

1. Downgrades and Action Plans

You may be downgraded and required to pay an action plan fee and implement fixes.

2. Suspension

You cannot sponsor new workers. Existing workers are at risk.

3. Revocation

Your licence is cancelled. Sponsored workers usually have 60 days to leave or switch.

4. Civil Penalties

Illegal working penalties can reach £60,000 per worker. There is usually no internal appeal against revocation.

Internal Compliance Framework: How to Stay Audit Ready

1. Build a Compliance Calendar

Map monthly, quarterly, and annual sponsor tasks.

2. Quarterly Internal Audits

Check records, reporting, salaries, and right to work evidence.

3. Training and Documentation

Ensure Key Personnel understand their legal duties.

4. External Adviser Support

Independent audits and ongoing advice reduce risk significantly.

Frequently Asked Questions About Sponsor Licence Duties in 2026

1. Do I Need to Report Hybrid Working?

No. Routine hybrid patterns do not need reporting.

2. Can I Recover Sponsor Fees from Workers?

No. This is prohibited and risks revocation.

3. What Happens to Workers if My Licence is Revoked?

They usually have 60 days to leave or switch routes.

4. How Often Should I Audit My Licence?

At least quarterly, with an annual full audit.

Strengthen Your Sponsor Compliance with a Free Audit Tool

This solicitor-designed checklist reviews each of your sponsor duties and gives you a real-time compliance score. Using this, you can identify the small gaps you need to fix before they become issues during a Home Office check.

Start your compliance audit

Why Work With A Y & J Solicitors on Sponsor Licence Compliance?

A Y & J Solicitors advises UK sponsors across healthcare, IT, finance, and professional services. Our work includes mock audits, action plans, compliance training, and civil penalty challenges. We are SRA regulated, Legal 500 recognised, and experienced in complex sponsor licence matters. Our focus is practical, defensible compliance that protects your licence and workforce.

Disclaimer

This guide is for general information only and is not legal advice. Sponsor guidance changes frequently. Always seek advice for your specific circumstances.

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Yash Dubal

Yash Dubal, Chief Executive Officer of A Y & J Solicitors, is an award-winning UK immigration lawyer and entrepreneur with over 15 years of experience. Under his leadership, the SRA-authorised firm has earned national acclaim, including wins at the IoD Director of the Year Awards and the Growing Business Awards, and is proudly ranked in the Legal 500. Yash is the founder and trustee of Eklavya, a UK-based charity supporting underprivileged children in India through education. A dedicated mindfulness practitioner, he integrates spiritual growth into his leadership while continuously striving to maintain peak mental and physical well-being. His dedication to immigrant success is unwavering.

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