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
Table of Contents
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:
- Sponsor workers in a purely personal capacity, except limited diplomatic exceptions
- Recoup sponsor licence fees or Certificate of Sponsorship costs from Skilled Workers
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?
| Role | Key responsibilities | What goes wrong if this fails |
| Authorising Officer | Overall compliance and oversight | Licence suspension or revocation |
| Level 1 Users | SMS reporting and updates | Late or missing reports |
| HR teams | Records, right to work checks | Civil penalties |
| Line managers | Absence and role monitoring | Breach goes unnoticed |
| Finance | Salary accuracy | Salary 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.
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.
