In news that will be positively received by thousands of UK sponsoring employers, the Home Office announced on 24th January 2024 on the Sponsor Management System (SMS) home page that as of 6th April 2024, licenced sponsors will no longer need to apply to have their sponsor licence renewed every 4 years. This change in immigration policy will affect all sponsor licence holders whose sponsor licence is due to expire on or after 6th April 2024. If you have a sponsor licence that is due to expire before this date, you will still need to apply for renewal if you wish to continue sponsoring overseas workers in the UK.
For assistance with your visa application or any other UK immigration law concerns, please contact us on +44 20 7404 7933 or at contact us today. We’re here to help!
What has the Home Office announced?
The Home Office placed a message on the SMS on 24th January 2024 that all sponsor licences that are due to expire on or after 6th April 2024 no longer need to be extended and will be automatically extended by a period of 10 years. In addition, because no renewal is necessary, no sponsor licence renewal application fee is payable. Because the renewal will be applied automatically by the Home Office, any organisation with a sponsor licence that expires on or after 6th April 2024 will not need to take any action, and any requests to apply for renewal can be disregarded.
The announcement on the SMS states:
“FOR THE ATTENTION OF ALL SPONSORS WITH A LICENCE EXPIRY DATE ON OR AFTER 6TH APRIL 2024: From 6th April 2024, we will remove the requirement to renew your sponsor licence. If your licence is due to expire on or after this date you will no longer need to apply to renew your licence or pay a renewal fee. To prepare for this, we have extended licence expiry dates on all licences due to expire on or after 6th April 2024 by 10 years. You do not need to take any action. If you have already received a notification to renew your licence, please ignore it”.
A second announcement on the SMS advised users whose licences expire before 6th April 2024 of the need to still apply for renewal; it stated:
“FOR THE ATTENTION OF ALL SPONSORS WITH A LICENCE EXPIRY DATE BETWEEN 24/01/2024 25TH JANUARY 2024 AND 6TH APRIL 2024: From 6th April 2024 we will remove the requirement to renew your sponsor licence. **As your licence is due to expire before 6th April 2024, if you want to remain licensed beyond this date, you will need to apply to renew it and pay a renewal fee before the expiry date. You will not need to apply to renew it again”.
How will existing sponsor licences be affected by this change?
Under the current system, UK employers with a sponsor licence are required to apply for renewal every 4 years before the expiry date to continue lawfully sponsoring overseas nationals. This change in immigration policy removes a significant amount of administrative overhead from UK employers who already have enough to do trying to recruit and retain skilled staff for their operational needs. It also removes the need to pay the renewal application fee of £1,476 (or £536 for small or charitable sponsors).
Having to apply for a sponsor licence renewal creates a level of uncertainty because employers have to wait for a formal decision from UK Visas and Immigration (UKVI). Any refusal can have a significant impact on the ability of employers to sponsor overseas staff. Removing the need to renew sponsor licences removes this uncertainty.
Sponsor licence compliance is still essential
This announcement in no way reduces the importance of sponsor licence compliance. The Home Office is placing an ever-higher emphasis on the need for employers to adhere to their sponsor licence compliance duties and obligations. For this reason, UKVI compliance checks and visits are still just as likely to happen at any time. To remain compliant, you must be able to always demonstrate that you:
- Carry out the necessary right-to-work checks and continue to monitor sponsored workers
- Keep copies of the correct documents (e.g. passport and visa)
- Only sponsor workers for eligible roles
- Meet UK employment law
- Track attendance
- Keep up-to-date records of contact details
- Report to UKVI if there is a problem with a sponsored worker
- Tell UKVI if there is a significant change to your business (e.g. if you cease to trade, change your business, merge with another business, or change your business name).
UKVI carries out frequent announced and unannounced compliance visits, hence, it is essential that your business is ready for inspection at any time and that you can prove that you meet the compliance requirements. If you cannot demonstrate to a UKVI compliance officer, there is a risk that your sponsor licence may be downgraded to a B rating, revoked, or suspended.
One of the best ways to ensure that your business remains compliant with its sponsor licence requirements at all times is to have a periodic compliance mock audit by a third party (e.g. by an immigration Solicitor). A mock audit is undertaken in the same way as a real UKVI compliance visit and will help you identify any gaps in your compliance. Any problems can then be quickly rectified, giving you the confidence that in the event of a real UKVI compliance visit, you will be fully compliant and can continue sponsoring overseas workers without interruption.
Final words
The news that UKVI will automatically extend sponsor licences due to expire on or after 6th April 2024 is positive and welcome. Those sponsors’ licence summary is currently showing an expiry in 10 years’ time, however, it is likely that the Sponsor Management System will be updated again (as part of wider upgrades), to reflect the change in policy and process.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with all types of sponsorship and visa applications. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us on +44 20 7404 7933 or at contact us today. We’re here to help!
