Sponsor licence compliance is ongoing. The Home Office can monitor sponsors through document requests and announced or unannounced visits. The four-year renewal requirement was removed on 6 April 2024. Most Worker and Temporary Worker licences remain valid until surrendered, made dormant or revoked, although UK Expansion Worker and Scale-up licences can only be held for four years.
The core duties
Current guidance covers reporting, record keeping, immigration law, wider UK law and conduct compatible with the public good. Sponsors must also cooperate with compliance activity. See sponsor duties and compliance.
Appendix D requires records such as right-to-work evidence, current worker contact details, salary records, contracts and, where relevant, recruitment evidence. Most reportable worker changes must be notified within 10 working days, while many organisational changes must be reported within 20 working days. See business changes that trigger sponsor reporting.
What a compliance check may examine
| Area | What may be checked | Common risk |
|---|---|---|
| Right to work | Evidence of the check | Check completed after work starts |
| Worker records | Contact and employment details | Information not current |
| Payroll | Payslips and salary payments | Pay does not match sponsorship requirements |
| Absences | Attendance and unpaid leave | Missing reports |
| Reporting | SMS activity | Changes reported late |
| Key personnel | Current Authorising Officer and SMS users | Named personnel have left |
Officers may interview the sponsor, recruitment staff and sponsored workers. Current visit guidance normally expects at least three sponsored worker interviews where there are three or more workers, subject to discretion. Read sponsor licence compliance visits and key personnel on a sponsor licence.
Where employers can go wrong
A sponsored worker’s actual role must match the occupation code and job description used for sponsorship. Certain changes within the same occupation code can be reported, but a move to a different occupation code will normally require a new Certificate of Sponsorship and immigration application before the new role starts. Read SOC codes and job descriptions alongside Skilled Worker sponsorship salary rules.
Unpaid leave also needs monitoring. Sponsorship will normally have to stop if a worker is absent without pay, or on reduced pay, for more than four weeks in total in a calendar year unless an exception applies. See managing unpaid leave for sponsored workers.
Ratings, downgrades and revocation
A sponsor downgraded to a B-rating must normally pay £1,579 for an action plan within 10 working days. The plan lasts three months. During it, the sponsor cannot assign CoS to new workers or add a route or branch, although CoS may be permitted for existing sponsored workers who need to extend.
More serious breaches can lead to suspension or revocation. A suspended sponsor cannot assign CoS. Revocation can lead to sponsored workers’ permission being cancelled, but cancellation is not automatically instantaneous. See sponsor licence suspension or revocation and sponsor licence reinstatement after suspension.
Building a system you can defend
Run regular checks covering worker files, salaries, absences, reporting deadlines and SMS access. More than one suitable Level 1 User can reduce the risk of losing access.
Build these systems before submitting a sponsor licence application. The same duties apply to founders using self sponsorship and employers using the Skilled Worker visa route. Lawful residence may also contribute towards settlement, including ILR based on long residence. Requirements are in the GOV.UK sponsor guidance.
Frequently asked questions
Can the Home Office visit without notice?
Yes. Compliance visits may be announced or unannounced.
How quickly must worker changes be reported?
Unless a specific rule says otherwise, most reportable worker changes must be notified within 10 working days.
What happens if a sponsor becomes B-rated?
It must normally follow a three-month action plan and cannot sponsor new workers during that period.
Does revocation immediately cancel every worker’s visa?
No. The Home Office notifies affected workers and may cancel their permission according to their circumstances.
Speak to Garth Coates immigration solicitors for compliance review.
