Sponsor Licence Obligations, Duties and Compliance Visits
If your business has a Sponsor Licence, are you confident that you understand your responsibilities and sponsor duties in maintaining that licence? Do you have processes and HR systems in place to maintain accurate records and report employee changes?
If you have answered no to either of the questions above, your business’ sponsor licence is at risk as failure to fulfil these obligations can have serious consequences. The Home Office may suspend, downgrade, or even revoke a sponsor licence, which can prevent your organisation from hiring international talent and disrupt ongoing operations. Besides operational impacts, non-compliance can damage your business’ reputation, weaken attractiveness to investors and affect business growth and future recruitment opportunities.
Maintaining robust compliance is not only a legal requirement but also a safeguard for your workforce and business continuity.
At Dragon Argent, our experts can guide you through implementing changes within your business to meet your sponsor duties. We can conduct HR audit which includes a comprehensive review of HR practices, policies and documentation, to highlight risks with legal compliance and operational effectiveness. We can also conduct a mock compliance visit which simulates a Home Office compliance visit, highlighting weaknesses in your practices and knowledge of internal processes and advise on changes needed to maintain full compliance.
Some key sponsor duties are listed below, along with common failures. Are you confident your business is equipped to meet the duties outlined below?
Key Sponsor Obligations and Duties
Monitoring Sponsored Employees
Does your business have an HR system or process that maintains accurate records of all staff, including employment status, sponsored staff details, contact information and visa conditions?
Common breaches leading to penalties include failing to record unpaid leave days, failing to record changes in job role or hours worked.
Reporting Changes Promptly
Sponsors must notify UKVI of significant changes affecting sponsored employees within 10 working days. Do you have processes in place to ensure this deadline is met? Do you know how to report this?
Failure to report things like extended absences, termination, or breaches of visa conditions promptly, or accurately, within 10 working days, is a breach of sponsor duties and can lead to penalties, including a sponsor licence downgrade, suspension, or revocation.
Maintaining Compliance Systems
Does your business have robust internal policies and procedures to ensure adherence to Home Office requirements?
Weak or non-existent compliance systems often result in missed reporting obligations or incomplete record-keeping.
Record Keeping
Does your business retain copies of employee identity documents, right-to-work checks (and dates these were conducted), employment records, payroll records etc?
Common breaches include missing or outdated documents and incomplete employee personnel files.
Staff Training
Key personnel on your sponsor licence are responsible for certain sponsor duties. Do your key personnel understand their responsibilities and the importance of compliance?
Lack of proper training can lead to errors in reporting and document management and failing to provide sufficient information to a caseworker if a Home Office compliance visit is conducted.
So why does it matter if your business can meet the sponsor duties or not? – Home Office compliance visits.
Compliance Visits by the Home Office
Home Office compliance visits are inspections conducted to ensure that sponsors are meeting their legal duties. Visits may be announced or unannounced, and typically involve:
Examination of internal policies, procedures, and systems to assess compliance standards.
Scrutiny of employee records, identity documentation, and right-to-work evidence.
Evaluation of reporting practices and adherence to Home Office obligations.
Identification of gaps, weaknesses, or failures that could threaten your licence.
Consequences of Non-Compliance
The consequences of failing to meet sponsor obligations can be severe:
Licence Suspension or Revocation: the Home Office may suspend or revoke your licence entirely, preventing you from sponsoring current or future employees.
Downgrading of Licence: In some cases, licences may be downgraded to a lower tier, restricting the categories of workers you can sponsor.
Operational Disruption: Workforce planning can be severely affected if sponsored employees are unable to continue working due to licence issues.
Financial Loss: Non-compliance may lead to fines, legal fees, and recruitment costs associated with replacing staff.
Reputational Damage: Failure to comply can harm your organisation’s reputation with regulators, investors, and stakeholders, impacting business opportunities.
Given these high stakes, proactive compliance is essential.
Preparing for a Compliance Visit
Organisations can reduce risk and ensure readiness through:
HR Audits: Conducting regular reviews of systems, HR records and processes to identify gaps and risks.
Mock Compliance Visits: Simulating a Home Office inspection in a controlled environment to test procedures and identify areas for improvement.
Staff Training: Ensuring all personnel responsible for compliance understand their duties and reporting obligations.
Document Management: Maintaining accurate, up-to-date records in the format expected by the Home Office.
Legal Guidance: Engaging specialist immigration lawyers to provide tailored advice, identify potential risks, and implement solutions to maintain full compliance.
How Dragon Argent can help
Engaging our experienced immigration lawyers will provide your business with the confidence and expertise to navigate complex sponsor obligations. So how do we prepare your business?
We can conduct a mock compliance visit to uncover potential issues before an actual Home Office inspection.
We can advise on process improvements to strengthen your HR systems and mitigate risk.
We can provide detailed guidance on reporting obligations, record-keeping, and staff training.
We offer ongoing support to ensure your organisation remains compliant and fully prepared for any inspection.
With our expert legal guidance, your business can approach UKVI visits with confidence, knowing that your systems, processes, and documentation meet regulatory standards.
Get in touch with us today to find out more!
Additional Resources
How to Obtain a Certificate of Sponsorship (CoS)
Discover how UK businesses can secure a Certificate of Sponsorship (CoS) to hire international talent. Learn the steps, eligibility, and compliance requirements to streamline the process.
Speak to one of our Immigration Solicitors today ↓
Written by:
Head of Employment & Immigration
Employment & Immigration Solicitor
Legal Disclaimer
The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.
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