It is no longer news that most employers in the UK now rely heavily on international talent because of the need for certain skills in emerging sectors and growing skills gap. The process to getting these global talent usually involves sponsor licence application.
This is because UK employers can legally hire foreign worker when they have a valid sponsor licence. It plays a major role in facilitating overseas recruitment because it proves that the employer is legitimate and able to meet the sponsorship duties.
The UK immigration authorities is now very strict about the rules guiding this process to reduce exploitation and abuse. In fact, between July 2022 and December 2024, over 479 sponsor licences in the care sector were revoked.
Seeing the consequences of non-compliance with immigration rules guiding sponsor licence, UK employers are advised to take necessary precautions when hiring overseas workers.
This article will therefore guide you on the process of acquiring a sponsor licence, the duties you must fulfill as a UK employer with a sponsor licence and how to prepare for a sponsor licence audit.
Sponsor Licence Compliance Guidelines for UK Employers Hiring Overseas Workers
Understanding Sponsor Licence Duties
In this section, we will be discussing the duties of the Authorising Officer (AO) and the UK employer as two distinct personalities. The Authorising Officer is a senior-level employee within organization while the employer is the owner of the organization.
The core duties of the AO in the organization is to ensure that the company complies with immigration laws while overseeing all Sponsor Management System (SMS) users’ activities such as recruitment.
Although the AO does not have automatic access to the SMS, he/she can be listed in the sponsor licence application form. He/she has the responsibilities of record-keeping, reporting and receiving information from the UKVI on behalf of the company, and recruiting workers.
The UK employer has to work together with the AO in fulfilling both their duties. This is because whatever information he/she gives to the AO is what the AO will pass to the UKVI.
Some of the sponsor licence duties of a UK employer include:
- Informing the Home Office of specific events and information through the Sponsor Management System (SMS).
- Reporting the employee’s activities and significant changes to the contract.
- Reporting changes to your personal business.
- Track the workers absences and attendance.
- Keeping proper records for each sponsored worker.
- Record details of sponsored workers
- Ensure that sponsored workers have the legal right to work in the UK, and the required skills and qualifications that they were hired for.
The consequences for failing to meet the sponsor licence duties can be severe on the UK employer. He/she could be fined, suffer reputational damage, downgrading of licence from grade-A to grade-B or even have the sponsor licence revoked or suspended.
Right to Work Check: A Critical Component
Right to work check simply refers to when a UK employer runs a background check on a sponsored worker to know if they have the legal right to work in the UK. This is usually the responsibility of the employer which if not done properly, can be regarded as a severe or deliberate immigration breach thus attracting civil or criminal charges.
Employers can verifiy an employee’s status both online through the UK government website or manually by checking the employee’s original documents. Such documents include:
- A valid passport showing that the employer is a British or Republic or Ireland citizen
- A certificate of British citizenship
- A valid biometric residence permit (BRP)
- A valid immigration status document.
- A valid permanent residence card.
With these documents, employers can evaluate the employee before employment starts to prevent illegal hiring. To verify the employee’s status online, employers can simply use the share code and passport information provided by the employee.
Record Keeping and Reporting Obligations of the UK Employer
During and after checking an employee’s right to work, employers must keep copies of documents checked, the name of the person who conducted the check and the date of the check.
These copies will serve as a latter proof to show that the employer has taken the required steps to comply with immigration laws. Types of records the employer should keep include proof of employee salary, right to work check records, passport and visa copies, employee contact details, and CoS details.
The documents can be kept properly as hard copies or scanned soft copies in a safe and properly labeled file or folder. If they are kept as soft copies, it is usually advised to ensure that the format is unalterable.
While keeping these records, it is important to be reporting significant changes in business and employee circumstances, and in employment to the Home Office within acceptable time frames.
How to Prepare for a Sponsor Licence Audit?
When an employer applies for a sponsor licence, he/she will pass through an inspection by the Home Office. The officer sent by the Home Office will conduct an audit to confirm that the company is meeting all requirements and obligations.
There is no specified time for this inspection and the Home Office never informs the employer that they are coming for an audit. Hence, the employer needs to be in compliance at all times during the validity period of their licence.
To stay prepared for external Sponsor Licence audit, employers can take the following adopt the following measures:
- Conduct regular internal audits
- Maintain meticulous records of all sponsored workers and visa expiry dates.
- Plan renewals ahead of time.
- Ensure all records are up to date and easily accessible
- Create a compliance checklist
- Track attendance of robust workers
Consequences of Non-Compliance
Apart from the short-term effects of losing a sponsor licence as mentioned above, UK employers can also suffer long-term or irreversible effects of losing their licence.
After losing their licence, they will no longer be able to sponsor workers and may face legal action. If they still have existing Certificates of Sponsorship (CoS), it will be invalidated which will make the sponsored workers to lose their ability to work in the UK.