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The Increase in Sponsor Licence Suspensions and Revocations

2nd September 2024

How can compliance with sponsor duties prevent your sponsor licence from being suspended or revoked?

The recent statistics for this year’s second quarter illustrate that there has been a noticeable increase in suspensions and revocations of sponsor licences issued to UK employers. This blog will explore the reasons behind this increase, its implications for employers, and how companies can safeguard themselves against losing their sponsor status.
There are a large number of sponsor duties that sponsor licence holders must comply with in order to avoid their licence being suspended or revoked. Below are some key areas of compliance:

Genuineness requirements:

There has been an increased scrutiny on genuineness from the Home Office. Licence holders must be able to evidence that both their business is genuine as are the vacancies they are looking to sponsor into. Some of the factors which can negatively impact your genuineness are listed below:

  • Wrong SOC code – assigning a CoS in an inappropriate SOC code
  • Hiring individuals who do not have the required skills to carry out their job role
  • Requesting more Certificate of Sponsorships (CoS’s) than can be justified by the business need
  • Being unable to provide requested information such as proof bank statements, or evidence of contracts which the business is working on.
  • Not paying your sponsored workers the salary as outlined on their CoS or providing them with the minimum hours.
Wider UK Law

One of the sponsor licence holder duties is to ensure that they are compliant with all relevant wider UK law as well as their sponsor duties.

In particular, sponsors should ensure that they are complying with National Minimum Wage and Working Time Regulations. Sponsored workers must be paid both the National Minimum Wage (NMW) and the minimum salary on their CoS at all times. This includes where the NMW increases during a sponsored workers period of sponsorship.

Record Keeping:

One area of sponsor licence compliance is having an adequate HR system that allows you to keep the necessary documentation for your employees. Some of the things you need to keep a record of are: 

  • Documentation surrounding your recruitment process including job adverts, interview notes, CV’s and application forms.
  • Attendance records including absences, sickness and holidays
  • Evidence of right to work checks and how you track employee immigration status

Integrating SL&V +HR software into your business processes can significantly enhance the employee-employer relationship. From simplifying leave management and boosting engagement to ensuring accurate payroll, streamlining training, and effective performance management, the benefits are clear. If you’re interested in transforming your compliance position and employee-employer relationships with our +HR software, contact us today to learn more and get started!

Reporting

When you have a sponsor licence you are required to report certain changes to the Home Office regarding your business and your sponsored workers.

Changes to the business you need to report:

  • Changes to key personnel
  • Addition or removal of branches or locations 
  • If the business is subject to a merger takeover or sale of business
 

Changes to the sponsored workers:

  • Report late work start dates
  • If you are no longer sponsoring one of your sponsored workers
  • Changes to salary or work locations
  • Certain absences
Third Party Working

Where one of your sponsored workers is working on a contract basis you must ensure that you maintain full responsibility for them. Additionally, the arrangement that you have must comply with the Home Office guidance. If a sponsored worker is working for a third party routinely it could raise a serious compliance issue. This could result in your licence to be suspended or revoked.

Best Practices for Maintaining a Sponsor Licence

To mitigate the risk of suspension or revocation, businesses must take proactive steps to ensure compliance. Here are some best practices to follow:

  • Conduct regular internal audits: Regular internal checks are a helpful way to spot any compliance issues before the Home Office does its own audit. Reviewing records, processes, and employee details often can help find mistakes early on.
  • Ongoing training for HR and Management: It’s important to keep HR and management teams informed about the latest changes in immigration law and sponsor licence rules. Regular training helps make sure they understand their responsibilities and can stay on top of any potential problems.
  • Respond quickly to issues: If an issue arises, it’s important to deal with it as soon as possible. Getting help from legal or immigration experts can help fix compliance issues before they lead to suspension or revocation.
  • Establish compliance procedures: A clear internal compliance plan is very important. It should include regular checks, good record-keeping, and a system for reporting changes to the Home Office on time. Having a dedicated compliance officer or team can help make sure all rules are followed consistently.
 

By implementing these practices and staying on top of them, businesses can reduce the risk of suspensions and revocations and can continue to attract global talent. For those who have lost their sponsor licence, seeking expert advice please contact us today and we can provide bespoke advice.

FAQ'S

Find out More

The Standard Occupational Classification (SOC) is a common classification of occupational information for the UK. Every job role which you sponsor workers into must be assigned to a SOC code which is included on the CoS.

Yes, it can be. Although a suspension or revocation can result from a compliance visit it can also result from other information the Home Office has about your licence. For example, information within CoS and additional information requests.

Yes, you can apply after a 12 month cooling off period.

This is dependent on each case. After a suspension your licence will either be reinstated, downgraded or revoked.

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