As the holder of a sponsor licence, an employer has numerous rights and obligations under immigration rules. Failure to adhere to these can result in strict penalties, including the loss of the certificate of sponsorship in the most serious cases.
What duties does a sponsor licence holder have?
If you hold a sponsor licence, you are responsible for checking that all employees have the right to live and work in the UK.
You must notify UK Visas and Immigration (UKVI) of, amongst other things, the following:
- If a worker does not turn up for the first day of their employment
- If a worker is absent without consent for ten consecutive days
- If a worker leaves or is dismissed
- If a worker changes job details or their salary is changed
Notifications are dealt with via UKVI’s Sponsorship Management System.
Accurate and up-to-date records must be kept for all sponsored workers, including:
- A copy of their employment contract or written statement of particulars
- Contact details
- Current and previous addresses and contact details (since sponsorship started)
- Evidence that they have the right to live and work in the UK, and details of the checks made to establish this
- A record of any absences
Other responsibilities include ensuring that the business is operating legally and in accordance with the way set out in the sponsor licence application, and that employees remain in the role specified in the certificate of sponsorship or as updated via the proper report on the Sponsorship Management System.
You must report major changes to your business, for example, the sale of all or part of the organisation, a business merger, insolvency, or if your business moves to different premises.
When sponsoring visas for new employees, you must ensure that any job offered complies with immigration rules, including skill level and salary requirements.
What are the penalties for failure to comply with sponsor licence holder duties?
If the authorities find evidence of non-compliance with sponsor licence rules they may downgrade a sponsor licence from an A-rating to a B-rating or even revoke the licence entirely. In the event of illegal working (which may include workers who are not compliant with the requirements of their visa) then fines of up to £60,000 per worker may be applicable, or even criminal proceedings.
A B-rating means that the employer will not be able to sponsor any new workers until the A-rating is restored.
The employer will not be able to apply to upgrade the sponsor licence for at least three months, during which time they are required to follow an action plan provided by UKVI. The employer will be required to pay for the provision of the action plan.
If the employer does not meet the requirements set out in the action plan within the three months allowed, their sponsor licence will be revoked.
An employer whose licence has been downgraded is likely to face further compliance visits.
In the most serious cases of non-compliance, UKVI can suspend or revoke a sponsor licence. This normally means that all sponsored workers would need to leave the business.
How can an employer comply with sponsor licence obligations?
UKVI can visit sponsor licence holders without warning to check compliance. For this reason, it is essential to ensure that sponsor licence obligations continue to be met at all times.
Employers should have dedicated personnel in place to ensure the right checks are routinely made and that all record-keeping and reporting is dealt with promptly.
Having robust internal systems in place is essential to prevent details from being missed and to ensure an employer is continually prepared for a spot check by the authorities.
How 3CS can help
Our expert immigration solicitors can advise and assist you in dealing with sponsor compliance, including putting the right systems in place to maintain your licence and dealing with the downgrading of a sponsor licence.
For assistance, please get in touch today.
