Sponsor License

A Sponsor Licence allows UK-based organisations to legally employ skilled workers from overseas. These organisations, known as sponsors, are required to strictly adhere to sponsor compliance duties both before and after the licence is granted. Any failure to meet these obligations can lead to serious enforcement action by the Home Office.

The UK’s sponsor licence regulations are particularly strict, leaving little room for error. The Home Office has adopted an increasingly firm stance on breaches — even minor oversights can seriously damage a business’s reputation, operations, and workforce, limiting its international reach.

Sponsor licences are valid for four years and must be renewed on expiry. Each renewal is subject to close review of the organisation’s previous compliance. Since COVID-19, the number of Home Office compliance inspections has significantly increased.

Key Sponsor Compliance Duties
To hold and maintain a sponsor licence, an organisation must:

• Offer genuine job vacancies
• Cooperate fully with the Home Office
• Effectively monitor and manage its sponsored employees
• Appoint appropriate key personnel to manage the sponsorship system

The main duties include:

1. Record-Keeping
   Sponsors must securely store specific, up-to-date details for each sponsored employee and be able to provide these to the Home Office when requested. These include:
   • Copy of passport photo page
   • Copy of UK visa or residence permit
   • Contact details, with a record of updates
   • Copies of payslips
   • Employment contract
   • Evidence of labour market tests (if required)
   • Academic and professional qualifications
   • Attendance and absence records
   • This information ensures that the employee’s job, salary, and immigration status match the details stated in their Certificate of Sponsorship (CoS).
2. Reporting
   Sponsors must use the Sponsorship Management System (SMS) to promptly report any significant changes, such as:
   • An employee missing their first day of work
   • Absences exceeding 10 consecutive days
   • Termination of employment or resignation
   • Changes to an employee’s job role, salary, or immigration status
   • Changes to the organisation itself
   • Any suspicion of visa condition breaches
3. Right to Work Checks
   Sponsors are legally required to prevent illegal working. This includes conducting and recording thorough right to work checks for all prospective and existing employees, regardless of nationality. These checks should be:

Documented and retained

• Regularly reviewed
• Evident for inspection by UK Visas & Immigration (UKVI)
• Failure to perform these checks can lead to significant fines and penalties.
• Sponsor Licence Inspections
  The Home Office conducts sponsor compliance visits either:
• Before granting a licence (Pre-licence visit)
• After a licence is granted or during its renewal (Post-licence visit)
• Sponsors must consistently ensure that their systems and procedures are robust and fully compliant.

Pre-licence Assessment Visits
Before issuing a sponsor licence, the Home Office may visit your premises to confirm:

• Suitable HR systems are in place for sponsorship duties
• The number of proposed sponsored employees is appropriate for the size of the business
• Any unresolved issues flagged by UKVI during the application process
• The organisation’s financial ability to employ and sponsor workers
• There are no immigration control risks

Post-licence Compliance Visits
These visits check whether the sponsor is meeting its duties. Key activities include:

• Reviewing at least 10% of sponsored employee files (or all, if fewer than 3)
• Interviewing a minimum of 3 sponsored employees to verify their roles and status
• Inspecting HR systems and processes
• Verifying that roles are genuine and salary levels meet Immigration Rules
• Confirming that the business is still trading and that the number of sponsored workers is justified
• Ensuring employees are complying with their visa conditions
• Checking for any risks to immigration control

How to Prepare for a Compliance Visit
To prepare for a visit:

• Ensure all employee records are complete and up-to-date
• Review HR processes, right to work checks, and sponsorship records
• Make sure key personnel understand compliance duties
• Be ready to explain the genuine need for sponsored roles
• Prepare for possible employee interviews
• Expect checks on pay records (including HMRC records)
• Ensure records are securely kept and readily available
• Home Office officers may also take photographs, review records, and check for civil penalties or criminal records for anyone involved in the organisation.