The UK government has intensified its oversight of sponsorship licences, introducing stricter compliance requirements, more frequent audits, and harsher penalties for non-compliance. In addition to the April 2024 fee increases, businesses that sponsor overseas workers must now meet higher standards of monitoring, reporting, and record-keeping to retain their sponsorship status.

At NA Law Solicitors, we provide specialist legal guidance to ensure that your business remains compliant, minimising the risk of penalties, sponsorship licence revocation, and financial losses.

What’s Changing? Key Compliance Updates for Sponsorship Licence Holders

The UK government’s focus on sponsor accountability means that employers must be more vigilant than ever in fulfilling their duties. Some of the most significant changes include:

Increased Sponsorship Licence Audits

• More Frequent Compliance Inspections: The Home Office has ramped up on-site audits, meaning businesses must always be audit-ready.
• Unannounced Visits: Compliance officers now conduct surprise inspections to check record-keeping, right-to-work documentation, and HR systems.
• Higher Scrutiny of Policies & Procedures: Companies must demonstrate robust HR systems that track changes in a worker’s job role, salary, or immigration status.

Stricter Reporting Requirements

• Shorter Deadlines: Sponsors must report any changes (e.g., worker resignation, salary changes, job title amendments) within tight timeframes.
• More Detailed Information Required: Errors or omissions in reporting can now lead to serious consequences, including downgrading or revocation of sponsorship status
• Greater Cross-Checking with Other Government Bodies: The Home Office is now cross-referencing employer data with HMRC and Companies House to detect discrepancies.

Proposed Points-Based Evaluation System for Sponsors

The government is considering a new points-based system to assess sponsorship compliance performance. This could mean:

• Higher-Rated Sponsors Getting Priority Processing for visa applications.
• Poorly Rated Sponsors Facing Stricter Scrutiny or additional reporting obligations.
• Risk of Licence Revocation for Non-Compliant Businesses.

While details of this system are still in development, sponsors must proactively improve compliance to avoid negative ratings in the future.

Increased Risk of Sponsorship Licence Revocation

• Higher Penalties for Non-Compliance: Failure to comply with reporting, monitoring, or record-keeping requirements could lead to immediate suspension or revocation of your sponsorship licence.
• Severe Business Disruptions: Losing your sponsorship licence means you cannot sponsor new workers, and existing sponsored employees may have their visas curtailed.

Rising Administrative Burdens for Employers

• More Documentation Required: HR teams must track, update, and store more detailed records of sponsored workers.
• Tighter Immigration Rules: Companies must ensure that their sponsorship practices comply with evolving Home Office guidance.
• Higher Risk of Legal Action: Businesses could face penalties, reputational damage, and costly appeals if compliance standards are not met.

At NA Law Solicitors, we help businesses meet these rising compliance demands, ensuring smooth operations and protection from legal risks.

How NA Law Solicitors Can Help Your Business Stay Compliant

With government scrutiny at an all-time high, businesses cannot afford compliance mistakes. Our expert legal team ensures that your sponsorship practices remain fully compliant, reducing risks and securing your workforce.

Sponsorship Compliance Audits & Risk Assessments

• Conducting full compliance reviews of your HR systems, policies, and sponsorship practices.
• Identifying potential compliance weaknesses and implementing solutions before an audit occurs.

Sponsorship Licence Renewal & Ongoing Compliance Management

• Assisting businesses in renewing their sponsorship licence while ensuring continued compliance.
• Providing ongoing legal support for businesses managing sponsored employees.

HR System Reviews & Process Implementation

• Reviewing your record-keeping and monitoring systems to ensure compliance with sponsorship duties.
• Helping HR teams implement best-practice reporting and tracking systems.

Training for HR & Key Staff on Sponsorship Compliance

• Educating HR teams and management on reporting responsibilities, right-to-work checks, and Home Office requirements.
• Ensuring that your team understands how to meet compliance obligations and avoid penalties.

Representation for Home Office Audits & Compliance Disputes

• Defending businesses facing sponsorship compliance issues, suspensions, or revocations.
• Challenging unfair Home Office decisions through legal appeals and negotiations.

Don’t risk losing your sponsorship licence due to non-compliance. Contact NA Law Solicitors today to safeguard your business and ensure full compliance with evolving UK immigration laws.