Sponsor licence audit and compliance

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Sponsor duties under a Skilled Worker sponsor licence

The Sponsorship Audit and Compliance process is something you will need to familiarise yourself with upon successfully obtaining a Sponsorship Licence. As a Sponsorship Licence holder, you have certain duties and responsibilities that you must carry out as set out by the UKVI in the Skilled Worker visa policy guidance.

Auditing and complying under your Sponsorship Licence is essential as UKVI scrutinises Sponsorship Licence holders rigorously. Even a slight human error can have drastic consequences for the business and on their ability to employ foreign workers.

Call now to speak to an immigration expert on 02035245439.

Sponsor Duties under the Sponsorship Licence

Sponsors who wish to employ foreign workers must comply with the relevant immigration rules and the Sponsorship Licence policy guidance. It is imperative to ensure that you have the necessary systems in place prior to an audit, as the UKVI sometimes visit client premises unannounced.

Sponsor duties consist of the following:

  • Record keeping – the sponsor must keep relevant documents and records of the Sponsor Licence as outlined in Appendix D available for request by the Home Office. Failure to do this could lead to a Sponsorship Licence being suspended or even revoked.
  • Reporting – sponsors must report any changes in the employee’s circumstances within 10 days. This includes issues such as any absence, termination, or any breach of their own obligations as a Sponsorship Licence holder. Sponsors must also report any significant changes in their own circumstances within 20 working days.
  • Compliance – sponsors must comply with sponsor duties, which include the following:
    • The sponsor is genuinely trading in the UK and has the correct documents on file for the foreign workers
    • Sponsors must only employ migrants who are qualified and experienced to do the job and are legally entitled to do so
    • The sponsor should only assign Certificates of Sponsorship under the Sponsorship Licence to foreign workers who meet the criteria set out in the immigration rules and relevant policy guidance
    • Sponsors must keep the Home Office updated via the SMS portal of any relevant changes relating to their organisation.
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Non-Compliance, Revocation or Suspension of the Sponsorship Licence

If the Home Office has reason to believe that the sponsor is breaching their duties or poses a threat to immigration control, then it may suspend the sponsor’s licence while it makes further enquiries. If the Home Office then decides to revoke the sponsor’s licence, it will write to the sponsor to inform them of this.

The instances in which a Sponsorship Licence may be revoked are:

  • If after a licence has been granted it is found that the employer knowingly gave false information on their sponsor licence application, or in support of their sponsor licence application, and had it given the correct information, the UKVI would have refused their application.
  • Failure to demonstrate that there is a genuine vacancy. In some instances, the alleged breach may centre on the lack of existence of a genuine vacancy. This is usually when the Home Office suspects that the foreign is working in a job different to that stated in the Certificate of Sponsorship (CoS). Sponsorship Licence holders must ensure that employees are performing the job role in question as stated in the CoS and be able to provide documentary evidence to confirm this.
  • Failure to retain specified information in the format required by the UKVI.
  • Failure to provide a document listed in Appendix D of the sponsor guidance. These documents demonstrate understanding, adherence and implementation of their obligations as a sponsor. Failure to do so will result in a breach of the duty to adequately monitor and record foreign worker activity.

How can NA Law Solicitors Assist Sponsors with Sponsorship Audit and Compliance Duties?

NA Law is a niche immigration law firm that specialises in this area of law. Our team of specialist immigration solicitors can assist you with the entire process and provide you with high quality services that will allow you to fully focus on your business. We can assist with the following;

  • Pre‑audit HR systems review.

  • Mock UKVI compliance audits.

  • Preparation for Home Office visits.

  • Responding to suspension or revocation letters.

Case study: how NA Law successfully obtained a Sponsorship Licence

Sponsor Licence Audit and Compliance FAQ

Get in touch with, NA Law Solicitors and speak to an Immigration Specialist Solicitor.

What does sponsor licence compliance actually mean?

Sponsor licence compliance means meeting all the ongoing duties set by the Home Office for Worker and Temporary Worker sponsors, including reporting, record‑keeping and right‑to‑work checks. It also means ensuring sponsored workers are doing the job on the CoS, being paid correctly, and that your organisation follows wider UK law such as employment law.

What reporting duties do we have?

You must use the Sponsor Management System to report key events, such as changes to a worker’s job title, duties, salary, or work location, or if their employment ends earlier than expected. Many reports must be made within 10 working days, and failure to do so can lead to your licence being downgraded, suspended, or revoked.​

What records do we need to keep?

Sponsors must keep clear records for each sponsored worker, including their passport and visa, right‑to‑work checks, contact details, contracts, pay records, and evidence of qualifications where required. These documents must be kept up‑to‑date, stored securely, and be easily accessible for any Home Office audit or unannounced visit.​

Who should manage our sponsor licence?

You must appoint key personnel, including an Authorising Officer, a Key Contact, and at least one Level 1 User to manage your licence and day‑to‑day reporting. These individuals must be trustworthy, suitably senior, and meet Home Office requirements, as failures by key personnel can lead to enforcement action.​

What happens if we do not comply?

If UKVI finds serious non‑compliance, it can downgrade, suspend, or revoke your sponsor licence and may also take action against any affected workers’ visas. In serious cases, you may face civil penalties or a cooling‑off period before you can reapply for a licence.​

Can the Home Office visit us?

Yes. UKVI can carry out announced or unannounced compliance visits at any time to check your records, systems, and that sponsored roles are genuine. During a visit, compliance officers may review files, inspect HR processes, and interview staff and sponsored workers, so you should be audit‑ready at all times

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