If you are a licensed sponsor of migrant workers, it is crucial to maintain up-to-date details on your sponsor licence and report any significant changes to the Home Office within the specified timeframes. This requirement is a fundamental part of your sponsorship duties, and non-compliance can lead to severe consequences, including the potential revocation of your sponsor licence.
The Home Office has intensified its scrutiny of employer compliance, particularly when processing applications such as change of circumstances requests or Defined Certificates of Sponsorship (DCoS) applications. This increased scrutiny includes comprehensive checks against Companies House records to identify any discrepancies between submitted requests and the information recorded on the sponsor licence.
Reporting significant changes
Significant changes that must be reported to the Home Office include:
Changes in corporate ownership or company name
Change of address or location of business operations
Changes to key personnel, such as Authorising Officer, Key Contact, or Level 1 user
Organisational changes, including mergers, takeovers, or restructuring
These changes should be reported via the Sponsorship Management System (SMS) within 20 working days of the change occurring. Failure to report these changes can result in the downgrading or revocation of your sponsor licence, which would affect your ability to employ sponsored workers.
Recent sponsor licence validity changes
Since April 6, 2024, sponsor licences no longer expire. Previously, licences had to be renewed every four years, which involved a renewal fee and a possible compliance audit. Sponsors whose licences expire before this date will need to renew their licence one last time, while those whose licences expire after this date will have their licences automatically converted to a 10-year validity period.
This change simplifies the administrative burden for sponsors, allowing them to focus more on compliance rather than managing renewals. However, sponsors must remain vigilant in maintaining up-to-date records and reporting any changes promptly.
Increased audits expected
With the removal of regular renewals, the Home Office is likely to increase the frequency and intensity of compliance audits, which could be conducted more often and without warning. These audits will likely replace the traditional renewal process, focusing on compliance with all sponsor obligations, including right to work checks, record keeping, and monitoring of sponsored workers.
Record keeping requirements
In addition to reporting changes, sponsors must also comply with record-keeping requirements for all sponsored workers. This includes:
Retaining documents specified in Appendix D of the sponsor guidance, such as copies of sponsored workers’ passports, visa endorsements, contracts of employment, and evidence of qualifications.
Keeping records of any changes to employment terms and conditions, salary, or job role.
Maintaining up-to-date contact details for all sponsored workers.
Consequences of non-compliance
Non-compliance with reporting and record-keeping obligations can lead to serious repercussions. The Home Office may downgrade your sponsor licence, requiring you to follow an action plan to reinstate your A-rating, or in severe cases, suspend or revoke your licence. This would prevent you from sponsoring new workers and could lead to the curtailment of existing sponsored workers' visas, requiring them to leave the UK unless they secure employment with a new sponsor.
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