Section A: What is Sponsor Licence Compliance?
Employers granted a sponsor licence accept a legally binding responsibility to manage and monitor every sponsored worker’s immigration status, employment conditions, and right to work. UK Visas and Immigration (UKVI) will only approve a sponsor licence application if the organisation can clearly demonstrate its ability to meet three key areas of compliance, which are set out across several official guidance documents.
1. Eligibility Requirements: Appendix A
To be eligible, an organisation must provide sufficient documentation to prove that it is genuine, trading, and capable of fulfilling its sponsor duties. Appendix A of the sponsor guidance outlines the accepted forms of evidence. These typically include Companies House registration documents, VAT registration certificates, business bank statements, employer’s liability insurance certificates, and PAYE registration with HMRC. For newer or smaller businesses, additional documents such as leases, service contracts, or invoices may be required to prove the organisation is actively trading. Failure to submit the correct combination of documents may result in refusal of the licence application. UKVI may also conduct a pre-licence compliance visit to verify the business exists at the stated address and has systems in place to track sponsored workers.
Read our guide to Appendix A here >>
2. Record-Keeping Duties: Appendix D
Once licensed, sponsors must keep a detailed set of records for each sponsored worker. Appendix D sets out the minimum mandatory documents, which include a copy of the passport. For eVisa holders, sponsors must retain evidence of the compliant right to work check and, if relevant, the entry stamp page. Other required records include a signed employment contract, job descriptions and Standard Occupational Classification (SOC 2020) occupation codes as listed in Appendix Skilled Occupations, evidence of salary payments (e.g. payslips and bank transfers), and full attendance and absence logs. Sponsors must also retain copies of recruitment activity, particularly if the worker was recruited under a route that requires evidence of a genuine vacancy, such as adverts, interview records, and shortlisting decisions. These documents have to be stored securely and made available for inspection on request. All documents must be retained until whichever is earlier: one year after sponsorship ends or until a compliance officer has examined and approved them.
Read our guide to Appendix D here >>
3. Ongoing Sponsor Duties: Part 3 of the Sponsor Guidance
Sponsors are expected to monitor and report changes in a worker’s employment and immigration circumstances. Worker changes must be reported through the Sponsorship Management System (SMS) within 10 working days, and organisational changes such as mergers or relocations within 20 working days. Sponsors must also notify UKVI as soon as reasonably practicable if they know or suspect a breach of a sponsored worker’s visa conditions. Unauthorised absences of 10 or more consecutive working days must also be reported, as well as if a worker resigns or is dismissed. The sponsor must also inform UKVI of any significant business changes, such as mergers, acquisitions, or changes to the company’s structure or premises. Throughout the sponsorship period, employers must ensure that roles continue to meet the appropriate salary thresholds and skill levels for the visa route.
UKVI may conduct a compliance visit at any time before or after a licence is granted. Site visits may be announced or unannounced, and the organisation must demonstrate at short notice that it is complying with all sponsor duties. Compliance officers will review HR records, interview key personnel and sponsored staff, and assess whether the job being done matches the details on the Certificate of Sponsorship (CoS). If UKVI identifies serious breaches, such as evidence of illegal working, non-existent roles, or failure to keep mandatory records, it may suspend the licence immediately. In cases where the sponsor cannot remedy the breach or where the failures are deemed deliberate or systemic, the licence will be revoked.
To reduce compliance risk, sponsors should appoint experienced staff to key personnel roles, schedule regular internal audits of their HR systems, maintain a sponsor licence compliance manual, and use reminder tools to track SMS reporting deadlines. Sponsors that fail to maintain high standards risk losing the ability to hire overseas staff and may face disruption to their operations if sponsored workers’ visas are curtailed.
Read our comprehensive guide to Sponsor Licence Duties here >>
DavidsonMorris Strategic Insight
Sponsor licence compliance starts with the licence application, long before the worker arrives for onboarding. Be prepared for your HR systems, processes and policies to be examined against the official sponsor guidance and supporting rules and appendices. Even with a licence granted, keep compliance on your agenda. Assign roles and responsibilities to avoid gaps or overlaps, and remember, even the most minor of breaches can result in unwanted penalties.
Section B: Sponsor licence compliance duties
Holding a sponsor licence comes with a set of ongoing legal responsibilities. These duties are not optional or one-time requirements; they must be actively maintained for the entire duration of the licence and for every sponsored worker. UKVI expects sponsors to have robust systems in place to manage reporting, record-keeping and monitoring obligations. Failure to meet these standards, even unintentionally, can result in serious consequences including suspension, revocation or civil penalties.
1. Record-keeping
One of the most common areas of immigration compliance risk for sponsor licence holders relates to record-keeping, and checking and retaining specific documentation for specific periods, in particular formats, and that these are to be made available to UKVI on request.
Part 1 of the Sponsor Licence Guidance Appendix D specifies the documents to be retained for every sponsored worker employed under Skilled Worker, Global Business Mobility and other Worker and Temporary Worker routes. They can be kept in either paper or electronic format and must be made available to UKVI on request.
All documents provided as part of your application to become a licensed sponsor must be kept for the duration of the period covered by your licence.
All documents relating to sponsored workers must be kept for whichever is earlier: one year from the date sponsorship ends or until a compliance officer has examined and approved them.
2. Key personnel
Licensed sponsors must appoint individuals to the following roles:
- Authorising Officer
- Key Contact
- Level 1 user
The roles can be held by existing personnel, such as HR team members. The Authorising Officer and all Level 1 users must be paid employees or office-holders based in the UK. Level 2 users may be employees or certain third-party representatives.
These roles have specific responsibilities, which the post holder must understand and adhere to.
Appointed personnel are to be named in the sponsor licence application and their details kept up to date on the SMS.
The Authorising Officer and at least one Level 1 user must be in place at all times. If one of the key personnel leaves the organisation and is not replaced in their licence role, UKVI has powers to take enforcement action such as downgrading, suspending or revoking the licence.
3. Monitoring duties
Your organisation will need to have HR systems and procedures in place to monitor all sponsored workers and track and record their attendance, as well as ensuring they are complying with the terms and conditions of their visa.
4. Reporting duties
Sponsors are under a duty to notify the Home Office of certain activities and changes in circumstances relating to their sponsored workers and to the organisation itself. Strict timeframes also apply to report. Most worker changes must be reported within 10 working days and most organisational changes within 20 working days. Sponsors must also notify UKVI as soon as reasonably practicable if they know or suspect a breach of a sponsored worker’s visa conditions. Failure to report within the required timeframes is a breach of sponsor duties and may trigger compliance action.
You must, for example, report regular non-attendance (10 consecutive working days), non-compliance with visa conditions, or unexplained disappearance of sponsored workers. For organisational changes, you will need to update the SMS with developments such as changes to contact details and if there has been a significant change such as a merger or acquisition.
Change / Event | Deadline | How to Report |
---|---|---|
Change in worker’s job title, duties, hours, salary, or work location | Within 10 working days | Update via Sponsorship Management System (SMS) |
Worker resigns, is dismissed, or has 10+ consecutive working days of unauthorised absence | Within 10 working days | Report via SMS |
Change in organisational details (e.g. address, contact details, ownership, merger or acquisition) | Within 20 working days | Update via SMS |
Breach or suspected breach of a sponsored worker’s visa conditions | As soon as reasonably practicable | Report via SMS and/or provide information to UKVI on request |
5. Cooperating with the Home Office
Any requests from the Home Office, for documentation or for access to conduct a site inspection, must be complied with in full and in a timely manner. This also extends to acting honestly and with full disclosure in all dealings with the Home Office.
6. Right to Work
Sponsor licence holders remain subject to the same rules on the prevention of illegal working as all UK employers. Right to work checks should be performed correctly on all employees to avoid civil penalties for illegal working. For example, for British and Irish citizens with valid in-date passports, an Identity Service Provider (IDSP) check may be used while EU Settled Status holders should provide their employer with a share code.
You need to retain records to prove that the right checks on an employee’s immigration status have been carried out and continue to be made. This will be considered by UKVI to determine if your organisation is compliant with its record-keeping duties.
Checks on an employee’s immigration status should be made before employment commences. Importantly, this duty applies to all employees regardless of nationality.
Thereafter, checks should be made on the right to work status of workers with time-limited permission to work in line with the visa expiry date.
DavidsonMorris Strategic Insight
Compliance duties are broad in scope, and demand robust framework that ensures each duty is owned and actioned. Different employers can face different challenges. Smaller employers can struggle to prioritise compliance alongside other competing demands. Larger employers often struggle with consistency across departments. But UKVI does not make allowances for size or resource, compliance is expected at 100%.
Section C: How to Comply
Compliance depends on the systems and people behind it. UKVI expects sponsors to demonstrate proactive oversight and consistent processes with clearly defined responsibilities across the organisation. A licence can only be maintained where compliance is built into daily HR and operational practice, supported by key personnel who understand and act on their duties.
1. Internal Systems
Sponsor licence holders are expected to maintain active, ongoing control over their immigration compliance responsibilities. UKVI does not accept that a sponsor was unaware of its duties or that non-compliance resulted from administrative error. To meet the required standard, employers must build internal systems that are both preventative and responsive, designed to detect risks early and ensure issues are addressed before they escalate into breaches. Below are practical steps sponsors should take to structure their compliance around dependable internal processes.
a. Licence Compliance Calendar and Digital Reminders
Many sponsor failings occur not because of intent, but because key dates or actions are missed. Employers should set up a central compliance calendar that includes visa expiry dates, Certificate of Sponsorship deadlines and right to work follow-up checks. These reminders should be shared across relevant HR and compliance teams and ideally linked to digital tasking systems or email alerts. Even where a professional adviser is supporting licence management, the sponsor remains accountable and must track all time-sensitive obligations independently.
b. Internal Audits and File Spot-Checks
Routine internal audits allow sponsors to assess the accuracy and completeness of their HR records before UKVI reviews them. Audits should be scheduled at least quarterly and focus on randomly selected files to check for signed contracts, salary evidence, visa documentation, and SMS reporting records. Discrepancies should be flagged and rectified immediately. Spot-checks can also be used to test whether sponsored workers are carrying out the duties listed on their CoS and that changes to their role or hours have been properly reported.
To be effective, audits must be documented. Sponsors should keep a log of when checks were performed, what was reviewed, and what actions were taken. This record can be useful during a Home Office visit as evidence of active oversight.
c. Training Managers Who Supervise Sponsored Workers
Managers directly overseeing sponsored staff often make decisions that trigger reporting obligations, such as changes in duties, locations, or hours. However, they are frequently unaware of the implications of these changes for compliance. Training line managers is therefore essential. They should understand the key areas that must be referred to HR or the sponsor management team, including extended absences, contract amendments, or job reassignments. Clear escalation protocols should be embedded into your internal workflows so that compliance checks are carried out before changes take effect.
2. Role of Key Personnel in Sponsor Licence Compliance
Sponsor licence compliance depends not only on systems and procedures, but also on the individuals responsible for overseeing them. The Home Office requires every sponsor licence holder to nominate specific “key personnel” roles as part of their application and throughout the life of the licence. These roles carry legal and operational responsibilities that directly affect the sponsor’s standing with UKVI.
All key personnel must be based in the UK and meet suitability requirements, including a clean immigration and criminal history. Individuals performing these roles should have a clear understanding of their duties and be capable of ensuring compliance at both strategic and operational levels. Sponsors should review their key personnel regularly to ensure that roles are up to date, and that replacements are reported through the SMS without delay. Neglecting to do so can undermine the sponsor’s ability to meet its obligations and increases the risk of enforcement action.
Failure to assign or maintain suitable key personnel can lead to compliance issues, delayed action on visa matters, and in some cases, enforcement action.
Role | Main Responsibilities | Eligibility Requirements |
---|---|---|
Authorising Officer | Overall responsibility for the sponsor licence and ensuring compliance with all duties | Must be the most senior person with authority over recruitment/HR, UK-based, no unspent criminal or immigration offences |
Key Contact | Acts as the main point of communication with UKVI, responds to requests and queries | Must be based in the UK, can also hold AO or Level 1 role |
Level 1 User | Manages SMS daily tasks, assigns CoS, updates worker and business details | Must be a paid UK-based employee or office-holder, at least one must be in place at all times |
Level 2 User | Carries out basic SMS functions such as updating contact details and running reports | May be an employee or approved third-party, restricted access compared to Level 1 |
a. Authorising Officer
The Authorising Officer (AO) is the most senior person responsible for sponsorship within the organisation. This role must be filled by someone with authority to make decisions and ensure that the business is complying with all sponsor duties. The AO is the figure legally accountable to the Home Office and must be closely involved in strategic oversight of immigration matters, even if daily administrative work is delegated. The AO must be a paid employee or an office-holder engaged directly by the business, based in the UK, and must not have any unspent criminal convictions or breaches of immigration law. The AO must not be a contractor, consultant, or legal representative. If the AO leaves the organisation or is no longer suitable, the change must be reported to UKVI within 10 working days.
b. Level 1 and Level 2 Users
Level 1 users manage the day-to-day functions of the SMS. They are responsible for assigning CoS, reporting changes to migrant employment or business details, and monitoring key deadlines such as visa expiry dates. The role is administrative in nature but requires accuracy, consistency, and timely action. Every sponsor must have at least one active Level 1 user at all times. Some businesses appoint more than one to ensure continuity in the event of staff absences or organisational changes.
Level 2 users have restricted SMS access. They can carry out basic tasks such as updating contact details, printing reports, or submitting certain requests, but they cannot assign new CoS or submit updates on more sensitive changes. Employers should ensure that Level 2 users are clearly briefed on the limits of their role and know when to escalate matters to a Level 1 user or the AO.
c. Key Contact
The Key Contact acts as the primary liaison between the organisation and UKVI. While this person may also be the AO or a Level 1 user, the role focuses on communication rather than system access. The Key Contact is responsible for responding to correspondence from the Home Office, including document requests, compliance queries, and logistical coordination around audits or site visits. UKVI expects the Key Contact to respond promptly and provide accurate information when required.
Read our comprehensive guide to Key Personnel here >>
DavidsonMorris Strategic Insight
Effective sponsor licence compliance brings together strategic recognition of the role of sponsorship and tactical execution of duties in a consistent manner. Building the framework is not enough, it has to function in practice. Key personnel are not symbolic or ceremonial appointments, they have to actively carry out their roles.
Section D: Home Office Audits & Inspections
UKVI has the power to inspect sponsor licence holders at any point to assess whether they are meeting their sponsorship duties. These audits may take place before a licence is granted, during the lifetime of a licence, or in response to a concern or complaint. Inspections may be announced or unannounced and can be carried out either on-site or remotely. Sponsors must be ready to demonstrate, at short notice, that they are complying fully with record-keeping, monitoring, and reporting obligations. Being prepared for a Home Office audit requires systems that prove your organisation is actively managing every aspect of its sponsorship responsibilities. A failure to satisfy UKVI during an inspection can result in licence suspension, revocation, or a ban on future applications, so it is essential that sponsors understand what to expect and how to prepare effectively.
1. Preparing for Home Office Digital Compliance Audits
UKVI now routinely conducts digital compliance audits. Audits may be triggered randomly, during licence renewal, in response to intelligence, or as a condition of the priority licence service.
These remote audits allow the Home Office to assess whether sponsor licence holders are meeting their ongoing obligations without visiting the business premises. Remote audits can be triggered during the initial application stage, as part of a routine compliance check, or in response to intelligence suggesting potential non-compliance. As with on-site audits, sponsors are expected to fully co-operate and provide evidence promptly when requested.
Sponsors selected for a digital audit will receive formal notification from UKVI by email. The communication typically outlines a timeframe, often five to ten working days, for providing specified evidence. Sponsors are expected to submit electronic copies of documents via a secure online platform or directly to the Home Office by email. There is no flexibility around deadlines unless an extension is formally agreed in advance.
During a digital audit, UKVI will usually request a list of all sponsored workers and ask for scanned or PDF copies of key documents for a sample of those individuals. This includes identity documents, biometric residence permits where issued, or evidence of eVisa right to work checks, signed employment contracts, job descriptions, proof of salary payments, and evidence of right to work checks. Inspectors may also ask for records of absences, changes in employment terms and SMS reporting history. The purpose is to verify that the organisation is fulfilling its sponsor duties in practice and that accurate records are being maintained.
Sponsor licence holders should treat a digital audit with the same level of preparation and urgency as a physical visit. All requested documents must be up to date, clearly labelled, and submitted in a format that allows UKVI to cross-reference them with data in the Sponsorship Management System. Employers should review each sponsored worker’s digital file in advance of submission to ensure it includes all required documents, including audit trails of any reported changes. Where information is missing or inconsistent, a written explanation should be prepared and submitted alongside the file.
Sponsors should also ensure that their Authorising Officer or another appropriate key personnel member is available for follow-up questions. UKVI may request clarification by email or schedule a follow-up video call to verify policies or procedures. Sponsors should be ready to demonstrate how they track right to work expiry dates, salary reviews, and contract changes, and how these are recorded and reported.
A failure to respond fully or accurately to a digital audit may lead to licence suspension or revocation. The shift towards digital audits reflects UKVI’s increased emphasis on remote enforcement, and employers should assume that their compliance systems may be reviewed at any time, regardless of whether an in-person visit is planned.
Read our comprehensive guide to digital audits here >>
2. Preparing for a Home Office Compliance Visit
A Home Office compliance visit is a formal inspection used to assess whether a sponsor is meeting its duties under the UK’s points-based immigration system. Visits may take place before a licence is granted, as part of a routine audit, or as a result of intelligence or concerns raised during the life of the licence. All sponsor licence holders must be prepared for both scheduled and unannounced visits. UKVI does not need to give prior warning and can attend any time during working hours.
There are three main types of compliance visits. A pre-licence visit may be carried out to assess whether a business is eligible for a sponsor licence and has the systems in place to monitor sponsored workers. A post-licence visit usually occurs during the four-year validity period of the licence and is designed to test ongoing compliance with sponsor duties. An unannounced visit is typically triggered by reports of non-compliance or as part of a targeted campaign, and allows UKVI to assess how systems function under everyday conditions.
During any of these visits, UKVI will expect to meet the Authorising Officer or another senior representative with knowledge of sponsorship duties. Inspectors may also request to interview sponsored workers, view office facilities, and review documentation on-site.
Inspectors will review a range of evidence to assess compliance. This includes employee HR files containing the required documents set out in Appendix D, such as passports, biometric residence permits where issued or evidence of eVisa right to work checks, job descriptions, signed contracts, and records of salary payments. Officers may also request access to absence logs, working hours records, and details of recruitment activity to verify that a genuine vacancy exists and that the job matches what was stated in the Certificate of Sponsorship. For each sponsored worker, the employer must be able to show that the worker is doing the job described, receiving the correct salary, and is being properly monitored. Inspectors may also review organisational records, such as right to work check procedures, internal compliance manuals, and evidence of training provided to key staff on sponsor duties.
Read our guide to Home Office site inspections here >>
3. Practical Audit Checklist for HR Teams
Employers can reduce risk by conducting internal compliance audits in line with the types of records UKVI may request. HR teams should regularly review whether each sponsored worker’s file contains up-to-date copies of their visa, proof of entry into the UK, contract of employment, evidence of salary payments, and accurate contact details. They should also confirm that reporting obligations have been met, for example, any changes to work location, job title or salary must have been submitted via the Sponsorship Management System within the required timeframe. Employers should ensure that right to work checks have been carried out and properly documented not only for sponsored workers but for all employees. A good practice approach includes setting up a digital compliance calendar, maintaining a reporting log, and assigning oversight to trained individuals familiar with Home Office guidance.
Being audit-ready at all times is essential. Failure to present required documents during a visit, or to demonstrate effective systems and knowledge of duties, may result in a licence being downgraded, suspended or revoked. Preparing in advance ensures the organisation is not caught off guard and can continue to employ its sponsored workers without disruption.
DavidsonMorris Strategic Insight
Audits are becoming increasingly common, alongside onsite inspections. It’s best to be match-ready at all times. Regular mock audits with practice interviews are the best way to be prepared – spot and fix the issues before the Home Office does.
Section E: Common Sponsor Licence Compliance Breaches
Many sponsors fall into non-compliance not because of deliberate misconduct, but due to poor systems, inconsistent procedures, or lack of awareness about how the UK’s sponsor requirements are applied in practice. However, the consequences for even technical breaches can be severe. UK Visas and Immigration (UKVI) treats sponsor licence compliance as a continuing obligation, and breaches, whether intentional or administrative, can lead to licence suspension or revocation. Below are common compliance failures identified during audits and the steps employers should take to avoid them.
Common Failure | UKVI View / Risk | Preventive Action |
---|---|---|
Assigning a CoS where no genuine vacancy exists | Seen as abuse of the system, risk of licence revocation | Maintain recruitment records, ensure SOC 2020 code and role align, keep salary evidence |
Inadequate right to work checks | Civil penalties up to £45,000/£60,000 per worker, questions over sponsor suitability | Train staff, use share codes for eVisa holders, keep dated check records |
Failure to report changes (job title, hours, location, salary) | Treated as loss of control over workforce, may lead to suspension or downgrade | Set up SMS reporting log, diarise deadlines, audit HR and payroll changes |
Poor record-keeping or missing Appendix D documents | Common cause of non-compliance findings during audits | Adopt digital filing system, label files clearly, carry out quarterly spot-checks |
1. Assigning a Certificate of Sponsorship Without a Genuine Vacancy
A genuine vacancy is one that meets the skill and salary level of the visa route and reflects the actual role the sponsored worker will perform. UKVI officers regularly identify cases where a CoS has been issued for a job that either does not exist or is significantly different from what was declared. Sponsors must ensure that job descriptions, SOC 2020 occupation codes as listed in Appendix Skilled Occupations, and salary levels are accurate and match the role being carried out. Assigning a CoS for a pre-determined candidate without a valid role to fill is treated as an abuse of the system.
To avoid this, recruitment records should demonstrate that the position was required, advertised (if applicable), and offered following a legitimate process. Sponsors should regularly review SOC 2020 guidance to confirm that the duties of the role genuinely align with the claimed code.
2. Inadequate Right to Work Procedures
Right to work checks are legally required for all employees, not just sponsored workers. UKVI expects sponsors to complete these checks before employment begins and to retain clear, dated copies of the relevant documents. Failure to carry out proper checks can result in civil penalties and calls into question the sponsor’s ability to uphold immigration control.
To remain compliant, employers should maintain a written right to work procedure, train staff who conduct checks, and diarise visa expiry dates to ensure follow-up checks are conducted on time for workers with time-limited permission.
3. Unreported Changes to Working Conditions or Salary
Sponsors are required to report certain changes in sponsored employment within 10 working days. These include reductions or increases in salary, changes in job title or responsibilities, alterations to contracted hours, and relocations to a different worksite. Organisational changes, such as mergers or new trading addresses, must be reported within 20 working days. Sponsors must also notify UKVI as soon as reasonably practicable if they know or suspect a breach of a sponsored worker’s visa conditions. Failure to report changes is a common compliance issue and may result in licence downgrades or revocation.
To mitigate this risk, employers should ensure that HR and payroll teams are aware of what must be reported and that any contract amendments or changes in conditions trigger an internal SMS review. A single missed report can lead to UKVI concluding that the sponsor has lost effective control over their workforce.
4. Poor Document Retention and Gaps in Digital Records
UKVI expects sponsors to hold complete and up-to-date records as outlined in Appendix D of the sponsor guidance. Missing documents, inconsistently labelled files, or the inability to produce requested information during an audit are common reasons for non-compliance findings. UKVI will not accept the explanation that records are stored “off-site” or with an external payroll provider if those records cannot be made available promptly during a visit or digital audit. Sponsors must also be prepared to provide evidence relating to eVisa holders, not only BRPs, reflecting the UKVI shift to digital status management.
DavidsonMorris Strategic Insight
The most common compliance issues are usually the most innocuous. Most sponsors have systems and processes in place, but fall foul of minor procedural mistakes like missing a reporting deadline or not updating the SMS with a change in the sponsored worker’s hours. Integrate immigration checks in your standard HR activities to avoid anything falling through the gaps.
Section F: Consequences of Non-Compliance
Non-compliance with sponsor duties can trigger immediate enforcement action by UKVI, regardless of whether the breach is intentional or administrative. Once a licence holder fails to meet the requirements under the Immigration Rules and sponsor guidance, UKVI has wide powers to suspend, downgrade or revoke the sponsor licence. These sanctions can disrupt the organisation’s ability to employ sponsored workers, damage its reputation, and lead to long-term exclusion from the sponsorship system. Employers must understand the consequences and act promptly if enforcement action is taken.
1. Licence Suspension and the Investigation Process
Where UKVI identifies potential non-compliance, either through a site visit, digital audit or information received from a third party, it may suspend the sponsor licence with immediate effect. The organisation will receive a formal suspension letter outlining the reasons and the specific breaches alleged. During the suspension period, the sponsor cannot assign any new CoS, but current sponsored workers can usually continue working while the case is reviewed.
Sponsors are typically given 20 working days to respond with written representations. The response must address each breach raised and include evidence of remedial action taken. If UKVI is satisfied that compliance has been restored and risks addressed, the licence may be reinstated or downgraded to a B rating. If the issues remain unresolved, revocation may follow.
2. Licence Revocation and Impact on Sponsored Workers
Revocation is a permanent sanction that removes the sponsor’s ability to employ overseas workers. If a licence is revoked, all outstanding CoS are cancelled immediately. Sponsored workers are served with curtailment notices, typically reducing their permission to stay in the UK to 60 days, or less if their existing visa expires sooner.
During the curtailed period, sponsored workers must either secure a new licensed employer and submit a valid application, switch into another eligible visa category, or leave the UK. If they remain beyond the curtailed period without permission, they risk being classed as overstayers. Employers may also be listed in public revocation records published by the Home Office, which can affect future hiring and business reputation.
3. Civil Penalties and Reputational Damage
If a sponsor is found to have employed someone without lawful permission to work, UKVI may issue a civil penalty. The penalty amount depends on the nature and severity of the breach, and whether the employer has previous breaches.
Since February 2024, the maximum fines are £45,000 per illegal worker for a first breach and £60,000 per illegal worker for repeat breaches. Fines can lead to reputational harm, especially in regulated sectors where compliance history is scrutinised by clients, investors or industry bodies. Some revocations are reported in the media, and enforcement activity can have lasting consequences for employer brand and recruitment.
4. Reapplying After Revocation: Cooling-Off Periods
Once a sponsor licence is revoked, the organisation is usually barred from reapplying for a new licence for at least 12 months. In some cases, longer “cooling-off” periods may apply, particularly where UKVI has found evidence of fraud, abuse or systematic failures. During the cooling-off period, the business will be unable to employ any new sponsored workers and may struggle to retain international staff under other routes.
Where the business intends to reapply after the ban expires, it must be able to show that the underlying issues have been fully resolved, with stronger compliance systems in place. UKVI is likely to conduct a pre-licence audit before granting any future application.
DavidsonMorris Strategic Insight
Licence penalties are designed to be disruptive to the sponsor. As the Home Office sees it, if you aren’t operating to the required compliance standards, you don’t get to benefit from overseas recruitment.
When you’re dealing with a sponsor licence compliance penalty, you’re effectively on a defined track demanding action from you to get the licence back into good standing, or the penalties will simply get worse. A licence suspension will move to revocation if the issues are not addressed.
Section G: Summary
Sponsor licence compliance is not a one-off exercise but a continuing legal duty that shapes how an organisation can recruit and retain its workforce. The Home Office now takes a stricter approach to enforcement, with digital audits and unannounced inspections a routine feature of oversight. Employers who fail to invest in robust systems and trained personnel face penalties that extend far beyond fines, threatening business continuity and access to global skills. A compliance strategy built on strong internal controls, regular audits, and timely reporting offers the only reliable protection against disruption and reputational damage.
Section H: Need assistance?
DavidsonMorris’ business immigration specialists can support your organisation with all aspects of sponsor licence compliance and management.
As a team of immigration lawyers and former Home Office personnel, we can work in support of your in-house HR team or manage the compliance demands on your behalf, across all types of sponsorship licence.
Our licence compliance package is designed to provide support specifically tailored to your organisation and its needs.
In particular, we have substantial experience of working with multinational employers and organisations with UK operations on meeting their duties through effective and commercially-viable compliance solutions, and with smaller organisations without internal HR resource or capacity.
We also have specific expertise in more complex areas such as mergers, new branch openings and other organisational changes which will impact your licence and compliance responsibilities.
Contact us for specialist guidance and support with sponsor licence compliance.
Section I: Sponsor Licence Compliance FAQs
What are the main duties of a sponsor licence holder?
A sponsor must keep accurate records for each sponsored worker, report changes in employment and business circumstances via the Sponsorship Management System (SMS), monitor visa expiry dates, and ensure all sponsored roles meet the relevant salary and skill thresholds set out in Appendix Skilled Occupations and Appendix Skilled Worker.
Do I have to report minor changes, like a job title adjustment or hybrid working?
Yes, any change in job title, work location, contracted hours, or duties that differ from what was stated in the Certificate of Sponsorship must be reported within 10 working days. Organisational changes such as mergers or relocations must be reported within 20 working days. You must also notify UKVI as soon as reasonably practicable if you know or suspect a breach of a sponsored worker’s visa conditions.
What happens during a Home Office compliance visit?
UKVI officers may review personnel files, interview sponsored workers, examine right to work procedures, and assess whether the duties match the job description. Visits can be announced or unannounced, and you must provide documents immediately when requested. Officers will also expect to see evidence relating to eVisa holders as well as BRPs.
How often should we audit our sponsor records?
Best practice is to carry out quarterly internal audits, with regular spot-checks on worker files, visa expiry monitoring, and SMS activity. Keeping an audit log can demonstrate to UKVI that compliance is taken seriously and that issues are addressed before they escalate.
Can I assign a Certificate of Sponsorship before advertising a role?
Only if the route does not require a genuine vacancy test. For Skilled Worker roles, sponsors must be able to show there is a genuine vacancy that meets the skill and salary thresholds in Appendix Skilled Occupations. Assigning a CoS before confirming the job exists risks refusal and enforcement action.
Do we need to re-check right to work documents for sponsored staff?
Yes, if the worker’s permission to work is time-limited, you must carry out a repeat check before the expiry date. Checks should be recorded in line with the Right to Work guidance. For eVisa holders, this means carrying out an online share code check. All checks must be correctly recorded and dated to protect against civil penalties.
What if our Authorising Officer leaves the company?
You must report this to UKVI within 10 working days and appoint a new Authorising Officer who meets the suitability requirements. Failure to do so may lead to compliance concerns or suspension of your licence.
Can we lose our licence for a first-time mistake?
UKVI assesses the seriousness of the breach and whether the sponsor has taken steps to correct it. Some breaches, such as employing someone without lawful status, can lead to immediate suspension or revocation, even if it is the first offence.
What happens to sponsored workers if our licence is revoked?
All Certificates of Sponsorship are cancelled, and workers are usually given 60 days (or until visa expiry if sooner) to find a new sponsor, switch to another visa category, or leave the UK. Curtailment notices are now also issued to those with eVisas, not just BRPs.
How long is the cooling-off period if our licence is revoked?
Most sponsors must wait 12 months before reapplying. If the revocation was due to serious breaches or dishonesty, the cooling-off period may be longer. UKVI will expect evidence of stronger compliance systems before granting a new licence.
Section J: Glossary
Term | Definition |
---|---|
Sponsor Licence | Permission granted by UK Visas and Immigration (UKVI) allowing a UK-based organisation to employ non-UK workers under the points-based immigration system. |
Certificate of Sponsorship (CoS) | An electronic document issued by a licensed sponsor to a migrant worker, containing details of the job and confirming that it meets the relevant visa requirements. |
Sponsorship Management System (SMS) | The online system used by sponsor licence holders to assign Certificates of Sponsorship, report changes, and manage compliance with Home Office requirements. |
Authorising Officer | The most senior person responsible for the sponsor licence and ensuring the organisation complies with its duties. This role must be held by a UK-based employee or office-holder. |
Level 1 User | A person authorised to access the SMS and carry out day-to-day sponsor management tasks, including assigning CoS and reporting changes. |
Right to Work Check | A legal requirement for employers to verify that all employees have the right to work in the UK, and to retain evidence of that check. For eVisa holders, this means carrying out an online share code check through the Home Office service. |
Genuine Vacancy | A job role that is real, meets the skill and salary requirements in Appendix Skilled Occupations and Appendix Skilled Worker, and has not been created solely to support a visa application. |
Compliance Visit | An inspection carried out by UKVI to assess whether a sponsor is meeting its licence duties. Visits may be announced or unannounced and may also be conducted digitally. |
Curtailment | A process by which UKVI shortens a migrant’s visa, usually following a sponsor licence revocation or change in circumstances. Curtailment notices are issued to both BRP and eVisa holders. |
Revocation | The cancellation of a sponsor licence, meaning the organisation can no longer sponsor overseas workers and all current sponsorships are cancelled. |
Civil Penalty | A financial penalty issued to employers who employ someone without lawful permission to work in the UK. Since February 2024, the maximum penalty is £45,000 per illegal worker for a first breach and £60,000 per worker for repeat breaches. |
Cooling-off Period | The minimum period (usually 12 months) an organisation must wait before reapplying for a sponsor licence after revocation. Longer periods may apply in cases involving fraud, dishonesty, or systemic failings. |
Appendix D | Sets out the specific records that sponsors must retain for each sponsored worker, including eVisa evidence where applicable. |
Appendix A | Lists the supporting evidence required when applying for a sponsor licence. |
Section K: Additional Resources and Links
Resource | Description | URL |
---|---|---|
Sponsor Duties and Compliance – GOV.UK | Official Home Office guidance outlining the duties all UK sponsor licence holders must follow, including reporting and record-keeping obligations. | https://www.gov.uk/government/publications/sponsor-duties-and-compliance |
Sponsor a Skilled Worker – GOV.UK | Detailed guidance for employers sponsoring workers under the Skilled Worker route, including compliance requirements and licence management rules. | https://www.gov.uk/government/publications/workers-and-temporary-workers-sponsor-a-skilled-worker |
Appendix D: Record Keeping Requirements – GOV.UK | Sets out the mandatory documents sponsors must retain for each sponsored worker and how long they must be kept. | https://www.gov.uk/government/publications/appendix-d-guidance |
Right to Work Checks: Employer Guide – GOV.UK | Explains how employers should carry out right to work checks and what documents are acceptable to avoid civil penalties. | https://www.gov.uk/government/publications/right-to-work-checks-employers-guide |
Immigration Rules: Appendix A – GOV.UK | Details the documentation required to support a sponsor licence application under UK immigration law. | https://www.gov.uk/guidance/immigration-rules/immigration-rules-appendix-a |