Avoiding Civil Immigration Penalties: Risks of Poor Record-Keeping

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How to Avoid Civil Immigration Penalties and Maintain your Sponsored Workforce

Key contact: Sabina Kauser

In today’s globalised workforce, UK organisations often sponsor skilled workers from overseas. While this arrangement offers immense benefits, it also comes with strict compliance responsibilities. Failing to maintain proper immigration records for sponsored workers exposes organisations to significant risks, including the loss of their sponsor licence and costly civil penalties. Understanding these risks and adopting robust record-keeping practices is essential for maintaining compliance. We take a look at how to avoid civil immigration penalties and maintain your sponsored workforce.

The Risks of Non-Compliance
  1. Civil penalties

The UK Home Office has the authority to impose fines of up to £20,000 per illegal worker if an organisation is found to have employed someone without the right to work. Poor documentation can be construed as negligence, even if the worker was initially eligible.

  1. Loss of sponsor licence

Employers holding a sponsor licence must adhere to strict record-keeping and reporting duties. Non-compliance can result in the suspension or revocation of the licence, disrupting the organisation’s ability to employ skilled foreign workers.

  1. Operational disruption

Losing a sponsor licence can significantly impact operations, especially in industries reliant on skilled foreign labour, such as health and social care. Projects may be delayed, and the organisation could face skill shortages.

  1. Reputational damage

Investigations and penalties from the Home Office can attract negative publicity, harming an organisation’s reputation among clients, employees, and stakeholders.

Sabina Kauser, Immigration partner at Acuity Law, has seen the issues that can arise for companies who fall out of compliance with sponsorship requirements.

“In one instance, we were instructed to defend a civil penalty where an organisation was fined for not adhering to the record-keeping requirements. As a result, it was unaware of a foreign employee’s visa expiry date and ended up receiving a penalty of £15,000 for employing an illegal worker.

“Another example is where an organisation failed to keep proper records and had its sponsor licence downgraded to a B rating, with a time-limited action plan from the UKVI to improve its systems to try and attain an A rating again. When a licence is downgraded to a B rating, sponsors are not able to sponsor any new migrant employees.”

Key record-keeping responsibilities

To avoid penalties and maintain compliance, organisations must:

  1. Verify that all employees have the legal right to work in the UK. This includes checking original documents such as passports, visas, or Biometric Residence Permits and maintaining copies securely.

  1. Retain copies of key documents for each sponsored worker, including:
    • Proof of right to work (e.g., visa details).
    • Employment contracts and job descriptions.
    • Records of absences and updated contact details.

  1. Report changes promptly. Any significant changes to a sponsored worker’s circumstances—such as a change in job role, work location, or cessation of employment—must be reported to the Home Office within the stipulated timeframe.

  1. Maintain accurate Sponsorship Management System (SMS) entries. The SMS is a critical tool for managing sponsored workers. Ensuring that all information is accurate and regularly updated is vital for demonstrating compliance during Home Office audits.

How companies can stay compliant
  1. Regular audits

Conduct periodic internal audits of all immigration records to ensure compliance. This includes verifying that records are complete, accurate, and up to date.

  1. Training for HR teams

HR staff must be trained on the latest immigration rules and right-to-work checks. Keeping them informed about policy updates ensures they can effectively manage compliance.

  1. Clear policies and procedures

Implement clear policies outlining responsibilities for maintaining immigration records. Ensure these procedures are easily accessible and consistently followed.

  1. Leverage technology

Use digital tools to manage records and automate reminders for key dates, such as visa renewals or reporting deadlines. These tools help reduce human error and improve efficiency.

By implementing robust record-keeping systems, training staff, and staying proactive, organisations can safeguard their sponsor licence and continue benefiting from a globally skilled workforce. In a landscape of stringent regulations, diligence and preparation are key to maintaining compliance and avoiding costly mistakes.

For assistance in keeping your records and sponsor licence compliance fit for purpose and avoiding civil immigration penalties, contact our Immigration team.

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