Sponsor Licence Management Duties: Crackdown on Compliance
Key Contact: Sabina Kauser
Following the Prime Minister’s speech at the Labour party conference last week, it is clear that curbing net migration is still on top of the agenda for the new government.
It intends to reduce net migration and prevent sectors from “importing labour” by providing training opportunities to upskill young people in the UK.
In order to effectively fulfil these aims, the government will also get tough on sponsors by:
- Banning sponsors who flout visa laws.
- Ensuring existing sponsors comply with their obligations.
In short, it has never been more imperative that employers holding a sponsor licence are fully conversant – and fully compliant – with their compliance duties and obligations.
Understanding sponsor obligations
Sponsoring organisations have a duty to ensure that a migrant worker role meets the skilled worker visa requirements, and that they are running their business in line with their obligations under general UK legislation, such as employment and tax laws.
Crucially, they also have a duty to ensure that they meet compliance duties for any changes to their organisation or the employment of the migrant. For example, any changes to an employee’s role, such as a change in pay or working hours or termination of employment (amongst a host of other changes) are reported through the UKVI via the online sponsor management system (SMS).
It is also essential that any changes to the organisation (for example, a merger or acquisition, a change of name or the addition of a branch) are also all reported through the SMS system.
The time frame for reporting changes to an organisation using the SMS depends on the type of change and the circumstances:
- Changes to the organisation or sponsor license must be reported within 20 working days of the employer becoming aware of the change.
- Changes to a sponsored worker’s circumstances must be reported within 10 working days of the change.
Some changes can be automatically updated, but others can take up to 16 weeks to be actioned.
Non-compliance with sponsor obligations
Non-compliance with sponsor obligations can result in the sponsor licence being downgraded or revoked, preventing organisations from employing new or existing migrant workers. Where organisations have a heavy reliance on sponsored workers, any withdrawal or downgrade of a licence can seriously impact their ability to operate effectively.
If your organisation has a sponsor licence or you are thinking of obtaining one and you are not sure of obligations as a sponsor, contact our dedicated Immigration team.
