Friday 1 November 2024

Following the government’s recent announcements, it is clear that there is a crackdown on compliance and the Home Office are ramping up compliance visits, both pre and post the grant of a sponsor licence. Between August 2022 and July 2023, the Home Office carried out 2,157 compliance visits, in which it found a staggering 80% of sponsors had not met their duties. In the second quarter of 2024, 524 Skilled Worker sponsor licenses were suspended and 499 revoked, the highest number on record for each category respectively.

It is therefore vital that sponsors remain aware of and on top of their sponsor duties. We set out below common pitfalls for sponsors to be aware of – although note, there are many more compliance hazards and we would hugely encourage all sponsors to regularly audit their HR systems and functions, something Laura Devine Immigration (LDI) are well equipped to assist you with.

Changes to migrant details not being reported

Sponsors are required to report a change in a worker’s circumstances up to 10 working days after the date of change, be it a change in job title, core duties, promotion, reduction in salary or move to a different normal working location etc. LDI encounters may instances where employers report these events late, or even worse not at all. This signals to the Home Office that a sponsor is not aware of its reporting duties and it does not have the right systems in place to track and monitor its migrant workers.

Not conducting updated right to work checks

As all employers should be aware, valid right to work checks must be undertaken prior to the start of an individual’s employment. While many sponsors are well acquainted with the process of conducting right to work checks in the initial onboarding process, we regularly see instances where the checks have not accurately been conducted at the point of extension of immigration permission.

To guard against this, sponsors should have comprehensive HR systems in place and should ensure that HR/relevant staff. LDI would be pleased to offer training for your HR team or a mock audit of files to ensure that sponsors have the right systems in place and are aware of the right to work process and penalties.

Change in Authorising Officer (AO) not having been reported

The role of AO is incredibly important as they have ultimate responsibility for the licence and a sponsor must have an AO in place throughout the life of its licence. Sponsors must ensure that they report  any changes to the employment of the AO – the Home Office may revoke a sponsor licence where there is no AO in place or they no longer meet the requirements for the position.

Change in sponsor circumstances including change in ownership

It is not only changes to sponsored workers that need to be reported, changes to the sponsor itself also require reporting. For example, a sponsor must report within 20 working days a change in the organisation’s details such as name or name of any branches, address, contact details, size or head office details.

Sponsors must also note that a change in direct ownership not only needs to be reported but likely requires the need for a new sponsor licence. This is an oversight we often see occurring, which can lead to licence revocation.

Conclusion

While these are some of the most common errors in reporting from sponsors, there are many more sponsor reporting and record keeping duties that a sponsor must uphold. Home Office guidance is, lengthy and at times, overwhelmingly confusing.

LDI offer a range of sponsor compliance services which can assist your business with its ongoing immigration compliance and ensure that your company’s sponsor licence and systems are in order.  For further information, please contact your dedicated LDI lawyer or enquiries@lauradevine.com.