A sponsor licence application for UK businesses means recruiting international skilled professionals is possible, though highly imposing. The UKVI Home Office conducts this check-up to ensure that the company strictly fulfils all the requirements for compliance with the sponsor licence. A compliance visit announced or unannounced, will be critical to ascertain whether your business remains eligible to continue sponsoring workers or faces the consequences like sponsor licence suspension or even revocation.
This article provides some of the necessary strategies to keep your business ready for these inspections and fully compliant with minimum disruption to your operations.
What to Expect During a UKVI Compliance Inspection
UKVI inspections check the nature of whether the business is fulfilling its sponsorship obligation. There are both pre-licence audits before the licence is granted and post-licence audits after the licence has been granted. Inspections can be unannounced, so preparation and readiness at any given time are important.
The auditor will often verify how the information on records submitted in a sponsor licence is correct. When conducting an audit, the auditor verifies the authenticity of the job roles offered to sponsored employees and checks on all legal right-to-work checks. Sometimes, auditors might interview the key personnel responsible for managing the licence and HR systems and the sponsored employees to ascertain whether the visa requirements are met.
Where irregularities are found, or the sponsoring organisation fails to discharge responsibilities under the rules and regulations, penalties may include the sponsor licence suspension, downgrade from an A-rating to a B-rating, and, in worst cases, revocation when the business does not reverse the position.
Key Preparation Steps for a Sponsor Licence Compliance Check
Review and Update Employee Records: Accurate and up-to-date records are an essential requirement for compliance. Ensure all completed right-to-work checks, contracts, CoS, and payroll records are readily available. Ensure that documentation suits the sponsor licence application and the Sponsor Management System (SMS).
Carry Out Regular Internal Audits: Regular internal audits help to identify compliance gaps well in advance of UKVI inspection. They comprise reviewing HR practices, checking reporting logs in the SMS, and monitoring all visa-related activities accordingly. Internal audits also allow for proactive issues to be addressed.
Training Key Personnel: Key staff members responsible for SMS and sponsorship duties, such as the Authorising Officer and Level 1 users, need to be trained and informed about the duties of compliance. Regular training will enable them to adequately answer any query UKVI has and empower them to provide the right information in the event of an inspection.
Organise Documents and Files: Use electronic databases to document and maintain important documents. Properly documented information can be accessed quickly if there is an audit, which is highly relevant in demonstrating compliance. Copies of critical documents also need to be kept in case of data loss.
Be Prepared for Staff Interviews: During audits, compliance officers will interview both HR staff and sponsored employees. Employees should know what their visa depends upon and what duties they are obligated to carry out, while HR staff must be able to provide information concerning sponsorship duties and, most importantly, practices for staying in visa compliance.
Common Violations That Lead to Licence Suspension
Businesses must adopt extremely high compliance standards so that their sponsor licence is not suspended. Some of the most common offences include:
Failure to Carry out Right-to-Work Checks: The law requires businesses to confirm whether each employee, sponsored or not, is legally allowed to work for them. Failure to conduct or absence of checks are some of the common reasons why businesses fail the test.
Mishandling of Change in Employment: Any job change, shift, salary, or location must be reported through the SMS. Failure to report on time or at all is a sign of poor compliance management and attracts sponsor licence suspension.
Failure to Monitor Visa Conditions: The sponsor should monitor the expiry date of his sponsored employees’ visas and ensure they work in accordance with their visa conditions. Failures in this area led to UKVI’s attention and a host of licence penalties.
Consequences Due to Non-Compliance
In case UKVI deems that there were breaches during the compliance visit, the business can expect a good range of penalties. The most short-term consequence is sponsor licence suspension, which means the ability to sponsor new workers ceases immediately. Current sponsored employees can continue working, but the business will have to sort out its compliance before UKVI takes away the licence.
If a follow-up audit fails to meet the required standards, the licence could be downgraded to a B-rating, and new sponsorship activities might be restricted. If the case continues, the licence will be withdrawn, and sponsored workers will have to leave the UK or transfer to another sponsor within 60 days.
If your licence happen to be revoked, this video will explain what to do with a sponsor licence revocation.
Ways to Avoid Penalties and Ensure Continuous Compliance
Maintain monitoring and proactive control of sponsorship responsibilities to ensure compliance. Below are some key strategies that will help you stay prepared for UKVI audits at all times.
Mock Audits: Perform compliance audits periodically to determine where procedures have weaknesses. External consultants can be hired to check procedures objectively and provide suggestions for improvement.
Educate the Key Employees About the Immigration Policies: Immigration policies keep on changing. There should be seminars for HR personnel who can attend sessions with the immigration consultants to keep abreast of these changes.
Visa Expiration Date and Renewal: Use tracking tools to stay ahead of visa deadlines, and thus, the licence will always have continuous liability-free status.
Get Professional Legal Support: An immigration lawyer can ensure that your business is always in compliance and ready for an audit. Professional guidance can also help manage any issues the inspectors find.
Seek Professional Legal Support
Preparing for UKVI compliance inspection is critical to maintaining your sponsor licence and avoiding penalties such as sponsor licence suspension. Regular audits and well-organised records with constant training ensure that you can demonstrate compliance. You, therefore, remain proactive in ensuring your business meets the requirements of a sponsorship licence and you can hire skilled workers without disruption. If you need help with your sponsor licence application or assistance preparing for a compliance inspection, contact A Y & J Solicitors. Our experienced team will guide you through all sponsorship requirements so you can stand confidently in front of inspections and avoid penalties.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with the sponsor licence application. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!