Sponsorship: Compliance Obligations

Sponsorship is based on two main principles:

  • Sponsorship is a privilege, not a right – this means that those who benefit most directly from employing migrant workers must:
    • play their part in ensuring the immigration system is not abused
    • comply with wider UK law
    • not behave in a manner that is not conducive to the public good
  • Overseas nationals who apply for permission to enter or stay in the UK to work are eligible, and a trustworthy and licensed employer genuinely wishes to employ and sponsor them.

When a sponsor is granted a licence, significant trust is placed in them. With this trust comes a direct responsibility to act in accordance with the UK’s immigration laws, all parts of this sponsor guidance, and with wider UK law, including, but not limited to:

  • UK employment law, such as payment of National Minimum Wage, holiday and sickness pay, maximum working hours, health and safety, and trade union and worker rights
  • preventing illegal working
  • safeguarding children

The Home Office have a duty to ensure all sponsors discharge these responsibilities, and they will take compliance action when it is considered that a sponsor has failed to do so, or otherwise poses a risk to immigration control. We have advised clients in Belfast and London of the need to be vigilant with the likes of right to work policies in light of continued duties and compliance. As immigration lawyers based in London and Belfast we regularly advise clients on sponsorship duties and compliance.

 

Sponsor duties and compliance

Part 3: Sponsor duties and compliance contains detailed guidance on your duties as a licensed sponsor and the compliance action the Home Office can take if you fail to meet those duties.

There is also a wider responsibility for sponsors to behave in a manner that is consistent with Home Office fundamental values and is not detrimental to the wider public good. The Home Office will not license organisations whose actions and behaviour are not conducive to the public good. Such actions and behaviour include, but are not limited to:

  • fostering hatred or inter-community division
  • fomenting, justifying or glorifying terrorism
  • rejecting the rights of, or discriminating against, other groups or individuals on the basis of their sex, age, disability, gender

The Home Office will refuse a sponsor licence application or take the appropriate compliance actions if a prospective or existing sponsor is engaging, or has ever engaged, in such behaviour or actions. The compliance action taken will depend on the gravity of the behaviour and actions but could include compliance actions up to and including revocation of your licence. These rules are the same whether your company is based in Belfast, London or elsewhere. The advice should be the same by all immigration lawyers advising clients.

If you fail to comply with your duties, or become no longer eligible or suitable to hold a sponsor licence, the Home Office may take action against you, including:

  • downgrading your licence rating
  • reducing the number of CoS you can assign (or setting your limit to zero)
  • suspending your licence while we investigate further
  • revoking your licence
  • in serious cases, reporting you to the police or other relevant authorities

 

Key Personnel

The online sponsor application form requires you to give certain responsibilities to members of your staff, some or all of whom will have access to the sponsorship management system (SMS) after a licence is granted. We call these people ‘Key Personnel’ and there are 4 roles:

  • Authorising Officer
  • Key Contact
  • Level 1 User
  • Level 2 User

Only level 1 and 2 users will have access to the SMS. If the Authorising Officer or Key Contact requires access, they must also be set up as a Level or Level 2 User.

Each of your Key Personnel must:

  • be based in the UK for the period they fill the role you have appointed them to – there is an exception to this requirement on the UK Expansion Worker route where the Authorising Officer may be based overseas from the time you apply for your licence until they enter the UK with a valid entry clearance for the purpose of work on the UK expansion of your business
  • not have any unspent criminal convictions as set out in Annex L4 of the guidance
  • be a paid member of your staff or engaged by you as an ‘office holder

None of your Key Personnel can be:

  • a representative who is not based in the UK
  • a contractor or consultant who is contracted for a specific project
  • subject to a Bankruptcy Restrictions Order or Bankruptcy Restriction
  • subject to a Debt Relief Restrictions Order or Debt Relief Restrictions
  • legally prohibited from being a company director

 

Fees

There is a fee for:

  • your initial application for a sponsor licence
  • in some cases, applying to extend the scope of an existing licence (adding routes on which you can sponsor workers)
  • each Certificate of Sponsorship you assign
  • any additional premium services after your licence has been granted

The fee for a sponsor licence depends on the type of licence you are applying for and the size or status of your organisation. You are eligible to pay the ‘small’ fee if you:

  • are applying for a licence under the Temporary Worker routes only
  • have charitable status – see Sponsor a Charity Worker for a definition of this term
  • are subject to the small companies regime as set out in sections 381 to 384 of the Companies Act 2006, or are a sole trader (not a company) and you employ fewer than 50 people

In all other cases, you must pay the ‘large’ fee. As immigration lawyers we can advise companies in the likes of Belfast or London what fee is applicable to your organisation.

 

Certificate of Sponsorship allocation

The online form asks you for an estimate of the number of Certificates of Sponsorship (CoS) you may wish to assign in your first year in each route for which you are applying for a licence. You will need to assign a CoS to any worker you wish to sponsor before they can apply for entry clearance, permission to enter, or permission to stay. You will therefore need to think carefully about how many workers you are likely to employ during the year and why. As immigration lawyers we advise companies whether in Belfast or London to be careful when considering the number of certificates required for the upcoming tax year.

 

Duty of Honesty

You have a duty to act honestly in any dealings with the Home Office. This includes not making false statements and ensuring that all essential information is disclosed to the Home Office when applying for a sponsor licence or assigning or applying for a CoS while you are a sponsor. Employers in Belfast or London should be careful when considering this.

You must inform the Home Office if there is any change in your circumstances while your licence application is pending or after your licence has been granted – for example, if you cease to be registered with the appropriate regulatory body (where required) or you or any of your Key Personnel are convicted of an offence or have a pending prosecution.

If the Home Office believe that you have knowingly provided false statements or false information with your application, not provided information you held when required to, you pose a threat to immigration control, or you are acting, or have acted, in a manner that is not conducive to the public good, the Home Office will refuse your licence application (or revoke your licence if you already hold one).

 

CMC Immigration can simplify the Sponsor Licence application process, minimising risks and ensuring that your organisation can successfully recruit and retain international talent.

CMC Immigration Law is an immigration practice based in London and Belfast which provides UK immigration services and solutions to businesses and private individuals throughout the world.