Introduction

Once a business has a Sponsor Licence, the real responsibility begins. The Home Office expects employers to monitor, record and report important details about every sponsored worker. Failure to follow these duties can lead to serious consequences, including licence downgrade, suspension or permanent revocation.

This guide explains the essential Sponsor Licence compliance duties in simple language, so UK employers understand exactly what the Home Office requires.

✅ Why Compliance Matters

Being a licensed sponsor does not simply mean hiring overseas workers. It means the business has promised the UK Government that it will:

• Keep accurate records
• Report key changes
• Prevent illegal working
• Follow immigration rules at all times

If the Home Office believes an employer cannot be trusted, they can take action immediately. Many companies lose their licence because of small mistakes that could have been avoided.

✅ Main Sponsor Licence Compliance Duties

1. Record-Keeping Duties

Every sponsored employee must have a complete HR file. Employers should safely store:

• Passport and visa copies
• Right-to-work check results
• National insurance information
• Employment contract and job description
• Contact details and updated address
• Attendance and absence records
• Salary and payment evidence

If these documents are missing or unclear, the Home Office may treat it as a breach.

2. Reporting Duties

Employers must report changes within strict time limits using the Sponsorship Management System (SMS).
You must report when:

• A sponsored employee’s job role, salary or work location changes
• The worker leaves the company or stops coming to work
• There is a long absence without permission
• The business changes address, ownership or key personnel

Failing to report on time is one of the most common reasons licences are downgraded or suspended.

3. Genuine Vacancy Requirement

A sponsored job must be real and meet the required skill level and salary set by the Home Office.
It is a breach if:

• A worker is doing a different job than what was approved
• The role does not match the correct occupation code
• The job was created only to bring someone to the UK

The Home Office treats “fake jobs” very seriously.

4. Preventing Illegal Working

Employers must complete right-to-work checks before the employment starts and keep evidence on file.
This confirms that the worker:

• Has valid immigration permission
• Is being employed legally
• Is working only within their visa conditions

If a business employs someone illegally, fines and criminal penalties may apply, even if the mistake was unintentional.

5. Monitoring Sponsored Workers

A licensed sponsor must always know where their sponsored employees are working.
This includes:

• Tracking work locations
• Recording approved holidays
• Monitoring unauthorised absences
• Updating HR files quickly

If the business cannot show proper oversight, the Home Office may assume the worker has disappeared or is working elsewhere.

✅ What Happens If Duties Are Ignored?

If duties are not followed, the Home Office can:

• Issue warnings
• Downgrade the licence rating
• Suspend the licence
• Revoke the licence completely

If revoked, all sponsored workers may lose their right to work and the business will not be able to sponsor anyone for years.

✅ How to Stay Fully Compliant

To protect the licence, employers should:

• Keep organised digital HR records
• Train staff responsible for sponsorship
• Update SMS quickly when changes happen
• Prepare for audits at any time
• Get professional advice if unsure

Compliance is not a one-time task — it is continuous, throughout the employee’s stay in the UK.

✅ How Stonebridge Legal Solutions Supports Employers

Stonebridge helps businesses:

• Set up strong HR compliance systems
• Respond to Home Office concerns or audits
• Manage reporting responsibilities
• Avoid suspension or revocation
• Renew licences smoothly and on time

With professional support, even small businesses can stay fully compliant and hire international talent safely.

📞 Contact Stonebridge Legal Solutions today for compliance advice or full licence management support.