Increase in number of sponsor licences suspended and revoked: Implications for sponsors

The number of sponsor licences suspended or revoked has risen substantially according to UK Visas & Immigration (UKVI) Transparency Data, published on 28 November 2024. Here's a comparison of the figures for 2023 (January to December) versus 2024 (January to September):

• 2023 Totals:
• 421 licences suspended
• 232 licences revoked

• 2024 (Reporting - January to end of September)
• 1,342 licences suspended
• 1,222 licences revoked

This surge clearly indicates that UKVI is taking a more stringent approach to ensuring compliance with immigration regulations.

This heightened scrutiny could be part of a broader strategy to streamline the immigration process, making it more efficient and transparent. By targeting non-compliant sponsors and ensuring they meet the necessary criteria, UKVI not only safeguards the rights of foreign workers but also upholds the credibility of the UK's immigration system.

On 22 January 2025, the Home Office also published the first version of the Compliance Caseworker Guidance for Home Office staff, to provide detailed instructions on how case workers should manage compliance cases.

The revocation of a sponsor licence can have significant consequences for Sponsors who may face penalties or legal action depending on the severity of non-compliance. Sponsored workers may lose their right to work and stay in the UK.

Primary reasons leading to enforcement actions against Sponsors include inadequate right-to-work checks, failure to report changes in employee circumstances e.g. absences or change of employment, failure to pay workers correctly and poor record-keeping.

Be ready for a UKVI compliance visit

As the UKVI intensifies its efforts to ensure compliance, Sponsors should be well-prepared for any potential compliance visit and minimise the risk of facing sanctions or losing their licence:

• Up-to-Date Records: Keep comprehensive and accurate records for all sponsored employees, including their personal details, immigration status, job roles, and working hours.
• Internal Audits: Regularly auditing internal processes ensures sponsor duties are met, checking records are accurate and reporting practices are up to date.
• Staff Training: Make sure that all personnel involved in managing the sponsor licence understand the obligations to monitor and report on sponsored employees, how to maintain compliance, and how to respond in the event of a compliance visit.
• Reporting Significant Changes: Report any changes in a sponsored employee's circumstances, such as changes to their role, pay, location, or employment status without delay.

Management of Sponsor Management System

The Sponsor Management System (SMS) is a crucial tool for UK employers who sponsor migrant workers. As of 31 December 2024, UKVI has implemented changes to the management of sponsor licences, concerning the appointment of Level 1 Users and the involvement of representatives, to streamline oversight and ensure that sponsors take full responsibility for their actions, especially in the context of immigration compliance.

Primary Level 1 User:

• Must be an employee/director/partner within the Sponsor organisation
• Must be settled- must be a British Citizen, Irish Citizen, or someone with Indefinite Leave to Remain or an EU National with Settled or Pre-Settled status under the EU Settlement Scheme.

Additional Level 1 Users:

• Any additional Level 1 User within the Sponsor organisation must be a paid member of staff or an office holder.

Role of legal representative

• A representative cannot be an additional Level 1 User at the application stage.
• Post-licence approval - after the licence has been granted, a Sponsor may appoint a UK-based representative as an additional Level 1 User.

In the past the Home Office has granted representatives Level 1 access from the application stage, where they were also acting as Key Contact on the licence. This is no longer possible. Representatives play a crucial role in providing real-time advice, helping the sponsoring organisation to navigate through the complexities of the SMS and immigration rules, reducing the risk of mistakes or misunderstandings. By granting access at the application stage, representatives could assist in streamlining the process, ensuring all necessary information is provided accurately and promptly. This could speed up approval times and minimise delays in the application process.

Implications for Sponsors:

• Compliance: Organisations must ensure that their Level 1 Users meet the updated criteria to maintain compliance with UKVI regulations.
• Record-Keeping: Accurate records of Level 1 Users' employment status and settled worker status are essential.
• Training: Organisations should provide training to appointed Level 1 Users to ensure they understand their responsibilities within the SMS.

Contact us

We offer training on compliance and Mock audits to prepare you for unannounced UKVI visits. If you require further advice, please get in touch with a member of our Immigration team or submit an enquiry form below.