Reporting changes via the Sponsor Management System (SMS)

As a licensed sponsor, your ability to recruit and retain overseas talent depends on ongoing compliance, not just a successful sponsor licence grant. Maintaining your sponsor licence in good standing is one of the most critical ongoing responsibilities you carry as an employer of overseas workers.

Recent enforcement activity shows a clear trend- the Home Office is taking a stricter, less forgiving approach to sponsor compliance. Licence downgrades, suspensions and revocations are increasingly driven by issues that are entirely preventable with the right systems in place.

This newsletter is a timely reminder of your core sponsor duties and the areas most commonly scrutinised during audits.

Your ongoing sponsor compliance duties

Record-keeping obligationsUK

You must hold up-to-date records for every sponsored worker, including:

• Right to work checks

• Signed contracts of employment and job descriptions

• Evidence of salary payments (matching the CoS)

• Copy of certificate of sponsorship

• Absence and attendance records

Missing or outdated documents are a frequent reason for enforcement action.

Reporting changes via the Sponsor Management System (SMS)

You are required to report certain changes within a strict deadline of 10 working days from the event, including:

• A sponsored worker does not start the role for which you are sponsoring them within 28 days

• Changes to job role, duties, work location or reduction in salary

• Early termination of employment for any reason

• Unauthorised absence of more than 10 working days

• Unpaid leave of 4 weeks or more (unless permissible absence stated below)

• Sponsored worker going on no or reduced pay due to permissible absence statutory maternity, statutory paternity, statutory shared paternal leave, statutory adoption leave, statutory paternal leave, sick leave, statutory neonatal care leave, jury service, attending court as a witness, taking part in legally organised industrial action, or assisting with a national or an international humanitarian or environmental crisis, provided you agreed to the absence for that purpose.

• Changes to your organisation's structure, ownership or key personnel

Late or missed reports are treated as compliance breaches, even where there is no intent to deceive.

Genuine vacancy and role compliance

Sponsored roles must:

• Be genuine, skilled and match the role described on the Certificate of Sponsorship

• Reflect actual day-to-day duties

• Meet salary thresholds at all times

Any drift between the sponsored role and reality can put your licence at risk.

Monitoring HR systems

Sponsors must be able to demonstrate robust systems to:

• Track attendance and absences

• Monitor visa expiry dates

• Identify and act on changes affecting sponsored workers

A lack of systems is often interpreted as a lack of control.

To help you stay compliant, we recommend conducting a regular internal review against the key areas below. These are the points most commonly examined during Home Office audits and enforcement action.

You should be able to confidently answer "yes" to each of these.

1. Documentation and record-keeping

Right-to-work and immigration records

• Are copies of right-to-work checks held for all sponsored workers (retained for the duration of employment plus two years)?

• Are follow-up checks are diarised before visa expiry dates?

• Are copies of passports, visas and Certificates of Sponsorship are retained?

• Are records are stored securely and in line with GDPR requirements?

Employment records

• Are employee contact details up to date and historically retained?

• Are absences and annual leave actively monitored?

• Does the salary payments align with the figure on the CoS? The salary can be higher but should not be less then the annual amount on the CoS

• Is the worker still undertaking the same role as on the CoS?

Are sponsored employees working strictly within their visa conditions?

If job duties have evolved over time, the original occupation code may no longer be correct. This is a common audit issue.

2. Reporting duties (via the Sponsor Management System)

• Have any sponsored workers who have left prior to expiry of their visa been reported?

• Is any sponsored worker on maternity leave, paternity leave, adoption leave, or another type of permissible leave stated earlier which has led to reduced or no pay and has it been reported?

• Have there been any changes to job roles, reduction in salaries or work locations which need to be reported?

• Has there been any changes to the share ownership of the business, trading name or business address?

3. Internal compliance procedures

• Are visa expiry dates are tracked using automated reminders?

• Have alerts been set at 6, 3, 2 and 1 months before expiry?

• Are there at least two trained individuals are responsible for sponsorship duties?

• Is your Authorising Officer still working with the business?

• Are employment contracts (especially clawback clauses) aligned with immigration requirements?

4. HR readiness and training

• Do staff who work with sponsored workers understand their responsibilities under the sponsor licence?

• Do HR and management receive regular sponsor compliance training?

• Is there a designated compliance lead or officer is in place?

• Are all SMS Users still employed by the organisation?

5. Audit and inspection readiness

• Are you prepared for announced and unannounced Home Office audits?

• Has a sponsor compliance risk assessment has been carried out within the last 12 months?

Sponsor compliance is not a one-off exercise. It requires ongoing oversight, accurate reporting and documented systems. Most enforcement action arises from oversight rather than intent but the consequences are the same.

Understanding the full range of sponsor licence requirements is the foundation of ongoing compliance. If you would like support with a mock Home Office audit, compliance training, a review of your sponsor licence requirements, or a full sponsor licence health check, please contact your usual advisor for tailored support.

Staying compliant protects your people, your recruitment plans, and your business continuity.

Garima Arora

Garima, a seasoned legal professional, became part of the UK Visas team in 2018 and brings with her vast expertise in all areas of immigration law. She qualified as a solicitor in 2017 and holds IAAS Level Senior Caseworker status