How should HR teams prepare for Sponsor Licence Audits? Compliance risks and best practices
In the last 12 - 18 months we have seen a clear trend in compliance action being taken against licensed sponsors by the Home Office. Representatives from the Home Office themselves have admitted they will now take action to immediately revoke licences where there has been a clear, serious or systematic breach, rather than going through the suspension and investigation process as previously. This seems to be a departure from the enquiry process they were previously operating, despite what sponsor guidance has always stated.
Since the pandemic, compliance audits can take place in-person or over Teams. The Home Office will make the decision about which method it will use and also whether it will be announced (scheduled ahead of time) or unannounced (no prior warning). It is also important to remember that Immigration Enforcement Officers can conduct spot checks or ‘raids’ on all UK business whether they hold sponsor licences or not; this is normally in relation to concerns about unauthorised or illegal working.
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At a compliance visit, the Officer’s main focus will be on the role of the sponsor, with a secondary focus on the sponsored workers or students. They will seek to assess whether the company is meeting its many sponsorship obligations and whether they are complying with their obligations to prevent illegal working.
A Compliance Officer’s question will usually centre on the following:
- The company’s HR systems and how these are ensuring they are meeting their sponsor duties e.g. monitoring absences, right to work checks, storage of contact details etc.
- whether any of the company’s activities pose a threat to immigration control
- whether the number of CoS requested are justified
- whether those working with the company are complying with any conditions of their leave to stay in the UK
- whether the company continues to have a trading presence in the UK
- whether sponsored workers were recruited to fill genuine vacancies which meet the requirements of the relevant immigration route in respect of skill level and salary
The Compliance Officer will often want to speak to the Authorising Officer and Level 1 User(s) and may ask to see documents and records during the assessment, such as those which are required to be kept in accordance with Appendix D: Documents of sponsor guidance.
The outcomes of an assessment could include being downgraded and subject to an action plan or having a licence suspended/revoked, so it is important that those who manage the licence, and are responsible for record keeping, fully understand their ongoing obligations before such action arises. Conducting a yearly ‘mock audit’ is a good way to stay on top of the requirements and can often highlights areas of weakness and need for improvement. Latitude Law offer various services to help sponsors stay compliant, including mock audits from £1,000 + vat. Taking action now can save your business a lot of stress in the future.
Navigating Sponsor Licence Compliance
The UK sponsorship system is increasingly rigorous, with the Home Office now opting for immediate sanctions rather than lengthy investigations for compliance failures. Latitude Law provides expert oversight through mock audits and system reviews, helping your business identify potential vulnerabilities and maintain its status as a trusted sponsor in a complex regulatory environment.
Get in touch with Latitude Law today by calling 0300 131 6767 or complete our contact form, and we will get back to you.
