In the first half of 2024 we have seen a significant increase in action against businesses with sponsor licences who have been found to be in breach of the sponsor licence compliance duties. During its election campaign, the Labour party publicised its intentions to take action against employers who are found to be in breach of employment law and their sponsor licence obligations, stating in their manifesto "employers who flout the rules will be barred from hiring workers from abroad" so we expect to see the trend continue. In particular, the care sector has been under scrutiny with a number of recent Home Office visits to care homes resulting in licence revocations and highly publicised court action.
What does sponsor licence revocation mean?
A licence revocation has serious implications for a business as the business will no longer be able to sponsor any foreign workers, and all foreign workers must stop working for them. Sponsored workers visas will be curtailed, and they will need to find sponsored work elsewhere or return to the country they are from. A sponsor cannot apply for another licence for at least 12 months, and the Labour party has indicated that this may be extended in future. Sponsor licence revocation decisions cannot be appealed - businesses can only challenge the decision by judicial review.
Recent cases
Three key care sector cases this year have highlighted the importance of sponsored workers duties and responsibilities matching the job descriptions set out in their Certificate of Sponsorship. Other issues that have been raised in recent cases have been employers:
- not paying sponsored staff the salary stated in their Certificate of Sponsorship;
- not complying with UK employment law - for instance paying employees less than minimum wage, failing to comply with the working time regulations and failing to pay statutory sick pay;
- unlawfully seeking to recoup Immigration Skills Charge from its employees;
- not complying with its duties to monitor that its sponsored employees continued to have a right to work in the UK; and
- failing to maintain worker contact details.
Although these findings were challenged, the Courts have been reluctant to interfere with the decisions of the Home Office so it is extremely difficult to challenge a revocation.
Key lessons
These cases are a stark reminder for businesses with sponsor licences that the Home Office will take action in relation to compliance breaches, and the consequences can be devastating for the workforce. To safeguard business and ensure compliance with sponsor licence requirements, we recommend companies:
- Give proper consideration to the job description when obtaining a sponsored employee's Certificate of Sponsorship - an employee should be carrying out all of the listed duties provided in their day-to-day role. Where a role changes, this needs to be reported to the Home Office and in some cases a new visa will be needed;
- Regularly review the sponsor licence compliance guidance to ensure you are complying with the compliance and information duties;
- Ensure that those who have access to the Sponsor Licence Management system have sufficient training and experience, and understand their role in the compliance process;
- Keep and maintain records of sponsored workers and make sure details on the Sponsor Licence Management System are kept up to date;
- Consider regular training and mock audits to ensure you are prepared and organised for any Home Office audit;
- Provide policies relating to right to work and immigration matters so that any sponsored employees and managers are aware of key processes and obligations;
- Seek legal advice if you have concerns about potential breaches - burying your head in the sand will never help.
We have helped businesses of all sizes meet their sponsor compliance duties, and if things have gone wrong, we can advise on the best course of action to minimise the risk of compliance action. If you would like to discuss how we can help with your sponsor compliance obligations, please get in touch.
