Employer’s guide to sponsor compliance and UK Visa and Immigration Audits

When you as a UK employer, are issued a sponsor licence, it is granted by the Home Office on the condition that you can meet a number of compliance duties at the time of issuance and continue to do so throughout the duration of the licence. These duties are detailed as the ‘Five Key Areas of Compliance’.

To ensure that you are meeting these duties to the satisfaction of the Home Office, the Home Office may carry out audits of your business.

The Home office have the authority to audit any UK employer that:

• Holds a valid sponsor licence;
• Have applied for a sponsor licence; or
• Allow sponsored international workers to complete work on their promises, such as that of a third party contractor, regardless of if they hold a sponsor licence themselves. 

In the event of an audit, the UKVI will assess your compliance with five key areas to ensure that you are fulfilling your duties as a sponsoring employer. The five key areas of compliance are:

1. Monitoring immigration status and preventing illegal employment: all UK employers should be reviewing and retaining evidence that each employee has the appropriate immigration permission to complete the particular role within the business. They are also required to record and track any expiry dates of any employee within time limited immigration status, such as skilled worker and graduate visa holders.

2. Maintaining contact details: UK employers must demonstrate that they have appropriate systems in place to maintain both current and historical contact details for their sponsored workers.

3. Record keeping: Each sponsored worker should have an employee file containing the appropriate documentation and evidence to confirm they are eligible for sponsorship, such as degree certificates, payslips, and contract of employment. These files may be electronic or hardcopy.

4. Tracking and monitoring: The Home Office will request evidence of the systems in place that record any absences and annual leave that the sponsored workers have taken. Any changes to employment must also be recorded and reported to the Home Office.

5. General sponsor duties: UK employers are required to demonstrate the procedures in place to regularly maintain the information held on the sponsor licence and to ensure the Home Office are notified of any changes.

If you are subject to an audit, the Home Office will typically divide the process into two parts, which may take place over several days. You are allowed to have your legal representative present to provide guidance throughout, though the representative must not take a leading role.

The first part of the audit involves an interview process, during which the officer conducting the audit will expect the Authorising Officer detailed on the licence to be available to answer questions and guide the Home Office through the systems you have in place. The individual named as the Authorising Officer will always be the initial person on the list that the Home Office will expect to interview. The Authorising Officer may be accompanied by another individual who has the expertise, experience and knowledge of the sponsor licence, and the policies and procedures in place.

Following the interview, the Home Office will conduct a file review, which will include requesting a list of employees within your business. Depending on the size of your organisation, up to 50 employee files may be requested for review. The Home office will review these files to confirm that you continue to adhere to the compliance duties listed above. 

Home Office audits can be random, or as a result of specific intelligence or notification received. Although these audits can be unannounced, the Home Office typically provide a weeks notice of the intended audit. 

If you fail the audit, the Home Office may either suspend your sponsor licence, meaning that you would be unable to sponsor any further individuals, or revoke your sponsor licence, meaning that any sponsored employee(s) would have their visa canceled. Where an employer is applying for a sponsor licence the application will be refused.

It is recommended that you have written policies and processes in place that clearly demonstrate the steps you have taken to comply with the sponsorship licence. These can be provided to the Home Office in the event of a UKVI audit.

All UK employers should proactively be reviewing policies and procedures in place, alongside ensuring that any individual associated with the sponsor licence, Human Resources or Talent Acquisition have the relevant training and knowledge to provide clear and concise responses to the Home Office and are aware of their role and responsibilities.

It is important that the Authorising Officer details are always maintained and updated with any change, for instance when the current Authorising Officer leaves the business and is replaced by another individual. If a Home Office audit takes place and your Authorising Officer listed on the licence is no longer working with you, the Home Office has been known to revoke the licence immediately, as this is a key role that must always be fulfilled by an active employee.

Regularly review the information held within your sponsor licence to ensure any changes are identified and reported to the UKVI within the specified timeframe. Where there is a change in the organisation, such as change of premises, the UK employer is required to notify the UK Visa and Immigration within 20 working days from the date of occurrence.

Where there is a change to a sponsored employee, such as change of main work location or working hours, the UK employer is required to notify the UK Visa and Immigration within 10 working days from the date of occurrence.

Compliance is a key focus for both the Home Office and your business. If you are unsure about any area or require clarification on your responsibilities, it is recommended to seek guidance from an immigration advisor.