Could This Common Mistake Cost You Your Sponsor License: Compliance Tips

My name is Sukhvinder Nara; during compliance audits, I have encountered numerous organizations that fail to fulfill one of the critical aspects of their sponsor license duties—reporting when a sponsored worker’s visa application or administrative review (AR) is refused.

Many employers mistakenly believe that such refusals do not need to be reported to the Home Office, either due to a lack of awareness or because they underestimate the significance of this obligation. However, this misconception can have serious consequences, including the potential revocation of their sponsor license.

What Does the Home Office Require?

According to paragraph C1.22 of the Sponsor Guidance:

“You must tell us if you stop sponsoring a worker for any reason – for example, you become aware the worker’s application for entry clearance or permission has been refused, or their permission has been cancelled, and any administrative review (AR) of, or appeal against, that decision has finally been determined.”

This clearly indicates that even if a sponsored worker’s application is refused or their AR is unsuccessful, it is your duty to report this to the Home Office.

Why Employers Must Take This Seriously?

Failure to report such changes is a breach of your reporting duties as a licensed sponsor. Here’s why it matters:

1. Risk of License Revocation: Non-compliance with reporting duties is a serious breach that could result in your sponsor license being revoked. This would prevent you from sponsoring workers in the future and harm your business operations.
2. Impact on Business Reputation: Non-compliance damages your organization’s reputation with the Home Office and may lead to stricter scrutiny in future applications.
3. Compliance is Non-Negotiable: The Home Office conducts regular audits to ensure compliance. If they discover that you’ve failed to report key changes, it could lead to enforcement action against your organization.

Common Misconceptions

• “The worker is no longer in our system, so it doesn’t matter.” Employers often assume that once a refusal is issued, the matter is closed. However, as a sponsor, you must ensure all relevant updates are reported, regardless of whether the worker is still employed.
• “We didn’t think it was necessary.” Ignorance of reporting obligations is not a defense. Sponsors must stay informed about their duties under the guidance provided by the Home Office.

How to Stay Compliant

1. Train Your HR Team: Ensure your HR and compliance teams are fully aware of your sponsor license duties and are trained to identify reportable changes.
2. Establish a Reporting System: Implement a robust system to track all visa-related updates for sponsored workers and ensure timely reporting to the Home Office.
3. Conduct Regular Audits: Schedule regular internal compliance audits to identify and address any potential gaps in your processes.
4. Seek Professional Guidance: If you’re unsure about your compliance obligations, consult NARS Solicitors to help you navigate the complexities of sponsor license management.

Final Thoughts

Compliance with reporting duties is not optional; it is a legal and ethical responsibility that sponsors must uphold. Taking these requirements lightly can jeopardize your ability to sponsor workers, disrupt your operations, and harm your business’s reputation.

Also Read:

• Sponsor License Reinstated after successful Judicial Review Victory, Safeguarding Client’s Business and Employees
• Success Story: Suspended Sponsor Licence Reinstated for Care Provider

How NARA Solicitors Can Help

Our services include:

1. Sponsor Compliance and Audit Services: Stay fully compliant with immigration rules by opting for a Home Office-style compliance audit conducted by NARA Solicitors.
2. Sponsor License Management: Assistance in applying for, renewing, or managing your sponsor license while providing training and guidance to HR teams on compliance.
3. Representations Against Suspension or Revocation: Filing representations to help you retain your license and continue operations.
4. Judicial Review Challenges: Challenging sponsor license revocations in the High Court to address unlawful decisions.

For more information or to book a compliance audit or consultation, contact us now.

Disclaimer: This blog is for informational purposes only and should not be considered legal advice.