For UK employers holding a Skilled Worker Sponsor License, compliance is paramount. Unpaid leaves or periods of reduced pay for sponsored workers require careful management to avoid breaching your sponsor duties. Failing to adhere to reporting obligations can result in severe consequences for your license, including suspension or revocation.
This blog breaks down the critical aspects of unpaid leaves, when and how they must be reported, and the potential impact on your sponsor license.
Unpaid Leaves: Key Rules for Skilled Worker Sponsor License Holders
General Obligation
As a sponsor, you are responsible for reporting absences from work without pay or on reduced pay that exceed 4 weeks in total within a calendar year (1 January to 31 December).
This applies whether the worker is absent from work for a single period of more than 4 weeks, or if they have a number of absences which cumulatively total more than 4 weeks.
The 4 weeks is calculated according to the sponsored worker’s normal working pattern. For example, if the worker normally works 5 days per week, this would be 20 working days (5 (days) x 4 (weeks)). If they normally work 3 days per week, this would be 12 working days (3 (days) x 4 (weeks)).
When Must You Report Absences?
If a sponsored worker is absent without pay, or on reduced pay, for more than 4 weeks, you must take action based on the circumstances:
- Stop Sponsoring the Worker: If there is no valid exception reason, you must stop sponsoring the worker and report this through your SMS account.
- Report and Explain Exceptions: If the absence is due to a valid exception reason (detailed below) or you believe there are compelling reasons to continue sponsorship, you must report the absence, including its reason, duration, and any salary changes.
Valid exception reasons: permissible absences
The following are permissible absences. You do not have to stop sponsoring a worker if they are absent without pay, or on reduced pay, for any of the reasons listed below (and they would not otherwise have been absent without pay, or on reduced pay, for more than 4 weeks):
· statutory shared parental leave
· assisting with a national or an international humanitarian or environmental crisis, provided you agreed to the absence for that purpose
· taking part in legally organised industrial action
· attending court as a witness
However, you should still report the period of absence via your SMS account, as outlined above.
If a valid exception reason does not apply but you believe there are compelling reasons for you to continue sponsoring a worker who has been absent from work without pay, or on reduced pay, for more than 4 weeks, you must report the absence and reasons via your SMS account for UKVI to consider.
Be prepared to explain:
- What are the compelling reason for the absence
- Its duration
- Any changes to the worker’s salary
You should be aware that UKVI may cancel the worker’s permission if they are not satisfied there is a satisfactory reason for continuing to sponsor the worker. If this happens, you must stop sponsoring the worker.
Impact on Your Sponsor License
Failure to meet reporting obligations related to unpaid leave can significantly affect your sponsor license. Potential risks include:
- Suspension and Revocation of License: Non-compliance with reporting duties can lead to immediate suspension and eventual revocation of your license, preventing you from sponsoring workers in the future.
- Reputational Damage: Loss of a sponsor license can harm your business reputation, making it difficult to attract and retain international talent.
- Visa Curtailments for Workers: Revocation of Sponsor License can lead to leave to remain/visa curtailments for sponsored workers, disrupting your workforce.
Also Read: Sponsor Licence Suspended! – What Happens When a Sponsor Licence is Suspended?
Best Practices for Managing Unpaid Leaves
- Monitor Employee Attendance: Keep accurate records of all employee absences, whether paid or unpaid, and track cumulative totals to ensure compliance with the 4-week threshold.
- Timely Reporting: Report absences promptly via your SMS account to avoid delays that could trigger non-compliance issues.
- Communicate with Employees: Ensure sponsored workers understand their responsibilities and the impact of unpaid or reduced-pay absences on their sponsorship status.
- Seek Legal Advice: If you are unsure about whether an absence qualifies as a valid exception or compelling reason, consult an immigration lawyer for guidance.
Final Thoughts
Unpaid leaves and reduced pay can pose significant compliance risks for sponsor license holders if not properly managed. By understanding and adhering to the rules outlined above, you can protect your license, workforce, and business reputation.
How Nara Solicitors can help
Stay fully compliant with immigration rules by opting for a Home Office-style compliance audit conducted by NARA Solicitors. Our thorough audits replicate the standards and procedures used by the Home Office, ensuring your organisation is well-prepared for any official inspections. Let us help you identify potential risks, implement corrective measures, and maintain seamless compliance with UK immigration requirements.
At Nara Solicitors, we provide a comprehensive range of services to assist employers in managing sponsor licenses, ensuring compliance, and addressing legal challenges.
Our services include:
- Sponsor Compliance and Audit Services: Ensuring adherence to the immigration and wide UK laws. Conducting audits to identify potential risks and ensure compliance with Home Office requirements.
- Sponsor License Management: Assistance in applying for, renewing, or managing your sponsor licence. Providing training and guidance to HR teams on sponsor duties and legal compliance.
- Representations Against Suspension or Revocation: Filing representations against the suspension or revocation of sponsor licenses to help you retain your license and continue operations.
- Judicial Review Challenges: Challenging sponsor license revocations in the High Court of Justice King’s Bench Division (Administrative Court) by way of Judicial Review, ensuring that your rights as a sponsor are fully protected and any unlawful decisions are addressed.
For more information, please email us at sukhvinder@narasolicitors.com or visit our website.
