What happens if you fail to comply with sponsor license obligations?

March 9, 2022 | xpath.global

A sponsor license company that hires foreign nationals has specific responsibilities that must be met in order to remain compliant with UK immigration rules and laws.

What are the responsibilities of a sponsor license holder?

A company’s responsibility as a sponsor is to do the following:

Firstly, ascertain that foreign workers have the necessary skills, qualifications, and accreditations for their position. This includes keeping duplicates of any certificates or documents that prove this.

Secondly, notify UK Visas and Immigration if the sponsored person is not acting in accordance with the terms of their visa. This includes if the employee ceases to work.

Check on the immigration statuses of foreign workers to ensure that they are not working illegally in the UK. This includes keeping copies of the visa and passport as well as performing right-to-work checks.

Maintain an accurate record of attendance and ensure that the worker’s information is up to date.

What happens if a sponsor does not follow through?

If a sponsor license holder fails to fulfill their duties and responsibilities under immigration rules, there are a number of consequences depending on the severity of the failure.

The company’s overall risk is that it will suffer long-term reputational damage. If a company does not follow the law, its reputation may suffer. This comes as a result of its moral and ethical practices.

For many businesses, the reputation of the organization is critical to its success. You can lose it if customers discover that the company is not operating ethically or legally.

Moreover, The Home Office may also discover that it needs to increase its monitoring of the company. It may necessitate more frequent audits and inspections on company premises. The demotion of the sponsor can happen from an A rating to a B rating. This entails more stringent checks and may require the company to be placed on a Home Office action plan.

Lastly, if the company has seriously violated the rules, the Home Office may suspend or revoke the sponsor license, preventing it from applying for a sponsor license for at least 12 months. This means that the company will be unable to hire foreign workers, which, depending on the industry in which the company operates, could have a negative impact on the business as a whole if it relies on highly skilled foreign workers.

If you need assistance on legal matters, please address our partners at Hudson McKenzie at londoninfo@hudsonmckenzie.com or by telephone +44(0) 20 3318 5794.

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