Holding a Sponsor Licence allows UK businesses to recruit skilled workers that are overseas nationals, but it also imposes strict and ongoing compliance duties. In 2025, the Home Office has intensified enforcement activity, with more unannounced compliance visits and increased scrutiny of whether sponsors are meeting their obligations.
This article highlights the most common compliance breaches, together with practical steps that organisations can take to prevent these problems and protect their licence.
Inadequate Right to Work Checks
Right to Work (RTW) checks remain one of the highest-risk areas for employers. Frequent issues include, but are not limited to:
- Missing or incomplete RTW checks
- Checks carried out after employment begins
- Incorrect use of online or digital checks
- Failure to re-check employees with time-limited permission (i.e skilled workers, students, graduates etc).
To prevent issues, organisations should implement a clear RTW policy, ensure digital checks are conducted prior to the start of employment, and introduce automated reminders for follow-up checks. A centralised HR system helps maintain consistency.
Poor Record-Keeping
The Home Office requires sponsors to keep specific documents for every sponsored worker and to produce them promptly upon request. Common gaps include:
- Missing contracts
- Insufficient evidence of recruitment and suitability
- Lack of proof of salary payments
- No documentation showing the employee’s work location
Organisations must maintain a structured digital file for each worker and carry out quarterly internal audits to ensure documents remain complete and up to date.
Failure to Report Changes on the SMS within 10 working days
Sponsors must report certain changes within strict deadlines. Frequent failures to report include:
- Changes to job titles, duties, or salaries
- Location changes
- Reduction in hours
- Extended absences without permission or on reduced pay
- Changes to the organisation’s ownership or work/registered addresses
Organisations should create internal processes that ensure HR and management communication all relevant changes to the authorizing officer promptly.
Genuineness Concerns and Weak Recruitment Processes
The Home Office closely examines whether sponsored roles are genuine. Common red flags include:
- Job duties that do not correspond to the SOC code
- Lack of evidence demonstrating the business need for the role
- Applicants whose skills/previous experience does not match the role
- Incomplete recruitment records
Organisations should maintain full recruitment files (adverts, interview notes, CVs, reference letters) and ensure that the job description in HR documents matches those used in the Certificate of Sponsorship (CoS) and the visa application.
Salary Not Being Paid as Declared on the CoS
Sponsors must pay the salary stated on the CoS unless a lawful change is reported. Common breaches include:
- Paying below the minimum threshold
- Incorrect or late salary payments
- Deductions reducing pay below the required level
- Paying from an entity/company different than the sponsoring organization
Organisations should conduct monthly payroll checks, ensure that the pay is in line with the salary stated on the CoS, and report any changes promptly on the SMS.
Work Location Issues
The rise of hybrid working has created new compliance risks. Breaches include:
- Employees working at undeclared locations
- Working from home is not reported
- Deployment to worksites not listed on the sponsor licence
Organisations should update the SMS promptly whenever locations change and periodically review office and site information to ensure it remains accurate to what is declared on the CoS.
Poor Monitoring of Attendance and Unauthorised Absences
Sponsors must track attendance and report unauthorised absences lasting 10 consecutive working days. Problems arise where:
- There is no reliable attendance monitoring system
- Absence records are incomplete
- Reporting deadlines are missed
Organisations should implement electronic attendance systems, maintain clear absence policies, and ensure managers escalate any concerns promptly.
Changes in Organisation Not Reported to the Home Office within 20 working days
Significant organisational changes must be reported, but these are often overlooked. Common issues include failure to notify:
- Share sales or changes of ownership
- Structural reorganisations
- Changes to trading names
- Relocation of offices
- Departure of key personnel
Such omissions can result in immediate licence revocation.
Organisations should embed immigration reporting into corporate governance processes and review all Companies House filings against SMS information.
Our comment
Home Office scrutiny of sponsors is high in 2025, with 1,948 licences being revoked between July 2024 and June 2025. The most effective way to protect your licence is to implement strong HR processes, maintain regular internal checks, and ensure Key Personnel fully understand their responsibilities.
Sponsors should regularly review the guidance which sets out current duties, reporting requirements and compliance expectations. You can access the complete guidance here.
If your organisation requires support with compliance, SMS management, training, or responding to Home Office action, our experts can provide tailored, practical guidance.
