In recent years, the Home Office has made significant efforts to visit companies and educational institutions to prevent any abuse toward workers and international students. Over the last couple of years, the number of companies that lost their licence due to such abuses has exceeded expectations. Educational institutions are also under the scope of the Home Office as they want to tackle any abuse toward international students. The most recent case is the University of Glasgow, whose licence has been put under a Home Office Sponsor Action Plan to ensure compliance with immigration rules.
The initial concern for the Home Office will be to report activities through the SMS. However, other concerning aspects include English language proficiency, academic backgrounds, and financial capacity. Some academic establishments and companies in the UK have been subject to Home Office Sponsor Action Plan to improve their compliance.
In certain cases, academic institutions or companies take for granted the Sponsorship Licence and believe it is a right. However, the Home Office has been very clear that “Sponsorship is a privilege, not a right. The sponsorship system reflects that those who benefit directly from migration (employers, education providers, or other organisations who bring in overseas nationals) should play their part in ensuring the immigration system is not abused. Significant trust is placed in sponsors, and they must ensure they comply with immigration law and wider UK law, and not behave in a manner that is not conducive to the wider public good.”
Sponsor Licence Downgrade
The Home Office can downgrade the sponsorship licence from an A-rating to a B-rating following an audit. This audit is conducted to ensure that the company or academic institution complies with sponsorship compliance. A downgrade occurs when the Home Office determines that the company lacks the processes to meet compliance standards. It is important to know that the Home Office only takes this step where there are minor breaches, and it is at the discretion of the Home Office.
Compliance Visits
When the licence is downgraded, the company is provided with a Home Office action plan related to their Sponsor licence. During that period, the company won’t be allowed to sponsor any further foreign nationals until the licence is upgraded to an A rating. Upon accepting the action plan to improve the Sponsorship Licence, the company will have 3 months to improve its performance. If the company doesn’t comply and show any improvement within those 3 months, the Home Office will revoke the sponsorship licence. Compliance visits are crucial as they help the Home Office assess whether the company is adhering to the required standards.
Record-Keeping
Accurate record-keeping is essential for maintaining compliance with Home Office requirements. Companies must ensure that they maintain up-to-date records of their sponsored workers, including their contact details, job roles, and visa statuses. Proper documentation helps in demonstrating compliance during audits and compliance visits.
- Maintain up-to-date records of sponsored workers
- Include contact details, job roles, and visa statuses
- Demonstrate compliance during audits and visits
Key Personnel
The roles and responsibilities of key personnel in managing the sponsor licence are critical. Key personnel, such as the Authorising Officer, Key Contact, and Level 1 User, must be fully aware of their duties and ensure that the company meets all sponsorship obligations. Their involvement is vital in maintaining the integrity of the sponsorship system.
Certificate of Sponsorship (CoS)
The process and importance of issuing Certificates of Sponsorship (CoS) cannot be overstated. A CoS is a crucial document that allows a foreign worker to apply for a visa to work in the UK. Companies must ensure that they issue CoS accurately and in a timely manner, adhering to the guidelines set by the Home Office.
- Issue CoS accurately and timely
- Adhere to Home Office guidelines
- Essential for foreign workers’ visa applications
Prohibition on Passing Fees
It is important to note the prohibition on passing sponsor licence and CoS fees to sponsored workers. The Home Office mandates that these costs should be borne by the sponsoring company and not transferred to the employees. This ensures fairness and compliance with immigration regulations.
Action Plan Fee
When the Home Office offers an action plan, there is an associated fee that the company must pay. Upon accepting the Action Plan, the company has 10 working days to proceed with the payment. If the company declines to pay the fee or ignores the proposal, the Home Office will revoke the Sponsorship Licence.
If the company or educational institution accepts the Action Plan, the Home Office will send them the action plan. During that period, the company or educational institution cannot do the following:
- Add any branches
- Add a new route to the licence
- Assign Certificate of Sponsorship (CoS) to any new workers
However, they will be able to assign CoS to current workers before the Sponsorship Licence is downgraded. The action plan will provide comprehensive information regarding the CoS that the company will have for the extension of worker visas. The purpose of the Plan is to allow the company to have 3 months to address any concerns the Home Office may have. Upon the completion of the 3 months, the Home Office will arrange a new compliance visit to ensure the company is able to meet compliance.
The outcome of the second visit will determine the position of the company or academic institution. If the company fails the Action Plan, the Home Office will revoke the licence. If new issues arise during the visit that were not part of the previous Action Plan, the Home Office will issue a new Action Plan to address these areas.
Finally, if the audit is successful, the Home Office will restore the A rating and allow the company to sponsor workers.
Morgan Smith Immigration is a law firm with more than 20 years of expertise in UK visas and Immigration. Contact us on 0203 959 3335 or [email protected].
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