Sponsor licence compliance is an ongoing obligation for every licensed employer. Good systems protect the licence, sponsored workers and the business’s future recruitment plans.
Reviewed by the Morgan Smith Immigration team — IAA-regulated UK immigration specialists. Last reviewed 2026-07-07.
TL;DR
Sponsor Licence Compliance means meeting the Home Office duties attached to a Worker or Temporary Worker sponsor licence. There is no Home Office fee or worker maximum stay for compliance itself, but non-compliance can lead to downgrade, suspension or revocation; some SMS change requests can take up to 18 weeks or 5 working days with accepted priority service.
Ongoing
Sponsor duty
20 working days
Business change reports
Up to 18 weeks
Change requests
What is Sponsor Licence Compliance?
Sponsor licence compliance covers the duties UKVI expects a licensed sponsor to meet throughout the life of the licence. Core duties include checking worker suitability, keeping records, monitoring immigration status and attendance, reporting relevant changes and complying with employment law.
The Home Office can downgrade, suspend or withdraw a licence if the sponsor does not meet its responsibilities. Business changes, changes to key personnel and some worker changes must be reported through SMS within relevant timescales.
For employers, compliance should be embedded into HR, payroll, line management and recruitment processes. The best sponsor systems identify issues early and ensure the Level 1 User has enough evidence to report accurately.
Core Compliance Duties
The three pillars UKVI expects every sponsor to maintain.
📄
Record Keeping
Sponsors must keep relevant documents for each sponsored worker, including right to work evidence and records showing the role is suitable.
💼
Monitoring and Reporting
Systems must track attendance, contact details, immigration status and changes that need to be reported to UKVI.
£
Governance
Key personnel must understand sponsor duties and control SMS access. Poor governance can put the licence rating at risk.
What You Can and Cannot Do
What a compliant sponsor can — and cannot — do.
✓ You Can
- Keep an A-rated licence by monitoring workers, keeping records and reporting changes on time.
- Embed compliance into HR and payroll so reporting triggers are caught automatically, not by luck.
- Report business changes — mergers, address moves, key personnel changes — within the required timescales.
- Use the post-licence priority service (£350) for eligible change requests, decided in 5 working days where accepted.
- Fix gaps proactively — early correction and accurate reporting are treated far better than problems UKVI discovers itself.
✗ You Cannot
- Miss reporting deadlines — business changes must be reported within 20 working days of the change.
- Let worker records drift — missing right to work, salary or contact evidence is a downgrade risk in any UKVI check.
- Ignore an action plan — a downgraded sponsor must pay £1,579 and complete the plan or lose the licence.
- Recover prohibited fees from sponsored workers — UKVI normally revokes the licence for recouping specified licence, CoS or Immigration Skills Charge costs.
- Use sponsored workers as third-party labour where the arrangement is really labour supply rather than a genuine sponsored role.
Costs & Fees
Current fees as of 2026. Set by the Home Office — subject to change.
Fees set by the Home Office and subject to change. Last reviewed: July 2026.
| Item | Cost (2026) |
|---|---|
| Compliance review | No HO fee |
| Post-licence priority | £350 |
| Action plan (if downgraded) | £1,579 |
| CoS – Skilled Worker | £525 |
| Licence fee reference | £611 / £1,682 |
How to Stay Compliant
Five steps to keep your licence secure.
Map Duties
Identify which sponsor duties apply to the organisation’s routes, sites and sponsored workers.
Check Records
Review right to work, CoS, salary, attendance, absence and contact evidence.
Test Reporting
Check whether SMS reports were made on time and whether future triggers are clear.
Fix Gaps
Update policies, train managers and correct missing records or reports where appropriate.
Receive Your Decision
Compliance work is ongoing; post-licence priority changes may be processed in 5 working days where accepted.
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Sources
Legal information on this page is based on guidance from GOV.UK, the UK Home Office / UK Visas and Immigration, legislation.gov.uk, and Free Movement. Rules change frequently — speak to our team to confirm current requirements.
Frequently Asked Questions
Common questions about sponsor duties and Home Office penalties.
What are sponsor licence compliance duties?
Licensed sponsors must check worker suitability, keep records for each sponsored worker, monitor immigration status and attendance, report relevant changes through the Sponsorship Management System (SMS) and comply with UK employment law. The duties apply for the whole life of the licence.
What must a sponsor report to UKVI?
Reportable events include sponsored workers not turning up, absences, changes to role, salary or work location, and changes to the business itself — mergers, sales, address or key personnel changes. Business changes must generally be reported within 20 working days.
What are the penalties for sponsor non-compliance?
UKVI can downgrade the licence to a B-rating, suspend it while it investigates, or revoke it entirely. A downgraded sponsor must pay £1,579 for an action plan and complete it to regain A-rated status — failing to do so means losing the licence.
What is a sponsor licence downgrade?
A downgrade from A-rating to B-rating means UKVI believes the sponsor’s processes are not good enough. While B-rated, the sponsor follows a time-limited action plan and cannot operate as normal until the rating is restored.
What happens if a sponsor licence is suspended?
Suspension is a formal warning state while UKVI investigates concerns. The sponsor usually cannot assign new Certificates of Sponsorship during suspension, and the outcome can be reinstatement, downgrade or revocation.
What triggers a sponsor licence revocation?
Serious or repeated duty breaches, non-genuine roles, unsuitable key personnel, failing an action plan, or recovering prohibited fees from workers. After revocation, a sponsor normally waits at least 12 months before reapplying.
Can UKVI visit the business unannounced?
Yes. UKVI can carry out announced or unannounced compliance visits at any time during the life of the licence, checking systems, records, key personnel and sponsored worker arrangements.
How long do sponsor records need to be kept?
Sponsors must keep the documents specified in Home Office guidance for each sponsored worker — including right to work evidence and records showing the role is genuine and suitable — available for inspection throughout sponsorship and the required retention period.
Can compliance costs be passed to sponsored workers?
Not the prohibited categories. UKVI says it will normally revoke a licence where a sponsor recoups, or attempts to recoup, specified licence, CoS or Immigration Skills Charge fees from its sponsored workers.
Can Morgan Smith Immigration manage our sponsor compliance?
Yes. Our IAA-regulated immigration advisers build compliant HR and reporting processes, train key personnel, run periodic file reviews and support you through downgrades, action plans or suspensions. We cannot guarantee UKVI outcomes, but we keep the avoidable failures off your record.
Worried About Sponsor Compliance?
Our immigration specialists handle everything from sponsor licence checks to visa approval — for employers and applicants alike.