A sponsor licence is crucial for UK businesses looking to hire overseas employees under the Skilled Worker route. However, recent trends reveal a significant increase in suspension and revocation of licences by the Home Office. Recent statistics released by UKVI indicate that from January 2024 to March 2024, a total of 210 sponsor licences were revoked, with an additional 309 licences being suspended during the same period. This data indicates the highest number of suspensions in nearly a decade. Here is what your business needs to know:
1. Increased Compliance Actions
Recent statistics released by UK Visa and Immigration (UKVI) show that from January to March 2024, 309 sponsor licences were suspended and 210 others were revoked. This significant increase in enforcement actions highlights how the Home Office is now focusing more on monitoring and ensuring adherence to immigration laws. For businesses, this means increased scrutiny and the need for meticulous compliance with UKVI regulations.
2. Changes in Sponsor Licence Validity
As of April 2024, sponsor licence is now valid for ten years, eliminating the need for frequent renewal. Previously, licences had to be renewed every four years, requiring businesses to submit renewal applications. Extending the duration to ten years allows UKVI to focus more on compliance audits rather than administrative renewals.
3. Salary Threshold and Occupational Codes
The Skilled Worker route’s salary threshold increased from £26,200 to £38,700 in April 2024, representing a 48% rise. Additionally, the Immigration Salary List (ISL) replaced the Shortage Occupation List (SOL), reducing the number of eligible occupational codes for reduced salaries from 53 to 23. These changes are in line with the UK’s broader strategy to regulate migration.
4. Increased Fines
Employers now face significantly higher fines for hiring illegal workers. First breaches can cost up to £45,000, while repeat offences may result in fines of up to £60,000. This renewed emphasis on compliance highlights the vital importance of maintaining a valid sponsor licence.
Implications for Businesses
The suspension or revocation of a sponsor licence can have severe consequences. It not only affects your ability to hire new international talent but also impacts existing sponsored employees, who may face uncertainty about their immigration status. Here’s what sponsors need to be aware of:
Suspension Consequences:
- If your licence is suspended, you will not be able to sponsor new migrants during the suspension period. This restriction can hinder your recruitment efforts and affect workforce planning.
- To reinstate a suspended licence, sponsors must demonstrate progress against an action plan within a specified timeframe. Failure to do so could lead to licence revocation.
Revocation Ramifications:
- If your licence is revoked, the leave for all current sponsored migrants will be curtailed.
- After licence revocation, sponsors face a 12-month cooling-off period during which they cannot apply for a new licence.
- A revoked licence reflects poorly on your organisation’s compliance practices and reputation.
Fines and Civil Penalties:
- Sponsors who fail to carry out correct right-to-work checks and establish a statutory excuse for each employee risk fines. The higher fines for employing illegal workers, ranging up to £45,000 for initial breaches and up to £60,000 for subsequent offenses, emphasise the critical importance of rigorous compliance.
Ensuring Compliance
Here are some essential steps to mitigate the risk of licence suspension or revocation:
- Regular Audits: Conduct mock audits to ensure all immigration processes are in compliance with Home Office regulations.
- Training and Awareness: Keep your HR team well-trained on the latest immigration laws and compliance requirements.
- Accurate Record Keeping: Maintain accurate and up-to-date records of your sponsored employees.
- Prompt Reporting: Report any changes in your sponsored employees’ circumstances to the Home Office promptly.
- Seek Expert Advice: Consult with immigration experts who can provide guidance and support in understanding complex regulations.
How We Can Help
Morgan Smith Immigration, an award-winning firm with over 20 years of expertise in UK Visa and Immigration, is here to assist you with all your visa and immigration needs. If you are looking to maintain your sponsor licence, our Sponsorship Compliance Mock Audit offers a proactive solution. By conducting mock audits, Morgan Smith Lawyers can ensure that your business complies with UK Visa and Immigration rules. Through our experienced guidance, we can identify potential issues and prepare you for Home Office inspections. During the mock audit, we will thoroughly assess your HR systems, verify compliance with sponsor duties, and review record-keeping practices, ensuring you are prepared to address any compliance gaps effectively.
For any enquiries or assistance, please contact us at 0203 959 3335 or send an email to [email protected]. Stay informed and up to date by following us on Twitter, Instagram, Facebook, LinkedIn, and TikTok. Also, don’t forget to subscribe our channel on YouTube.
