The Home Office has markedly increased the level of Skilled Worker sponsor licence suspensions and revocations in the first quarter of 2024. There are also indications a focus on sponsorship compliance will continue under the next government.
Sponsors should regularly review their compliance position and address any deficiencies to minimise the risk of enforcement action.
Recent statistics on sponsor licence suspensions and revocations
Between January and March 2024, the Home Office suspended 309 Skilled Worker sponsor licences and revoked 210. This represents a much higher level of activity than at any point since Brexit, as the below chart shows.
Although some of this increase is likely to be driven by a need to address immigration system abuse in the care sector, there are reasons why all sponsors should take care to ensure their house is in order ahead of a potential sponsor audit or other compliance trigger point.
What might we expect to see from the next government on sponsor licence compliance?
With current opinion polls strongly suggesting a win for Labour in the General Election on 4 July 2024, it would seem likely that sponsor compliance will continue to be high on the agenda. For example, Labour intends to increase the timeframe that a sponsor will be banned obtain a sponsor licence where employment law has been breached. The party also states more generally that it 'will not tolerate employers or recruitment agencies abusing the visa system'.
Examples of common compliance issues
We regularly carry out mock audit work for our clients and monitor trends and risk areas in sponsor licence compliance. Examples of common compliance issues that can arise in the Skilled Worker sponsorship context include:
- Misunderstanding the genuine employment requirement
- Misunderstanding what types of remuneration can (and cannot) be included to meet the salary requirements for sponsorship
- Changes to sponsored workers' employment conditions that take them outside the scope of their sponsored role
- Reporting failures in relation to sponsored workers
- Reporting failures in relation to the sponsor, including (but not limited to) corporate restructuring
- Non-compliance with the illegal working regime
Where non-compliance has occurred, we are able to advise on options to address the issue and to minimise the risk of future breaches.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.