The number of UKVI approved sponsors under the Skilled Worker route has grown exponentially over the last few years. There are now just over 95,000 approved sponsors, compared to 32,000 in 2020. The recent data on UKVI compliance action provides insights into what sponsors should expect going forwards and underscores the importance of actively maintaining their sponsor licence.
What are the figures on compliance action?
The below figures look at compliance action (suspensions and revocations) taken against sponsors under the Skilled Worker route from 2019 to 2023.
If UKVI has reasons to believe a sponsor is not complying with their sponsor duties, that they pose a threat to immigration control or are engaging in behaviours or actions that are not conducive to the public good, they may suspend the organisation's sponsor licence. The sponsor licence may be re-instated, downgraded or revoked once UKVI have completed their enquiries.
If UKVI decides to revoke a sponsor's licence, the sponsor will be removed from the register of sponsors. This will also impact any sponsored workers.
From the data provided, it is evident that there have been fluctuations on both suspensions and revocations over the years. Below is a quarterly breakdown and an annual summary of suspensions and revocations.
Quarterly data breakdown (2019 – 2023)
Annual summary
Has there been an increase in compliance action against approved sponsors?
The figures on UKVI's compliance action against approved sponsors shows the following trends:
| 2019: The number of suspensions and revocations increased steadily throughout the year, with the highest numbers occurring in Q4. |
| 2020: There was a significant decrease in both suspensions and revocations in Q4, as compared to the previous quarters. This could be attributed to various factors, including the impact of the COVID-19 pandemic and Brexit. |
| 2021: The number of compliance actions remained relatively low throughout the year. Again, this was largely owing to the COVID-19 pandemic and Brexit. |
| 2022: There was a notable increase in both suspensions and revocations, particularly in Q2. |
| 2023: The data shows there was a significant increase in suspensions and revocations compared to the previous years. |
We have already seen an influx of compliance action, mainly within the care sector. We can certainly expect the upward trend in compliance action to continue going forwards, especially given the increasing number of approved sponsors.
Why is it important for sponsors to manage their sponsor licence?
The sponsorship system allows organisations in the UK to recruit non-UK nationals to work in specified UK-based roles. In order to obtain and maintain the ability to sponsor non-UK workers, sponsors must adhere to the Sponsorship Guidance published by UKVI.
Usually, an organisation would apply for a sponsor licence where there is a need to sponsor a worker. Organisations can become lax on the upkeep of their licence once the sponsor licence application and the visa application for the worker has been approved. It is easy for sponsors to overlook maintaining the licence, or logging into the SMS, until they next need to sponsor a worker or extend the current worker's permission to stay.
A sponsor can have its licence suspended or revoked if it is found to be in breach of the sponsor duties and guidance.
Compliance action against sponsors can significantly interrupt business operations and impact their ability to sponsor workers in the future.
Compliance with the sponsor duties and the Immigration Rules is not only important for avoiding penalties and sanctions, but also essential for maintaining a positive reputation and ensuring access to skilled talent for the organisation.
The triggers for enforcement action that may be taken against a sponsor, that UKVI consider to be breaching the rules, are set out Part 3 of the Sponsor Guidance.
UKVI compliance checks
UKVI may perform a sponsor compliance review at any time during which the organisation holds a sponsor licence. The purpose of UKVI's review is to determine whether the organisation is complying with its duties as a sponsor.
Compliance checks and reviews may be undertaken by way of a visit to the sponsor, which may be announced or unannounced. They can also be conducted via other means, such as requesting that the sponsor provides specific information to UKVI by email and/or by undertaking checks with third parties such as HMRC.
It is important to ensure that sponsors actively manage and maintain their licence – it is better to be pro-active than re-active. By maintaining an active overview of their licence, sponsors can maintain their sponsorship duties and safeguard against compliance risks, as well as ensuring their continued eligibility to sponsor skilled workers in the UK.
If an organisation decides it no longer requires a sponsor licence, it should be surrendered. This helps to avoid situations where compliance action is taken due to a sponsor failing to maintain an otherwise unused sponsor licence.
How can sponsors maintain their licence?
Sponsors should undertake regular compliance reviews or audits. This enables sponsors to help identify and rectify potential compliance issues before they are flagged by UKVI. We regularly undertake compliance reviews on behalf of our clients.
Staff who are responsible for immigration compliance must keep on top of new legislation, case law, and the frequently updated sponsor guidance. Those who are involved in sponsorship should undergo regular training to ensure that they are aware of their responsibilities.
Sponsors should seek legal advice when they are unsure about compliance obligations or when facing potential compliance action.
Sponsors should stay informed about any updates or changes to the Immigration Rules and Sponsor Guidance. By proactively staying compliant and keeping abreast of developments, sponsors can mitigate the risk of facing compliance action and maintain their ability to sponsor skilled workers in the UK. We regularly provide updates on the latest changes. You can subscribe to receive our legal updates here.
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.