The prospect of a Home Office sponsor compliance visit can be a source of anxiety for UK employers and HR teams.
These visits are a way for the UK Visas and Immigration (UKVI) to ensure that businesses sponsoring overseas staff are meeting their ongoing compliance obligations under UK immigration law.
This guide, drawing on expert insights, aims to equip you with the knowledge to understand, prepare for, and navigate these audits effectively.
Why the Home Office Conducts Sponsor Compliance Visits
The Home Office may initiate a sponsor compliance visit for various reasons, including:
- Receiving intelligence suggesting potential issues within the business.
- The business being subject to a Home Office action plan and holding a B rating.
- A joint visit being suggested by another Home Office unit conducting a separate investigation.
Regardless of the reason, the fundamental principle is to always be ‘audit ready’.
Responding to Notification of a Sponsor Compliance Visit
If you receive notice of an announced visit, act swiftly to prepare within the short window available.
Key steps include:
- Ensuring key personnel are available on the scheduled day. If necessary, request a short adjournment, using the delay for thorough preparation.
- Confirming the availability of named sponsored staff requested for interviews and ensuring they understand the purpose of the interview and that their paperwork is readily accessible.
- Thoroughly reviewing HR files for all employees, with particular focus on correct right-to-work checks for employees subject to immigration control with time-limited visas, ensuring these were carried out correctly, recorded, and repeated as required.
- Locating all relevant files and paperwork, whether physical or electronic, ensuring easy access for the Home Office official. Difficulty in locating files can create a negative impression.
- Verifying that information on the sponsor management system (SMS) is up-to-date by the level 1 user.
- Conducting a mock audit, ideally by an independent professional, to objectively identify strengths and weaknesses in sponsor licence compliance and HR file maintenance.
- Seeking legal advice immediately on any identified areas of concern. A Conroy Baker Ltd solicitor can recommend proactive steps to address issues related to sponsor licence duties and compliance.
Announced vs. Unannounced Visits
The Home Office can conduct both announced and unannounced compliance visits.
- Refusing entry during an unannounced visit is your right, but the Home Office could record your business as non-compliant, potentially leading to refusal, suspension, or revocation of your sponsor licence.
- Unannounced visits are more likely when driven by intelligence (e.g., HMRC reports) or due to previous concerns about compliance.
- Your HR, recruitment, and management systems must be robust enough to handle an unannounced audit at any time.
Duration of a Sponsor Compliance Visit
A typical compliance visit is estimated to last between 2 to 3 hours. However, the duration can vary depending on the reason for the visit (pre-licence or post-licence), the size of your business, and the number of sponsored staff.
Pre-licence and Post-licence Assessment Visits
The focus of a compliance visit differs depending on whether it occurs before or after a sponsor licence is granted.
- Pre-licence assessment visits, which may occur when applying for your first licence or adding a tier, assess whether:
- You have adequate HR systems to manage the licence and comply with duties and illegal working laws.
- The requested number of Certificates of Sponsorship (CoS) is appropriate for your business size and nature.
- Your business poses a threat to immigration control.
- Sponsored workers will be employed at the required skill levels and paid the minimum salary threshold.
- The Home Office official will also verify information from your sponsor licence application.
- Post-licence assessment visits are statistically more common and focus on whether:
- Your sponsored staff are complying with their visa conditions and their job roles align with the standard occupation classification code on their CoS.
- Your business remains a trading entity.
- Your HR systems remain adequate for meeting sponsor licence duties.
- The business activities pose a threat to immigration control.
- The original number of CoS remains necessary.
Preparing for a Sponsor Compliance Visit: Proactive Measures
Preparation should be an ongoing responsibility of your key personnel, not just something undertaken upon receiving notice of a visit.
- Arranging a mock audit regularly is highly beneficial. An independent audit can reveal areas needing attention before an actual Home Office visit, allowing you to address issues proactively. This may involve late reporting, additional HR training, investing in better HR systems, or employing specialist support.
- Preparing your key personnel and sponsored staff for potential interviews is crucial. Level 2 sponsor management users and sponsored staff may find interviews intimidating without preparation. Be prepared for the Home Office to request specific paperwork and potentially interview additional staff beyond those initially indicated.
- Interviews with sponsored staff may focus on whether their daily tasks align with the standard occupation code and job description associated with their CoS. Discrepancies, such as a sponsored accountant performing administrative tasks, can raise concerns. Home Office officials will likely review their own records on sponsored staff before the visit.
- Reviewing your HR files to ensure they are accessible and ‘audit ready’ is essential. Even electronic files should be well-organised, avoiding multiple drafts and ensuring dated right-to-work checks are easily identifiable.
- Maintaining accurate reporting and record-keeping is a daily sponsor licence duty. Familiarise your key personnel with the Home Office guidance on keeping documents.
Outcomes Following a Sponsor Compliance Visit
After the visit, the Home Office official will produce a report with a recommendation regarding your sponsor licence.
- For pre-licence visits, you will be informed whether your licence application is successful.
- For post-licence visits, your sponsor licence may be:
- Retained
- Suspended if there are serious breaches or a threat to immigration control.
- Revoked in cases of serious breaches or security risks.
- Downgraded from A to B grade, requiring an action plan to address concerns within 3 months. Failure to comply with the action plan can lead to revocation.
Consequences of Licence Revocation
If your sponsor licence is revoked:
- You cannot continue to employ existing sponsored staff or recruit new overseas workers requiring sponsorship.
- Your sponsored staff have 60 days to find a new sponsor. If unsuccessful, they must leave the UK.
- There is no right of appeal, but you can apply for a judicial review if you believe the decision was unreasonable, unlawful, or procedurally improper.
Seeking Expert Assistance
Navigating the complexities of sponsor compliance can be challenging. If you require advice on handling a sponsor compliance visit or addressing issues raised in a compliance report, Conroy Baker Ltd solicitors can provide invaluable support.
By understanding the process, preparing diligently, and maintaining robust HR and compliance systems, UK employers can confidently navigate Home Office sponsor compliance visits and ensure their continued ability to sponsor overseas talent.
