Sponsor Licence Duties Explained: A Guide to Record Keeping, Compliance, and Key Responsibilities

As a licensed sponsor in the UK, navigating the responsibilities of compliance can be complex. One of the most critical obligations is ensuring proper record keeping. Maintaining accurate and thorough documentation is essential to meet the Home Office's sponsorship requirements and avoid serious consequences like licence suspension or revocation.

In this guide, we’ll explore the key Sponsor Licence duties, focusing on the types of documents you must keep, the duration for which they should be stored, and the potential consequences of non-compliance. Understanding and following these obligations is vital to protect your business and maintain your sponsor status.

What Documents Must You Keep Under Your Sponsor Licence?

As a sponsor, it is your responsibility to keep various documents related to each sponsored migrant. These documents can be divided into several key categories:

1. Documents for Each Sponsored Migrant

For every migrant you sponsor, you must retain the following records:

• Right to Work Check: This is crucial to ensure compliance with your sponsor duties and avoid penalties. You must perform this check before employment starts and before their permission to work expires.
• Evidence of Entry to the UK: If the migrant enters under a visa, retain proof of their entry clearance, confirming their permission to work.
• National Insurance Number: Keep a record of the migrant’s NI number.
• Contact History: Maintain a log of the migrant’s current contact details.
• Disclosure and Barring Service (DBS) Check (if applicable): Keep a copy if required for the role.
• Contractual and Employment Evidence: For migrants under certain routes, you must maintain contracts or tender documents that show the job’s legitimacy and the worker’s conditions.
• Child Performance Licence: If sponsoring a child on the Creative Worker route, ensure you have a copy of the performance licence from the local authority.

2. Evidence of Recruitment

It is advisable to maintain evidence of how you recruited the migrant, such as:

• Job Advertisements: Retain copies of any job ads or job listings showing that the position was advertised to the local labour market.
• Recruitment Evidence: If no formal RLMT is required, provide other documentation showing how the migrant was selected for the role.

3. Salary and Pay Records

To show that the salary for the sponsored migrant meets the required threshold, you must keep:

• Payslips: These should include the employee’s name, NI number, tax code, and any deductions.
• Employment Contracts: Ensure you have a copy of the contract specifying pay details.
• Proof of Allowances: If you provide additional allowances, document these as well.
• Payment Evidence: Records of salary payments, including frequency and amount, must be kept.

4. Skill Level Documentation

To verify that the sponsored worker possesses the necessary skills for the role, you must keep:

• Qualifications: Such as degree certificates or other professional qualifications.
• Job Description: Ensure the role’s duties are well-documented.
• Professional Accreditation: Keep records of any professional registration or required accreditations.

5. Documents for Students

If you sponsor students or child students, ensure you retain:

• Passport and Visa: A copy of their passport with entry clearance or visa.
• Attendance and Absences: Maintain a record of the student’s attendance and any absences.
• Contact History: Keep a history of contact details, including address and phone number.
• ATAS Certificate: If applicable for the student’s course of study.

6. Other Special Route Documents

In certain cases, such as the Global Business Mobility or Creative Worker routes, additional documents may be required:

• Service Supplier Contracts: For Global Business Mobility, keep copies of contracts or tender documents.
• Creative Worker Route: If employing a child under the Creative Worker route, keep the appropriate child performance licence and documentation from parents or guardians.

How Long Must You Keep Records Under Your Sponsor Licence?

It’s essential to store documents related to sponsored migrants for specific periods. Generally, the Home Office requires that:

• Documents must be kept for the duration of the sponsorship, and for at least one year after the sponsorship ends.
• If a compliance officer examines your records, you must retain them until the earlier of:
• One year after the migrant’s sponsorship ends.
• The date of the compliance check, if conducted less than a year after the sponsorship ends.
• Any documents submitted during your sponsor licence application should be retained for as long as you hold your sponsor licence.

You may keep records in paper form or digitally, but they must be accessible for inspection if required.

What Happens if You Fail to Keep Sponsor Licence Records?

Failing to maintain the correct documents or keep them for the required period can lead to serious consequences, including:

• Licence Suspension or Revocation: The Home Office can suspend or revoke your sponsor licence if you fail to comply with your record-keeping obligations.
• Compliance Check: The Home Office may conduct an inspection to ensure you are meeting your sponsor duties. They will review your records and systems to confirm that the documents required under Appendix D are being kept.
• Penalties: If you are found in breach, you could face civil penalties, such as fines or being banned from sponsoring migrants in the future.

Preparing for Compliance Audits

With the increasing number of compliance checks, it’s important to proactively prepare your business for inspections. Conducting internal audits can help ensure that your records are in order and that you are fully compliant with Home Office requirements. For further guidance, we’ve discussed steps to protect your organisation from licence suspension or revocation in a recent post.

Conclusion

As a sponsor, maintaining comprehensive and up-to-date records is one of your most important obligations under the Sponsor Licence. By carefully following the rules outlined in Appendix D and understanding your record-keeping duties, you can avoid costly penalties and ensure your business remains compliant with UK immigration law.

For any further questions or concerns about your Sponsor Licence duties, don’t hesitate to reach out to our team of legal experts.