Sponsor Licence Suspensions and Revocations: Navigating UKVI’s Increasing Compliance Activity

International recruitment has become indispensable to many industries in the UK, in particular the UK’s health and social care sector. Faced with persistent workforce shortages, many care homes, nursing homes, supported living providers and domiciliary care agencies have relied on the Skilled Worker (Health and Care Worker) route to recruit overseas workers.

Alongside an increased reliance on overseas workers, UK Visas and Immigration (UKVI) has significantly intensified its compliance activity. Sponsor licence holders are now subject to greater scrutiny than ever before, with announced and unannounced compliance visits, sophisticated data analysis and increased information sharing between government departments.

For employers, a sponsor licence is not simply permission to recruit overseas workers - it is an ongoing regulatory responsibility. Failure to comply with sponsor duties can result in suspension or revocation of a sponsor licence, jeopardising recruitment plans, disrupting service delivery and placing existing sponsored workers at risk.

This article considers the key issues leading to sponsor licence enforcement action and outlines practical steps that health and social care providers – and other organisations that hold a sponsor licence - can take to strengthen compliance.

Suspension or Revocation – What Is the Difference?

A sponsor licence suspension is generally an interim measure. UKVI will normally suspend a licence where it believes there may have been breaches of sponsor duties but wishes to investigate further before reaching a final decision. During the suspension period, sponsors are generally unable to assign new Certificates of Sponsorship (CoS), although the suspension will have no impact on existing sponsored workers.

A revocation, by contrast, is the most serious sanction available. Once a licence is revoked, the organisation immediately loses the ability to sponsor overseas workers. Existing sponsored employees will likely have their immigration permission curtailed, requiring them to find a new sponsor, switch into a different immigration category, or leave the UK. For organisations already facing recruitment challenges, the operational consequences can be severe.

Why Is UKVI Increasing Compliance Activity?

UKVI has made sponsor compliance a significant enforcement priority. Rather than relying solely on physical inspections, UKVI increasingly uses data to identify sponsors whose records require closer examination.

Information may be assessed across several sources, including:

• HMRC Real Time Information (RTI) payroll submissions;
• Sponsor Management System (SMS) records;
• Companies House filings;
• Payroll   and pension records;
• Employment contracts;
• Staff rotas and timesheets;
• Right to work documentation; and
• Information obtained during employee interviews.

Reviewing the above – either remotely via Government agencies or following a request for evidence from a sponsor - enables UKVI to identify inconsistencies before even attending a compliance visit.

Salary Compliance and HMRC Checks

One of the most common reasons for sponsor licence action is a discrepancy between the salary stated on the Certificate of Sponsorship and the salary actually paid.

During a compliance visit, UKVI may compare Certificates of Sponsorship with payslips, payroll records, bank payments and HMRC RTI submissions. Where sponsored workers consistently receive less than the salary declared to UKVI, the organisation may be asked to explain the discrepancy.

Not every discrepancy indicates deliberate misconduct. Payroll errors or administrative oversight may occur. However, repeated inconsistencies may demonstrate weaknesses in an organisation’s compliance systems.

Employers should, therefore, undertake regular payroll reconciliations to ensure that salaries paid correspond with the information recorded on the Certificate of Sponsorship and submitted to HMRC.

Working Hours, Rotas and Timesheets

Salary compliance cannot be considered in isolation. UKVI increasingly examines whether sponsored workers are undertaking the hours and duties for which they have been sponsored.

Compliance officers frequently request:

• Staff rotas;
• Electronic attendance records;
• Timesheets;
• Overtime records;
• Annual leave records; and
• Sickness records.

By way of an example, where a sponsored Senior Care Worker is contracted to work 37.5 hours per week, but routinely works significantly fewer hours without explanation, UKVI may question whether the sponsorship requirements continue to be met.
Similarly, substantial changes in working patterns should prompt employers to consider whether reporting obligations arise under the Sponsor Guidance.

Selecting the Correct SOC Code

Selecting the correct Standard Occupational Classification (SOC) code remains an important aspect of sponsor compliance.

UKVI assesses the substance of the role rather than the job title used by the employer. The duties actually performed, the level of responsibility, supervisory functions and decision-making authority will all be considered.

For example, describing an employee as a Care Home Manager does not automatically justify a managerial occupation code. If that individual spends most of their working time providing personal care and has limited management responsibility, UKVI may conclude that the selected SOC code is inappropriate.

Likewise, a Senior Care Worker should ordinarily demonstrate responsibilities extending beyond those of a Care Worker, such as supervising colleagues, mentoring staff, monitoring care plans or supporting operational management.

Employers should review job descriptions regularly to ensure they accurately reflect the duties carried out in practice. Any changes to a sponsored worker’s job title or duties should also be reported to UKVI, with an internal assessment undertaken to determine whether the previously selected CoS remains relevant.

The Genuine Vacancy Requirement

Every sponsored role must represent a genuine vacancy.

UKVI may examine whether the organisation genuinely requires the position, whether there is sufficient work available and whether the duties correspond with the selected occupation code.

Within the care sector, compliance officers may also compare occupancy levels, staffing numbers and contractual commitments with the number of sponsored workers employed.

A vacancy created primarily to facilitate immigration sponsorship, rather than to meet a genuine business need, would not be suitable for sponsorship.

Preparing for a UKVI Compliance Visit

Compliance visits may be announced or unannounced. Sponsors should therefore ensure that they remain “audit ready” throughout the lifetime of their licence.

UKVI officers commonly review:

• Certificates of Sponsorship;
• Employment contracts;
• Payroll records;
• Right to work documentation;
• Contact details;
• Absence records;
• Training records;
• Staff rotas; and
• Evidence supporting the genuine vacancy.

Sponsored workers may also be interviewed about their duties, salary, working hours and reporting structure. Their responses are frequently compared with the information recorded on the Certificate of Sponsorship and other employment records, with discrepancies likely to result in compliance action with the sponsor.

Consistency across all documentation and information provided to UKVI is essential.

Record-Keeping and Reporting Duties

The Home Office expects sponsors to maintain comprehensive records for every sponsored worker. These include copies of immigration documents, employment contracts, salary records, contact details and evidence of right to work checks.

Sponsors must also report certain changes through the Sponsor Management System within the prescribed timescales. These may include changes to salary, working hours, work location, job role, resignation, dismissal or prolonged unauthorised absence. Any absence impacting the sponsored worker’s pay must also be reported, such as maternity leave, sickness or unpaid leave.

Many enforcement cases arise not because organisations intentionally breach the rules, but because changes are not communicated internally between operational managers, payroll teams and HR personnel, and are consequently not reported to UKVI.

Practical Steps to Reduce Risk

Health and social care providers should consider adopting a proactive compliance framework that includes:

• Regular internal sponsor licence audits;
• Periodic payroll reconciliation against HMRC RTI data;
• Review of SOC code selection whenever duties change;
• Accurate and up-to-date job descriptions;
• Comprehensive personnel files;
• Regular training for HR and operational managers;
• Mock UKVI compliance visits; and
• Prompt reporting of relevant changes through the Sponsor Management System.

Embedding compliance into day-to-day business operations is considerably more effective than attempting to address deficiencies once UKVI has commenced an investigation.

Conclusion

Sponsor licence compliance is essential for organisations that hold a sponsor licence. As UKVI continues to strengthen its enforcement activity through enhanced data analysis and compliance visits, sponsors must ensure that their internal systems are capable of demonstrating ongoing compliance.

Many sponsor licence suspensions arise not from deliberate abuse of the immigration system but from inadequate record-keeping, payroll discrepancies, incorrect SOC code selection and failure to report relevant changes. By undertaking regular internal audits, maintaining accurate records and seeking specialist legal advice where appropriate, employers can significantly reduce the risk of enforcement action.

For organisations that rely on international recruitment, a sponsor licence is one of their most valuable assets. Protecting that licence through robust compliance should therefore remain a strategic business priority rather than simply an administrative obligation.

How JMW Solicitors LLP Can Help

JMW Solicitors LLP advises employers across the UK on all aspects of business immigration, including sponsor licence applications, compliance audits, mock UKVI inspections, right to work compliance, responses to suspension notices and provides strategic immigration advice. Our Corporate Immigration team works proactively with employers to minimise compliance risks and protect their ability to recruit and retain international talent.