Tech companies that hire skilled workers from outside the EU need a Sponsor Licence to do so. However, these companies may face unannounced inspections by the Home Office to ensure they are following the rules. For IT companies, especially those using the Tier 2 Intra-Company Transfer (ICT) Visa scheme, this scrutiny can be worrying.
In the past, the Home Office has raised concerns about potential misuse of the ICT Visa scheme, which has led to more frequent checks. Although many IT companies are following the rules, the suspicion of misuse still lingers, making these businesses feel vulnerable to having their Sponsor Licence suspended or revoked.
What Happens if Your Sponsor Licence is Revoked or Downgraded?
If your Sponsor Licence is downgraded, suspended, or revoked, it can severely impact your ability to hire skilled workers from outside the EU. Here’s what could happen:
- You won’t be able to issue Certificates of Sponsorship (CoS) for new employees.
- If your company has a B-rating, you can’t add new branches or tiers to your license.
- Your business may be subject to more frequent Home Office inspections.
- You may not be able to certify maintenance for Tier 2 Visa applicants.
- Existing employees on non-EU visas could face visa curtailment.
In the worst case, the Home Office might revoke your license, meaning all sponsored employees would have 60 days to find a new sponsor, and employees who haven’t yet arrived in the UK could see their visas canceled.
How to Pass a Home Office Sponsor Licence Audit
The key to passing a Home Office audit with ease is preparation. By staying organized and following the rules, you can avoid issues during an unannounced visit. Here are some tips to ensure compliance:
- Keep Your Records in Order: Ensure you have copies of your initial Sponsor Licence application and any documents that support your answers.
- Update Your Sponsorship Management System (SMS): Your Level 1 user should be fully trained and aware of their role. Make sure all changes to your workforce are updated immediately, ideally the same day.
- Prepare Your Sites: Home Office inspectors may visit any location where your sponsored staff work, including third-party sites. Make sure these sites are ready for an inspection.
- Notify the Home Office of Key Personnel Changes: If anyone in a key role (e.g., Authorizing Officer or Level 1 user) changes, let the Home Office know. An immigration lawyer can help manage this for you.
- Keep Records of Recruitment: If you’ve done a Resident Labour Market Test to hire a foreign worker, keep copies of CVs and interview notes for domestic applicants who were not hired. You may need to show these to a compliance officer.
- Ensure Accuracy: Make sure all information and documents you hold as a Sponsor Licence holder are accurate and up-to-date.
- Track Employee Locations: Implement a system to monitor where your sponsored employees are working at all times, in case the Home Office asks for this information.
Why You Need Expert Help for Sponsor Licence Compliance
If you’re worried about the compliance status of your Sponsor Licence, it’s a good idea to consult with an immigration lawyer. They can assess whether your business is ready for a Home Office inspection and help you address any gaps. At Law and Visas, we can guide you through the process of maintaining and updating your Sponsor Licence. We offer services such as:
- Ensuring your initial application is completed correctly.
- Auditing your HR processes to check for compliance.
- Guiding filling any gaps in your compliance.
- Running mock audits to prepare for a real inspection.
- Taking on the Level 1 user role to manage your SMS and ensure it’s always up to date.
The risk of a Home Office audit is real, especially for tech companies that sponsor skilled workers from outside the EU. However, with the right preparation and support, your business can confidently pass an inspection. Law and Visas can help you stay compliant, reduce stress, and protect your ability to hire top talent from abroad.
