Alongside changes to right to work expectations, the updates also address salary assessment, reporting duties and compliance scrutiny.
Right to work compliance expanded
The sponsor guidance now extends beyond employees and sponsored workers to include individuals “directly engaged” by the organisation. While not defined, this introduces a broader expectation that employers assess whether right to work checks should be carried out across a wider range of working arrangements, and are able to justify that approach.
Salary calculation scrutiny increased
The updated guidance places greater emphasis on how sponsors calculate and evidence salaries for sponsored workers. This includes closer scrutiny of what counts towards salary for immigration purposes. Employers need to ensure that: only guaranteed basic pay is relied on where required under the relevant visa route allowances, bonuses or non-guaranteed payments are treated in line with sponsorship rules on pay and the salary aligns with both the general threshold and the going rate for the role, as required.
Increased focus on pay consistency
The Home Office has reinforced expectations that sponsored workers are paid in line with what was stated on the Certificate of Sponsorship and that pay remains consistent over time. Discrepancies between declared and actual pay are now more likely to trigger compliance action. This includes closer alignment between payroll records, contractual terms and sponsorship data.
What This Means for HR Teams
For HR teams, these changes move sponsor compliance beyond visa administration into broader workforce governance. The focus is no longer limited to assigning Certificates of Sponsorship and conducting onboarding checks.
Greater oversight of workforce models
HR functions need visibility across all categories of workers, including employees, sponsored workers, contractors and consultants. The way individuals are engaged now affects compliance risk, particularly where there is direct contractual engagement.
Integration of HR and payroll controls
Salary compliance is now a central risk area. HR teams need to ensure that: payroll processes align with sponsorship records salary changes are tracked and, where required, reported any variations from the Certificate of Sponsorship are identified and addressed promptly
Decision-based compliance approach
The introduction of “direct engagement” requires HR teams to adopt a case-by-case approach. Decisions on whether right to work checks are carried out should be based on the nature of the working relationship and supported by clear internal reasoning.
Greater Risk Exposure for Sponsors
The combined effect of the March and April updates is a higher level of compliance scrutiny across multiple areas.
Sponsor licence action
Where the Home Office identifies issues with right to work compliance or salary reporting, this may lead to UKVI inquiries or possible enforcement action against the sponsor licence. This can include suspension or revocation, even where statutory right to work obligations for employees have been met.
Salary-related compliance failures
Incorrect salary calculations, reliance on ineligible pay elements or inconsistencies between declared and actual pay are now key risk triggers. These issues are often identified during audits or in response to targeted information requests.
Audit and data-led enforcement
Compliance activity is increasingly data-driven. The Home Office is cross-checking sponsorship data against payroll and HMRC information, meaning discrepancies are more likely to be identified.
What HR Should Do Now
HR teams should respond to these changes by strengthening internal systems and aligning processes across functions.
Review salary compliance
Check that all sponsored worker salaries meet the relevant thresholds and are calculated correctly. Ensure only permitted pay elements are included and that records are consistent across HR and payroll systems.
Audit right to work processes
Confirm that checks are carried out for all employees and sponsored workers. Assess how decisions are made for directly engaged individuals and ensure those decisions are documented.
Align HR, legal and finance teams
Sponsor compliance now spans multiple functions. Coordination between HR, payroll and legal teams is needed to ensure consistent application of the rules.
Strengthen record keeping
Maintain clear records of right to work checks, salary calculations and decision-making processes. These records form the basis of any response to Home Office scrutiny.
Monitor further developments
Further clarification from the Home Office is likely, particularly where current guidance lacks definition or consistency. This is more likely to come through updated guidance or compliance practice rather than immediate legislative change.
Conclusion
The March and April 2026 updates reflect a shift towards more intensive and data-led enforcement of sponsor compliance. For HR teams, the key development is the move towards integrated compliance. Right to work checks, salary assessment and workforce structure now sit within a single risk framework. The introduction of “direct engagement” and increased scrutiny of salary calculations both point to the same outcome. The Home Office is focusing less on individual technical breaches and more on whether organisations have systems that identify and manage immigration risk across their workforce.
Until clearer definitions are provided, employers that adopt a consistent, evidence-based approach to decision making, supported by aligned HR and payroll systems, will be better placed to manage compliance risk.
For specialist guidance for your organisation, contact our compliance advisers.
