DavidsonMorris Immigration Solicitors explains;
A UK sponsorship licence grants an employer permission to hire workers under the UK’s points-based visa system.
The licence however only lasts for a period of four years. To maintain your permission, you will need to apply to the Home Office to renew your licence in advance of the four-year expiration date.
In practical terms, the renewal process is relatively straight forward – you apply online via your company’s Sponsorship Management System (SMS), and pay the relevant fee for the new licence.
However, companies should be aware that the Home Office uses renewal applications to trigger compliance checks and site inspections, and will take enforcement action against employers who are failing to meet their duties under the sponsor licence. This could include refusing your renewal application, impacting your permission to lawfully employ migrant workers.
Common reasons why renewals are refused
Employers commonly fall foul of a number of errors or oversight which result in a refused application for licence renewal:
- Failure to pass a UKVI compliance audit- your organisation will be evaluated against the legal requirements under the sponsor licence.
- Failure to have retained the required documentation on sponsored migrants – record keeping duties are strict and ongoing.
- Failure to have advised UKVI of significant changes to company structure and personnel – strict timescales apply when notifying of organisational changes.
- Failing to respond to UKVI’s enquiries in a timely manner – engaging with the Home Office will help your cause.
- Failure to pass the ‘genuineness test’ – if the role is perceived not to be a genuine vacancy requiring an overseas skilled worker.
- Failure to comply with UKVI security standards
So what should employers do in preparation for making a sponsor licence renewal?
Check, check and check again
Throughout the validity of your licence, you have operated under requirements to meet certain compliance duties, involving record keeping and the duties to notify the Home Office of changes in circumstances concerning both your migrant workers and the organisation itself.
Ahead of applying to renew, you should take the opportunity to check all of the information on the SMS to ensure it is up to date and correct, including branch addresses, contact details for your key personnel and details of your overseas entities if you have an intra-company transfer licence.
The documents and paperwork you hold for your sponsored migrants should also be reviewed, as well as the reports you have to submit about changes to their circumstances, such as duties and salaries.
Even where you believe everything is in order and as it should be, conducting an audit prior to submitting the renewal application can be extremely valuable to identify any potential risks or issues which the Home Office may pick up on and which could affect your prospects of renewal.