Sponsor licence holders are required to comply with a variety of duties and responsibilities in order to keep their licence. It is crucial that sponsor licence holders comprehend the responsibilities that accompany holding a licence and have adequate systems in place to ensure compliance. Serious consequences can result from noncompliance for both the business and its migrant employees. The Home Office may choose to suspend, downgrade, or revoke a licence if it determines that the holder has not complied with the duties.

Reporting changes to sponsored workers’ start dates

• Any change to a sponsored worker’s start or end date prior to applying for the visa must be reported on the Sponsor Management System (“SMS”) by way of a sponsor note against the Certificate of Sponsorship (“CoS”);
• Changes to a sponsored worker’s start or end date after applying for the visa but before permission is granted must be reported on the SMS by way of the ‘Report Migrant Activity’ function;
• If the visa is approved, the sponsored worker may begin employment earlier than the date stated on the Certificate of Sponsorship. The Guidance now explicitly states in such circumstances, an employer does not need to report the early start date via SMS.

Reporting a change in start date beyond 28 days

Once the application is approved, the sponsored worker must begin their employment within 28 days from whichever following date is the latest:

• Start date as stated on the Certificate of Sponsorship;
• Valid from the date as shown on the entry clearance visa sticker;
• Date of the granted permission to enter under the Creative Worker visa;
• Date of notification for the approval of the visa.

If the sponsored worker fails to begin their employment by the end of the 28 days period, the Sponsor must make a report on the SMS by way of the ‘Report Migrant Activity’ function. The employer must both report the delayed start date and provide an ‘accepted’ reason for the delay, or, they must notify the Home Office they have stopped sponsoring the migrant worker.

What is an acceptable reason for a delayed start date?

It is also now possible for the sponsor to keep a worker whose start date is delayed by more than 28 days if they report the change of start date and provide reasons.

However, the guidance does warn that UKVI may still cancel the worker’s visa if they are not satisfied with the reason given for the delay. The guidance suggests examples of suitable reasons, such as:

• travel disruption due to natural disasters, military conflict, or pandemics;
• working out contractual notice periods;
• requiring an exit visa for their home country but there are administrative delays getting this; or
• illness, bereavement, or other compelling circumstances.

It should be added the above is not a comprehensive list and ‘each case will be judged on its merits’. However, sponsors should be aware that an individual’s permission to work can be canceled at any time should UKVI not be satisfied a valid explanation has been provided for a delayed start date.

Reporting sponsored staff taking unpaid leave

Previously, if a worker took four or more weeks unpaid leave in a calendar year then sponsors were required to withdraw sponsorship. Now, similar to the changes for delayed start dates, if sponsors want to keep employing the worker they just need to report the reasons for the unpaid leave.

However, as with the delayed start date, UKVI may still cancel the worker’s permission if they are not satisfied with the reasons.

Previously, if a worker took four or more weeks unpaid leave in a calendar year then sponsors were required to withdraw sponsorship unless an exception applied. Exceptions included statutory maternity/paternity/parental or shared parental leave, statutory adoption leave, sick leave, taking part in legally organised industrial action, and assisting with a national/international humanitarian/environmental crisis. 

A concession has now been added for those sponsored workers who are absent without pay for more than 4 weeks and where a permitted exception does not apply. Providing a ‘compelling and compassionate’ reason can be provided, and a sponsor can report via the ‘Report Migrant Activity’ function on the SMS. The same caveat applies that UKVI can cancel the worker’s permission if the explanation provided is not deemed a valid reason.

Salary payments

The worker's salary can be paid into either their UK or overseas bank account.

• Salary payments must be paid into their own account;
• Payments cannot be made in cash (doing so can result in the revocation of the licence);
• If the employee is paid by cheque, the funds must be deposited into the employee's bank account.

Salary payments from the sponsor’s bank account should be clearly identifiable. It is advisable that the sponsor keeps records of each payment it makes to the migrant worker during the course of their sponsored employment.

For expert advice and assistance regards sponsorship application or managing sponsor licence, please contact us at 0203 865 6219 or leave a message.