In today’s global workforce, companies in the UK that sponsor skilled workers play a critical role in maintaining a diverse and talented employee base. However, with this responsibility comes the need for strict compliance with the regulations set forth by the Home Office. Understanding the importance of maintaining compliance is essential for ensuring the smooth operation of your business and safeguarding the visas of your sponsored workers.
I. Reporting Changes through the SMS: Timeline is Key
One of the most crucial aspects of maintaining compliance is the timely reporting of any changes within the company or regarding sponsored workers. The Home Office mandates that companies report any changes in their structure or ownership within 20 working days. This includes changes such as direct ownership transitions.
Similarly, any changes concerning the sponsored workers, such as changes in their roles, responsibilities, or personal circumstances, must be reported within 10 working days. Failure to adhere to these timelines can trigger compliance issues that jeopardize the status of your sponsor licence.
II. Consequences of Non-Compliance
The ramifications of failing to report necessary changes can be severe. Companies that neglect their compliance obligations risk having their sponsor licence suspended or even cancelled. This means that all sponsored workers may face visa issues, leading to potential job losses and disruption within the workforce.
Many companies find themselves in situations receiving notifications that their sponsor licence has been suspended due to non-compliance. This often stems from minor oversights that escalate into significant compliance issues, affecting not only the company’s ability to operate but also the livelihoods of their skilled workers.
III. The Role of Companies House
It’s important to note that the Home Office is informed about changes to a company through the Companies House website. Therefore, if a company fails to report changes directly to the Home Office, this lack of communication can negatively impact its sponsor licence standing. Companies must recognize that their obligations extend beyond internal operations; they are interconnected with national databases and regulatory requirements.
For example, you will often see on Companies House the following notification: “Change of person with significant control”, which is the effect of sale of shares, a merger, or acquisition. This change will result in the Sponsor Licence being revoked or made dormant, and it will be necessary to apply for a new one under the new structure. The workers will either be transferred under TUPE to the new Sponsor Licence or have to apply for a new Skilled Worker Visa.
IV. Proactive Compliance Measures
To avoid the pitfalls of non-compliance, companies should adopt proactive measures. One essential practice is for the Level 1 User to log into the Sponsor Management System (SMS) at least once a month. This regular check-in allows for the timely updating of any changes and ensures that the company remains in good standing with the Home Office.
By staying vigilant and maintaining open lines of communication regarding any changes, companies can protect their sponsor licence and ensure the continued employment of their skilled workers.
V. What Services STAY UK Provides to Companies Holding a Sponsor Licence
- HR Compliance and Sponsor Licence Training: A full-day webinar training session for business owners and managers.
- Compliance Mock Audit: A comprehensive, in-person review at your business premises aimed at identifying any potential compliance issues before they escalate. Please refer to the article on compliance audit for more details.