Sponsor License Renewals

Key Changes to Sponsor Licence Renewals in 2024

Before April 2024

Before April 2024, organisations with a sponsor licence had to renew it every four years and pay a renewal fee. Renewals had to be completed within 90 days of the licence's expiry, costing £536 for small/charitable sponsors and £1,476 for large sponsors. Failing to renew on time would cause the licence to lapse, resulting in the cancellation of sponsored workers' permissions. This could severely impact business operations and the personal lives of affected migrants.

For any companies whose licences are due to expire before the effective date, the sponsoring company must renew their licence in accordance with the standard renewal process.

After April 2024

On 24th January 2024, the Home Office announced that effective 6th April 2024, licensed sponsors would no longer need to renew their sponsor licences every four years. This change affects all existing licence holders with licences set to expire on or after 6th April 2024. These licences were automatically extended to expire in 10 years, without any action required from the sponsor licence holders.

This change aims to reduce administrative burdens on organisations, allowing companies to focus more on their core activities instead of frequent renewals.

Compliance Visits

Compliance visits and requirements remain in place despite changes in the sponsor licence renewal process. The Home Office conducts visits to ensure organisations meet their sponsorship obligations before and after obtaining a sponsor licence. This underscores the need for maintaining stringent compliance standards at all times.

Pre-licence visits verify that an organisation meets the requirements for obtaining a sponsor licence, including robust HR systems and necessary processes to fulfil sponsor duties. Post-licence visits ensure ongoing compliance with UK immigration rules.

During compliance visits, Home Office officials review HR records, right-to-work checks, and employment contracts. They may also interview sponsored employees to verify adherence to sponsorship duties. While advance email notices usually help in preparation, constant readiness is essential to avoid compliance issues.

Sponsors should be aware that the Home Office continues to conduct announced and unannounced compliance audits. Therefore, keeping record-keeping and HR systems up to date is crucial to ensure compliance with licence duties in case of an audit.

Sponsor Licence Responsibilities

It is important to note that a sponsor's licence can still be suspended or revoked if companies are found to be in breach of their sponsor duties and responsibilities. To avoid penalties, sponsors must always ensure they remain compliant with the sponsor's guidance.

This involves keeping accurate records, conducting regular right-to-work checks, and maintaining robust HR systems to manage sponsored employees effectively. Failure to uphold these standards can lead to severe consequences, including losing the ability to sponsor foreign workers.

Streamlined Sponsor Licence Renewal Process

To remain compliant and avoid sponsorship licence issues, sponsors must regularly update and report changes via their SMS account. This ensures that all information is current and addresses any compliance concerns.

Key responsibilities include:

• Manage Personnel Changes: You can replace or update the details of the Authorising Officer, Key Contact, or Level 1 and Level 2 Users.
• Update Organisation Details: Amend the organisation's name, address, contact information, or the names of any branches.
• Report Structural Changes: Notify the Home Office about new branches, sites, or linked entities and registration or accreditation status changes.
• Trading Status Updates: Inform the Home Office if the organisation stops trading or enters an insolvency procedure.
• Legal and Compliance Notifications: Report mergers, takeovers, relevant convictions, and changes in organisation size or charitable status.
• Miscellaneous Changes: Add or remove representatives, surrender the licence, or change the nature of the business.

Staying diligent with these updates will help ensure the sponsor licence renewal process goes smoothly and avoids potential compliance concerns. Regular and accurate reporting is crucial to maintaining the validity of your sponsorship licence.

The streamlined sponsorship licence renewal process offers eligible businesses a faster and more efficient option. To qualify, businesses must have had at least two successful licence renewals in the past and no compliance concerns, such as suspended licences or ongoing investigations. Before starting the sponsor licence renewal process, businesses should ensure they have a successful sponsor.

How QC Immigration Can Help

Despite the revamping of the sponsor licence renewal process, companies still need to adhere to certain requirements to remain compliant. Our team of expert lawyers can assist with every aspect of your sponsorship licence, from initial applications to ongoing management and compliance. We also assist with UK visas.

By partnering with QC Immigration, you can focus on your core business activities while we handle the complexities of the sponsor licence process and ongoing compliance requirements.