A sponsor licence lets an organisation sponsor overseas workers. The licence brings ongoing duties intended to give the Home Office oversight of sponsored workers and ensure immigration rules are followed. These duties apply for as long as the organisation holds and uses its licence.
Sponsors must retain records set out in the Home Office sponsor guidance (notably Appendix D). Records can include a worker's immigration status and right to work, contact details, employment contracts, salary and payment records, evidence about the sponsored role, recruitment evidence when required, and other documents the guidance specifies. Records must be kept for required retention periods and be producible if requested.
Sponsors must report specified changes and events to the Home Office within the applicable reporting windows. Reportable items include worker-level events (employment changes, salary, duties, work location, absence, termination) and organisation-level changes (address, key personnel, ownership or structure, business circumstances). The reporting requirement and the deadline vary by event.
A common practical problem is that the people who use the Sponsor Management System are not always told when a relevant change happens. Sponsors should build internal escalation processes: for example, line manager flags a change to HR, HR alerts the sponsor team, the sponsor team assesses immigration implications and then completes the SMS report within the timeframe. Technical competence with the SMS is necessary among authorised users.
Maintaining contact details and attendance records
Sponsors should keep the contact details the guidance requires and update them when they change. Attendance systems must allow the sponsor to establish whether a worker is attending as expected and to investigate unexplained or relevant absences. Where absence or another event triggers a Home Office reporting requirement, the sponsor must act within the applicable timeframe.
Employment changes that affect sponsorship
Sponsors must monitor salaries to ensure ongoing compliance with route requirements. When salary changes, the sponsor should check whether the new pay meets the immigration route's thresholds, whether the change is permitted by the existing sponsorship, and whether a new application or certificate is needed.
Adopt clear HR workflows that tie operational changes to SMS action. Designate and train SMS users. Keep a document retention schedule aligned to Appendix D. Build escalation paths so line managers and HR automatically notify sponsor teams of any change that could be reportable or immigration-relevant.