As a licensed sponsor of foreign workers in the UK, your company has specific responsibilities set out by the Home Office, especially if you employ workers on Skilled Worker Visas or other work-related visa categories. Failing to meet these requirements could lead to serious enforcement actions by the Home Office.
Much of the responsibility for compliance rests on the Level 1 and Level 2 users of the Home Office’s Sponsor Management System (SMS). Therefore, it's essential that these individuals understand their roles and compliance duties thoroughly.
This guide provides an overview of the SMS's essential functions, outlines key responsibilities, and highlights the potential consequences of non-compliance, equipping you with the knowledge to manage your sponsorship obligations effectively.
Understanding the Sponsor Management System
The Sponsor Management System (SMS) is a critical tool for employers who sponsor visa applicants, offering features and access options that streamline sponsorship responsibilities.
Key Features of SMS
- Licence Management: Track and manage your sponsorship licence details.
- Application Tracking: Check the status of visa applications under your sponsorship.
- Message Board: Important Home Office messages are posted here, especially for Level 1 users.
These features help ensure compliance and efficiency in managing your sponsorship duties.
Accessing the System
To access SMS, go to the Home Office website and log in with your user credentials. First-time users may need to change their initial passwords for security. Should you forget your password, you can reset it through the sign-in page.
Role of Key Personnel
The department head or HR Manager, and other key personnel oversee compliance and ensure the company meets all sponsorship requirements. Clear communication with these team members is essential for effective compliance management.
Managing Certificates of Sponsorship
Certificates of Sponsorship (CoS) are central to the sponsorship process. Sponsors must assign these certificates to prospective employees while ensuring that the licence summary is accurate and up-to-date.
Assigning Certificates of Sponsorship
To assign a CoS:
- Log in to SMS using secure credentials.
- Select “Certificates of Sponsorship.”
- Fill out required information for each certificate, including employee details and job role.
Remember, each CoS is typically valid for three months, so timely management is critical to avoid non-compliance.
Licence Summary and Usage
Your licence summary provides a snapshot of your CoS usage. To view your summary:
- Log in to SMS.
- Click “Licence Summary” on the dashboard.
- Review your current CoS balance and recent assignments.
Regularly reviewing the summary helps maintain compliance and prevent issues with CoS availability.
Compliance and Reporting Requirements
Compliance with immigration legislation is vital for sponsoring companies. Regularly reviewing reporting duties and anticipating challenges can help avoid penalties.
Adhering to Immigration Rules
To remain compliant, focus on:
- Sponsorship Licence Maintenance: Ensure timely renewal.
- Employee Eligibility: Verify correct visas and legal requirements for each worker.
- Record-Keeping: Keep detailed, up-to-date records of sponsored workers.
Failing to meet these requirements can result in significant penalties, including losing your sponsorship licence. Please speak with us if you have any questions or concerns.
Reporting Duties and Common Challenges
You must report significant changes to the Home Office, such as:
- Employee changes in status, role, or visa rejection.
- Absences over ten days without a valid reason.
Training and regular use of SMS can help you keep track of these duties. Please speak with the Immigration Team at Carter Lemon Camerons who can help train you and your staff.
Frequency of Updates
Compliance is an ongoing responsibility. SMS users must ensure that records are always current, as the Home Office may conduct both scheduled and unscheduled visits. Failure to maintain updated records risks sanctions, including downgrading, suspension, or revocation of your licence. We can prepare you for Home Office audits by carrying out a ‘practice run’.
Potential Consequences for Non-Compliance
The Home Office may impose various penalties for non-compliance, such as:
- Downgrading your licence rating: Limits your ability to sponsor workers.
- Suspending your licence: Temporarily halts new sponsorship activities.
- Revoking your licence: Ends your sponsorship privileges, requiring a new licence application.
In cases of severe breaches, civil penalties or criminal prosecution may apply if illegal employment practices are discovered. Carter Lemon Camerons can assist you with obtaining a sponsor licence and maintaining compliance with Immigration Rules.
Key Personnel and SMS Roles
The SMS allows access based on specific roles, each with defined responsibilities:
- Authorising Officer: Manages and oversees all sponsorship activities.
- Key Contact: Liaises between the sponsor and the Home Office.
- Level 1 User: Has comprehensive access to manage certificates, users, and other functions.
- Level 2 User: Has restricted access to perform assigned tasks, ensuring security and data integrity.
These roles support effective sponsor management and compliance.
Combining Roles
It is possible for one individual to serve as both the Authorising Officer and a Level 1 User. However, only Level 1 and Level 2 users have direct access to SMS, so any additional personnel requiring access must also be designated as Level 1 or Level 2 users.
Benefits and Importance of SMS
SMS provides a user-friendly interface and centralised tools that simplify compliance and licence management. The SMS allows sponsors to update licence details, manage personnel, and request changes efficiently, ensuring up-to-date records and prompt compliance with Home Office regulations.
Choosing the Right Legal Support for Sponsoring International Employees
When navigating immigration law and fulfilling company sponsorship responsibilities, securing the right legal support is essential.
Author: Vladyslav Galinskyi
Carter Lemon Camerons LLP offers experienced immigration solicitors and skilled professionals across various legal and tax fields. Our team is dedicated to providing compassionate, professional guidance to ensure your case is managed with care and attention.
Carter Lemon Camerons LLP prioritises achieving the best outcomes for our clients. Trust us with your legal needs—contact us today to schedule an initial consultation.
Originally published by Carter Lemon Camerons LLP and republished here with permission
