A sponsor licence compliance audit checks whether licence holders are meeting their sponsorship duties. Key areas of the Home Office audit include Right to Work checks, employee records and reporting. Employers should regularly review processes before a sponsor licence audit takes place to remain audit-ready.
What Is a Sponsor Licence Compliance Audit?
A sponsor licence audit is a compliance check carried out by the Home Office to ensure that organisations are meeting their legal obligations as a licensed sponsor.
The Home Office conducts audits for a number of reasons, including:
- To verify sponsorship duties are being met
- To confirm that sponsored workers are carrying out the correct role
- To check record-keeping practices
- To prevent immigration abuse and illegal working
Audits can be triggered by risk indicators, such as compliance failures, high-risk sectors, inconsistencies and structural changes.
They can be announced or unannounced, which means that you should be audit-ready at all times. Not being prepared can lead to your licence being suspended or revoked.
What Does the Home Office Check During a Sponsor Audit?
The officers auditing you will try to get as rounded a picture as they can of whether your organisation is meeting its sponsor duties.
This includes looking at your HR systems, Sponsor Management System (SMS) activity, staff files and more. The audit may also include speaking to individual sponsored workers to cross-check that their details (salary, role, etc) match their Certificate of Sponsorship.
| Area | What the Home Office checks |
| Right to Work Checks | Correct documents and verification processes |
| Employee Records | Contact details and employment records |
| Absence Monitoring | Tracking and reporting procedures |
| SMS Activity | Timely updates and reporting |
| Sponsored Roles | Job duties and salary compliance |
Sponsor Licence Audit Checklist for UK Employers
To be audit-ready, employers should review the following before a sponsor licence compliance audit.
Verify Right to Work Documents
You must retain records of the Right to Work checks that you complete, including keeping copies of the documents you check, either in hard copy or a scanned copy in a non-editable format. You should also record the date that you made the check.
You should keep these records for the duration of the individual’s employment and for two years after their employment with you has ended.
Review Sponsored Worker Files
For each individual sponsored worker, you must keep evidence of recruitment, salary, skill level and any additional evidence as applicable. For full guidance on the documents and how long you must keep them, refer to Appendix D of the government’s sponsor guidance.
Monitor and Report Absences
You must have a system to monitor the attendance of your sponsored workers, with any unauthorised absences reported to the Home Office within a strict timeframe of 10 days.
Not all absences need to be reported, but it’s worth retaining records of all authorised absences, including sick notes and holiday approval.
Check Sponsor Management System Records
Make sure the SMS is up to date with accurate sponsorship records and that any organisational and employee changes are reported. This means:
- Any changes to salary
- Changes to job role or duties
- Employee termination
- Changes to work location
- Business ownership or structure changes
Ensure clarity around who has Level 1 and Level 2 user access controls and responsibilities.
Stay Audit-Ready With Holmes & Partners
We’re an experienced business immigration consultancy, offering support for sponsor licence applications, management and compliance, including audits. Get in touch with Holmes & Partners today.
FAQs
How long does a sponsor licence audit take?
What are the most common sponsor licence compliance mistakes?
Can a sponsor licence be suspended or revoked?
Yes. Serious or repeated compliance breaches can result in suspension or revocation.
