Home Office Audit and Compliance

Home Office Sponsorship Audit Services

Maintaining compliance with your sponsor licence is essential for businesses employing skilled workers from outside the UK. The Home Office conducts sponsorship audits to ensure employers are fulfilling their obligations. Failure to comply can lead to licence suspension, revocation, or reputational damage.

At IMD Corporate we specialise in helping businesses prepare for and manage Home Office sponsorship audits. Our expertise ensures you remain compliant with UK Visas and Immigration (UKVI) requirements, giving you peace of mind and protecting your workforce.

What Is a Home Office Sponsorship Audit?

A sponsorship audit is a review conducted by the Home Office to check whether your business complies with the rules and obligations outlined in your sponsor licence. These audits may be announced or unannounced and typically involve:

• Reviewing your HR and recruitment systems.

• Assessing how you monitor and report employee visa status.

• Checking your record-keeping practices.

• Evaluating your adherence to sponsorship duties, such as preventing illegal working.

The Home Office conducts sponsor compliance visits announced or unannounced. Most recently, the Home Office has been conducting digital checks, where records and operations may be reviewed remotely.

Common Sponsorship Licence Issues

As a sponsor licence holder, you are required to keep specific documents for each sponsored worker to comply with UK Visas and Immigration (UKVI) regulations. Failure to maintain these records can lead to penalties, including the suspension or revocation of your sponsor licence. Below is a list of the key documents you must keep for your sponsored workers:

Evidence of Right to Work

Right-to-work checks are a legal requirement for all employers in the UK and play a crucial role in sponsorship compliance. Properly conducted checks help prevent illegal working and protect your business from fines, penalties or reputational damage.

We will help you to:

Understand what constitute a valid right to work check
Identify the specific documents you are required to verify for different types of workers
Keep up-to-date with the latest Home Office rules and updates to immigration law.
Retain documents that relate to the right-to-work checks in the correct format.

Employment Records

Employers and sponsors in the UK must maintain comprehensive and accurate employment records to comply with both employment law and the requirements of the Home Office for sponsor licence holders. All employers must keep records for each employee, including employment contracts or service agreements, payrol records, working hours, holiday and leave records, performance appraisals and disciplinary actions and health and safety records.

Employers must obtain and retain copies of the worker’s qualification, certifications, or professional memberships, as well as evidence of registration with professional bodies, if required (e.g. doctors, nurses, legal professionals).

Recruitment Process Documents

As a sponsor licence holder in the UK, every employer must follow specific recruitment processes to ensure compliance with Home Office requirements. These processes are designed to prevent abuse of the immigration system and ensure that roles offered to sponsored workers meet the necessary criteria.

Although the Resident Labour Market Test was abolished in 2020, sponsors must still ensure that they recruit fairly and transparently. You will be therefore expected to demonstrate that the roles was genuinely open to the local workforce and that you selected the most suitable candidate, regardless of nationality.

Sponsors are required to keep detailed records of the recruitment process, including copies of job advertisement, evidence of how the workers was identified, a record of the reasons why other candidates were not suitable and documentation providing that the roles and candidate meet the eligibility criteria for sponsorship.

We will advise you about documents and information you must keep to document your recruitment efforts.

Additional Records for Certain Roles

For workers in regulated industries, you may also need:

Background checks or Disclosure and Barring Service (DBS) certificates.
Evidence of compliance with sector-specific licensing or registration requirements.

Retention Period

Sponsors must keep these documents for the duration of sponsorship and for at least two years after the sponsorship ends or until a compliance audit is completed, whichever is longer.

Maintaining accurate and accessible records is essential to demonstrate your compliance with sponsor licence duties during a Home Office audit. Consider conducting regular internal checks to ensure all documents are complete and up to date.

Monitoring and Reporting

After the worker begins their employment, each sponsor must monitor attendance and performance to ensure that the worker is fulfilling their duties and report unauthorized absences or significant changes.

As a sponsor licence holder, you have a legal duty to report certain changes to the Home Office within specified timeframes. Failing to meet these obligations can lead to penalties, including suspension or revocation of your licence. Below is a breakdown of the key changes you must report:

Changes Related to the Sponsored Worker

You must report the following changes within 10 working days:

Change in employment status:

If the worker’s employment ends earlier than stated on the Certificate of Sponsorship (CoS), whether due to resignation, dismissal, redundancy, or early completion of the role.
If the worker is absent without permission for more than 10 consecutive working days.

Change in job role or duties:

If the worker is moved to a different role that requires a new CoS.
If there is a significant change to the job description, responsibilities, or salary (except for routine annual pay rises or statutory increases).

Change in work location:

If the worker is relocated to a new work address not previously stated.

Change in personal circumstances:

Changes to the worker’s name, address, or contact details.

Changes Related to Your Organisation:

You must report the following changes within 20 working days:

Change of business address:

If you relocate your organisation to a new registered or operating address.

Change in company structure:

Mergers, acquisitions, de-mergers, or changes in ownership.

Change in key personnel:

If you appoint a new Authorising Officer, Key Contact, or Level 1 User, or if any of these roles leave the organisation.

Closure or cessation of operations:

If your business ceases trading, closes a branch, or stops being a sponsor.

Significant organisational changes:

Changes to the nature of your business, such as moving into a new sector or significantly altering your activities.

Issues That May Affect Your Sponsorship

You must report any situation that may impact your compliance with sponsorship duties, such as:

Receiving a criminal conviction or civil penalty as an organisation or key personnel member.
Losing accreditation, registration, or certification required to operate legally in your sector.
Significant reductions in workforce size or layoffs affecting sponsored workers.

How to Report Changes

Most changes should be reported via the Sponsor Management System (SMS). Some complex changes, such as mergers or significant organisational changes, may require submitting additional documents or notifying the Home Office in writing.

Why Reporting Is Important

Timely reporting demonstrates your compliance with sponsor licence duties and protects your licence status. Regularly reviewing your HR systems and ensuring all updates are recorded promptly can help you avoid penalties during a Home Office audit.

If you need guidance on reporting changes or managing your sponsor licence, contact us for expert advice.

How we help:

Training and Support for HR Teams

We deliver tailored training sessions to your HR staff, ensuring they:

Recognise acceptable documents
Understand how to check the validity of documents
Follow correct procedures for conducting in-person and online checks, including digitan right-to-work checks using the Home Office online system.

Our Sponsorship Audit Services

We offer tailored services to help you prepare for an audit or address concerns raised by the Home Office:

1. Pre-Audit Readiness Checks

• Conduct a thorough review of your HR and recruitment processes.

• Identify and rectify compliance gaps.

• Provide advice on maintaining accurate records.

2. Mock Sponsorship Audits

• Simulate a Home Office audit to identify risks.

• Offer actionable recommendations to strengthen your systems.

3. Post-Audit Support

• Help address any issues raised during an audit.

• Assist in implementing corrective measures.

• Support with responding to Home Office enquiries or resolving penalties.

Why Choose Us?

• Expertise: Our team has in-depth knowledge of UKVI regulations and a wealth of experience advising and assisting sponsors in the UK.

• Tailored Support: We understand that each business is unique, and we customise our approach to your needs.

• Peace of Mind: We ensure you remain compliant, safeguarding your ability to employ skilled workers.

Contact Us

Don’t leave compliance to chance. Contact us today to discuss how we can help your business stay on top of its sponsorship obligations and prepare for any Home Office audit.