Logo
Logo

Take a compliance test

Login Icon

Login

Get Started

How Sponsor Licence Holders Can Avoid Losing Their Licence: Practical Compliance Steps

Sponsicore

Jan 28, 2026

How Sponsor Licence Holders Can Avoid Losing Their Licence: Practical Compliance Steps

Share :

Introduction

Holding a UK Sponsor Licence is a valuable privilege for employers dependent on international talent. However, the Home Office enforces strict compliance standards, and even minor breaches can lead to licence suspension, downgrade, or revocation.

Many sponsor licences are lost not due to deliberate misconduct but to inadequate systems, poor record-keeping, or a lack of understanding of sponsor responsibilities.
 

1. Understand Your Sponsor Licence Duties

The first step to compliance is understanding your legal responsibilities. Sponsor licence holders must comply with three core duties:

Record-Keeping Duties

You must retain up-to-date records for every sponsored worker, including:

  • Passport and visa copies
  • Right to Work check evidence
  • Employment contracts
  • Absence and attendance records

The Home Office expects these records to be readily accessible during an audit.

Official guidance can be found on the UK government website:
Home Office Sponsor Guidance

 

2. Keep the Sponsor Management System (SMS) Updated

The Sponsor Management System (SMS) is the Home Office’s primary compliance monitoring tool.

You must report certain changes within 10 working days, including:

  • Changes to sponsored workers’ job roles, salaries, or work locations
  • Early termination of employment
  • Unauthorised absences exceeding 10 working days

Failure to update the SMS is one of the most common reasons sponsor licences are suspended

Related reading: SMS guide 2: manage your sponsorship licence (accessible) - GOV.UK

 

3. Conduct Regular Right to Work Checks

Right-to-work checks are mandatory for all employees, not just sponsored workers.

Best practice includes:

  • Conducting checks before employment begins
  • Using the correct Home Office checking method
  • Retaining dated and signed evidence

Incorrect or missing Right to Work checks can lead to civil penalties and licence revocation.

 Learn more here: Right to work check eligibility – Employer checking service – GOV.UK

 

4. Monitor Attendance and Absences Closely

Sponsors must have systems in place to monitor attendance and working patterns.

You must report:

  • Unauthorised absences
  • Failure to start work
  • Significant changes to working hours

Home Office compliance officers expect active monitoring, not reactive reporting.

Tip: Automated attendance tracking systems significantly reduce compliance risk.
 

5. Prepare for a Home Office Compliance Visit

Home Office audits can be:

  • Pre-announced
  • Unannounced

During a visit, officers assess:

  • Automated systems and processes
  • Staff knowledge of sponsor duties
  • Accuracy of records
  • Genuineness of roles

 

6. Train Key Personnel and Level 1 Users

The Home Office expects sponsors to ensure that:

  • Authorising Officers
  • Key Contacts
  • Level 1 Users

are properly trained and understand compliance obligations.

Staff turnover without updating roles on the SMS is a major compliance red flag.


Conclusion

Losing a sponsor licence can have serious financial and operational consequences, including the loss of sponsored staff and reputational damage.

By:

  • Understanding sponsor duties
  • Keeping accurate records
  • Updating the SMS promptly
  • Training staff
  • Preparing for audits

Sponsor licence holders can significantly reduce compliance risk and maintain their licence with confidence.

If you need tailored advice or a compliance health check, professional support can make all the difference.

 

Note: Please note that the content of the above blog and the aforementioned information are solely for the purpose of awareness and are informative in nature. The content is designed with intent to ease the understanding while preserving the essence and importance of the compliance rules and shall not be considered as an ultimate replication of the rules. Sponsicore does not own any responsibility whatsoever for any unpleasant event that may arise due to the misinterpretation of a specific part or whole of the information.

Sponsicore is a company registered in England and Wales with the registration number 11574971. Our data protection registration certificate reference number is ZB678519.

© Copyright Sponsicore 2026 - All Rights Reserved