Home Office compliance inspections: best practices for UK businesses

If you are a sponsor licence holder, or are applying for a licence, your organisation may be audited by the Home Office. These checks can take the form of a digital compliance inspection or an in-person compliance visit. Read below to find out what the Home Office look for during these visits, how to stay compliant and the penalties for non-compliance.

What is a Home Office compliance inspection?

All organisations that hold or are applying to hold sponsor licences are subject to potential compliance visits from the Home Office.

Inspections of organisations that are currently applying for a licence are carried out to establish whether the prospective Sponsor has systems and policies in place to meet the duties of a sponsor licence holder, whereas checks of existing sponsor licence holders are conducted to assess whether they are following their own policies and if their systems are operating effectively.

During these audits, the Home Office check that:

• The Sponsor is meeting their sponsorship obligations;
• The Sponsor is complying with their obligations to prevent illegal working;
• The information on the sponsor licence application is accurate and kept up-to-date.

Whilst the Home Office primarily scrutinise the Sponsor during these audits, the sponsored students or workers may also be subject to additional checks and interviews.

The Home Office are permitted to make both announced and unannounced visits. Whilst the Home Office staff cannot force entry to a Sponsor’s property, if they are denied access to the premises, they will make a record stating that the Sponsor was non-compliant. In practice, the Home Office has moved towards an approach whereby they inform a sponsor in advance of a visit, although this is not always the case. The Home Office may choose to make an unannounced visit as it may give a more accurate picture of the working environment (as the Sponsor will not have been able to prepare for the inspection).

If the Home Office decide to make an announced visit, they usually advise the Sponsor, in advance, of the documents that they hope to see. This type of visit may be advantageous to the Home Office, as they can ensure persons of interest are present on the day.

Why businesses are selected for inspection

Businesses may be selected for an audit randomly, although the Home Office may also bring an audit if they have reasonable suspicion that the Sponsor has breached their sponsorship duties. This suspicion can arise from a previous history of non-compliance as a result of intelligence raised by other government departments. The Home Office continually monitor sponsors who:

• Pose or may pose a threat to immigration control;
• Breach their sponsorship duties;
• Are convicted of criminal offences or issued with certain civil penalties;
• Have engaged or are engaging in behaviour that is not conducive to the public good.

What inspectors are looking for and best practices for UK businesses

During compliance visits, the Home Office staff may:

• Verify the information provided on your sponsor licence application;
• Take photos and videos of your premises;
• Speak to your sponsored workers, including any workers you may have previously sponsored (for example, those who have since then switched visa category or have obtained settlement);
• Speak to workers involved in the recruitment of sponsored workers;
• Inspect your record-keeping and HR systems.

If it is found that you are non-compliant with your sponsorship obligations, the Home Office may resort to several courses of action:

• Downgrading your licence rating;
• Suspending your sponsor licence;
• Revoking your sponsor licence.

Downgrading your licence

For relatively minor breaches of your sponsorship obligations, the Home Office may opt to downgrade your sponsor rating from an A-rating to a B-rating. If this occurs, the organisation will be provided with a three-month action plan, which sets out the steps that must be undertaken to return to an A-rating. The Sponsor must pay a fee for this plan, and is prohibited from sponsoring any new workers until they have achieved an A-rating again.

Following the three months, the Home Office will conduct a further inspection, at which point they will decide to either:

• Restore the Sponsor’s A-rating;
• Provide a new action plan (in cases where new breaches are discovered);
• Revoke the Sponsor’s licence.

The Home Office has the right to revoke your licence without downgrading it in the first instance.

Suspending and revoking your licence

In cases where you are in breach of your sponsor duties or pose a threat to immigration control, the Home Office may choose to suspend your licence. During your suspension, the Home Office will conduct a more thorough investigation, following which they will either revoke your licence or reinstate it.

Whilst suspended:

• You will be unable to assign any Certificates of Sponsorship;
• Any pending applications for workers with a valid Certificate of Sponsorship assigned before the suspension will be put on hold.

Serious breaches of your sponsor duties may lead to your licence being revoked. If your licence is revoked, you will be unable to sponsor any new workers, and the permissions of your existing sponsored workers will be curtailed (giving them 60 days to apply for a new visa or leave the UK). Furthermore, you will be subject to a 12-month cooling off period before being able to reapply for a sponsorship licence.

In order to remain compliant and prepared for a Home Office inspection, it is vital that you:

• Ensure the details in all application documents are accurate;
• Report any changes of circumstances of the sponsored individual (such as change in details of the role);
• Report any changes of circumstances of the sponsoring organisation (such as change in premises or size);
• Keep records of your sponsored workers (including attendance registers); and
• Ensure you are complying with UK immigration and wider UK laws.

You should also familiarise yourself with Annexes C1, C2 and C3 of the Guidance for Sponsors part 3, which details the offences that may result in your licence being revoked.

For more information on digital compliance checks, read Gherson blog: What are digital compliance checks and how should you prepare?

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on all UK sponsorship matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on X, Facebook, Instagram, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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