Sponsor Licence compliance – why immigration audits are important

22 Nov 2024, 13 mins ago

In the UK, a mock immigration audit is an internal review process conducted by employers to ensure compliance with immigration laws, particularly in relation to the Right to Work checks and related employment practices. The goal of this exercise is to simulate a potential government audit carried out by agencies such as the Home Office to avoid fines, penalties or reputational damage in case of non-compliance.

Why do I need a mock immigration audit?

  1. Legal compliance: UK employe2rs must conduct Right to Work checks to ensure employees have the legal right to work in the UK. Non-compliance can result in civil penalties, such as fines up to £60,000 per illegal worker.
  2. Risk mitigation: A mock audit helps identify errors or gaps in procedures, allowing the company to rectify them before an official Home Office audit or inspection.
  3. Avoiding penalties: By conducting a mock audit, employers can avoid fines or penalties, which could be significant for employing illegal workers or not maintaining proper documentation.
  4. Preparedness: The audit helps HR teams become familiar with the procedures and expectations in case of a real inspection.

What does a mock UK immigration audit involve?

  1. Right to work checks:
    • Ensure that Right to Work checks are being carried out on all employees before the start of their employment. This includes verifying an individual’s right to work by using a share code online or their original documents such as a passport.
    • Make sure that follow-up checks are being done for employees with time-limited permission to work in the UK, ensuring continued legal employment.
  2. Document verification for manual right to work checks:
    • Review whether the correct documents have been checked and recorded. Employers must keep copies of the original documents that were inspected and ensure the documents are valid at the time of hire.
    • Ensure that the documents presented for verification are included in the Right to Work document list provided by the Home Office.
  3. Record-keeping:
    • Employers must keep records of all Right to Work checks for up to two years after an individual’s employment ends.
    • Review the storage and retention of employee records and check if records are complete, accurate and securely stored.
  4. Immigration status tracking:
    • Track the immigration status of employees with temporary work visas or those under immigration schemes such as the Skilled Worker visa. Ensure that visa renewals or new applications are submitted on time.
    • Set up reminders for follow-up checks or alerts for when an employee’s visa is about to expire.
  5. Staff training:
    • Review whether HR and line managers involved in recruitment and onboarding are trained on immigration compliance, especially on how to carry out Right to Work checks correctly.
  6. Audit of external workers:
    • If contractors or temporary workers are employed, ensure that Right to Work checks have been completed by the relevant agencies or subcontractors.
    • Best practice is to conduct the right to work checks independently without reliance on third party agencies, to avoid any potential issues.
  7. Correcting issues:
    • If discrepancies or missing information are identified, make the necessary corrections and improvements to your processes. This could involve updating documentation or reviewing your Right to Work policies.

How to prepare for a mock immigration audit:

  • Conduct internal reviews regularly: Schedule periodic mock audits to ensure ongoing compliance.
  • Update policies and procedures: Ensure that your recruitment and Right to Work checking processes are up to date with the latest immigration rules.
  • Create a centralised database: Maintain an organised and accessible system for storing employee documents and Right to Work records.
  • Stay informed: Keep updated on immigration law changes and ensure the team responsible for compliance is well-versed in them.

By conducting a mock immigration audit, UK employers can proactively identify and fix any potential issues before they face scrutiny from the Home Office, helping avoid fines or legal problems.

Here are 10 FAQs about UK immigration audits, particularly focused on Right to Work compliance:

1. What is a UK immigration audit?

A UK immigration audit is an inspection conducted by the Home Office to ensure that employers are complying with immigration laws, particularly the requirement to verify that all employees have the legal right to work in the UK. The audit involves checking Right to Work documentation, verifying employment records and ensuring compliance with the Immigration Act.

2. Who conducts a UK immigration audit?

The audit is conducted by officials from the Home Office, specifically the Immigration Enforcement team. They inspect businesses to check compliance with Right to Work laws and to verify that the company is not employing illegal workers.

3. What are Right to Work checks?

Right to Work checks are a legal requirement for employers in the UK to confirm that an individual has the right to work in the country. This involves reviewing and recording acceptable documents, such as passports, visas or residence permits, and ensuring these documents are valid before employment starts.

4. What triggers a UK immigration audit?

An audit may be triggered by several factors, including:

  • Complaints or tips about illegal employment.
  • Random inspections by the Home Office.
  • Previous non-compliance or past penalties related to immigration laws.
  • During an application process for a sponsor licence to hire skilled workers under the UK immigration system.

5. What documents are reviewed during an immigration audit?

Key documents reviewed include:

  • Right to Work documentation (e.g. passports, visas, biometric residence permits).
  • Copies of employment contracts.
  • Employee records that demonstrate work authorisation.
  • Records of any follow-up checks for workers with temporary visas.

6. What happens if non-compliance is found during an audit?

If non-compliance is found, penalties may include:

  • Civil penalties: Fines of up to £60,000 per illegal worker.
  • Criminal charges: In severe cases, employers may face criminal prosecution, leading to imprisonment or unlimited fines.
  • Revocation of sponsor licence: For businesses with a sponsor licence, this could be revoked or downgraded, preventing companies from hiring skilled workers from overseas.

7. How can I prepare for a Home Office immigration audit?

To prepare for an audit:

  • Ensure all employees have undergone proper Right to Work checks.
  • Maintain accurate and up-to-date records of work authorisation documents.
  • Conduct periodic internal (mock) immigration audits to identify and correct compliance issues.
  • Ensure HR and management staff are trained on immigration laws and Right to Work procedures.

8. What is a statutory excuse, and how can I establish one?

statutory excuse is a legal defence mechanism that can protect an employer from penalties if they are found to be employing someone illegally, provided they can demonstrate that the correct Right to Work checking procedures have been followed. To establish a statutory excuse, employers must:

  • Conduct the checks before employment begins.
  • Ensure they keep clear copies of original documents.
  • Perform follow-up checks for workers with limited permission to stay in the UK.

9. How often do I need to conduct Right to Work checks?
  • For UK and permanent residents: A one-time Right to Work check before they start employment is sufficient.
  • For workers with time-limited visas: Initial checks must be done before employment begins, and follow-up checks should be done before the visa or work authorisation expires.

10. Can a business be audited if it uses contractors or temporary workers?

Yes, businesses that use contractors or temporary workers can still be held responsible for ensuring those individuals have the right to work in the UK. Employers must ensure that agencies or contractors who supply workers are compliant with Right to Work regulations and should request evidence of checks from those suppliers.

These questions help employers better understand the implications and requirements surrounding UK immigration audits, ensuring they can maintain compliance with the relevant laws.

November, 2024

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on UK visa 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 XFacebookInstagram, 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.

©Gherson 2024