Sponsor Licence Change of Circumstances

Last updated: 25 April 2022

As a sponsor licence holder, you have a duty to keep the Home Office informed of any important changes to your business and the circumstances of any sponsored workers. These are referred to as part of your sponsor reporting duties. If you do not keep the Home Office informed of any changes of circumstances, it can cause a sponsor licence suspension, downgrade, or revocation. In turn, this means you may lose the right to employing overseas workers in the UK. In this article, we will outline the changes that you must report as a sponsor licence holder and how to do so.

What changes should a sponsor licence holder report?

According to the Home Office’s ‘reporting requirements’, you must report certain changes to the Home Office within a set deadline, as follows:

• Inform the Home Office of any changes to the circumstances of a sponsored worker – within 10 working days of the event (see below for more details)
• Inform the Home Office of any changes to your organisation - within 20 working days of the relevant event (see below for more details)
• Inform the Home Office if you know or suspect a worker you are sponsoring has breached their conditions of stay – as soon as reasonably practicable
• Inform the police of any information that suggests a worker you are sponsoring may be engaging in terrorism or criminal activity - as soon as reasonably practicable

Changes in circumstances of sponsored workers

Sponsored worker changes to be reported within 10 working days:

• Sponsored worker does not start their role within 28 days – a reason for their non-attendance must also be provided
• Sponsored worker is absent from work without permission for more than 10 consecutive working days
• Sponsored worker is absent from work without pay, or on reduced pay, for more than 4 weeks in total in any year
• Sponsored worker’s salary or pay is otherwise reduced from that stated on their Certificate of Sponsorship
• Significant changes to a sponsored worker’s employment
• Sponsored worker changes job or receives a promotion but keeps the same occupation code
• Sponsored worker’s normal work location changes
• You stop sponsoring one of your workers regardless of the reason for doing so – this may include as a result of dismissal, resignation, or the expiry of professional registration

Informing the Home Office will not normally result in action being taken by the Home Office. It may be that certain reports trigger a compliance visit by the UKVI compliance team if there is a pattern of reports that suggests that you are not managing your sponsorship process effectively. However, failure to report changes will almost certainly lead to action being taken by UKVI.

Changes in circumstances of sponsor licence holder

As a sponsor licence holder, you also have a duty to inform UKVI of certain changes to your organisation within 20 days, including changes to your:

• Authorising Officer or Key Contact
• Change in your organisation size or charitable status
• Criminal record, e.g. if you are convicted of a relevant offence
• Current Authorising Officer’s or Key Contact’s details
• Need for a sponsor licence, e.g. if you decide to surrender your sponsor licence
• Organisation, e.g. changes in the nature of your business or merger/takeover
• Organisation size or charitable status
• Organisation details, e.g. name, branch names, addresses, contact details, or head office details
• Organisation’s structure, e.g. if you add more branches, sites, linked entities
• Status of any registration or accreditation necessary to operate or trade in the UK
• Trading status (or if you enter into insolvency)

How to report a change of circumstances

In most cases, you will need to report changes of circumstances, either to your business or a sponsored worker, through your Sponsorship Management System (SMS). This must be done by an SMS user with Level 1 permissions.

Full details on how to make or request changes can be found on the Home Office website in ‘Manage your sponsorship licence: SMS guide 2’ and ‘Reporting worker activity’.

Depending on the change required, you may need to use the ‘Sponsor change of circumstances form’ – this should only be used when:

• Adding a Level 1 User if no one else has permission to use your SMS
• Replacing an Authorising Officer if the new Authorising Officer is also the only sole Level 1 User
• Surrendering your licence if no one in your organisation has access to SMS, or
• Making your licence dormant if no one in your organisation has access to SMS

When reporting changes via the SMS, you will be guided through the process and asked for any relevant information. For example, if you are reporting migrant activity, you will need to provide the relevant CoS number and the details of the change in circumstances, including the date and written details.

Depending on the circumstances, the change may be automatically updated once reported, including changes to

• Your main or head office address
• The address of your Authorising Officer, Key Contact, or Level 1 User (as long as the postcode matches the postcode of your main or head office)
• Your Authorising Officer or Key Contact
• Level 1 Users

Other changes can take up to 16 weeks to process and reflect on the SMS system. If necessary, the Home Office may contact you for more details or evidence before making the change you have requested. If you are making a significant change to your organisation, it may be necessary to apply for a new sponsor licence. If you are unsure of the correct process to follow to report such changes, it is advisable to speak to an immigration solicitor who can advise you.