Before the pandemic, the Home Office claimed it would try to visit around 30% of pre-licence sponsors and all sponsors during the validity of the licence. In our first article, we covered how the Home Office is increasing its visits to sponsor licence applicants and sponsor licence holders. We are now taking a look at what happens at a Home Office audit and how you can prepare for this.
What should you expect if (or when) the Home Office arrives for a compliance visit?
The Home Office representative often starts by meeting with the personnel attached to the licence, such as the Authorising Officer. The representative may also speak one-on-one with sponsored workers to ensure compliance with the terms of employment as approved by the Home Office. The representative will also want to establish the purpose and processes for sponsoring non-settled migrants and will request complete HR employee files.
Whether the visit is announced or not, employers should cooperate with the representative. Refusing the Home Office access to the site can be seen as non-compliance, resulting in enforcement action.
Common questions
The Home Office may ask questions to obtain the information they require to determine if the business is compliant. They will ask about the organisation, the genuineness of sponsored roles, HR systems and processes, record keeping, reporting duties and right-to-work checks.
Questions may cover the following:
Length of trading in the UK, what sector the business operates in and the size of the workforce. If you have a lease or licence for the premises, it is advisable to have this to hand.
Why sponsored roles are necessary and evidence of recruitment processes.
Evidence of the work sponsored employees will be doing or are doing, and whether qualifications are required for the role, as well working hours, salary and frequency of pay.
Evidence of policies, procedures, personnel files and an assessment of right-to-work checks.
Much of this information would have formed part of the sponsor licence application, and the Home Office will be looking to see that the information provided during the visit matches what was confirmed in the application.
After the compliance visit
The audit continues after the official has left the business premises. The Home Office sponsorship compliance team will evaluate the feedback they receive from the inspection officer. They may also use the company’s Sponsor Management System (SMS) to analyse sponsor notes and/or a Certificate of Sponsorships. They will combine their observations with the evidence gathered from the representative and make a decision. If further information is needed to reach an outcome, they may ask the sponsor.
If the Home Office are unsatisfied that a business is meeting its sponsor obligations, the licence will be suspended. The Home Office would then invite the business to address the issues raised in the suspension letter. It is advisable for sponsors in these situations to seek legal advice before responding.
If the sponsor cannot properly address the concerns raised about the compliance visit, their sponsor licence will likely be revoked. If the Home Office revoke a sponsor licence, they will also curtail the leave of any sponsored workers currently employed by the sponsor. The sponsored worker will usually have their leave curtailed to 60 calendar days.
How to prepare for a compliance visit
Record-keeping, right-to-work checks, HR processes and information on migrant workers should be updated and maintained. Consider the following when putting together a system that aims to meet your compliance and right-to-work obligations:
Day 1 checks on all employees’ first day of employment and retention of this information.
Providing training to staff responsible for completing right-to-work checks.
Tracking all visa expiry dates and sponsored migrants’ contact details.
Carrying out periodic audits of right-to-work check documentation and processes.
Taking swift action where potential illegal working is identified.
Reporting any personnel changes to the Home Office within the time frames set out below via the SMS:
Within 10 working days
Within 20 working days
Change of work start date.
Change of work location.
Change in job title / duties.
Salary decreases.
End of employment.
End of sponsorship following a change of immigration visa (switch to non-sponsored visa).
Unpaid leave of less than four weeks.
Long-term sickness or maternity/paternity/adoption leave.
Unauthorised absence of more than 10 consecutive working days.
Employment affected by TUPE or similar provisions.
Significant changes to the organisation:
Change in company's name.
Sale of all or part of the business.
Stops trading.
Goes into administration.
Substantially changes the nature of the business.
Is involved in a merger or acquisition.
You should ensure that key personnel are ready to respond to questions. We also advise clients to make a detailed note of the meeting and ask for a copy of the representative's note. If Howard Kennedy are present at the Home Office audit, we will do this for you.
Contact John Kiely for more information. We support our corporate clients with meeting their compliance obligations and offer mock audits to ensure they're ready for a Home Office visit.
Keep an eye out for the next instalment in this civil penalty series available on Tuesday 25 June 2024 – Home Office Audit: What happens if you receive a referral for a penalty?
Want to hear more from us? 
