Table of Contents
In Short
- The Sponsorship Management System (SMS) is a Home Office tool used by licensed employers to manage sponsored workers under UK Immigration Rules.
- Businesses must assign roles like Authorising Officer and Key Contact, ensuring proper oversight and compliance.
- Failing to comply with SMS duties can lead to penalties, suspension, or revocation of sponsorship licences.
Tips for Businesses
Ensure your key personnel are trained on SMS usage, and regularly update sponsor details and worker information to avoid penalties. Implement internal audits to ensure ongoing compliance with Home Office rules.
When you employ staff to work in your business, you will need to comply with employment law. This is a vast area of law, and you must keep up to date with it. However, if any of your staff are sponsored workers, you must also comply with the UK Immigration Rules and employment law. You must comply with your legal duties as, in the worst-case scenario, you could face criminal prosecution. Therefore, this article will explain how employers can use the Sponsorship Management System (SMS).
What Is the Sponsorship Management System?
The Sponsorship Management System (SMS) is an online tool run by the Home Office. As an employer, it enables you to sponsor workers to adhere to your legal obligations under the UK Immigration Rules.
The SMS also allows you to administer your daily management activities for sponsored workers. If you need to apply for a skilled worker to help in your business, you can use the SMS for this, too. It also allows the Home Office to check that you meet your compliance obligations as a sponsor licence holder.
Do You Need to Use the Sponsor Management System?
You will need to use the Sponsorship Management System (SMS) if you sponsor workers through any of the routes used below:
- Skilled Worker;
- Charity Worker;
- Creative Worker;
- Religious Worker;
- Seasonal Worker;
- International Agreement;
- International Sportsperson;
- Global Business Mobility – Senior or Specialist Worker;
- Global Business Mobility (GBM) routes;
- T2 Minister of Religion;
- Government Authorised Exchange; or
- Scale-up
To use the SMS you must have a valid sponsorship licence. In addition, the first time you use the system, you will need to use your SMS login ID, which the Authorising Officer will receive by post. You will also need a password to be emailed to the Authorising Officer.
As an employer, it is crucial to stay compliant with ever-evolving employment law. This factsheet outlines key changes in 2024 that will affect how you manage your workforce.
Once the initial login has taken place, each person who uses the SMS from your business will have their own ID and password, which they must keep secret.
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What Are My Duties as a Licensed Sponsor?
As a licenced sponsor, you must carry out several legal duties. Typical duties carried out on the SMS include:
- monitoring specific activities;
- reporting particular activities;
- managing key personal and licence details; and
- creating, assigning and withdrawing certificates of sponsorship.
You must give key personnel in your business particular roles for the SMS. The four roles include:
- an Authorising Officer who will recruit migrant workers and make sure that you meet your duties under the SMS;
- a Key Contact, so the primary contact person for the Home Office;
- a Level 1 User who uses SMS daily; and
- a Level 2 User who also uses the SMS, but cannot do all that a Level 1 User can.
However, once logged onto the SMS, you can add more people to use it. This is done by the Level 1 User, who can create other Level 1 Users and Level 2 Users.
What Happens if I Do Not Use the SMS Correctly?
Despite assigning roles to key personnel information for the SMS, you, as the business owner, are responsible for complying with your sponsorship duties overall.
For example, your sponsorship rating could be downgraded. However, if you have serious shortcomings, you could:
- have the upper licence suspended;
- have your licence revoked;
- receive a civil penalty; or
- be prosecuted for criminal behaviour.
The latter two actions can occur when you allow migrants to work illegally in your business.
Key Takeaways
As a licensed sponsor sponsoring workers in your business, you must use the Sponsorship Management System (SMS). This online tool, provided by the Home Office, allows you to carry out daily activities to meet your legal duties under the UK Immigration Rules. You must use SMS if you sponsor workers through specific channels such as Skilled Workers and International Sportsperson and have a valid sponsorship licence.
There are particular duties you are legally required to carry out as a licenced sponsor, such as managing specific activities of your sponsor workers. Key personnel in your business will carry these out, although ultimately, as the business owner, it’s your responsibility to comply. You must use the SMS correctly, or you could face action from the Home Office, such as revoking your sponsorship licence.
If you need help understanding using the Sponsorship Management System (SMS) in the UK, LegalVision’s experienced employment solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
1. What is the Sponsorship Management System (SMS)?
The Sponsorship Management System (SMS) is a system licensed sponsors use to comply with legal duties under UK Immigration Rules when sponsoring workers.
2. What is an authorising officer?
An authorising officer is the person in your business to whom you give the role of recruiting migrant workers. They ensure that your business meets its sponsorship duties.
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