Navigating SMS Changes: Understanding Sponsor Licence Duties

By Sanwar Ali:

Contents

• New Rules for Level 1 Users
• Sponsor Duties: An Overview
• Roles Within the Sponsor Licence
• Understanding Level 1 Users
• Addressing the Recent Changes
• Navigating the SMS Updates
• The Role of the SMS in Immigration
• The Impact of the Changes
• Staying on Top of Compliance
• Conclusion: Key Takeaways

The Sponsor Management System (SMS) is the online system for UK companies that hold a sponsor licence, allowing them to manage their day-to-day sponsorship duties. However, the sponsor management system can be overly complicated and confusing. This article aims to provide details of recent changes and how to navigate the system effectively.

New Rules for Level 1 Users

The Home Office introduced new guidance on June 22, 2023, affecting Level 1 Users (LV1 Users) of the sponsor management system. As of June 19, 2023, new Level 1 Users being added to the sponsor licence system or existing Level 1 Users changing their personal details on the SMS will need to provide their National Insurance Number (NINO). If they are unable to provide a NINO, they must either confirm that they have applied for one or provide a valid reason for their exemption. If they do not have a NINO the Home Office may ask further questions, which could impact the outcome of their request to be added to the sponsor licence system, or their request to amend the details.

Sponsor Duties: An Overview

Recent changes may seem like small administrative changes, but it's essential for employers to stay abreast of updates to the sponsor management system. Licensed sponsors have demanding compliance duties, and these include keeping their key personnel details up-to-date on the SMS. Furthermore, they must always have people in the roles of Authorising Officer, Key Contact, and Level 1 User throughout the licence duration. These individuals must also meet the Home Office's eligibility criteria. Any failure to report a change or appoint new key personnel within the required timeframe could lead to severe consequences, including reducing the Certificate of Sponsorship (CoS) allocation, downgrading the licence rating, suspending the licence for further investigation, or even revoking the licence.

Roles Within the Sponsor Licence

When applying for a sponsor licence, organisations must nominate certain members to take on set roles and responsibilities. These individuals are referred to as 'key personnel', and they include the following:

• Authorising Officer: This individual carries overall responsibility for the sponsor licence and ensures that the organisation meets its sponsor duties. They decide which staff members need to have access to the SMS and the level of permission they can have.
• Key Contact: The Key Contact acts as the primary liaison between the sponsor and the Home Office.
• Level 1 User: The Level 1 User is responsible for carrying out the day-to-day sponsorship activities using the SMS.
• Level 2 User: These users have fewer permissions than Level 1 Users, and organisations can decide the number of Level 2 Users they need.

Understanding Level 1 Users

The Level 1 User is a crucial role within the sponsor licence system. When you first apply for a sponsor licence, you can only nominate one Level 1 User, and they must be an employee, director, or partner. Once you have a licence, you can use the SMS to nominate more Level 1 Users. It's this group of users that the recent update directly impacts, as they are now required to provide their NINO when amending their details in the SMS or provide details of an exemption.

Addressing the Recent Changes

The updated guidance sets out several points for Level 1 Users. For instance, if they enter their NINO, the update will be immediate, assuming there are no other changes that can't be automatically applied. If a Level 1 User indicates that they don't have a NINO and provides exemption details, this will be looked at further by a casesoker. They may also be asked to provide evidence for the NINO exemption, and failing to provide a valid reason for the exemption could affect their request's outcome.

Navigating the SMS Updates

The Home Office makes changes to the sponsorship system and the SMS from time to time. Back in March 2023, new functions were introduced to enable sponsors to update some sponsor licence details without waiting for Home Office approval. Requests to update the details of Authorising Officer, Key Contact, Level 1 Users, and organisation details can now be fulfilled immediately, subject to certain criteria being met.

The Role of the SMS in Immigration

The sponsor management system is used to manage the sponsor licence, which is a key part of the UK's immigration system, providing a mechanism for bringing overseas workers into the UK. The recent changes make some things easier and some things more difficult for employers. However, these changes also underscore the importance of compliance and the need for sponsors to regularly update their records.

The Impact of the Changes

So, what does this mean for employers with a sponsor licence? On one hand, some of the changes could be seen as beneficial, making it easier for organisations to update their records and manage their sponsorship duties. On the other hand, they also introduce an extra layer of compliance, requiring Level 1 Users to provide their NINO or a valid reason for exemption.

Staying on Top of Compliance

For those organisations that sponsor overseas workers, it's crucial to stay on top of these changes. Regularly logging into the SMS to ensure records are kept up-to-date and checking for any messages or updates from the Home Office is a must. Level 1 users are advised to access their SMS account at least once a month.

Conclusion: Key Takeaways

The recent changes to the sponsor management system underscore the importance of staying abreast of the latest guidelines and ensuring that all key personnel details are up-to-date on the SMS. The changes introduce additional administrative duties, but also makes things easier in some respects. Navigating these changes effectively will require staying informed and diligent about compliance duties.

How Workpermit.com Can Help with Sponsor Licences

If you need help with employing Skilled Workers and help to apply for a Sponsor Licence, including complying with your Sponsor Licence obligations, Workpermit.com can help.

For more information and advice, please contact us on 0344 991 9222 or at london@workpermit.com(link sends e-mail)