Rule change triggers a sponsor licence warning for employers

Published

21st April 2026

Businesses are being urged to review procedures to ensure they are not caught out by new requirements introduced by the latest guidance. Licence holders should expect increasing levels of scrutiny.

Scottish businesses employing foreign workers are being urged to ensure they do not risk their sponsor licences by overlooking new legal obligations.

As part of UK Government measures introduced last month (March 2026), employers must make sure that sponsored staff understand their full employment rights.

Employers must also be able to evidence that these rights - including those around the national minimum wage levels, working hours and statutory leave - have been fully explained to sponsored workers.

It is also now a mandatory requirement for all licensed sponsors to read all sections of the sponsor guidance and to remain familiar with its content, including any changes made to it.

Gurjit Pall, Partner in Immigration law, is advising employers navigating the latest changes and says: “This is a significant undertaking. Employers should expect increasing levels of scrutiny in relation to compliance with the terms of their licence.

“The latest guidance makes clear that job descriptions detailed on Certificates of Sponsorship must reflect the role being recruited to. These roles must also remain relevant to the sponsor’s business.”

Practical steps for employers and enforcement risk

On practical steps to be taken, he adds: “HR and induction processes must be maintained and documented to show both how information is communicated to sponsored workers - and to evidence that this has taken place.

“The terms of licence also require sponsors to stay up-to-date with legislative changes, which can be a challenge.

“Anyone in any doubt would be wise to seek legal support.”

For the year 2025, 3,299 licences allowing companies to bring in migrant workers were revoked across the UK – more than double the number in the previous 12 months (1,620).

Employers who seek to employ international workers must first obtain a sponsor licence from the Home Office, which allows them to legally sponsor overseas staff through legally defined “eligible roles”.

Without a licence, sponsors cannot issue a Certificate of Sponsorship, which is required for workers to apply for a UK work visa.

The scope of the eligible role criteria has been added to in the latest guidance.

Gurjit continues, “Employers holding sponsor licences cannot afford to put them at risk because their procedures are not up-to-date.

“Failure to comply could ultimately lead to a sponsor licence being revoked.”

Employment lawyers at Lindsays are urging employers with sponsor licences to urgently review the latest guidance, share employment rights with all sponsored workers and log when and how that information was provided.

Businesses are also encouraged to regularly check that sponsored roles meet the most up-to-date eligibility criteria.

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