Kasia Kingsmill, Partner, Brecher LLP shares her legal expertise on HR’s increasing role in immigration compliance including why accuracy matters, the essential role of HR in engagement and the practical steps for SMS compliance…
With enforcement activity rising sharply – and HR teams often at the forefront of managing sponsored workers – understanding HR’s role in company immigration compliance has never been more important; Kasia Kingsmill, Partner, Brecher LLP talks to HR Grapevine about the issues.
What does the Sponsorship Management System entail?
If you are an HR professional, it is likely that at some point in your career you will be asked to take on one of the key roles linked to a sponsor licence. More than 122,000 businesses in the UK currently hold a licence, which enables them to sponsor workers – for example skilled workers, health and social care staff, and others who would otherwise not have permission to work or remain in the UK. With that licence comes responsibility for managing the Sponsorship Management System (SMS).”
The SMS is the Home Office’s online portal used to record and report key information about sponsored workers and the organisation itself. It is the primary mechanism by which compliance is monitored.
Does accuracy matter?
An out-of-date SMS is among the most common issues uncovered during Home Office visits. Frequent failings include:
- Missing updates to worker details such as job title, salary, or work location.
- Failing to update company information after restructures, mergers, or address changes.
- Allowing too many Level 1 and Level 2 users without proper oversight.
Whilst a single error is unlikely to trigger action, a pattern of weak systems and poor controls can damage the licence, even if no illegal working has occurred.
The importance of accurate SMS management has never been greater. In early 2025, civil penalties for illegal working averaged more than £50,000 per case, with quarterly fines exceeding £40 million. Licence revocations are also at record levels.
This reflects the government’s public commitment to reduce migration and hold employers accountable for falling short of compliance obligations. In this environment, even minor lapses in SMS management may be viewed as evidence of wider non-compliance.
“The SMS is the Home Office’s online portal used to record and report key information about sponsored workers and the organisation itself. It is the primary mechanism by which compliance is monitored” Kasia Kingsmill | Partner, Brecher LLP
How essential is HR engagement?
In most organisations, HR carries the responsibility for managing the SMS. Too often the responsibilities attached to these roles are not fully explained, and too often HR sees the SMS as something for immigration advisers to manage. Both scenarios are risky. The Home Office’s guidance is clear: compliance obligations cannot be delegated.
The Home Office recommended that all sponsors have at least one employee with full access to the SMS as a Level 1 user, and this also became a mandatory requirement for any licence applications submitted from 1 January 2025. An internal Level 1 user strengthens oversight and reduces compliance risk.
HR teams should also review the system with advisers periodically – a straightforward way to maintain visibility of the data the Home Office relies upon.
Who should have access to sponsor licences?
Access to the SMS should be carefully controlled. Sponsors must nominate three key roles:
- Authorising officer – senior person responsible for the licence.
- Key contact – main point of contact with UKVI.
- Level 1 user – employee responsible for daily management of the licence.
Level 2 users may also be appointed and have only limited access to the system’s features. The user list should be reviewed regularly, with leavers removed promptly and all users trained on their responsibilities.
In practice, many organisations give advisers’ staff SMS access to help with day-to-day tasks. While convenient, this can result in long lists of external users, leaving the company exposed to compliance breaches if access is not properly monitored.
“The importance of accurate SMS management has never been greater. In early 2025, civil penalties for illegal working averaged more than £50,000 per case, with quarterly fines exceeding £40 million” Kasia Kingsmill | Partner, Brecher LLP
What practical steps should be taken for SMS compliance?
The SMS is not a back-office chore. It is a compliance tool that underpins a business’s ability to recruit and retain international talent. Building a culture of ownership within HR means embedding good practice at every stage:
- Review SMS access regularly and remove leavers promptly. Outdated access lists are one of the most common compliance failings and can easily be avoided
- Update worker and organisational data quickly to keep records accurate. Even small changes – such as a job title or work location – must be captured promptly to demonstrate ongoing compliance.
- Train HR colleagues before granting SMS roles. Access should only be given once responsibilities are fully understood, to avoid mistakes that can put the licence at risk.
It also means selecting the right support. A trusted adviser who provides ongoing dialogue is far more valuable than one engaged only when a visa is needed. Regular communication ensures you are prompted to review records, anticipate issues, and avoid the weaknesses the Home Office increasingly treats as serious failings.
What’s the bottom line?
With enforcement rising – and HR teams often at the forefront of managing sponsored workers – understanding HR’s role in company immigration compliance has never been more important. Now is the time to review your sponsorship policies and protocols, as well as the Sponsor Management System, and make sure records are accurate and up to date.
First published in HR Grapevine: https://www.hrgrapevine.com/content/article/2025-10-20-immigration-compliance-the-hidden-risk-for-hr
This update is for general purpose and guidance only and does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered. No part of this update may be used, reproduced, stored or transmitted in any form, or by any means without the prior permission of Brecher LLP.
