Sponsorship Guidance update
On 6 March 2026, the Home Office published updated sponsor guidance introducing a significant new requirement: sponsors must now ensure sponsored workers “understand their employment rights” in the UK. This shift reflects a growing regulatory focus in response to exploitation in the sponsor licence sector, notably in social care. This in turn tightens compliance standards for all sponsor licence holders. Below, we outline the five key takeaways for sponsors, with practical guidance on compliance and risk management, based on the updated guidance.
Sponsorship as regulatory membership
The new guidance asserts that sponsorship is akin to “membership” and subject to strict rules. The sponsor licence is no longer just a partnership; it is closer to a regulatory framework and can be suspended or revoked at any time if there are reasonable grounds for suspecting even a minor breach. We consider that sponsors will need to consider their sponsor duties as core governance responsibilities.
With increased data sharing between the Home Office and HMRC, salary underpayments and other fluctuations in pay are more readily detectable. Abuse in certain sectors has prompted suspicion of all sponsors, and even diligent employers can face immediate licence action from breaches. Sponsors must maintain robust HR processes and systems.
Active communication of employment rights to sponsored workers
The new requirement compels sponsors to actively inform sponsored workers about their employment rights; this goes beyond simply complying with employment law. Sponsors must promote worker welfare and demonstrate that sponsored workers understand their rights. The Guidance gives a non-exhaustive list of example rights to cover, including:
- National Minimum Wage entitlement
- Working Time Regulations compliance
- Pension auto-enrolment and opt-outs
- Statutory leave and pay
- Health and safety
- Trade union membership and related rights
- Equality Act duties
- Grievance procedures
Sponsors must have systems to show this information has been delivered and understood. Failure to comply can result in licence suspension or revocation.
Employers should provide clear, accessible information to sponsored workers covering the categories outlined in Home Office sponsor guidance:
- National Minimum Wage & Working Time Regulations:
Employers are already legally required to comply with these regulations. The sponsor guidance, however, expects sponsors to proactively inform workers about them which is not a current requirement under employment law.
It is recommended that employers update their staff handbook or contracts of employment to include confirmation of compliance and include a link to relevant government information. Employers may provide a separate opt-out agreement for the 48-hour weekly working limit.
- Pension auto-enrolment & opt-outs:
The employment contract must already specify pension arrangements or direct employees to accessible information (such as a handbook or policy).
- Statutory leave & pay:
It is an existing requirement that employment contracts contain precise terms relating to holiday entitlement. Employers should take care not to conflate employee and worker entitlements, and advice may be needed for more complex leave issues (e.g., maternity). Note: self-employed sponsored workers may have different entitlements.
- Health & safety:
While UK law requires organisations employing more than five people to have health and safety policies, sponsors are advised to implement such policies regardless of size, either in the handbook or as a standalone policy.
- Trade union membership & related rights:
From October 2026, employers must provide a written statement confirming the right to join a trade union if there is an applicable collective agreement. Sponsors should start providing this statement proactively now to meet sponsor guidance, even if this legislation is not yet in force.
- Equality Act Duties:
Having a diversity and inclusion policy outlining protected characteristics and discrimination definitions is recommended. It is also recommended to train managers on equality and harassment to demonstrate reasonable steps to prevent discrimination or harassment, particularly in light of new duties which will apply from October 2026.
- Grievance procedures:
Employment contracts must already specify how to raise grievances, including identifying relevant contacts and procedures. Policies usually cover the grievance process, right to be accompanied at hearings, and the right of appeal.
Expanded record-keeping requirements for sponsored workers
The sponsor guidance expects evidence that workers have received and understood the above information. The guidance sets out the following acceptable evidence:
- Written information provided to workers.
- Records of training or awareness courses.
We consider that these could be in the form of employment contracts, policies, a staff handbook, or standalone letters. In the case of training records, these could be attendance lists and training materials.
We recommend that sponsors ask workers to acknowledge that they have read and understood the information, for example by confirming this on email.
For workers engaged before 6 March 2026, sponsors are not required to keep these records but must show adequate HR systems are in place to inform workers of their employment rights. We consider that it is best practice to apply these standards to all workers, not just those sponsored, to reduce risk and to encourage a positive compliance culture.
Additional rights and policy areas to cover
The Home Office list is non-exhaustive. New employment law obligations are being gradually implemented in several areas, and we recommend that sponsors consider actively informing sponsored workers of their rights in these areas:
- Whistleblower protection;
- Prevention of sexual harassment;
- Right to join a trade union, where relevant.
Five key takeaways
Our five key takeaways for sponsors are to:
- Review and audit employment contracts, handbooks, policies and induction materials to ensure that the necessary information is included;
- Arrange training for managers where appropriate, especially on discrimination, grievance handling and preventing sexual harassment;
- Implement processes to ensure that all relevant rights are communicated, and that adequate records are kept;
- Consider undertaking a joint employment and immigration audit to ensure full compliance; and
- Monitor upcoming employment law changes and keep documents updated accordingly.
If you have any questions or require further assistance, please reach out to our immigration or employment teams.
The material in this article is provided for guidance and general information only and is not intended to constitute legal or other professional advice upon which you should rely. In particular, the information should not be used as a substitute for a full and proper consultation with a suitably qualified professional.