Home Office sponsor guidance changes: what employers must do now

On 6 March 2026, the Home Office released substantial updates to the Worker and Temporary Worker Sponsor Guidance, alongside revisions to Appendix D and the Sponsor a Skilled Worker guidance. These changes arrive during a period of intensified Home Office compliance activity, increased scrutiny of salary practices, and a greater focus on employer accountability. Below, we outline the key updates, provide insights and recommendations on what sponsors should do next.

These updates represent one of the most significant shifts in sponsor compliance obligations in recent years. Employers should prioritise internal audits, ensure robust HR systems, and provide targeted training to all staff involved in immigration processes.

Introduction of the new eligible role test

The long-standing genuine vacancy requirement has been replaced by a new four‑part test for an “eligible role.” The definition places greater emphasis on the role’s existence, duties, route compliance, and its appropriateness to the business model.

This represents a move toward ongoing compliance rather than point‑in‑time checks. Employers must now ensure the role remains eligible throughout the sponsorship period, not only when assigning a Certificate of Sponsorship (CoS). This significantly increases expectations for HR oversight.

Strengthened operational compliance requirements

The updated guidance increases expectations regarding illegal working checks, accuracy of CoS information, and proactive monitoring of guidance updates. The Home Office is clearly signalling that “technical compliance” is no longer enough. Employers are expected to maintain accurate, real‑time information and be able to demonstrate consistent awareness of rule changes.

Expanded enforcement powers: The reasonable suspicion test

The Home Office may now suspend, refuse, or revoke licences where there is reasonable suspicion of non‑compliance. This lowers the burden of proof for enforcement action, enabling the Home Office to intervene earlier and more frequently.

Integrity and suitability amendments

There is increased scrutiny on dishonesty, inflated salaries, misleading information, and behaviours that may undermine the sponsorship system. Salary inflation is a major area of focus, reflecting wider concerns around underpayment and systemic exploitation.

New duty to notify workers of their rights

Sponsors must now provide workers with information on key employment rights and retain proof of doing so. This update links immigration compliance with broader employment law enforcement, creating a more rounded expectation of employer responsibility.

It is unclear how the Home Office intends to enforce this new obligation, whether on all sponsored workers or just on workers sponsored after 6^th March 2026. This new obligation has been included in Appendix D, which lists the documents and records you must keep as a sponsor for each of your sponsored workers. Appendix D is applied equally to all sponsored workers, regardless of when they were first sponsored therefore our assessment is that this new obligation should apply to all sponsored workers.

No new guidance on immigration cost clawbacks

Despite expectations, the Home Office has not clarified rules on repayment of immigration costs. Repayment clauses remain legally sensitive, and improper deductions could result in licence revocation. Employers are currently required to pay the costs of the Sponsor Licence application fee, Certificate of Sponsorship and Immigration Skills Charge and any “associated administrative costs”.

Recommended actions for sponsors

• Conduct a full review of all sponsored roles to ensure they continue to meet the new eligible role test and update internal job descriptions (if needed) accordingly.
• Audit right‑to‑work processes, ensure duties on each CoS reflect actual roles, and set up regular (minimum quarterly) internal reviews of the latest Home Office guidance.
• Brief Key Personnel and senior leaders on this lowered threshold and ensure that any risk areas, such as recruitment practices or salary compliance, are addressed promptly.
• Cross‑check all sponsored workers’ pay data, ensure payroll systems align with immigration requirements, and maintain accurate business information on record.
• Update onboarding processes and ensure existing sponsored workers receive the required information, with evidence stored in line with the Appendix D requirements.
• Review all immigration fee payment arrangements for proportionality and legal compliance.  

If you have any questions about this article or would like us to assist you with policies or training, please get in touch.