Managing a care business is challenging, especially when client needs fluctuate, leading to reduced hours for your sponsored workers. You might assume the Home Office will understand these unavoidable changes. However, their primary role is to ensure strict compliance, and they are actively identifying breaches.
The rules are complex, and even small, innocent mistakes—like a missed notification or a salary adjustment—can lead to big problems. And when the Home Office gets involved, those “minor” oversights can turn into serious consequences: license suspension, legal fines, and even losing your ability to sponsor skilled workers.
Sound overwhelming? You’re not alone. Let’s break it down and look at the most common pitfalls care providers face—and how you can protect your business.
Let’s talk about one of the biggest issues we see: worker salaries.
According to Paragraph S4.30 of the Sponsor Guidance, sponsors must report any salary reductions through the Sponsor Management System (SMS) immediately. If that salary drops below the Skilled Worker visa threshold, sponsorship must end. Failing to report this isn’t just an oversight—it’s considered providing false information under Annex C1(r), which can lead to license suspension or revocation.
Unfortunately, this isn’t a one-off situation. It happens more often than you’d think, and it’s completely avoidable.
Domiciliary care providers face unique challenges. Clients’ needs can change overnight—hospital admissions, reduced hours, or cancellations are all part of the job.
But here’s the catch: the Home Office doesn’t consider these challenges an excuse.
Under Annex C1(aa), reducing a worker’s salary without proper notification is a breach, even if the shortfall is temporary. And the numbers back this up: 37% of sponsor license revocations in the care sector are linked to salary discrepancies.
It’s not just about wages, either. Job descriptions that don’t match, missed reporting deadlines, and incomplete right-to-work checks can all lead to penalties. The bottom line? These small mistakes add up, and the Home Office isn’t forgiving.
Let’s be honest: the consequences of non-compliance are harsh. Here’s what’s at stake:
The good news? Staying compliant doesn’t have to be stressful. Here’s what you can do:
Our Compliance Audit Service helps you identify and fix potential breaches before they escalate. From payroll reviews to preparing your team for audits, we’ve got you covered.
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