Reporting Duties in SMS: Job, Salary, Location & Leaver Events

Reporting Duties in SMS: Job, Salary, Location & Leaver Events

ByBernard Andonian

When you hold a UK sponsor licence, your reporting duties under the Sponsorship Management System (SMS) are mandatory. Every licensed employer must use the SMS to notify the Home Office of changes to sponsored workers’ employment, salary, work location, and departure.

Failure to report accurately and on time is one of the most common reasons the Home Office downgrades, suspends, or revokes a sponsor licence. Understanding exactly what must be reported and when is therefore critical to staying compliant.

Key Takeaways

  • Sponsors must report all changes in job, salary, work location, and employment status within 10 working days.
  • Accurate and timely reporting protects your sponsor licence and ensures full compliance with immigration law.
  • Use the SMS to report changes clearly and retain records for internal audits.
  • Appoint responsible personnel and maintain strict internal communication channels to avoid missed updates.

What Are SMS Reporting Duties?

The Sponsorship Management System (SMS) is the Home Office’s online portal used by employers and education providers to manage their sponsor licence. One of its primary functions is to enable reporting of key events concerning sponsored workers or students.

Sponsors are required to report changes within 10 working days of the event occurring. The responsibility for ensuring these reports are submitted correctly lies with the Authorising Officer and the Level 1 Users managing the SMS.

Why Accurate Reporting Matters

The Home Office expects sponsors to demonstrate transparency and control over their sponsored workforce. Missing or incorrect reports can have serious consequences:

  • Licence downgrading or suspension: failing to meet reporting deadlines or providing inaccurate data can trigger compliance action.
  • Civil penalties: sponsors may face fines or sanctions for non-compliance.
  • Future visa refusals: reporting failures can affect future applications for both the organisation and sponsored workers.

What Must Be Reported: The Key Event Categories

1. Job Details and Role Changes

Any change to a sponsored worker’s job must be reported through SMS. This includes:

  • A change in job title or job description.
  • A move to a different occupation code (SOC code).
  • Substantial changes in job duties that could affect the skill level or eligibility under the same visa route.
  • Changes in working hours that affect salary or visa conditions.

2. Salary Changes

The Home Office closely monitors salaries to ensure workers are paid at or above the minimum rate for their visa category. Sponsors must report:

  • Permanent salary increases or decreases.
  • Temporary reductions due to circumstances like unpaid leave, parental leave, or part-time adjustments.
  • Changes to bonuses or allowances if they affect total pay.

Do not report normal annual pay rises in line with inflation unless the increase changes the worker’s visa conditions.

3. Work Location Updates

Work location is a frequent compliance failure area. Sponsors must report:

  • Changes to the sponsored worker’s main work address.
  • Remote or hybrid working arrangements that differ from the original CoS details.
  • If the worker starts working regularly at another client site, branch, or affiliate office.

The report should specify the full address and clarify whether it’s a permanent or temporary change.

4. Leaver Events

Sponsors must report when a sponsored worker leaves the organisation. This includes:

  • The employee’s last working day.
  • Whether the departure was voluntary (resignation) or involuntary (dismissal).
  • If employment was terminated early or the worker switched to a different employer.
  • Any misconduct, compliance breach, or breach of visa conditions discovered upon exit.

Failing to report leaver events promptly can cause issues if the worker remains in the UK illegally or moves to another employer.

Additional Reportable Events

While job, salary, location, and leaver events are the most common, sponsors must also report:

  • Significant changes to business structure, such as mergers or takeovers.
  • Changes to key personnel, including Authorising Officer, Key Contact, or Level 1 User.
  • Changes to the organisation’s address or trading name.
  • Instances where the sponsored worker does not start their role as planned, or fails to attend work for 10 consecutive days without explanation.

Consequences of Failing to Report

Neglecting your SMS reporting duties can lead to:

  • Licence suspension or revocation, especially if non-compliance is repeated.
  • Downgrading from an A-rating to a B-rating, requiring an action plan to restore compliance.
  • Ineligibility to sponsor new workers until the issue is resolved.
  • Reputational damage and increased Home Office scrutiny during renewals.

Need Help Managing Your Sponsor Licence Reporting Duties?

At Sponsor Licence Lawyers, we assist UK employers with all aspects of sponsor compliance, from day-to-day SMS management to complex Home Office audits. Our immigration lawyers can help you structure your internal systems, train your HR staff, and ensure every report meets Home Office standards. Contact us today to protect your sponsor licence and stay fully compliant.

You Ask, We Answer

FAQs

Sponsors must report any relevant changes within 10 working days of the event occurring. This includes updates to a worker’s job title, salary, work location, or if they leave the organisation. Missing this deadline can result in compliance action or licence downgrading.

Only authorised users can submit reports through the SMS. This includes the Authorising Officer and Level 1 Users. They are responsible for ensuring all sponsor activities are accurately reported and recorded. 

Any change that affects a worker’s duties, occupation code, or skill level must be reported. For example: a promotion that changes their role classification, a transfer to a new department, or a substantial shift in job responsibilities. If the change places them in a new Standard Occupational Classification (SOC) code, a new Certificate of Sponsorship may be required.

If a sponsored worker starts working from home or another location regularly, this must be reported. The SMS report should clearly state the worker’s new main address, confirm whether the change is temporary or permanent, and outline the pattern of work (for example, hybrid 3 days in office, 2 remote).

You must report the last day of employment and the reason for leaving, whether it was resignation, dismissal, or early termination. This ensures the Home Office can update its records and prevent immigration breaches, such as a former worker remaining in the UK unlawfully.

Failure to meet reporting obligations can lead to:
Downgrading from an A-rating to a B-rating.
Temporary suspension or full revocation of the sponsor licence.
Inability to sponsor new workers until compliance is restored.
Reputational damage and potential investigation by the Home Office.

You can delegate SMS access to Level 1 or Level 2 Users within your organisation or to a registered legal representative. However, the Authorising Officer remains legally responsible for ensuring all reports are correct and timely, even if duties are delegated.

Keep a detailed internal log and evidence for each report, including payslips, updated contracts, resignation letters, or location confirmations. These records must be available for inspection during a Home Office compliance visit.

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Disclaimer

Our articles serve as general guidance and should not be considered legal advice. We do not accept liability for any consequences resulting from reliance on the information provided in our written materials. All readers should seek professional counsel before making any decisions or taking action based on our articles. If you require further assistance, please don’t hesitate to contact us directly for consultation with a qualified professional.

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