Understanding the Right to Work and Employer Responsibilities
In the UK, employers are required to check that all employees have the legal right to work before employment begins. This includes checking the status of both non-settled employees and those on sponsored visas. Employers must use the Share Code Check and verify the documents or provide confirmation through the Sponsor Management System (SMS) for sponsored employees. With changes in UK immigration law and digital transitions, it's essential that employers stay updated on sponsorship obligations and responsibilities.
Employers are also be responsible for sponsorship duties and compliance for employees on sponsored visas, such as the skilled worker visa, temporary worker, or student visa. This includes ensuring the proper documents are in place, and that the right to work check is conducted correctly.
Read a more detailed guide on right to work checks in 2025 in our blog.
Non-settled and Sponsored Employees: Who Are They
In some cases that are detailed below ongoing monitoring and compliance procedures are required to prevent illegal working, and it is a direct responsibility of all UK employers to set up an efficient internal process and follow it through to stay compliant with regulations. If you employ British citizens or settled workers* then no further checks are required other than the right to work check. Additional compliance procedures must be set up for the following categories of employees that need certain permissions to legally work in the UK:
- Non-settled employee: A person, who holds any of the following types of UK visas – spouse, student, global talent, ancestry, PBS dependant, start-up visas or EU pre-settled scheme status – that allows them to legally work in the UK. Their immigration status doesn’t depend on their employer.
- Sponsored employee: A worker, who is directly sponsored by the employer via a skilled or temporary worker visa route, their right to work in the UK is entirely dependent on the employer sponsoring their visa.
*Note: Settled worker can work in the UK without restrictions and is any one of the following:
- A British citizen
- A person who has indefinite leave to enter or remain (settlement) in the UK
- An Irish citizen (with limited exceptions)
- A person who has been granted leave to remain (pre-settled status) or indefinite leave to remain (settled status) under Appendix EU to the Immigration Rules
- A British overseas territories citizen, except for those from sovereign base areas in Cyprus
- A Commonwealth citizen (including a citizen of Zimbabwe) who has been granted permission on the UK Ancestry route on the basis they have a grandparent born in the UK and Islands
- A Commonwealth citizen (including a citizen of Zimbabwe) with the right of abode in the UK
Right to Work Checks: A Key Responsibility
Employers must ensure they check an employee’s right to work before employment starts. This includes verifying the legal right to work via document checks or by using the Share Code for digital status verification. Employers should know how to check right to work in the UK and maintain proper documentation to avoid penalties.
Right to Work Checks for Non-settled employees
If you employ any non-settled employees, the employer’s duties are as follows:
- Check their right to work using the right to work check employer process
This is essential to ensure they are legally allowed to work in the UK. You should check someone's right to work using the share code check or by manually reviewing their documents.
- Keep records of the visa expiration date
It will be illegal to employ them beyond that date unless their visa is extended or renewed. This is critical for staying compliant with the Sponsor Licence and Home Office rules.
- Conduct follow-up checks close to the visa expiry date to ensure compliance with the latest regulations
If necessary, confirm that the employee has either extended their visa or is in the process of doing so. If you are planning to apply for a sponsor licence for them, ensure the right documentation is in place.
Since non-settled employees are not directly sponsored by the company, the employer doesn't have to report any changes in these employees' circumstances (such as changes in salary, working hours, role or duties, promotions) to the Home Office via the Sponsor Management System (SMS). However, if they transition to a skilled worker visa UK, then the employer must begin fulfilling their responsibilities for reporting under the Sponsor Licence. Employers must understand how to comply with the Sponsor Licence guidance to remain in good standing.
Right to Work Checks for Sponsored employees
When the company sponsors employees with work visas, there are certain Home Office conditions that must be met for the company to continue with the sponsorship. These include reporting on salary, duties, role, and working hours as part of the company’s sponsorship duties and compliance.
Moreover, all changes in employment, such as working and home addresses, salary/wages, absences, and any other migrant activities, must be reported to the Home Office via SMS within a specific timeline (typically 10 or 20 days). The Sponsor Management System is used to track and update the details of any sponsored employee.
Failure to act in compliance with the Home Office rules can lead to financial penalties, suspension or revocation of the sponsor licence, and subsequent loss of the legal right to work in the UK for all sponsored employees. This could also impact the employer’s ability to continue sponsoring skilled workers and may result in the company being added to the revoked sponsor licence list.
Employers can avoid these issues by staying up to date on sponsorship duties and compliance, ensuring that their internal processes are aligned with Home Office requirements. Regular sponsor licence reviews and audits are essential to maintaining compliance.
Read a more detailed guide on right to work checks in 2025 in our blog.
Table: Compliance responsibilities for non-settled vs sponsored employees
Consequences of Non-Compliance: Suspension and Revocation
Failure to adhere to sponsor duties can result in a suspended sponsor licence or even a revoked sponsor licence. It's important for employers to maintain accurate records and comply with all Sponsor licence requirements. Non-compliance could lead to being placed on the revoked sponsor licence list, which could severely hinder future hiring and recruitment efforts. Read more about compliance management in our blog.
How Nation.better Can Ensure Your Sponsorship Compliance
Maintaining compliance with UK sponsorship duties is a critical yet complex task for businesses employing international talent. The consequences of failing to meet these responsibilities can be severe, from penalties to the loss of your sponsor licence.
With Nation.better’s sponsorship compliance services, our team of immigration specialists ensures you meet all your obligations seamlessly. From record-keeping to audits, we handle the details, so you can focus on growing your business.
If you need support with compliance, fill in this form, and our team will provide a tailored solution on how we can help safeguard your sponsorship status.