Building on Shaky Ground? Construction’s Sponsor Licence Compliance Problem
The UK construction industry has long relied on skilled international workers to fill critical labour shortages. For many firms, a sponsor licence is not just an advantage; it’s essential for delivering projects on time and on budget. However, the very nature of construction work—with its project-based employment, use of subcontractors, and mobile workforce—creates a unique and complex set of compliance challenges. Construction company sponsor licence is a prime focus for UKVI.
UK Visas and Immigration (UKVI) is acutely aware of these challenges and views the construction sector as a high-risk area for immigration non-compliance. As a result, construction firms holding sponsor licences are facing an increasing number of targeted Home Office audits. This article highlights the high-risk areas that frequently cause construction companies to fail compliance visits and risk losing their licence.
Why Construction is a UKVI Target
The structure of the construction industry creates several red flags for Home Office compliance officers:
- Complex Supply Chains: The heavy use of subcontractors and labour-hire agencies can obscure who is ultimately responsible for a worker’s employment and immigration compliance.
- Mobile Workforce: Workers often move between multiple sites, making it difficult to monitor their location and working hours accurately.
- Verification of Skills: It can be challenging to prove that a sponsored worker possesses the specific skills and qualifications required for a sponsored role, especially for site-based positions.
- Prevalence of Self-Employment Models: The historic use of CIS and other self-employment models can conflict with the direct employment requirements of the sponsorship system.
In construction with a sponsor licence?
The risk of non-compliance is high. Get a confidential compliance health check from our specialists.
High-Risk Compliance Areas for Construction Firms
During an audit, UKVI inspectors will focus on specific areas where construction firms are most likely to be non-compliant.
| High-Risk Area | Common Failures in Construction |
|---|---|
| 1. Labour Subcontracting & Genuineness of Employment | Sponsoring a worker and then supplying them to a third-party client site can be viewed as a breach. UKVI will want to see that you, as the sponsor, maintain full day-to-day control over the worker’s duties and that they are not, in effect, being employed by your client. |
| 2. Right to Work Checks on Multi-Site Operations | Ensuring that every worker on every site has a valid Right to Work check is a major logistical challenge. Failures often occur when site managers, under pressure to meet deadlines, allow workers to start without HR completing the necessary checks. |
| 3. Verifying Skilled Worker Qualifications | For roles like welders, carpenters, or electricians, you must be able to provide evidence that the sponsored worker holds the necessary qualifications and experience for the role. A CoS for a ‘Skilled Bricklayer’ will be questioned if the worker cannot demonstrate the required level of skill. |
| 4. Salary and Working Hours | Project-based work, overtime, and downtime between projects can lead to significant fluctuations in a worker’s pay. If a worker’s average salary, calculated over the course of a year, falls below the level stated on their CoS, this is a serious breach. |
| 5. Reporting Changes in Work Location | You have a duty to report changes to a sponsored worker’s normal work location. For a mobile workforce moving between sites, this can be a significant administrative burden, but failure to keep UKVI updated is a reportable breach. |
The Subcontracting Trap
One of the most dangerous compliance traps for construction firms is the issue of labour supply. The Home Office guidance is clear: you cannot sponsor a worker with the intention of supplying them as labour to a third party. If you sponsor a skilled worker, they must be employed and managed directly by you.
If an audit reveals that your sponsored workers are effectively being managed by your clients on-site, with your firm acting merely as a payroll provider, UKVI is highly likely to conclude that you are operating as an unlicensed gangmaster and will move to revoke your licence.
How to Strengthen Your Compliance Framework
To survive a Home Office audit, construction firms must implement exceptionally robust compliance processes.
- Centralise All Immigration Functions: Do not leave Right to Work checks or sponsorship decisions to individual site managers. All immigration compliance must be handled by a central, trained HR or legal team.
- Clear Contracts of Employment: Ensure your employment contracts for sponsored workers clearly state that they are employed and managed by you, and that you retain control over their duties, even when they are working on a client site.
- Rigorous Onboarding Process: No worker should set foot on a site until a compliant Right to Work check has been completed and verified by the central HR team.
- Maintain Detailed Project Records: For each sponsored worker, keep a clear record of which sites they have worked on and for how long. This will be essential for demonstrating compliance with work location reporting.
In Conclusion
The construction sector’s unique operational model makes it a prime target for UKVI enforcement. The risks of non-compliance are not just administrative; they are existential. By understanding the specific high-risk areas and implementing a centralised, robust compliance framework, you can protect your sponsor licence and maintain your access to the skilled international workforce your business depends on.
If your sponsor licence is at risk, speak to a compliance adviser today. Delays cost licences.
Related Articles
Author
Tochi Okoronkwo
Tochi is an OISC certified immigration adviser with expert knowledge of UK Immigration Law and a genuine desire to make your immigration journey as smooth and stress-free as possible.
Immigration Insights & News
Stay informed with Gateway Immigration Services