When you need to report on the Sponsor Management System

If a sponsored worker leaves your business, this directly affects your sponsor licence duties, including the need to report certain situation and changes.

This may include situations such as:

  • Resignation
  • Dismissal
  • Redundancy
  • The end of a fixed-term contract
  • Any other situation where sponsorship ends

If you cease sponsoring a worker, you must report this to the Home Office within 10 working days using the Sponsor Management System (SMS). The key point is whether the sponsorship is ending earlier than stated on the Certificate of Sponsorship not the reason behind it.

Failure to report on time can lead to compliance action, including potential sponsor licence revocation. 

When sponsorship ends

Sponsorship will usually end when:

  • The worker has resigned or been dismissed
  • The role has ended and the worker has been made redundant
  • The worker decides not to take up the post, or you withdraw the job offer
  • The worker no longer requires sponsorship (for example, they have been granted settlement or another visa).

However, if the worker is ending their role to move into a new role within the business, you must assess whether a change of employment application is required before they can start the new role. If the role is being restructured or amended, you must assess whether this is a reportable change or if a new application will be needed.

Reporting the change

If sponsorship has ended, employers must:

  • Report the change via the Sponsor Management System (SMS)
  • Do so within 10 working days
  • Include the relevant date and clear details of what has happened.

This requirement applies whenever you stop sponsoring a worker, regardless of the reason. 

How to report using the Sponsor Management System

To report a worker leaving in practice:

  • Use the Report migrant activity function in the SMS
  • Select the correct worker and Certificate of Sponsorship
  • Enter the worker’s final working date
  • Provide clear details explaining why sponsorship has ended.

This function is used to notify the Home Office of changes to a worker’s status, including where you are no longer sponsoring them. You can use the report migrant activity function in the Sponsor Management System. The information submitted should be clear and consistent with your internal records.

What records should be kept

Employers should keep clear and accessible records, including:

  • The worker’s final working date
  • The reason for leaving
  • Copies of relevant HR correspondence
  • Up-to-date contact details already held on file
  • Evidence of right to work checks and sponsorship records.

Sponsors are expected to maintain robust HR systems that track worker status and attendance. 

Practical example

A sponsored worker under the Skilled Worker route submits their resignation. Their final working day is 18 May 2026.

Employers should:

  • Confirm the final working date
  • Confirm that sponsorship is ending
  • Report the end of sponsorship in the SMS within 10 working days
  • Keep a clear record of the resignation and final working day.

The key compliance point is simple: once sponsorship ends, the Home Office must be notified within the required timeframe. 

Common mistakes to avoid

  • Delaying reporting beyond 10 working days
  • Assuming resignation does not need to be reported
  • Forgetting to report the end of a fixed-term contract
  • Keeping incomplete or unclear HR records
  • Failing to use the SMS to notify the Home Office.

These issues can lead to compliance concerns and may affect your sponsor licence. 

Key points to remember

  • You must report when sponsorship ends
  • The deadline is 10 working days
  • Reporting must be done via the Sponsor Management System
  • Accurate and accessible record-keeping is essential
  • Failing to report can lead to compliance action

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