IT Companies – Third Party Contracts and Tier 2 Sponsorships
There is a great deal of confusion about third party contracts and Tier 2 sponsorships. It appears that smaller companies and IT specialists are being targeted, and even having their Tier 2 sponsorship licenses revoked when they are engaged in third party contracts.
According to the guidelines, Tier 2 sponsors are able to contract foreign workers for third party work, as long as specific criteria mentioned in Paragraph 5.7 and 39.46 of the sponsorship guidance are followed. Unfortunately, employers end up losing their Tier 2 sponsorship licenses, it being alleged that they are working as an employment agency supplying labour.
It is unclear why the Sponsorship Compliance Unit is revoking these licenses. The strict guidelines may be impacting the level of revoked licenses, or it may be that Tier 2 sponsors are not practicing due diligence in keeping current, adequate documentation. It is best practice to consult with legal experts when undertaking this type of contract, to ensure that the Tier 2 license will be protected.
Initially, the sponsor must ensure that all documentation pertaining to the initial sponsorship application and license are available and are in full compliance. The Codes of Practice and Standard Occupational Classification (SOC) Codes are readily available online for review. Be sure to use the sponsorship management system (SMS) to keep your entire reporting up to date monthly.
In the event that you establish a third party contract(s), the guidelines state that you must be fully in charge of all aspects of the migrant’s work. You still hold the contract for the work, and the services provided are on your behalf. There must be a firm end date to this contract which is followed by all parties.
You are entitled to have your workers contract to a third party, but you must follow the specified guidelines, and have sufficient documentation to prove that you are in compliance at all times. These documents must show that the contract for the work is held by you, that you are responsible for the services provided, you are following and enforcing the work being done, and the contract will end at an agreed-upon day.
If you are unsure about your documentation, or the procedures you need to follow while employing Tier 2 Migrant on a contract for clienteles OR If your Tier 2 Sponsor Licence has been affected by suspension or revocation, the highly specialised team at YDVISAS is always on hand to talk about your particular set of circumstances and recommend a way forward. Give us a call today.