A small UK care organisation has lost its Home Office #sponsorship licence following serious compliance failures linked to payroll and employment record-keeping, according to an account shared by a migration compliance adviser on social media.

The Home Office had requested routine compliance documents from the organisation, including staff contracts, payslips and Real Time Information (RTI) submissions.

However, when the documents were reviewed, it emerged that domiciliary care workers had not been paid the correct hourly rates over an extended period.

The business owner had delegated responsibility for payroll and employment contracts entirely to an external accountant.

According to the account, the payslips issued to staff did not clearly state hours worked or hourly rates, showing only final net pay. This practice, described as a serious breach of payroll standards, meant underpayments went undetected for a prolonged period.

By the time an independent audit was conducted and a formal response prepared for the Home Office, the scale of the non-compliance had already exceeded acceptable thresholds.

The organisation reportedly acknowledged the errors and instructed the accountant to review outstanding payroll backlogs and calculate what was owed to affected staff, while also requesting an opportunity to submit a corrective action plan.

Despite this, the #HomeOffice proceeded with enforcement action. In its response, officials reportedly highlighted the pressures faced by migrant workers in the UK, particularly amid the cost-of-living crisis, and stated that failure to pay correct wages was unacceptable. The tone of the correspondence suggested a broader concern for the welfare of sponsored workers who often have limited financial safety nets.

Further inquiries by the business owner later indicated that the same accountant had been providing payroll services to at least two other care providers, who have also reportedly lost their sponsorship licences following similar compliance issues.

Both the employer and the accountant involved are Nigerian British citizens. However, the workers affected are migrant carers without settled status and no access to public funds. The loss of sponsorship places their right to remain and work in the UK at risk, despite having no direct role in the compliance failures.

The case has reignited debate within diaspora communities about the risks of prioritising personal or national ties over professional competence.

Compliance specialists continue to warn that sponsorship duties are non-delegable, meaning employers remain legally responsible for payroll accuracy, wage compliance and record-keeping, even when third parties are engaged.

For sponsored workers, advisers stress the importance of regularly reviewing payslips, contracts and hours worked, and raising concerns early where discrepancies appear.

For employers, the case serves as a reminder that failure to meet sponsorship obligations can have irreversible consequences, not only for businesses but also for the migrant workers who depend on them.

Adaptes from Stifler on X