Secondments and Third-Party Working Arrangements for Sponsored Workers: What Sponsors Need to Know

Whilst certain third-party assignments can be permitted, sponsors must ensure that any arrangement complies with the relevant sponsorship requirements before the arrangement begins.

The key consideration is whether the sponsor retains full responsibility for the duties, functions and outcomes or outputs of the worker’s role, or whether the arrangement effectively involves supplying labour to a third party.

Under the Home Office’s current sponsor guidance, a sponsor may employ a sponsored worker to fulfil a contractual obligation to a third party, provided the arrangement meets the relevant requirements.

The worker must be undertaking a defined service or project for the third party within an agreed timeframe and with a clear contractual end date. Once the project is completed, or the service is no longer operated by the sponsor or any other party, the assignment must come to an end.

Crucially, the worker must remain an employee of the sponsor at all times, and the sponsor must retain full responsibility for the duties, functions and outcomes or outputs of the worker’s role. The sponsored position must also be a genuine vacancy within the sponsor’s own business, rather than a role within the third-party organisation.

The existence of a contract between the sponsor and the third party does not, on its own, establish that the arrangement is permissible. The specific nature of the work and the responsibilities of the parties must be considered.

The sponsor guidance identifies three key circumstances in which sponsorship is not permitted for this type of arrangement:

• •Lack of responsibility: the sponsor does not have full responsibility for the duties, functions and outcomes or outputs of the worker’s role.
• •Filling a third-party position: the worker is being supplied to fill a temporary or permanent position within the third-party organisation, regardless of whether a genuine contract exists between the parties.
• •Ongoing routine work: the worker is undertaking an ongoing, routine role or providing an ongoing, routine service for the third party, regardless of the nature or length of the arrangement.

These restrictions mean that simply describing an arrangement as a secondment, consultancy, or service contract will not make it permissible if the underlying working arrangements fall within one of the prohibited circumstances.

For example, an arrangement may raise concerns where a sponsor supplies a worker to perform a role within a client’s business, where the client determines the work to be undertaken and the sponsor does not retain full responsibility for the role’s duties and outputs. Similarly, an assignment cannot simply continue indefinitely as an ongoing routine service for a third party.

Sponsors should therefore assess the substance of the arrangement, rather than relying on its contractual label.

Sponsors should ensure that their contractual arrangements with third parties clearly establish the nature and scope of the services, the expected outputs and the duration of the project or assignment. The arrangements should also support the sponsor’s ability to demonstrate that it retains the required responsibility for the worker’s role.

In practice, sponsors should consider who determines the worker’s duties, who is responsible for managing and overseeing the work, and whether the assignment relates to a specific, time-limited project or service rather than filling a position or providing an ongoing routine service.

The Home Office may seek confirmation from the third party about the working arrangements, including whether the worker operates independently of the third party and remains under the sponsor’s control.

Sponsors must also consider whether changes to a worker’s duties, location or working arrangements affect their sponsorship obligations. Any applicable reporting requirements should be assessed before changes are implemented, and sponsors should ensure that the actual role remains consistent with the sponsorship arrangements.

Failure to comply with the third-party working restrictions can have serious consequences for both the worker and the sponsor.

A request for a Defined Certificate of Sponsorship may be refused where the proposed role involves an arrangement that is not permitted. Even if a Certificate of Sponsorship has been issued, the worker’s Skilled Worker application may still be refused if the Home Office determines that the arrangement does not meet the requirements.

There may also be consequences for the sponsor’s licence. Where the Home Office identifies that a sponsor is supplying workers as labour to undertake routine roles for third parties or does not retain the required responsibility for their work, the sponsor risks enforcement action against its licence, including suspension, downgrading from an A-rating to a B-rating, or revocation. These measures can all have serious implications for the sponsor’s ability to sponsor and employ migrant workers.

It is therefore important to assess the proposed arrangement before it begins, rather than waiting for the Home Office to identify potential compliance issues during a compliance visit.

Secondments can be permissible for sponsored workers, but only where the relevant sponsorship requirements are satisfied. The sponsor must retain full responsibility for the worker’s duties, functions and outcomes or outputs, and the assignment must not involve filling a third-party position or undertaking an ongoing routine role or service.

Clear contractual arrangements, careful assessment of the proposed work and appropriate ongoing oversight are essential to help sponsors meet their obligations and avoid putting their sponsor licence or a worker’s immigration application at risk.

At Ashlings Legal, we advise employers on the sponsorship implications of secondments and other third-party working arrangements involving sponsored workers.

We can assess whether a proposed arrangement complies with Home Office sponsorship requirements before it is implemented, helping businesses identify and mitigate any potential risks at an early stage.

Our team can review contractual arrangements, advise on the structure of secondments and third-party engagements, assess whether the sponsor will retain the required level of control and supervision, and provide practical guidance on meeting sponsor licence duties throughout the arrangement.

We also provide ongoing sponsor licence compliance support, including reviewing and strengthening internal processes, advising on reporting and record-keeping obligations, identifying and rectifying compliance concerns, and assisting businesses that are preparing for or responding to Home Office compliance activity.

For organisations that already hold a sponsor licence, we can provide ongoing sponsor licence management support, including acting as a Level 1 User, managing Sponsor Management System (SMS) reporting obligations, assisting with changes of circumstances, maintaining compliance records, and helping to ensure all sponsorship duties continue to be met. Where compliance concerns or potential breaches arise, we can advise on corrective action and support businesses in mitigating risks to their sponsor licence.

In addition, we offer end-to-end support with Skilled Worker applications, including eligibility assessments, application preparation and submission, document reviews, and ongoing immigration support for sponsored workers and their employers. Where businesses have concerns about a potential breach of sponsor duties or have identified compliance issues internally, we can provide urgent advice on rectification measures and help minimise the risk of enforcement action against the sponsor licence.

If you are considering a secondment or other third-party working arrangement involving sponsored workers, our immigration team can provide tailored advice on Home Office sponsorship requirements, sponsor licence compliance, Skilled Worker applications and ongoing immigration support for your business.