An audit of a recognised sponsor is a verification by the IND in which it investigates whether your organisation still meets all the requirements for recognised sponsorship. The IND checks your administration, compliance with obligations, and the reliability of directors. Even the financial situation of the company can be reassessed. This process can lead to warnings, conditions, suspension, or withdrawal of your status as a recognised sponsor, depending on the findings.
What does an audit of a recognised sponsor entail exactly?
An IND audit of a recognised sponsor is a comprehensive verification in which the IND investigates whether your organisation still meets all the conditions for recognised sponsorship. The audit usually focuses on a check of the foreign employees. The audit may also focus on continuity, solvency, reliability, and compliance with administrative obligations.
During the audit process, the IND examines various aspects of your organisation. They check whether you are still registered with the Chamber of Commerce, whether there are no arrears in social contributions and payroll taxes, and whether the directors are still reliable. It is also investigated whether your organisation has received any fiscal penalty assessments or fines for violations of employment law legislation in the past period.
The process usually takes several weeks to months, depending on the complexity of your situation. The IND may request additional documents during the audit and may visit your company. You will be given the opportunity to clarify or supplement any shortcomings.
When does the IND conduct an audit of recognised sponsorship?
The IND carries out audits of recognised sponsors at various moments: periodic audits, audits prompted by signals or complaints, and random spot checks. An audit may also take place when changes occur within your organisation.
Periodic audits take place every three to five years, during which the IND systematically audits recognised sponsors. These audits are part of regular supervision to ensure that all recognised sponsors continue to meet the set requirements.
In addition, the IND can initiate an audit based on signals. This happens, for example, when complaints are received about a recognised sponsor, when problems arise with submitted applications, or when the IND receives other signals indicating possible issues with compliance with conditions.
In the case of significant changes in your organisation, such as mergers, acquisitions, changes in the shareholder structure, or changes in management, the IND may decide to conduct a compliance check. Finally, the IND carries out random spot checks as part of general supervision of recognised sponsors.
Which documents and administration are checked for a recognised sponsor?
During a sponsorship verification, the IND checks an extensive list of documents: Chamber of Commerce extract, tax returns, annual accounts, payroll records, personnel files of international employees, and all correspondence with the IND. Contracts and employment agreements are also checked.
Financial documents form an important part of the audit. These include annual accounts from the past three years, tax returns, VAT returns, and any auditor’s statements. The IND uses these to assess the continuity and solvency of your organisation.
Personnel-related documents are equally important. These concern employment contracts of international employees, pay slips, payroll records, and documentation on employment conditions. Any changes in employment relationships are also checked.
Administrative obligations that are checked include all notifications you have made to the IND, such as changes in the organisation, termination of employment of international employees, and other relevant developments. The IND checks whether these notifications were made in a timely and correct manner in accordance with the set deadlines.
What happens if a recognised sponsor does not meet the requirements?
When a recognised sponsor does not meet the requirements, the IND can take various measures: issue a warning, impose conditions, temporarily suspend the recognised sponsor status, or permanently withdraw it. The measure depends on the severity and nature of the violations.
For minor violations or administrative shortcomings, the IND usually first issues a warning. You are then given the opportunity to resolve the issues within a set period. This may, for example, involve updating your administration or making mandatory notifications that were not yet submitted.
For more serious issues, the IND may attach conditions to your recognised sponsorship. These conditions may, for example, relate to additional reporting, improving administrative processes, or demonstrating improved financial stability within a certain period.
In the case of serious violations, such as no longer meeting financial requirements, reliability issues with directors, or repeated breaches of obligations, the IND may decide to suspend or withdraw the status. A suspension means that you temporarily cannot submit new applications. Upon withdrawal, you permanently lose your status as a recognised sponsor, although you can lodge an objection and appeal against this decision.
It is important to know that the IND can also withdraw the recognised sponsorship when the highly skilled migrant scheme has not been used for three years and no highly skilled migrants are employed any longer.
Thorough preparation for IND audits and keeping your compliance process up to date helps to minimise risks. At Eastwing, we support companies with compliance audits and immigration advice to ensure that your recognised sponsorship is maintained and your organisation can make optimal use of international talent mobility. For more information about our services, you can contact us.
