As a Tier 2 Sponsor Licence holder, the Home Office expects you the follow the duties they have outlined. You must keep updated records of all employees and complete the Resident Labour Market Test. You will also need to inform them of any changes to your business. If you fail to do any of these things, you may be subject to a Sponsor License suspension.
If you fail to resolve the issues identified by the Home Office’s first audit, you may have your Tier 2 Sponsor Licence revoked when they visit again. Having your Sponsor Licence revoked will mean that all migrant employees will no longer be able to work for you legally. This will also affect your chances of employing from overseas in the future and could be detrimental to your company’s reputation.