Sponsor Licence Revocation in the UK: A Complete Guide for Employers

A sponsor licence is key to recruiting top talent from across the world for firms in the competitive UK job market. However, the tasks associated with this are not small. Failure to follow the Home Office's strict rulebook can spell disaster, meaning the loss of a sponsor licence, which in turn can destroy business. This guide elaborates on the intricacies of sponsor licence revocation, thereby providing employers with a clear understanding of the process, its implications, and ways to avoid it.

How to Deal with Sponsor Licence Revocation

A sponsor licence revocation, when this happens, the Home Office permanently removes all authority of a sponsoring organisation over foreign workers. This is mainly done when there is non-compliance with the prescribed duties of sponsorship on the part of the employer and/or a breach of immigration laws and regulations. There are immediate significant consequences, namely, inability to sponsor new migrant workers, likely curtailment of existing visas of sponsored employees, and irreparable reputational damage.

Common Revocation Grounds

The Home Office can cancel a sponsor licence on several grounds, which are divided into two categories: mandatory and discretionary.

Mandatory Grounds

Making False Representations: In other words, presenting false information when applying for a UK sponsor licence is very grave. The fact that an applicant makes such misrepresentations vitiates the integrity of the immigration process, and their sponsor licence automatically stands revoked.

Non-Compliance with Sponsorship Obligations: Failure to adhere to significant sponsorship obligations, such as failing to perform right-to-work checks or reporting significant changes in a sponsored worker's employment status, is grounds for sponsor licence revocation.

Discretionary Grounds

Failure to Respond to Suspension Notices: Failure to adequately respond within the time period prescribed to concerns identified in a suspension notice triggers revocation.

Changes in Business Circumstances: If changes such as mergers, acquisitions, or insolvencies are not properly notified to the Home Office, revocation might occur.

Impact on Sponsored Employees

If the sponsor licence is revoked, the implications for sponsored employees are immediate. Their current sponsor's CoS will be cancelled, and their visas are usually restricted to 60 days. Then, employees should look for another sponsor, apply for a different type of visa, or leave the UK during the allowed period before overstaying their visa and facing legal action.

Preventative Measures for Employers

Employers should put in place stringent compliance measures to avoid sponsor licence revocation:

Keep Accurate Records: All records about sponsored employees must be kept up to date and accurately represent their employment status, contact information, and visa details.

Prompt Reporting: Use the Sponsor Management System (SMS) to notify immediately of any significant changes in job responsibilities, salary, or employment status.

Periodic Compliance Audits: Internal audits will be conducted from time to time to detect potential compliance issues that will be rectified before becoming an issue.

Training for Key Personnel: All employees handling sponsorship activities should be adequately trained to understand the compliance requirements.

This video provides five tips on preparing and dealing with a Home Office compliance visit.

Response to Suspension Notice

When the Home Office has identified a failure to comply, it will often serve a suspension notice stating what the problems are. The response from the employer should be done promptly by:

• Conducting an internal review to assess the concerns' validity and identify any underlying issues.

• Implement corrective measures to resolve specific issues the suspension notice addresses and generally implement corrective measures towards overall compliance.

• Communicate with the Home Office by writing a detailed letter to outline the actions to correct the problems and avoid such incidents in the future.

Reapplying After Revocation

Employers should expect a cool-off period preceding the reapplying process in cases where a sponsor licence has been revoked. Any subsequent application for a UK sponsor licence under such circumstances should address quite clearly the original reasons for its revocation while demonstrating significant changes in compliance procedure.

Get Professional Immigration Support

Navigating the complex issues of compliance with a sponsor licence should be critical to UK employers who benefit from global talent. The grounds for sponsor licence revocation means that proactively implementing mitigating measures will ensure your organisation's ability to sponsor foreign workers. In the event that you are faced with the actual sponsor licence revocation, expert legal guidance offered at A Y & J Solicitors will let you navigate this complex situation. We will ensure your business remains compliant with Home Office regulations.