Sponsor licence compliance
A UK sponsor licence revocation can stop an organisation from sponsoring workers and put sponsored employees’ immigration permission at risk. Understanding the process, the likely consequences and the steps to take quickly can help employers and workers respond in an informed way.
What does sponsor licence revocation mean?
Revocation is the Home Office’s decision to withdraw an organisation’s Worker or Temporary Worker sponsor licence. The Home Office will notify the organisation in writing. Once revoked, the organisation cannot assign new Certificates of Sponsorship (CoS), and its details are removed from the public register of sponsors. Assigned CoS become invalid. The Home Office will normally cancel sponsored workers’ permission, subject to the individual circumstances set out in its guidance.
Revocation is different from suspension. A suspension is usually a temporary step while the Home Office investigates concerns. During suspension, the sponsor cannot assign CoS, but existing workers with valid permission are generally not affected unless the licence is later revoked.
Why might the Home Office revoke a licence?
The reasons vary. They can include a sponsor ceasing to trade, no longer meeting route requirements, serious or repeated failures to meet sponsor duties, relevant criminal offences or civil penalties, or conduct that raises concerns about immigration control. Examples of compliance issues may include inadequate records, failures to report changes, not carrying out required right to work checks, or a sponsored role that does not match the job described on the CoS.
The Home Office guidance distinguishes between circumstances where it will revoke a licence, where it will normally revoke unless exceptional circumstances apply, and circumstances where it may revoke depending on the facts. It can suspend a licence while it investigates, and some serious cases may lead to revocation without a prior suspension. The decision depends on the applicable rules and the evidence in the case.
What happens to sponsored workers?
Workers already in the UK whose sponsor loses its licence will generally have their CoS cancelled and their permission limited to 60 days, or the time remaining on their permission if that is shorter. They may need to leave their job and the UK unless they make a valid application to stay on another basis within the relevant period. Different outcomes can apply depending on the worker’s circumstances, and a worker who was knowingly involved in the reasons for revocation may face different consequences.
For workers outside the UK, a pending visa application based on the sponsor’s CoS will be refused. If entry clearance has already been granted but the worker has not travelled, it will be cancelled. Workers should check their own position promptly and get regulated immigration advice where needed.
What should an employer do?
- Read the decision carefully. Note the reasons, effective date, affected routes and any instructions or deadlines.
- Preserve records. Keep the decision letter, SMS messages, HR and right to work records, payroll information, recruitment documents and relevant correspondence.
- Identify affected workers. Establish who may be affected and communicate promptly, taking care not to give individual immigration advice unless qualified to do so.
- Review the stated concerns. Compare them with the sponsor guidance, the organisation’s records and the facts. Record what can be evidenced and what needs correcting.
- Get specialist advice promptly. The guidance states there is no right of appeal against a sponsor licence revocation decision. A solicitor or other appropriately regulated adviser can assess the decision and explain any available options and time limits.
Can an organisation apply again?
In general, an organisation cannot apply for a new sponsor licence until at least 12 months after revocation. The cooling-off period may be longer in some cases, including certain civil penalty or criminal offence cases and repeat revocations. A future application must address the reasons for the earlier revocation and meet the requirements in force at that time. Reapplying is not automatic approval.
How to reduce the risk
Employers can reduce compliance risk by keeping sponsor records current, reporting relevant changes through the Sponsorship Management System (SMS) within the required time, tracking sponsored workers’ attendance and employment, maintaining right to work checks, and making sure key personnel understand their responsibilities. Regular internal reviews can help identify gaps before they become serious.
Every case turns on its own facts. This article is general information, not legal advice, and immigration rules and guidance can change. Check the latest official guidance and seek advice for your circumstances.