Sponsor License Suspension/Revocation

Sponsor License Suspension/Revocation

In the UK, businesses that wish to employ non-EU (and some non-UK) nationals must hold a Sponsor License. This license is issued by the Home Office and allows employers to sponsor employees for various types of visas, including the Skilled Worker visa.
Suspension of a Sponsor License occurs when the Home Office temporarily halts the ability of a business to issue Certificates of Sponsorship (CoS). This is often a precursor to potential revocation and allows time for investigations into compliance issues.

Reasons for Suspension

A sponsor license may be suspended for several reasons, including but not limited to:

⦁ Non-compliance with Sponsorship Duties: Failure to adhere to the responsibilities outlined in the sponsorship guidelines.
⦁ Failure to Maintain Accurate Records: Inadequate record-keeping of sponsored employees.
⦁ Misrepresentation or Fraud: Providing false information or engaging in fraudulent activities.
⦁ Inadequate HR Systems: Lack of appropriate systems for monitoring and reporting on sponsored workers.
Implications of Suspension

During suspension:

⦁ Issuing Certificates of Sponsorship: The business cannot issue new Certificates of Sponsorship.
⦁ Ongoing Compliance: Existing sponsored employees can continue to work under their current visa, but the employer must address the issues raised by the Home Office.
How to Address Suspension

To address a suspension, businesses should:

⦁ Review and Rectify: Investigate the reasons for suspension and take corrective action.
⦁ Engage with the Home Office: Communicate with the Home Office to understand the issues and demonstrate the steps taken to resolve them.
⦁ Seek Legal Advice: Consult with immigration experts to navigate the process effectively.
Revocation of a Sponsor License

 

Reasons for Revocation

⦁ Serious Breaches of Sponsorship Duties: Significant or repeated non-compliance with sponsorship requirements.
⦁ Fraudulent Activities: Engagement in significant fraudulent practices.
⦁ Failure to Address Suspension: Failure to resolve issues leading to suspension within the given timeframe.
Consequences of Revocation

If a sponsor license is revoked:

⦁ Immediate Impact: The business loses the ability to issue Certificates of Sponsorship immediately.
⦁ Existing Employees: Sponsored employees may need to find new sponsors or leave the country, depending on their visa conditions.
⦁ Reputational Damage: The business may suffer reputational damage, impacting its ability to recruit skilled international talent in the future.
Steps Following Revocation

To manage the impact of revocation:

⦁ Review: Assess the reasons for revocation and understand what went wrong.
⦁ Legal Appeal: Consider appealing the decision if appropriate and feasible.
⦁ Compliance Improvement: Take steps to rectify issues and strengthen internal processes.
⦁ Consultation: Engage with legal experts to explore options for reapplying or improving compliance.