Sponsor Licence Revocations

Understanding Sponsor License Revocations

When the Home Office grants a sponsor license, it is because your business has met specific eligibility criteria and demonstrated a commitment to maintain compliance and meet ongoing requirements.

A sponsor licence revocation occurs when the UK Visas and Immigration (UKVI) determines that a sponsor has seriously failed to meet their duties or has ceased operating in the UK. If this happens, the sponsor license is revoked for all visa categories, which have immediate and severe consequences for both the organisation and its sponsored employees.

Common Reasons for Sponsor License Revocation

The Home Office guidance outlines various scenarios where a sponsor license can be revoked, categorized into three groups:

• Annex C1: Mandatory grounds for revoking your license, or receiving a sponsor licence suspension. Examples include:
  • Providing false information on your sponsor license application would have led to a refusal if the correct information was given.
  • The Home Office believes that you have artificially inflated a worker's salary to enable them to obtain indefinite leave to remain.
  • Having a relevant unspent conviction.
  • Stopping, or being found never to have had, a trading or operating presence in the UK.
  • Failing to maintain required registration, inspection, or accreditation with a regulatory or oversight body necessary for legal operation in the UK or never having been registered or accredited.
• Annex C2: Circumstances where your sponsor license will be revoked unless there are exceptions. Examples include:
  • Failing to comply with any sponsor duties or lacking necessary processes to ensure compliance.
  • Employing a worker without permission to enter or stay in the UK, or allowing a worker to breach their visa conditions when you could reasonably have been aware of the breach.
  • Giving false statements or information, or failing to provide required information to the Home Office or any other government department.
  • Asking a sponsored worker to pay some or all of the Immigration Skills Charge or attempting to recoup it from them.
  • Engaging in actions or behaviours that are not conducive to the public good.
• Annex C3: Circumstances may result in your license being revoked, depending on the severity. Examples include:
  • Receiving a civil penalty not mentioned elsewhere in the guidance deemed relevant to your ability to carry out sponsor duties or suitability to hold a sponsor license.
  • A sponsored worker not complying with their permission to stay conditions, other than employment-related ones, and not following good practice guidance.
  • Being issued a penalty for failure to pay VAT or duty within the last five years, either as an individual or an organisation you were involved with in a similar role.
  • Failing to confirm whether a worker requires an Academic Technology Approval Scheme (ATAS) certificate when assigning a Certificate of Sponsorship (CoS), or sponsoring a worker without the required ATAS certificate.

If the circumstances fall within Annex C2 or C3, the Home Office can issue a licence downgrade to a B-rating. While this avoids immediate revocation, it still has consequences for the sponsoring company.

Consequences of a Revoked Sponsor Licence

Severe Restrictions

If your license is revoked, your company immediately loses the ability to recruit, sponsor, or employ any new migrant workers and cannot apply for a new sponsor license for at least 12 months. This revocation can significantly harm your business operations, impact your reputation, and complicate future immigration processes.

Impact on Sponsored Workers

Sponsored employees will lose their permissions and must find new sponsorship or leave the UK within 60 days. This period is critical as it determines their ability to continue working and living in the UK.

In that case, they have 60 days to find alternative employment with a company willing to sponsor them or switch to another suitable visa category, depending on their individual circumstances.

Suppose the Home Office believes the employee was complicit in the reasons for revocation. In that case, their remaining permission will typically be cancelled, and they will have to leave the UK immediately or face enforced removal.

Options Available After a Sponsor Licence Revocation

A sponsor license revocation decision is final, and limited recourse is available because you cannot appeal the Home Office decision. However, depending on the circumstances, there might be merit in applying for a judicial review, which involves a court reviewing the lawfulness of the Home Office’s decision. This complex process requires expert legal advice, making judicial review a critical path for challenging the revocation.

In any case, after a revocation, employers must wait for the cooling-off period to expire, typically 12 months. During this period, addressing the causes of the revocation is advisable to put yourself in the best position for the next sponsor licence application.

How to Address a Sponsor Licence Revocation Notification

1. When a sponsor license is revoked, you will receive a letter from the Home Office outlining the reasons. There is no requirement to acknowledge receipt or respond to the Home Office. You cannot appeal the decision, as it is the final decision.
2. You should familiarise yourself with the reasons for the revocation and be aware of the immediate consequences. Ensure you understand the issues raised. The Home Office will have applied an appropriate cooling-off period before you can apply for a new sponsor license.
3. Any Certificates of Sponsorship (CoS) you have assigned will automatically become invalid, so you should inform any affected workers about this change. The Home Office will also notify all your sponsored workers about the revocation, as it will impact their immigration status, although they will not disclose the reasons why.
4. Suppose a sponsored worker who was granted permission under the Worker or Temporary Worker routes remains in the UK after their permission has expired. In that case, the Home Office will take enforcement action. This may result in the worker being detained, removed from the UK, and any application they make to return within the next 10 years being refused.
5. Address the issues that led to the sponsor license revocation as soon as possible and demonstrate that these issues have been resolved. Once your business is ready and able to meet the requirements, you can make a new application.

Prevent a Sponsor Licence Revocation

The best way to avoid revoking your sponsor licence is to ensure that you have the right systems, processes, and training to maintain compliance. This includes:

Monitoring Duties

• Implement HR systems to monitor all sponsored workers. Track their attendance and ensure compliance with visa terms. Being proactive in monitoring helps maintain compliance and prevents issues from arising.

Right to Work

• Conduct regular right-to-work checks for all employees to prevent hiring illegal workers. Retain documents proving these checks have been made. Perform checks before employment starts and annually for non-EEA employees with time-limited work permission.

Record-Keeping

• Maintain detailed records in paper or electronic format, as outlined in the Sponsor Licence Guidance Appendix D, and ensure they are available to UK Visas and Immigration (UKVI) if requested. Records should be kept for the duration of your license and documents related to sponsored workers for one year after sponsorship ends.

Key Personnel

• Appoint and maintain suitable key personnel roles, including an Authorising Officer, Key Contact, and at least one Level 1 user. You can appoint QC Immigration as the Level 1 user to maintain records on your behalf, ensuring your sponsorship duties are consistently met.

Report Changes

• Notify the Home Office of changes related to migrant workers and the organization within the required time frames. Report non-attendance, non-compliance, or disappearance of migrant workers promptly. Update the SMS with organizational changes, such as contact details or mergers.

Cooperate with the Home Office

• Promptly respond to Home Office requests for documentation or site inspections. Act honestly and with full disclosure in all dealings. Cooperation and transparency are essential for maintaining your sponsor licence.

By following best practices, you can help ensure that your sponsor licence remains in good standing, securing your ability to employ skilled workers and maintaining compliance with the UK's immigration law requirements.

Legal Assistance for Sponsor Licence Revocation

If your company's sponsor licence is revoked, the options to move forward are limited. QC Immigration can help you understand the reasons for your sponsor licence revocation and advise on the best next steps.

In certain circumstances, there may be merit in pursuing a judicial review, and we can provide expert legal advice on your chances of success. Alternatively, suppose you wish to re-apply for a sponsor licence. In that case, you will need to address the Home Office's concerns, ensure compliance with sponsor licence duties, and be prepared to demonstrate this in your next application.

We can assist your organisation in avoiding sponsor licence issues and support you in confidently maintaining an A-rated sponsor reputation. Whether you require help with sponsor licence application, compliance visit preparation, or understanding the implications of a suspended licence, we can provide the necessary legal assistance.

QC Immigration will help you navigate the complexities of immigration control, handle the revocation decision effectively, and ensure that your organisation meets all necessary legal requirements.