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Sponsor Licence Renewals No Longer Necessary After 6 April 2024

The Home Office has announced that the process of sponsor licence renewals will be abolished from the 6 April 2024.

For help and expert advice on your sponsor licence or any other business issue, contact us on 0333 305 9375 or reach out to us online today.

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    Renewals Process to End

    The announcement that sponsor licence renewals would come to an end was recently made by the Home Office directly to businesses through their sponsor management systems (SMS).

    This indicates a radical change to the process of sponsor licence management, where businesses were previously required to apply for licence renewals ever y four years in order to keep their licences active.

    Under the new rules, renewals will no longer be a necessary step for businesses to keep on sponsoring foreign workers.

    UK passport

    What Action Needs to be Taken by Businesses?

    It’s important to note some businesses may still have to take action to renew their licence before the change comes into effect in April.

    Businesses Whose Licences Expire Before 6 April 2024

    Businesses whose sponsor licences expire before 6 April will still need to apply for one final renewal and pay the renewal fee, as the old rules regarding mandatory renewals is still in effect.

    However, once businesses renew their licence, they will no longer have to do so again.

    The Home Office has advised these businesses to refer to the Workers and Temporary Workers Guidance Part 3 or the Student Sponsor Guidance Document 1 for more information on how to renew licences.

    Businesses Whose Licences Expire On or After 6 April 2024

    Businesses whose sponsor licences expire on or after 6 April do not need to take any action.

    The Home Office have indicated that these businesses have had their licence temporarily extended by 10 years in anticipation of the upcoming change. Additionally, if these businesses have already applied for a renewal, they will be contacted by the Home Office to organise a refund of the renewal fee.

    These businesses can also ignore any automatic notifications to renew their sponsor licences in light of this recent change.

    What Does This Mean for Businesses?

    The abolition of sponsor licence renewals is a broadly positive change for businesses.

    It represents the removal of an additional barrier for organisations who wish to hire foreign workers, making the process slightly easier to manage on a long-term basis. Additionally, businesses will no longer need to pay the £536 fee every four years in order to keep their licence.

    The removal of renewals may also mean more opportunities for the Home Office to reallocate staff to address other matters within the department.

    Despite all this, it’s essential to remember that businesses will still have to adhere to the other normal rules surrounding sponsor licences, such as sponsor licence compliance and regular audits from the Home Office. These are, and will remain, a crucial element of businesses being allowed to keep their sponsor licences.

    Do you have any questions or concerns about this change to sponsor licences? For instance, you may be unsure if your business will still need to renew its sponsor licence before April, or if you need to take any other actions in response to the change.

    If so, then reach out to IAS for more information. Our dedicated team of business immigration lawyers are on hand to guide and advise you through the recent changes and help ensure your business can continue trading.

    We also offer HR Sponsor Licence and Compliance training courses and Home Office Audit courses for those who wish to become capable and self-sufficient HR professionals for their business.

    For immediate help and assistance with your business, contact us on 0333 305 9375 or reach out to us online today.

    Do you need help with a business immigration issue? Our lawyers can assist you. Get in touch

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