Sponsor Licence Revoked

Sponsor Licence Revoked: Consequences

A sponsor licence revocation is the most severe penalty the UK Visas and Immigration (UKVI) gives to organisations that breach their sponsorship duties in a serious way or cease operating in the UK. 

If your sponsor licence is revoked, your organisation will no longer be permitted to sponsor workers under the Worker and Temporary Worker routes. Your organisation’s details will be removed from the public register of licensed sponsors upon revocation of your licence.

Furthermore, under a revoked licence, any foreign worker you’re sponsoring on the Worker or Temporary Worker routes will have their visas curtailed. The implication is that your employees’ permission to stay in the country will be shortened to 60 days, during which they must find new employment or leave the UK. 

If their visa’s validity was already less than 60 days, it will not be curtailed, but they must find alternative sponsorship or leave the UK before their visa expires. If the Home Office determines that any of your foreign workers were complicit in breaching your sponsorship duties, they may be asked to leave the UK immediately. 

Reasons for Sponsor Licence Revocation

The Home Office revokes sponsor licences for several reasons, including if an employer: 

• Provided false information during their sponsor licence application.
• Employed a migrant who doesn’t meet the skill level requirements and qualifications or whose role doesn’t match the occupation code specified on the CoS.
• Employed illegal workers who are not covered by the sponsorship license. 
• Ceases to trade or never traded in the UK.
• It doesn’t meet the requirements for the route for which they were licenced.
• Poses a threat to immigration control.
• Systematically breaches their sponsor duties.
• Engaged in behaviour or actions that are not conducive to the public good.
• Is convicted of a relevant criminal offence or issued with a specified civil penalty
• Failed to follow the stipulated action plan following a licence downgrade to a B rating.

A licence revocation has several implications, including disrupting your organisation’s operations and causing emotional and mental stress for your employees. Understanding the potential consequences and taking proactive steps to protect your business is crucial. 

If you are facing a licence revocation or have concerns about your sponsor licence compliance, our IAS legal team can provide expert guidance and support. Contact our lawyers at +44 (0)333 305 9375 to discuss your situation. 

Can You Apply for a New Sponsor Licence or Appeal a Revocation?

There is no statutory right of appeal against a sponsor licence revocation. However, sponsors may seek a judicial review if there are reasonable grounds to believe that the decision was unlawful, irrational, or procedurally improper. Additionally, the organisation will be barred from applying for a new licence for a specified cooling-off period, typically 12 months from the revocation date.

In some circumstances, the cooling-off period may be longer than 12 months, for example, if the revocation was due to certain civil penalties or criminal convictions.

Any new application submitted after the cooling-off period will be treated as a fresh one. That means sponsors will pay the necessary fees and submit all relevant documentation for the chosen sponsorship route.

When reapplying, sponsors are expected to rectify all the breaches that led to the initial revocation if they plan to regain their licence.

Furthermore, while there may be no right of appeal, affected sponsors may be able to pursue a judicial review. This review allows an organisation to seek justice for irrational and procedurally unfair decisions made by the Home Office. A judicial review is not an appeal but a legal challenge to the lawfulness of the Home Office’s decision. Sponsors must demonstrate that the decision was unlawful, irrational, or procedurally unfair to proceed with a judicial review

Next Steps After Sponsor Licence Revocation

If your sponsor licence has been revoked, it’s essential to take immediate and decisive action to mitigate its impact on your business and sponsored workers. Here are the steps you should follow:

Understand the Grounds for Revocation

When the Home Office decides to revoke a sponsor licence, they’ll usually inform you in writing, stating the reasons for the revocation.

Review the reasons outlined in the decision letter to understand where your organisation failed to comply with sponsorship duties and determine whether you can challenge the decision with a judicial review.

Communicate with Your Sponsored Workers

The Home Office will also inform your sponsored workers about the situation. However, it’s important to explain personally what a revoked sponsor licence means for their immigration status. 

They’ll only have 60 days or less to find a new sponsor or make alternative immigration arrangements. As such, you should communicate the situation to them quickly to help them plan their next steps.

Prepare for Business Implications

With the loss of your sponsor licence, it’s essential to evaluate any financial and operational consequences to your business and develop contingency plans. This may involve reassigning responsibilities internally or exploring alternative staffing options in the short term. 

Seek Legal Help

A key step in regaining your sponsor licence is consulting with an immigration lawyer experienced in sponsor licence matters. A lawyer can assess your situation, advise on potential legal challenges and the effect on your business, and guide you through the next steps.

Depending on the reasons for the revocation and if the lawyer determines it was made in error, they will advise you on the merits of applying for a judicial review and guide you through the process. 

If you have no grounds for a judicial review, it may make better sense to wait for the cooling-off period and reapply. During this time, your lawyer can help you address any non-compliance that led to the revocation and prepare you for a successful reapplication.

Employer Considerations for Licence Revocation

Sponsor licence holders are expected to meet a number of responsibilities to maintain immigration compliance. Even after a revocation, it’s essential to maintain strict compliance with your sponsorship duties, especially if you plan to reapply for your sponsor licence in the future. Some of these duties include:

• Reporting any significant change in circumstances to your business, such as a change of name or address, establishing or closing a branch, selling all or part of the organisation, and if the company ceases to trade.
• Refraining from behaviour or actions that are not conducive to the public good.
• Setting up robust HR policies and structures to monitor the activities of sponsored workers.
• Appointing key personnel who meet the Home Office requirements and can manage sponsorship duties for your organisation.

The Home Office can conduct a compliance visit at any time before issuing or renewing a sponsor licence or in response to specific complaints. Therefore, your business must maintain high standards and be prepared to meet the Home Office’s expectations during compliance inspections.

Furthermore, any decision you intend to make regarding the next steps after a revocation should be well-informed and based on a thorough assessment of all the facts pertaining to your situation. Please contact us for assistance and guidance on reinstating your sponsor licence following revocation.

How IAS Can Help You

If your sponsor licence is revoked, our lawyers can help you. We will review the Home Office’s revocation letter, assess your situation, and advise on your options, considering the nature and severity of the alleged breaches. 

Here are our sponsor licence revocation services:

Judicial Review

If any factual errors can be challenged in a judicial review, we will seek a review on your behalf and represent you in any proceedings. 

Our lawyers will prepare and present all the supporting evidence you need, including statements from your employees, data from your sponsorship management system, and documents from relevant government agencies, such as HMRC. 

Reapplication

If a reapplication is in your best interest, we will advise on the steps to address the areas of non-compliance stated in the revocation letter. This could include creating internal policies to help you manage sponsorship and assigning roles to eligible key personnel. 

Then, we will help you submit a robust reapplication once the cooling-off period is over and also guide you and your staff in your conduct with the Home Office during any compliance visit.

Employee Support

We understand that your employees may be experiencing a distressing situation, and we offer employee support services to help them through it. 

We can review each sponsored employee’s situation and provide them with tailored advice on maintaining their legal status in the UK. This could include exploring potential options they may qualify for, such as a Family Visa if they are dependents of a British citizen or settled person. 

They may also be able to switch to roles within your organisation that don’t require sponsorship, such as the High Potential Individual route. In such cases, they will also need to switch visas and meet the eligibility criteria for their new visa route. Since visa application processes usually take time, getting started quickly is essential.

If they choose to find another sponsor, you can provide them with a recommendation, and we’ll advise them on updating their visa information with the Home Office as soon as they get a new sponsor.

Business Compliance, Advice, and Support

We’ll help you assess the revocation’s impact on your business and advise you on steps to mitigate any negative consequences. We’ll also provide training and support to help you and your key personnel improve record-keeping and communication with the Home Office when necessary.

Let IAS Help You Overturn a Revoked Sponsor Licence

Our legal team at IAS consists of immigration lawyers who specialise in corporate immigration services and have expertise in UK immigration law. 

We work with businesses seeking to overturn sponsor licence revocations, and we have a track record of successful judicial reviews and reapplications. 

We understand the impact a sponsor licence revocation can have on your business. As such, we will take the necessary steps to reinstate your licence and help you prevent future revocations. 

To discuss your business immigration situation, call +44 (0)333 305 9375 to speak with a lawyer.