Withdraw Sponsor Licence Application: Is It Possible?

Withdrawing Sponsor Licence Application Overview

A UK Sponsor Licence is issued by the Home Office to allow businesses to recruit workers from overseas to fill genuine vacancies and prevent illegal working.

All employers who make use of migrant labour are legally required to hold a Sponsor Licence and must comply with UK immigration laws regarding compliance with being a licence holder.

There are two different Sponsor Licence types which depend on the type of workers that employers wish to recruit. A Tier 2 (General) Sponsor Licence is for UK employers who want to sponsor skilled workers from overseas, whereas the Tier 4 (General) Sponsor Licence is for educational institutions who wish to sponsor international students to study in the UK.

However, there are a number of reasons why an organisation may wish to withdraw an application for a Sponsor Licence in the UK.

Reasons for Withdrawing Sponsor Licence Application

It is possible to withdraw a Sponsor Licence application but it is a decision that must be considered carefully as it can have potentially long-term consequences, especially if a business wishes to recruit non-settled workers now or in the future.

There are possible reasons why an application for a UK Sponsor Licence may be withdrawn. These include:

• A change in circumstances – if an employer undergoes a major change such as a restructure or downsize then it may no longer be necessary to have a Sponsor Licence, especially if there are no plans to increase the existing workforce.
• Unable to meet Sponsor Licence eligibility – there are a number of responsibilities for Sponsor Licence holders. However, if an organisation realises that it does not have the resources to meet these then it may be more favourable to withdraw an application.
• Avoid potential penalties – if a Sponsor Licence holder fails to comply with the ongoing duties of sponsoring overseas workers then there can be significant financial penalties. Some applicants may not realise this until after submitting their Sponsor Licence application.

Consequences of Withdrawing a UK Sponsor Licence Application

It is important to realise that there are potential consequences to making the decision to withdraw an application for a Sponsor Licence. If you are unsure about doing this, then it is important to seek the advice of an immigration specialist to avoid any long-term impact.

Some of the issues associated with withdrawing an application include:

• Financial loss – it is unlikely that any application fees will be refunded by the Home Office.
• Delay of reapplying – if the decision to withdraw an application is incorrect, then reapplying will start from the beginning of the process and will require repayment of the fees. This could have an impact on an organisation’s business plans and performance.
• Unable to recruit overseas – not having a Sponsor Licence means a company is not able to employ foreign workers and this could have an impact on staffing.
• Reputation damage – withdrawing an application could have a negative impact on how others, including competitors, may view a business.
• Legal implications – cancelling an application does not exempt a UK employer from ongoing or future obligations related to complying with immigration laws.

Steps to Take When Withdrawing Your Sponsor Licence Application

Once you have made the decision to withdraw your Sponsor Licence application and decided it is the best course of action for your organisation then you will need to follow a number of steps.

You will need to officially withdraw your application by contacting your Home Office caseworker. In the withdrawal letter, you should explain the reasons why you no longer wish to become a Sponsor Licence holder.

For example, if you are unable to meet the requirements or you no longer need to employ workers from overseas.

Although it is unlikely to be granted, you can still request a refund. Most application fees are not returned by the Home Office unless there are exceptional reasons to do so.

If you have already begun sponsoring foreign workers then you should immediately cease doing so and follow the correct procedures for ending sponsorship. You should communicate this as soon as possible to any potential workers that you have started recruiting.

Once you have withdrawn your application, it does not mean you can not reapply in the future if you discover you do want to sponsor skilled overseas workers. If you do wish to reapply then reach out to IAS for support in making a Sponsor Licence application.

How IAS Can Help

Applying for a UK Sponsor Licence can be a daunting process and it can be overwhelming. However, withdrawing an application may not be the best decision, especially if you plan to still recruit workers from overseas.

The consequences of not having a valid UK Sponsor Licence can have major financial and reputational impact, therefore, it is vital to ensure you seek legal advice before making a decision to cancel your application.

Reach out to our employment law specialists for advice on how to comply with a Sponsor Licence and find out more about what is required for licence holders.

At IAS we also offer a Sponsorship Compliance Mock Audit service that may convince you that being a Sponsor Licence holder is a valuable asset and reassure you there is no need to withdraw your application. Call IAS on 0333 305 9375 to book a mock audit or get answers to any questions you have about the UK Sponsor Licence.