Skilled Worker Visa Termination of Employment

Losing Your Job As A Sponsored Skilled Worker in the UK

A Skilled Worker visa is not a general permit to live and work in the UK, but rather a conditional permission to be in the country on the basis of your employment with a specific, licensed sponsor. When your employment relationship with this sponsor ends, this primary condition of your visa is no longer met.

Legally, the employer sponsoring your visa is required to notify UK Visas and Immigration (UKVI) within 10 working days of your final day of employment that your employment relationship with them has terminated. When reporting employment termination, sponsors typically provide your last date of employment, your last known address and contact information, and the reason for termination. 

Whatever the reason for the termination of your employment — be it due to redundancy, dismissal for misconduct or other reasons, or your own resignation — the condition on your employer to report it remains the same.

Visa Cancellation and Curtailment

When the Home Office receives this report of termination from your employment, they then typically begin the process of curtailing, or shortening, your visa. In most cases, you’ll receive a curtailment letter from them notifying you of this. Generally, the Home Office will reduce your remaining leave to remain to 60 days from the date of the letter, unless your original visa was set to expire in less than 60 days anyway. In this case, the shorter period will apply.

In rare cases, your leave may be cancelled with immediate effect. This typically only happens in light of exceptional circumstances, such as serious compliance breaches or criminal activity.

Rights and Responsibilities

During this curtailment/cancellation period, you retain the right to lawfully live in the UK. Your right to work, however, is strictly limited. You’re not able to start a new job until a new visa application has been approved (i.e., an application with a new sponsoring employer). Your right to perform any supplementary work (i.e., work up to 20 hours in a similar role to the one you were working under your visa) also ceases when your main sponsored employment ends.

Deciding Next Steps as a Skilled Worker in UK

When your employment terminates, you must decide on what course of action you wish to take before the end of your curtailment period. Try to be proactive with this; waiting until the final days of your curtailment period to make a decision and act introduces the risk of submitting rushed or incomplete applications for other visa options or inadvertently overstaying in the UK, which may have serious consequences. 

As an overstayer, it becomes illegal for you to continue working. Your access to essential services is also restricted, which could potentially expand to freezing of your UK accounts, termination of rental agreements, and the revocation of your UK driving license. You’ll still be able to access the NHS for A&E services without upfront charges, but overstaying individuals admitted to hospital or requiring further treatment may be charged 150% of the standard cost for NHS secondary care.

There are a number of things to consider when planning your next steps. Start by examining your financial stability. There are potentially alternative visa routes available to you if you wish to stay in the UK, but you’ll need to ensure you have sufficient funds to cover any application fees and the Immigration Health Surcharge (IHS) for any new route. 

Also, be mindful of the timelines in play. The 60-day curtailment period typically begins from the date the Home Office issues the notice, rather than the date your employment ends. This notice will explicitly state the new date your leave to remain expires. Consequently, there is often a “limbo” period between your final day of work and the receipt of this notice. Use this time wisely to begin job searching or making preparations. As you decide your next steps, think about your long-term goals and how your next move may impact your path to Indefinite Leave to Remain (ILR), if this is an aim of yours.

Can I Switch to Another Visa Route in the UK?

If you want to remain in the UK, but do not have another sponsored employment role lined up, you might wish to explore switching to a different visa category. Selecting the most suitable route for you depends heavily on your training and education, professional background, and personal circumstances. If you want to discuss your eligibility for different visa types and identify the most viable path forward, IAS can help. Call us on +44 (0)333 414 9244 or contact us online to discuss your situation with one of our immigration lawyers.

Exploring Visa Options After Employment Ends

There are several alternative visa routes besides the Skilled Worker visa you might wish to explore if your employment ends.

Global Talent Visa

Global Talent visa is targeted at leaders, or potential leaders, in fields like academia, research, the arts, or digital technology. If you have expertise and are a highly skilled and qualified professional in your field, this can be a fantastic route, but obviously the requirement for such specific and high-level expertise creates a high barrier for endorsement. Endorsement is not given by a specific employer, but rather an official endorsing body recognized by the Home Office as an expert in that specific field.

Partner/Spouse Visa

Spouse visa may be open to you if you have a partner who is a British or Irish citizen or has settled status. The only potential challenge with switching to this visa type from a Skilled Worker visa is that the switch will likely reset your five-year clock for ILR. The Home Office views living in the UK under these different visa types as two entirely different settlement paths.

Graduate Visa

Graduate visa or Post Study Work visa is available to you if:

• You’ve recently completed a UK degree.
• You haven’t held this visa type previously.

This is less likely to be a useful visa switch for those whose employment has recently terminated as you can only switch to a Graduate visa from a Student visa; if you’re currently on a Skilled Worker visa, you can’t “switch back” to a Graduate visa, even if you’ve recently graduated from a UK degree. There are also ILR considerations when switching to this visa type as staying in the UK under this visa does not count directly towards the five-year Skilled Worker ILR route .

Student Visa

If you secure an offer to study at a licensed UK educational institution, you can stay in the country under a Student visa. This would, however, impose restrictions on your permitted working activity. You can only work a maximum of 20 hours per week during term time, and you’re not permitted to be self-employed, for example. Time spent on a Student visa also does not count toward the 5-year residency requirement for ILR.

Implications on Indefinite Leave to Remain Application

One of the biggest worries many skilled workers may have when their employment ends is the impact this job loss has on their path to settlement. To qualify for ILR after five years in the UK, you generally must demonstrate continuous residency. It’s the potential impact on this continuity that is a major concern for many.

A gap between jobs, however, doesn’t necessarily break your continuous residence for ILR, provided you submit a new, valid visa application within your curtailment period (or before your previous visa expires, if this is earlier). Also, you must be sponsored by a licensed employer when it comes time to make your ILR application. They must also confirm that they will still require you for the foreseeable future (at a qualifying salary). This means if you are unemployed or within the 60-day curtailment window following employment termination, you cannot apply for ILR.

Be mindful also that switching to certain other visa routes after a termination of employment (such as a Student visa) may in effect “reset” your five-year ILR qualifying period. This could mean that any previous qualifying years you banked on a Skilled Worker visa might no longer count towards your five-year settlement goal, if that was your target.

Travel Possibilities Post-Employment

Travel during a post-termination transition period can be a risky proposition. You might face re-entry risks, for example. Even if your Biometric Residence Permit (BRP) has yet to reach its original expiry date, Border Force officers have access to real-time information. If they see that your employer sponsorship has been withdrawn, they might deny you entry to the UK on the grounds that the purpose of your visa no longer exists.

Furthermore, if you have already submitted an application for a new visa or switch of status and leave the Common Travel Area (which includes the UK, Ireland, the Isle of Man, and the Channel Islands), your application will be automatically withdrawn by the Home Office on the date you leave. This is a strict mandate under Paragraph 34K of the Immigration Rules. Given these risks, it is highly advisable that you remain in the UK post-termination until new leave is granted if your intention is to find a way to continue living in the UK.

Self-Sponsorship Guide for Skilled Workers

For professionals who have the means to establish their own business in the UK, self-sponsorship is an increasingly popular strategy for remaining in the country. There is no “self-sponsorship visa” so to speak, but if you establish a UK limited company, you might then apply for a Sponsor Licence for that company. The company can then issue a Certificate of Sponsorship (CoS) to you in the same way any other sponsoring employer might.

Requirements and Challenges

First and foremost, the Home Office must be satisfied that the business established is active and trading, and that the role you are filling under your sponsorship is a genuine vacancy and meets a mandated skill level and salary threshold. To ensure proper compliance, you’ll also need a UK-based Authorising Officer to help manage the company’s Sponsor Licence. The Authorising Officer for the sponsor licence must be a settled worker (i.e., British citizen or someone with ILR); you cannot act as your own Authorising Officer while you are on a Skilled Worker visa.

There are also several costs involved, including the costs of forming the company, license fees, and the cost of the visa application itself that your company would be acting as sponsor for. This is a complex route, but one that offers ultimate control over your immigration status and path to ILR.

New Application for UK Skilled Worker Visa

If you find new employment and a new sponsor, you need to follow the standard visa application process to essentially “update” your visa:

1. To begin, your new employer must assign you a new Certificate of Sponsorship.
2. With sponsorship confirmed, you must submit your visa application online before your current leave (i.e., the 60-day curtailment period) expires.
3. When submitting your application, you’ll also need to pay the relevant application fee and IHS. 

You might also need to use the UK Immigration: ID Check app, or attend an in-person appointment at a Visa Application Centre to provide biometric information (i.e., fingerprints and photo). 

Make certain you do not begin working for your new employer until you have received your new visa approval. To do so would be in breach of immigration rules and may have negative consequences, such as the refusal of future visa applications.

ILR Application for Skilled Worker Dependents

You might be in the position where you are the main visa holder, with dependents also living in the UK with you. If you should then lose your job, your dependents would also be at risk as their leave is linked to yours. This means that when your visa is curtailed to 60 days, the visas of your dependents will also be concurrently shortened to the same expiry date. Communication is key when managing any dependents during this transitional period. As their legal immigration status mirrors yours, any decision you make — whether that be to find a new sponsor, switch visa routes, or simply leave the UK — directly dictates their future in the UK.

Dependents typically qualify for ILR after five years of continuous residence. However, if the main applicant switches to a route that does not lead to settlement (such as the Student route), the dependents’ path to ILR via the Skilled Worker route is effectively severed. 

Adult dependents are also increasingly expected to meet their own integration and economic contribution standards to qualify for permanent residency under the 2026 Earned Settlement rules currently under consultation. Consequently, some dependents may choose to apply for a visa in their own right if you switch routes (e.g., securing their own Skilled Worker sponsorship), as long as they meet visa requirements to do so. This effectively “de-links” their status from yours, potentially protecting their original timeline for ILR and at the very least starting their own clock that is no longer contingent on your employment status.

Impact of Employment Termination on UK Stay

The fundamental impact of termination of employment for Skilled Worker visa holders is the switch from having a long-term, stable immigration path to suddenly having limited leave to remain. Once the 60-day curtailment period ends, if you have made no new visa application, you will no longer have a legal right to remain in the UK.

If you still remain in the UK beyond your curtailment period under these circumstances, this will have consequence. For one, you will have a formal “overstayer” record placed on your immigration history. You could also potentially face a ban on re-entering the UK of between 1 and 10 years. You’ll also face the loss of the right to rent, drive, or hold a bank account in the UK.

To maintain your legal stay in the UK and avoid these potential consequences, it’s vital you make certain you have a valid visa application pending with the Home Office before your current leave expires.

Settlement Agreements for Skilled Workers

When your employer makes the decision to terminate your employment contract, they might offer some sort of settlement agreement. This is a legally binding contract between an employer and employee where the employee agrees to waive their right to bring claims (such as unfair dismissal or discrimination) against the employer in exchange for a payment or other benefit. For a settlement agreement to be valid the employee must receive independent legal advice from a qualified professional (usually a solicitor).

A settlement agreement provides a bit of financial breathing room, but it has no impact on the Home Office notification process; your employer will still report your termination and start all the curtailment/cancelation processes. As such, make sure your settlement agreement includes useful information relevant to this process, such as:

• A clear, negotiated termination date that offers you the maximum notice period possible to delay Home Office notification and give you as much time as possible to plan next steps.
• An agreement that the employer will notify the Home Office within the mandatory 10 working day window, but not earlier than necessary.
• Payment of legal fees for immigration and employment advice; it’s standard practice in the UK for employers to cover costs for the employment law review, but you might reasonably negotiate for them to cover immigration legal advice also.

How IAS Can Help

Losing your sponsored employment role can have a serious impact on your life and present a significant hurdle to your future plans in the UK. The legal experts at IAS have extensive experience navigating visa curtailment and all the challenges you might face. We can discuss your situation and aims to review the application options that might be open to you and the timelines involved.

We can also help you prepare and submit an application for a new visa and offer professional representation for any dealings you may have the UKVI. To ensure continuity and avoid any significant changes to your immigration status or the risks of unintentionally overstaying, call us today on +44 (0)333 414 9244.