UK Sponsor Licence: Common Pitfalls that Lead to Suspension or Revocation

A UK sponsor licence is one of the very few essential tools that any business that hopes to recruit skilled workers from abroad must avail itself of. But with such licensure comes plenty of responsibilities on the part of the organisation, and in case such responsibilities are not followed by the organisation in line with the UK Visas and Immigration, or UKVI, there are excellent chances of facing severe penalties, including suspension of, or canceling the licence. This article goes into some general mistakes that would result in suspending or revoking a sponsor licence. It helps employers understand the requirements for a sponsorship licence and continue to comply with this essential licence.

Why Sponsor Licence Compliance is Important

The sponsor licence lets businesses recruit and employ foreign nationals; however, the Home Office closely reviews this privilege. To keep the licence, there are a series of record-keeping, reporting, and monitoring duties related to sponsored workers. Suppose a business fails to meet these obligations. In that case, its sponsor licence may be suspended or even revoked, meaning that no further foreign talent can be hired and may affect workers currently sponsored by the company.

A suspension of the sponsor licence is a short-term action the Home Office implements in case of breaches of compliance. With a sponsor licence suspended, employers will no longer be able to issue new CoS; no new employees can be recruited from abroad. In contrast, the revocation of the sponsor licence is permanent, and all sponsored workers working for the business stand to lose their right to remain in the UK.

Common Pitfalls Leading to Suspension or Revocation1. Inadequate Record-Keeping

Poor record keeping is one of the frequent causes of the suspension of a sponsor's licence. One expects the employer to have records of all the sponsored employees. The records should include copies of the passport, visa, work contracts, and biometric residence permits. Record information about the employee's current address and contact should also be correct.

UKVI conducts compliance checks from time to time and may request these documents at any time. If the records are defective or inaccurate, the sponsor licence could be revoked. Failure to provide up-to-date records during a compliance check may be construed as a breach by the employer of their duty under the sponsorship obligation enforced by UKVI.

2. Failure to Carry Out Right-to-Work Checks

Under which circumstances are employers obligated to ensure that both sponsored and non-sponsored employees have the right to work in the UK? Employers may face substantial fines, such as civil and sponsor licence suspension if a check is not appropriately performed or completed​.

Right-to-work checks affirm workers' immigration status, visas, and work permits. When an employer wrongfully employs someone under incorrect work authorisation or fails to check appropriately, the Home Office usually considers this negligence and may suspend the sponsor licence. It is one of the most important elements of the requirements for a sponsorship licence because illegal workers could damage a company's compliance status badly.

3. Failure to Report Changes to the Home Office

Under the UK's sponsor licence, employers are required to report any change in a sponsored worker's employment status or circumstances which are of significant effect within a prescribed period. It could be that you've been promoted, or a change of job title, or a change of salary or change of work location. Moreover, when a sponsored employee is dismissed or otherwise leaves the business, it must be reported within ten days through the Sponsor Management System (SMS).

Failure to meet these reporting requirements is one of the leading causes of a sponsor licence suspension. Businesses that fail to comply with the reporting rules point to the Home Office that they do not perform the required task, manage their sponsored workforce, and are exposed to risks associated with an area of non-compliance.

4. Inadequate Checks on Sponsored Workers

The employer must monitor the sponsored worker's activities and employment. For instance, the employer ought to ascertain that the employee is performing the role for which they were funded and has reported their absences correctly. Further, unauthorised repeated absences or alternation of job roles without notifying UKVI may result in the sponsor licence being withdrawn.

Third, monitoring should also include maintaining and recording attendance, absences and schedules of sponsored workers. If these elements are not tracked, it can mean the employer isn't managing its workforce, and one is risking suspension or revocation of licence.

5. Presenting False Information

When a company applies for a sponsor licence or undergoes compliance audit the company has a legal obligation here to provide accurate and honest information. Severe penalties will be levied on all false statements, inaccuracies or misleading information communicated to the Home Office. Thus, the licence can be revoked with immediate effect.

False information can occur in several different ways, including overstating the role or responsibilities of a sponsored worker or failing to include essential information about the business. Such is a grave violation of the conditions for a licence to sponsor, and a business that intentionally includes false information will definitely have its licence withdrawn immediately and be subject to a statutory 12-month "cooling-off" period before the business can reapply.

6. Failing to Cooperate with Home Office Audits

The Home Office regularly audits companies with a sponsor licence and carries out announced and unannounced cheques to see that they are compliant with UK immigration laws. A company’s sponsor licence can be suspended or revoked for its failure to prepare properly for auditing or its refusal to cooperate fully with auditors.

Preparation for a compliance audit would not be possible if there were a failure to have access to crucial documents, a lack of knowledge about what a sponsor has to do, or incompetent systems put in place to check on sponsored employees. Employers must always be ready for an audit; they should keep their records updated and ensure that their HR teams are aware of the expectations of holding a sponsor licence.

Watch this video to learn more about the reasons for a sponsor licence refusal.

Possible reasons for refusal of your sponsor licence visa? How to move further? | A Y & J Solicitors

Consequences of Suspension or Revocation

If a sponsor licence is suspended, businesses are not allowed to sponsor new workers or renew the visas of currently sponsored workers. Although existing employees may be allowed to work during the suspension period, the uncertainty that comes affects both the employer and the employees. The licence may be revoked if the problems are not resolved within the timeline.

If the sponsor licence is revoked, it is a pretty big setback. All the sponsored workers present will lose the total support as their end for visas in case they do not get new sponsorship to live in the UK. Additionally, the business stands barred from applying for a new sponsor licence for at least one year following the revocation. The revoked company's reputation is drastically affected. Its attraction for some talent is hard, which may lead to its inability to run effectively.

Get Professional Legal Aid

One of the advantages will be having a UK sponsor licence that really helps in sourcing skilled staff from abroad with the help of benefits coming in terms of responsibilities under stringent immigration rules. A failure to meet the requirements for a sponsorship licence may even lead to suspension or revocation, severely impacting business organisations' operations. Good bookkeeping practices, regular audits, and training of HR departments with due care are capable of reducing the chances of revocation or suspension of a Sponsor Licence. If you require Sponsor Licence compliance support or simply want to avoid any pitfalls, then approach A Y & J Solicitors and get the best legal advice.

A Y & J Solicitors is a specialist immigration law firm with extensive experience with the requirements for a sponsorship licence. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!

Visa expert, years of immigration consultancy experience, and a deep understanding of the intricacies of the immigration. Having the healthiest addiction of travel.