Navigating Sponsorship Compliance in the UK: What Employers Need to Know
In this article Leena Chouhan explains Sponsor Licence Revocation for UK immigration applicants.
Sponsorship compliance is becoming an increasingly crucial issue for businesses in the UK. With the government focusing more on cracking down on ‘shameless employers’, suspensions and revocations of sponsor licences are on the rise. The Home Office is making it clear that businesses must adhere to strict standards if they wish to continue employing foreign workers. The forthcoming government white paper is expected to introduce even tougher sanctions for employers who fail to meet their obligations as sponsors.
The Impact of Losing a Sponsor Licence
Losing a sponsor licence can have catastrophic consequences for a business. Workers sponsored by the business will likely lose their jobs and face visa curtailment of up to 60 days, requiring them to find new employment to remain in the UK. The sponsor will also struggle to regain their licence, damaging both their business operations and reputation. As more companies face potential compliance action, understanding the process of suspension and revocation is critical. This article outlines the steps involved and how businesses can challenge decisions made by the Home Office.
The Home Office Compliance Visit
The process of suspending or revoking a sponsor licence often begins with a Home Office compliance visit. While such visits were more common a decade ago, they are now more targeted and generally occur when there is intelligence suggesting that a business may be breaching its sponsorship duties. These visits may also be triggered by a business’ sponsorship patterns or reports from other government departments.
While the Home Office can notify a business in advance, they may also arrive unannounced. In either case, the sponsor must allow access to their office or premises. Although businesses can request to reschedule the visit (e.g., if the Authorising Officer is unavailable), the Home Office has the discretion to approve or deny such requests. Failure to cooperate can result in the revocation of the sponsor licence.
Preparation is key when facing a compliance visit. If possible, sponsors should be briefed in advance on the types of questions they may be asked, which typically cover how they manage sponsored workers, report on their activities to the Home Office, and maintain proper records. Companies should also ensure that key personnel and their HR systems are prepared for scrutiny.
What Happens During a Compliance Visit?
During the visit, the Home Office will review the company’s HR systems to assess their adequacy, check if the sponsored workers are complying with their visa conditions, and ensure that the business is offering genuine roles. They will also examine records of non-sponsored workers to ensure right-to-work documentation is compliant. This process involves interviews with key personnel and may include questioning sponsored workers.
Though businesses may have legal representatives present during the visit, demonstrating the ability to advocate for themselves will add credibility. After the visit, the Home Office will provide a report on whether the sponsor is compliant or in breach of its duties. If there are concerns, the Home Office will reference specific breaches outlined in Annexes C1 to C3 of the Sponsor Guidance, detailing what could lead to licence revocation.
Consequences of Non-Compliance: Suspension or Revocation of a Sponsor Licence
If the Home Office finds minor breaches, they may downgrade a sponsor’s licence from an A to a B rating. This means the business will be placed on an action plan, where they have three months to address the issues while still being able to issue Certificates of Sponsorship. However, they will not be able to sponsor any new workers until improvements are made.
More significant breaches can lead to a sponsor’s licence being suspended or revoked entirely. If suspended, the sponsor cannot assign any Certificates of Sponsorship, and any outstanding visa applications will likely be placed on hold. Sponsors typically have 20 working days to respond to the suspension letter, providing evidence or explanations to challenge the allegations. It is advisable to request an extension to this deadline to ensure a thorough and well-documented response.
Challenging a Revoked Licence
If a sponsor’s licence is revoked, they lose the ability to sponsor foreign workers, and any existing sponsored workers will have their visas curtailed to 60 days. The sponsor will be removed from the register of sponsors and will not be eligible to reapply for at least 12 months—soon to be extended to two years under new proposals.
Although there is no right to appeal a revocation, businesses can challenge the decision through judicial review. This legal process, which examines the lawfulness of the Home Office’s decision, is costly and time-consuming. If a sponsor chooses to proceed, they must gather compelling evidence to demonstrate that the decision was flawed. This could include highlighting factual errors, unreasonable conclusions, or failure to consider all relevant evidence.
Judicial review proceedings are initiated with a pre-action protocol letter, which outlines why the sponsor believes the revocation decision is wrong. If successful, the sponsor’s licence may be reinstated, though it is often subject to conditions. It is important to note that if the judicial review fails, the sponsor may be ordered to pay the Home Office’s legal costs.
Prevention is Better Than Cure
The government’s increased scrutiny of sponsors makes it clear that prevention is far more effective—and less costly—than attempting to challenge a licence revocation. Sponsors should prioritize staying on top of their duties to ensure compliance with the Home Office’s requirements. This is particularly important for new sponsors, who may be unaware of the full scope of their responsibilities.
By investing in proper training, establishing robust internal processes, and regularly reviewing compliance, businesses can minimize the risk of facing severe consequences, such as licence suspension or revocation. In the long run, this proactive approach saves time, money, and protects a company’s reputation. In today’s increasingly stringent regulatory environment, businesses must take sponsorship duties seriously to avoid the high costs associated with non-compliance.
For more information
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