The loss of a sponsor licence can be devastating for an organisation and the people it employs. If your sponsor loses their sponsor licence , the sponsor no longer has permission to employ you. The sponsor must inform all sponsored employees that their right to work in the UK is revoked. The loss of a sponsor licence can also have serious implications for employees and their right to remain in the UK. Non-UK nationals who were employed under the sponsoring organisation’s licence may be required to leave the country within 28 days. They may also lose the right to appeal any decisions regarding their right to remain in the UK or work here.

 

How can a sponsor licence holder lose their licence?

A Skilled Worker Sponsor Licence holder can lose their licence if they fail to comply with the rules and regulations set out by the UK government’s Home Office. This can include:

  1. Failure to maintain accurate records of sponsored workers and their immigration status
  2. Breaching the conditions of the licence by employing workers outside of the permitted categories or job roles
  3. Providing false or misleading information to the Home Office
  4. Failing to report significant changes, such as a change of company ownership or legal structure
  5. Failing to cooperate with Home Office inspections or investigations

If a Skilled Worker Sponsor Licence holder breaches any of these conditions, they may be at risk of losing their licence and their ability to sponsor workers from outside the UK.

 

What do you need to know if your sponsor licence holder loses their licence temporarily?

If your Skilled Worker Sponsor Licence holder loses their licence temporarily, it means that they have had their licence suspended by the Home Office. This can happen if they have breached the conditions of their licence, and the Home Office has decided to take action against them. During this period of suspension, your sponsor will not be able to sponsor any new workers, and any pending applications will be put on hold.

If your sponsor licence holder loses their licence temporarily, it is important to take the following steps:

  1. Contact your sponsor to find out the reason for the suspension and how long it is expected to last.
  2. Check the status of any pending visa applications to see if they have been affected.
  3. Discuss alternative options with your sponsor, such as finding another sponsor or waiting until their licence is reinstated.
  4. Seek advice from an immigration lawyer or specialist to understand your rights and options.

What do you need to know if your sponsor licence holder loses their licence permanently?

If your Skilled Worker Sponsor Licence holder loses their licence permanently, it means that the Home Office has revoked their licence, and they are no longer able to sponsor any workers from outside the UK. This can happen if your sponsor has breached the conditions of their licence repeatedly, or if they have committed a serious breach, such as employing illegal workers or providing false information to the Home Office.

If your sponsor licence holder loses their licence permanently, it is important to take the following steps:

  1. Contact your sponsor to find out the reason for the revocation and confirm that it is permanent.
  2. Discuss alternative options with your sponsor, such as finding another sponsor or exploring other visa options.
  3. Seek advice from an immigration lawyer or specialist to understand your rights and options.

It is important to note that if your sponsor’s licence is revoked permanently, you will need to find a new sponsor in order to continue your visa application or employment in the UK.

Alternative Sponsorship Options


If your current sponsor has lost their sponsor licence, you will need to find an alternative sponsor in order to continue to work in the UK. If you are a student or a migrant worker, you may be able to switch to a new sponsor under the points-based system.


The first step is to understand what type of sponsorship you are eligible for and what documents are required. For example, if you are a student, you will need to apply for a Student visa. To do so, you must have a valid Confirmation of Acceptance for Studies (CAS) from an approved education provider. The same applies to migrant workers, who need to apply for a Skilled Worker visa and obtain a Certificate of Sponsorship (CoS) from their new employer.


Once you have identified the type of sponsorship you need, you can start searching for potential sponsors. If you are a student, you can search for schools and universities that offer the courses or programmes you want to pursue. If you are a migrant worker, you can look for employers that are willing to hire and sponsor you. You can find this information online or contact job recruitment agencies for help.


You should also research the sponsor’s reputation before applying. Make sure that the sponsor is legitimate and trustworthy by reading reviews from past and present employees or students. If possible, speak with past and present employees or students in person or through social media to get a better understanding of their experiences with the sponsor. This will ensure that the sponsor is reliable and that you will have a safe and enjoyable experience working or studying in the UK.


Once you have found a suitable sponsor, make sure to read all documents carefully before signing anything. Ensure that you understand all the terms and conditions, including payment arrangements and duration of the sponsorship.


Finally, if you are sponsored by an employer, be sure to check with the Home Office that the sponsor is eligible to provide sponsorship. You can use their Employer Checking Service to confirm the sponsor’s eligibility.


Finding an alternative sponsor when your current sponsor loses their licence may seem daunting but with careful research and due diligence, you should be able to find a suitable replacement in no time.

 

CGM is a corporate immigration application for expats, sponsoring companies and business immigration advisors. Feel free to contact us on 0300 000 000 or send us an email if you have any questions. 

 

Applying for a new sponsor licence


If your sponsor has lost their licence, you may be considering applying for a new sponsor licence. This can be done by submitting an application to the Home Office. You will need to provide evidence of your eligibility and demonstrate that you can meet the duties of a sponsor.


The application process includes providing detailed information on your business, such as its size and type, and a full description of the roles that you plan to recruit migrants for. The Home Office will also require evidence of your company’s financial stability, business management structure and HR policies.


You should also include documents showing that you have the necessary premises and resources to fulfil your obligations as a sponsor. This could include demonstrating that you have adequate IT systems to store and manage the required data and records, or that you have appropriate staff training in place.


Once you have provided all the necessary information and evidence, the Home Office will assess your application. They may conduct a visit to ensure that your business meets all the criteria to be a sponsor. If approved, you will be granted a sponsor licence and must continue to meet all the obligations associated with being a sponsor.


It is important to note that it can take up to three months for the Home Office to process applications, so it is essential to plan ahead if you are looking to apply for a new sponsor licence.

 

Reasons for losing a sponsor licence


Sponsors may lose their licence if they do not comply with the duties and responsibilities of a sponsor, which are specified in the Immigration Rules. This may include:


• Not providing updates to the Home Office on changes in sponsored workers’ circumstances;
• Failing to ensure that sponsored workers meet all the eligibility requirements for the role;
• Failure to comply with reporting and record-keeping requirements;
• Not adequately monitoring or controlling the attendance or employment of sponsored workers;
• Not informing the Home Office of any changes in your contact details or those of your sponsored workers;
• Failing to pay fines or comply with any other requirements imposed by the Home Office;
• Not adhering to the points-based system;
• Providing false information or documentation to the Home Office.

If a sponsor is found to be in breach of these duties and responsibilities, the Home Office may revoke their licence. This can have serious consequences for both employers and employees. It is therefore important to be aware of the sponsorship obligations at all times and ensure that you remain compliant with them.

CGM is a corporate immigration application for expats, sponsoring companies and business immigration advisors. Feel free to contact us on 0300 000 000 or send us an email if you have any questions. 

Impacts on employees and their right to work


If a sponsoring company loses their sponsor licence, it will have a significant impact on the employees of that organisation. Any sponsored workers, such as those who have been granted permission to work in the UK Skilled Worker points-based system, will no longer have the right to work in the UK.


In some cases, this may mean that the employee must leave the country within 28 days of the licence being revoked. If the employee fails to do this, they will be in breach of UK immigration laws and may be subject to civil or criminal penalties.


Employees may also be affected if their sponsoring company fails to meet its sponsorship duties. This could include not informing the Home Office when an employee does not begin employment, does not attend a job interview, or stops working for them. In this case, the Home Office could revoke the employee’s right to work in the UK.


It is therefore important that employers ensure they comply with their sponsorship duties and regularly monitor their staff’s attendance and employment status. This will ensure that employees maintain their right to work in the UK and avoid any potential issues with the Home Office.

Impacts on the sponsoring company


When a sponsor licence is lost, the sponsoring company will be affected in a variety of ways. First, they will no longer be able to employ non-EEA workers. This can have a huge impact on the company, as they may need to restructure their workforce or find alternative recruitment sources.


Furthermore, the sponsoring company may be subject to financial penalties for breaching their sponsorship duties. These can range from a £5,000 fine for not carrying out right to work checks to unlimited fines and up to five years in prison for more serious offences. It is therefore essential that sponsors are aware of the risks associated with losing their sponsor licence and take steps to mitigate them.


Finally, if the sponsoring company is unable to retain its current employees, there may be significant disruption to its operations. This can affect the quality and efficiency of service delivery, as well as customer satisfaction. It is therefore important for employers to consider the implications of losing their sponsor licence and plan accordingly.

 

Penalties for non-compliance


Penalties for non-compliance with the Points-Based System are significant, and can include fines of up to £20,000 per illegal migrant employed. Depending on the severity of the offence, a company may be issued a civil penalty, an illegal working compliance order, a closure notice or face criminal prosecution.


A civil penalty is usually issued for a first time breach of sponsorship duties. A civil penalty is a financial fine ranging from £200 – £20,000 per illegal worker. The fine amount is based on the level of compliance with the rules and any aggravating factors such as exploiting migrants.


An illegal working compliance order requires the company to adhere to additional reporting obligations and regularly inform the Home Office about their actions. This can include providing copies of recruitment records, payslips and contracts.


A closure notice is served to companies that are deemed to be serious offenders. This involves suspending the sponsor licence and all activities related to it, including recruiting new employees. Any employee that is sponsored under this licence will also be affected by the closure notice.


Finally, employers who fail to comply with the rules can be charged with criminal offences and face an unlimited fine or up to 5 years imprisonment. This is likely to only happen in extreme cases where there has been clear abuse of the system.

Leaving the UK


If your sponsor has lost their sponsor licence, the employees under them may be required to leave the UK. The UKVI will provide a 28-day grace period for those affected to make arrangements to depart the country. During this time, individuals must inform their employer and contact the Home Office to update their immigration status. If an employee does not take action, they may be liable for civil penalties or criminal prosecution.


It is important to be aware of the UK’s immigration rules when deciding to leave the UK. Individuals must ensure that their leave from the UK is in accordance with their visa permission. If a visa was obtained through a sponsor licence, the visa will no longer be valid if the sponsor licence is lost or withdrawn. Therefore, it is important to have alternative plans in place should a sponsor licence be lost.


Before leaving the UK, it is essential to consider the legal implications of overstaying a visa. Individuals should be aware of the different routes available and the requirements that must be met to remain in the UK legally. It is also recommended that individuals seek professional advice from an immigration specialist if they are unsure about their situation.


In some cases, individuals may be able to switch visas or gain permission to remain in the UK through other means. For example, those with existing family ties or permanent residence may be able to apply for another visa route in order to remain in the UK. Individuals should contact the Home Office directly to discuss their options and find out whether they are eligible for any other routes.


It is important to remember that leaving the UK voluntarily is preferable to being deported. By taking action and leaving the UK before the end of your visa period, you can avoid hefty fines and criminal convictions. To avoid any potential issues and ensure that you can continue living and working in the UK, it is essential to keep up to date with your immigration status and have a plan in place should your sponsor lose their sponsor licence.

Conclusion


Losing a sponsor licence can have a significant impact on the sponsoring company and its employees. It can result in fines, civil penalties, and the inability to sponsor new foreign nationals.


If your sponsor loses their licence, it’s important to act quickly and take the necessary steps to find an alternative solution. Depending on the severity of the breach, you may need to consider transferring sponsorship to another company or even leaving the UK.


By understanding the importance of having a sponsor licence, being aware of the eligibility criteria and knowing what to do if it’s lost, businesses can ensure they stay compliant and protect the rights of their employees.

How we can help?

CGM App is an end-to-end immigration app, designed to make the immigration and global mobility process more seamless and compliant; specifically for expats, sponsoring companies, and immigration consultants globally.

Visit cgmpartners.org.uk/register for more information.

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