Sponsor Licence Suspension

If your organisation has received a sponsor licence suspension notice, you will need to act quickly to get your licence reinstated. If you don’t respond to the Home Office, your licence could be revoked.

The Home Office has powers to suspend a sponsor licence where it alleges an organisation has failed to manage its licence correctly and to meet its immigration compliance duties. You will need to determine how you will respond and to submit your response within the given timeframe. Depending on the facts of the case, your options could include challenging the Home Office’s decision to suspend the licence, or resolving the issues and evidencing the steps you have taken.

The ability to sponsor foreign workers is business-critical for most sponsor licence holders, making it imperative to take action to address the allegations and resume normal operations. For expert advice to protect your sponsor licence, speak to our legal specialists.

 

 

Section A: Why are Sponsor Licences Suspended?

 

The ability to sponsor overseas nationals to fill essential skills gaps in your workforce can help you to achieve vital growth, and remain operational and competitive. However, sponsorship imposes a number of responsibilities on the organisation that must be complied with, otherwise you risk enforcement action, such as suspension of your sponsor licence.

Key sponsor licence duties include:

 

a. Record-keeping: Retaining personnel documentation for your sponsored workers, as required under Appendix D of the Immigration Rules.

b. Monitoring & Reporting: Sponsored worker monitoring and reporting to Home Office significant changes such as amended employment contract terms or absence from work without permission for more than 10 days.

c. Notifying Changes: Reporting organisational changes such as change of company address or Authorising Officer.

d. Prevention of Illegal Working: Complying with the prevention of illegal working regime by conducting Right to Work checks.

e. Cooperation: Being responsive and cooperative when dealing with the Home Office.

 

Importantly, as a sponsor licence holder, you can be subject to enforcement action even if you unknowingly breached the requirements and were not aware of your obligations. As such, if the Home Office alleges you have breached any of these duties, you could be subject to a licence suspension.

 

Section B: Implications of a Sponsor Licence Suspension

 

Sponsor licence suspensions are disruptive and damaging to the organisation, demanding time, effort, expertise and expenditure to resolve the issues.

 

1. Impact on Your Organisation

 

You will be required to take remedial action to address the issues raised by the Home Office in the suspension notification. As well as taking corrective compliance measures, you must also continue to comply with all sponsor duties throughout the period of suspension.

During the period of the licence suspension, the organisation will not be able to assign any new Certificates of Sponsorship, meaning it will be prohibited from sponsoring new migrant workers. The suspension will apply across all visa categories under your licence. Any CoS assigned prior to the suspension with an application pending will be put on hold until a decision is made by the Home Office on the suspension.

Your organisation will also be removed from the public register of sponsors for the duration of the suspension period.

 

2. Impact on Existing Sponsored Workers

 

Your existing sponsored workers’ leave will not be affected by the suspension, unless the Home Office decides to escalate the penalty to a licence revocation. However, if existing sponsored workers are already in the UK and are awaiting a decision on a visa extension, their extension application will be placed on hold until a decision is made on the suspension.

Should the Home Office decide to withdraw the suspension following your response, your sponsored workers’ status will remain unchanged.

 

3. Impact on New Sponsored Workers

 

New sponsored workers who are overseas and who are awaiting a decision on their visa will see their application put on hold until a decision is made on the suspension. Any new sponsored workers who are overseas and have not yet started work but have a visa will be contacted by the Home Office directly. Any new sponsored workers already in the UK who have not yet started work with you can begin working.

 

Section C: Received a Sponsor Licence Suspension Notice?

 

If your sponsor licence been suspended, you need to act quickly to avoid further disruption to your organisation. Failing to respond on time is likely to result in your licence being revoked.

If UKVI (the Home Office department responsible for managing the UK’s visa and immigration system) has evidence that justifies a decision to suspend your licence pending a full investigation, it will write to you giving its initial reasons for the suspension and letting you know that an investigation will be taking place. UKVI may not be able to specify how long the investigation will take, but you should be kept regularly updated on its progress.

 

1. Options If Your Sponsor Licence is Suspended

 

The first step is to consider your options and formulate a plan of action to avoid any detrimental impact on business operations and your employees’ visas. Generally, your options are to either:

 

a. Respond to the letter, challenging the allegations, with supporting evidence, and seeking to reinstate the licence, or

b. Respond to the letter by accepting the allegations and identifying how you are addressing the breaches.

 

The notification letter will detail the grounds for suspension, which you must address carefully and in detail in your response to the Home Office. Our compliance experts can review the suspension notice and advise on your options in the circumstances so that you proceed with the best course of action for your organisation.

 

2. How to Respond to a Sponsor Licence Suspension Notice

 

The notice should advise you of the deadline to respond to UKVI. You will usually have 20 working days from the date of the suspension notification to respond. Use this time to review the suspension decision, seek professional advice on your options, and to compile and submit your response.

Your response to UKVI must be in writing and fully set out, with any relevant supporting evidence, which suspension grounds you believe to be incorrect and the reason(s) for this. The response will need to be thorough and robust on all points. Extensive and compelling documentary evidence should be collected to support your position.

Taking professional advice can help to identify your options and ensure you respond in way that addresses the Home Office’s immediate concerns and identifies necessary remedial steps. For example, is there a factual error in the stated grounds that can be challenged with supporting evidence? Are there measures you need to take or have already taken to rectify the breach? Are there any mitigating circumstances?

It will also be important to engage positively with the Home Office throughout the process, to demonstrate your commitment to meeting the duties placed on your organisation.

You should also prepare for a site inspection from immigration enforcement officials if you haven’t already been visited.

 

Section D: What Happens After You Respond to the Home Office Suspension Notice?

 

Following receipt of your response, the Home Office will carry out further investigations into your organisation and its compliance. UKVI will usually issue its final decision within 20 working days of receipt of your response, unless the consideration is especially complex or information is pending from a third party, such as another government department. In this case, UKVI will notify you of the delay.

The suspension will remain in place until UKVI makes a decision on what action to take, which could be:

 

1. Sponsor Licence Reinstated

 

Your licence could be reinstated if the Home Office is satisfied the issues have been addressed. If the licence is reinstated with an A-rating, your licence will resume with full status.

 

2. Sponsor Licence Downgraded

 

Your licence could be downgraded if the caseworker is not satisfied with your response to the allegations. This means the licence is reinstated but with a “B” rather than an “A” rating. If your licence is downgraded, you will be required to pay for an action plan to help reinstate your “A” licence rating.

 

3. Sponsor Licence Revoked

 

If you fail to respond to the suspension notice, or if your response is not adequate, the Home Office has powers to revoke the licence, and your organisation will lose the ability to sponsor foreign workers.

There is no right of appeal to a licence revocation, and you will not be permitted to re-apply for a sponsor licence until the end of the relevant cooling-off period, which runs from the date your licence is revoked.

Licence revocation will result in any applications the organisation has pending with the Home Office usually being refused. It also means that any leave granted to migrant workers currently in the UK will be curtailed, and if they fail to find sponsored employment promptly with another sponsor licence holder, or to secure new lawful status under a different immigration category, they will need to leave the UK.

This makes it all the more important to resolve – and not ignore – the suspension. For help and advice with reinstating your sponsor licence following a suspension, please contact us.

 

Section E: Additional Penalties for Immigration Non-Compliance

 

By law you are required to carry out Right to Work checks on all workers you employ – including sponsored workers – to ensure that they are legally entitled to work in the UK and to undertake the work in question.

If migrant workers are found to be working illegally in circumstances where you have failed to carry out the required checks, you are at risk of a civil penalty and, in some cases, criminal prosecution potentially resulting in imprisonment or an unlimited fine.

Right to Work checks should form part of the pre-employment screening process, enabling you to meet your obligations to prevent illegal working.

You must also conduct follow-up checks on workers that have time-limited permission to work in the UK, such as Skilled Worker visa holders, to verify their continued lawful status and eligibility to work.

Right to Work checks can be conducted in one of following ways:

 

a. Manual document checks – where you confirm the identity of the individual using certain acceptable, original form documents.

b. Online share code checks – where the workers provides you with their share code.

c. Digital checks – using Identity Document Validation Technology through an identity service provider.

d. Employer Checking Service – using the Home Office’s online system.

 

The type of check to use will depend on factors such as the immigration status of the worker. We can advise if you are unsure of which checks to use and how to meet your Right to Work obligations. We also provide a range of training and e-learning solutions to enable organisations to meet their Right to Work obligations.

 

Section F: How to Avoid a Sponsor Licence Suspension

 

Sponsor licence compliance should form part of everyday operations for licence holders. The Home Office expects licence holders to be compliant at all times, and to be up to date with their record keeping, monitoring and reporting duties.

All personnel involved in your organisation’s recruitment, onboarding, supervision or management of sponsored workers should also be adequately trained and equipped to meet the relevant duties.

Your HR processes, policies and procedures should be reviewed regularly to ensure compliance with the regulations – which are subject to frequent change, adding further risk. Immigration audits are the most effective way to assess compliance, and to identify and resolve potential breaches. Also ensure that these best practices apply across the organisation consistently, to avoid pockets of non-compliance.

 

 

Section G: Summary

 

Sponsor licence suspension is when UK Visas and Immigration (UKVI) temporarily halts an employer’s ability to sponsor foreign workers. This action is usually taken when UKVI identifies breaches in an employer’s compliance with their sponsorship duties, such as keeping accurate personnel records, conducting Right to Work checks, and reporting relevant changes in a timely manner. Regular internal audits and training are recommended to ensure ongoing compliance with UKVI’s requirements.

For UK employers, a suspended licence presents significant challenges. During the suspension, employers cannot issue new Certificates of Sponsorship, restricting their ability to employ new foreign workers or extend the visas of current sponsored workers.

Ignoring a sponsor licence suspension is not an option. If the issues that led to the suspension are not promptly addressed, there is a risk of licence revocation, which would permanently remove the organisation’s permission to sponsor foreign workers.

As such, employers must act quickly to review their processes, correct any non-compliance, and respond to UKVI’s concerns. Failure to do so could lead to long-term damage, including reputational harm and operational disruption.

 

Section H: Need Assistance with a Sponsor Licence Suspension?

 

DavidsonMorris’ team of specialist UK immigration lawyers bring substantial experience in advising companies facing a sponsor licence suspension.

With expertise in challenging licence suspensions and reinstating employers’ permission to employ sponsored workers, we can minimise the impact of a suspended licence on your business operations.

Whether you have been given initial warning that a licence suspension is being considered, or whether the licence has been suspended, we can help. Our services include:

 

a. Assisting with understanding the grounds for suspension

b. Advice on collating the supporting evidence

c. Advice on remedial steps to address areas of non-compliance

d. Support in engaging with UKVI

e. Advice and support in relation to any subsequent follow-up scrutiny such as Home Office site visit

 

At the initial stage, we will assess all the facts and merits of your case to identify grounds to appeal the Home Office’s decision. We can review the facts of your case, including the alleged breaches as notified by the Home Office and your current general position to ascertain areas for challenge, such as weaknesses in the investigation process.

We would then provide a recommended course of action, advising on all compliance and evidentiary requirements critical to a prompt response and dealing with Home Office officials on your behalf. This could take one of many approaches, determined by the strength of your position and the case against you.

This will inevitably involve careful liaison with the Home Office, which we would undertake on your behalf. The aim is to negotiate to bring the matter to a satisfactory conclusion for both parties whereby the Home office is satisfied the issues raised in the suspension letter are addressed and the employer is able to retain their licence.

In instances where early resolution is not possible, while rare, we are experienced in managing any resulting court proceedings. This may include making an application for interim relief preventing the Home Office from taking your matter to revocation while court proceedings are live. This will be in the interests of your sponsored workers, who will be forced to find alternative entry clearance or to leave the country should your licence be revoked.

For expert guidance on how to protect your sponsor licence and avoid further disruption to your organisation, contact us.

 

Section I: Sponsor Licence Suspension FAQs

 

What is a sponsor licence suspension?

A sponsor licence suspension is a temporary measure taken by UK Visas and Immigration (UKVI) when an employer is found to be non-compliant with the terms of their sponsorship duties. It means the employer is not allowed to issue new Certificates of Sponsorship until the suspension is lifted.

 

How long do I have to respond to the Home Office suspension notice?

In most cases, you will have 20 days from the date of the notification to respond to the Home Office. The notification letter will state the deadline you need to work to.

 

Can you appeal a sponsor licence suspension?

You can respond to the suspension notification within 20 days, providing evidence to support your argument for reinstatement of the licence.

 

Can I continue employing sponsored workers during a suspension?

You can continue to employ your current sponsored workers during the suspension period. However, you won’t be able to sponsor new employees or renew the visas of existing sponsored workers until the suspension is resolved.

 

What happens to my sponsored employees if my sponsor licence is suspended?

During the suspension period, your sponsored employees can continue to work, but you won’t be able to issue any new Certificates of Sponsorship. It’s important to address the issues raised in the suspension notice promptly to minimise disruption.

 

How long does a sponsor licence suspension last?

The duration of a suspension can vary depending on the complexity of the issues involved and the time it takes for you to respond. The Home Office will lift the suspension once they are satisfied that you have rectified the issues.

 

Is there a difference between suspension and revocation of a sponsor licence?

Suspension is a temporary measure, giving you the opportunity to address compliance issues. Revocation, however, is permanent and means you lose the ability to sponsor workers altogether.

 

What are the common reasons for a sponsor licence suspension?

Common reasons include failing to comply with your sponsor duties, not keeping accurate records, conducting inadequate Right to Work checks, or being involved in illegal working practices.

 

What steps can I take to avoid sponsor licence suspension?

To avoid suspension, ensure you are fully compliant with all sponsorship duties. This includes conducting regular internal audits, keeping up-to-date records, and ensuring all HR staff are trained in sponsor licence requirements.

 

Will my business reputation be affected by a sponsor licence suspension?

A suspension can affect your business’s reputation, especially if it becomes public knowledge. It may also cause concerns among your existing sponsored employees and potential future employees. Acting quickly to resolve the suspension can help mitigate these effects.

 

Why is my sponsor licence is being revoked?

If the Home Office decides to take further action by revoking the licence, all of the organisation’s CoS will be cancelled. This will mean you can no longer employ migrant employees. Your sponsored workers’ visas will be curtailed to 60 days, or however long they have left on the visa if less than 60 days. They must then leave the UK, unless they can secure permission under a different visa category.

 

Section J: Glossary

 

Term	Definition
Sponsor Licence	A permit issued by the UK Home Office that allows employers to hire foreign workers under specific visa categories.
Sponsor Licence Suspension	A temporary halt on the use of a sponsor licence, imposed by the Home Office due to non-compliance with sponsorship duties.
Sponsor Licence Revocation	The permanent removal of a sponsor licence by the Home Office, preventing the employer from sponsoring any more workers.
Certificate of Sponsorship	An electronic document assigned by a licensed sponsor to a foreign worker, enabling them to apply for a work visa in the UK.
Right to Work Checks	Legal checks that employers must conduct to ensure that an employee is legally allowed to work in the UK.
Home Office	The UK government department responsible for immigration, security, and law and order, including the administration of sponsor licences.
Compliance	Adhering to the rules and regulations set out by the Home Office regarding the responsibilities of a sponsor licence holder.
Appeal	A formal request made to the Home Office to review and potentially overturn a decision, such as a sponsor licence suspension.
Representations	Submissions made by the sponsor to the Home Office during a suspension, providing evidence and arguments to challenge the suspension or to rectify the issues raised.
Internal Audit	A self-assessment conducted by the employer to ensure they are complying with their sponsorship duties and to identify any potential areas of non-compliance.

 

 

Section K: Additional Resources

 

UK Home Office: Sponsor a Skilled Worker
https://www.gov.uk/uk-visa-sponsorship-employers
This official government page provides comprehensive guidance on how to become a licensed sponsor, how to hire foreign workers, and the responsibilities that come with holding a sponsor licence.

 

UK Home Office: Workers and Temporary
https://www.gov.uk/government/publications/workers-and-temporary-workers-guidance-for-sponsors
Detailed guidance from the UK Home Office outlining the specific duties and compliance requirements for sponsors of workers and temporary workers.

 

ACAS: Employer Responsibilities
https://www.acas.org.uk/employer-responsibilities
ACAS provides advice and resources on employer responsibilities, including legal requirements for employing workers in the UK, which can help employers understand their duties in relation to sponsor licences.

 

CIPD: Managing a Global Workforce
https://www.cipd.co.uk/knowledge/fundamentals/relations/diversity/managing-global-workforce
The Chartered Institute of Personnel and Development (CIPD) provides resources on managing a global workforce, including the implications of immigration law and compliance with sponsorship duties.