Sponsor Licence Cooling Off Period

The sponsor licence cooling off period refers to a mandatory waiting period that applies to UK employers in certain situations, including after a licence is revoked, suspended, or an application is refused. Its purpose is to give employers time to address any issues before attempting to apply for or regain a sponsor licence. The standard duration is 12 months, although the specific length may vary depending on the circumstances.

Failure to meet the sponsorship requirements when applying for a sponsor licence can result in a refused application. Equally, even if approved for a sponsor licence, there are various ongoing sponsorship obligations that are imposed on employers, where a failure to comply with these obligations can potentially result in a revoked licence. In either scenario, the employer may be facing a mandatory cooling off period before being able to reapply for a licence to sponsor migrant workers.

For revocations, the cooling off period begins once UK Visas and Immigration (UKVI) revokes the licence, often due to non-compliance with sponsor duties such as poor record-keeping or failing to prevent illegal working. Suspended licences, on the other hand, may involve temporary restrictions, and reapplying during this period is not permitted. Refused applications can also lead to a waiting period if UKVI deems the organisation unsuitable or unprepared to hold a licence.

Employers must use the cooling off period to assess and correct any shortcomings.

The following guide for employers on the rules relating to sponsor licence cooling off periods looks at the circumstances in which a cooling off period applies and for how long. We also look at the impact of any cooling off period on both those wanting to sponsor migrant workers, and on any prospective or existing migrant workforce. Still, there are various ways in which cooling off periods can be avoided, where we set out some best practice tips on avoiding having a cooling off period imposed in the first place.

 

When does the sponsor licence cooling off period apply?

 

To be able to sponsor migrant workers, unless they are settled or otherwise have permission to work in the UK, employers must have a suitable sponsor licence in place. However, it is important that when submitting an application for a sponsor licence that the relevant sponsorship requirements can be met and the application is fully supported by the necessary documentation. This is because if the application for a sponsor licence is refused by UK Visas and Immigration (UKVI) — where UKVI is the Home Office department responsible for making sponsor licence decisions — the employer may not be eligible to make any further application until a specified period of time has elapsed following their refusal decision. This is commonly referred to as a ‘sponsor licence cooling off period’.

Equally, even if approved for a licence, there are various ongoing sponsorship obligations that must be met, where any failure to comply with these obligations can result in the loss of the sponsor licence, known as revocation, and again the possibility of a cooling off period. The sponsor licence cooling off period may also apply where the employer:

 

• withdrew their licence application while UKVI were undertaking checks on them and it is likely that UKVI would have refused that application had the employer not withdrawn it,
• previously held a sponsor licence and they surrendered it while UKVI was taking compliance action against them, in circumstances where it would have been revoked as a result of that compliance action,
• has been issued with an applicable civil penalty or charge, or
• has an unspent conviction for a relevant offence.

 

 

How long is the sponsor licence cooling off period?

 

The length of time that the sponsor licence cooling off period will apply will depend on the reason for the imposition of the cooling off period in the first place, where there may be no cooling off period in certain scenarios, meaning that the employer can reapply at any time. However, where a cooling off period applies, and an application for a sponsor licence is made while the employer is still subject to that period, UKVI will automatically refuse their application, even if the reasons that led to the cooling off period no longer apply.

Official guidance on how to apply for a sponsor licence, including the rules around cooling off periods, can be found online at GOV.UK within the Workers and Temporary Workers – Guidance for Sponsors Part 1: Apply for a Licence. This includes a useful table setting out the length of the cooling off period according to the circumstances, including:

 

No cooling off period

 

No cooling off period will apply where:

 

• The sponsor licence application was refused (or would have been refused had the employer not withdrawn it) because the application was sent by a representative
• The sponsor licence application was refused (or would have been refused had the employer not withdrawn it) because the employer did not provide any documents or information requested by UKVI within a specific deadline for reasons outside their control
• The sponsor licence application was refused (or would have been refused had the employer not withdrawn it) because the employer applied to be licensed on the Scale-up route and their application was refused solely because they did not meet the definition of a qualifying Scale-up sponsor.

 

6-month cooling off period

 

If the employer’s previous licence application was refused (or would have been refused had they not withdrawn it) for any reason not otherwise mentioned in the guidance table, a 6-month cooling off period will run from the date the application was refused or the date that UKVI notified the employer that they had accepted the employer’s withdrawal request.

 

12-month cooling off period

 

A 12-month sponsor licence cooling off period may apply where:

 

• The employer previously held a sponsor licence and it was revoked (or it would have been revoked had they not surrendered it)
• The employer has been issued with a civil penalty for employing an illegal worker under either section 15 of the Immigration, Asylum and Nationality Act 2006 or regulation 11 of the Accession of Croatia (Worker Authorisation) Regulations 2013 — and the penalty has been paid by the employer in full
• More than one civil penalty has been issued to the organisation’s owner, a director or authorising officer under sections 23 or 25 of the Immigration Act 2014 for authorising occupation of residential premises by an adult disqualified by reason of their immigration status (in breach of the right to rent scheme) — but the penalties have been paid in full.

 

In the first scenario, the 12 months will run from the date of the notice informing the employer that their licence had been revoked (or the date UKVI notified the employer that they had accepted the employer’s request to surrender their licence). In the second and third scenarios, the 12 months will run from the date the penalty or penalties were paid.

Importantly, where reference is made to civil penalties issued to “an owner, a director or authorising officer”, this means civil penalties issued to those persons either individually or collectively. As such, if an owner and the authorising officer have each been issued with a single civil penalty, this will count as two civil penalties against the employer’s organisation.

UKVI will not grant a sponsor licence while an employer, owner, director or authorising officer has an outstanding unpaid civil penalty or charge (as set out above) for which they are still liable once any objection and appeal rights have been exhausted.

 

5-year cooling off period

 

The employer has been issued with a civil penalty or charge under either sections 32 or 40 of the Immigration and Asylum Act 1999 (for carrying clandestine entrants or for carrying passengers without proper documentation), or under section 24 of the Counter-Terrorism and Security Act 2015 or the Authority to Carry (Civil Penalties) Regulations 2015 (for bringing a passenger to the UK in breach of an authority to carry scheme) — but any penalty or charge imposed has been paid in full.

In these circumstances, the 5 years will run from the date the penalty or charge was paid.

UKVI “may” also impose a cooling off period for up to 5 years after the date that any civil penalties were paid in full where either the employer has been issued with two or more penalties for employing illegal workers or, alternatively, where three or more civil penalties have been issued to either the owner, a director or authorising officer of the employer’s organisation (either individually or collectively) under the right to rent scheme. UKVI will take into account a number of factors here, including the number and amount of penalties imposed; how soon these penalties were paid or the level of compliance with any instalment agreement; the number of illegal workers or disqualified adults involved; and the extent to which the employer co-operated with UKVI or other relevant authorities.

 

Until a conviction is spent

 

If the employer has an unspent conviction for a relevant offence, where their application is refused or an existing licence is revoked because of this, the sponsor licence cooling off period will run until the conviction is spent under the Rehabilitation of Offenders Act 1974. Any reference to the “employer” includes any owner, director, key personnel nominated on the licence application or any person involved in the day-to-day running of the business.

If an unspent conviction for a relevant offence is recorded against any one of these individuals in the employer’s organisation, the employer can only reapply for a licence before the conviction is spent in certain circumstances. This includes if that person no longer works for the employer; is no longer the business owner, or acting as a director, one of the key personnel or someone involved in the day-to-day running of the business; or does not otherwise have significant involvement in the running or financing of the business.

 

What happens if there is more than one cooling off period?

 

Where more than one sponsor licence cooling off period is relevant to the employer’s circumstances, the longest cooling off period will apply. For example, if an application is refused because the employer fails to meet all of the requirements of the route in which they were applying ‘and’ because they have recently been issued with a civil penalty for employing an illegal worker which they are still paying off in agreed instalments, they will not be eligible to make a licence application until 12 months have elapsed since they have paid the civil penalty in full. A shorter 6-month cooling off period applies to the failure to meet the route-specific requirements, but the longer cooling off period overrides this.

In contrast, if an application is refused, again because the employer fails to meet the route-specific requirements ‘and’ because they have previously been issued with a civil penalty for employing an illegal worker, but this was paid in full 10 months ago, the 6-month cooling off period will apply, as the cooling off period for the civil penalty will expire in 2 months.

 

Impact of cooling off period on sponsors and workers

 

If a sponsor licence is refused or revoked, and a cooling off period is imposed, this can have a significant impact on both the sponsoring organisation and any prospective or existing migrant workers. For workers looking to come to the UK to work in a sponsored job role for that organisation, they will no longer be eligible to apply for a visa, while those already working for that organisation in the UK will have to leave their job and possibly the UK.

Even after a cooling off period has expired, an employer is not guaranteed the grant of a sponsor licence, where they must ensure that the reasons UKVI refused (or would have refused) their previous application, or revoked (or would have revoked) their previous licence, no longer apply. An UKVI compliance officer may conduct a pre-licence compliance check to establish that the employer has the necessary systems and procedures in place to meet their sponsorship obligations. If UKVI is not satisfied that the employer can fully meet their sponsorship obligations, or that they otherwise remain unsuitable to hold a sponsor licence, their application will be refused and subject to a further cooling off period.

 

How to avoid having a cooling off period imposed

 

To avoid having a cooling off period imposed, this generally means taking steps to avoid having a licence application refused or revoked. As such, the key lies in fully understanding the sponsor licence application or sponsorship process, and having systems in place to ensure that the obligations imposed on the organisation can be satisfactorily met. This includes, but is not limited to, conducting prescribed right to works on all new recruits.

Employers should also exercise caution when nominating those individuals who will be responsible for managing the sponsorship process. Referred to as the key personnel, the employer should only nominate reliable and trustworthy individuals, ensuring that they too fully understand the employer’s obligations in the context of sponsoring migrant workers, and that they comply with the relevant sponsorship rules and requirements at all times.

 

Need assistance?

 

DavidsonMorris are UK business immigration specialists. For expert guidance on a sponsor licence application, or relating to Home Office penalties and enforcement which may render you subject to a cooling off period, contact us.

 

Sponsor licence cooling off period FAQs

 

What is the sponsor licence cooling off period?

The cooling off period is a mandatory waiting time, typically 12 months, imposed on employers after a sponsor licence is revoked, suspended, or a licence application is refused. During this period, reapplication is generally not permitted.

 

Does the cooling off period apply to suspended licences?

If a sponsor licence is suspended, the cooling off period does not immediately apply. However, during suspension, employers cannot reapply for a licence. If the suspension leads to revocation, the cooling off period will begin.

 

What causes a sponsor licence to be revoked?

Revocation often occurs when an employer fails to meet compliance obligations, such as maintaining accurate records, reporting changes, or ensuring legal working practices. Serious breaches of sponsor duties are usually the cause.

 

Can an employer appeal a licence revocation or refusal?

There is no formal appeal process for revocations or refusals. Employers can challenge decisions through judicial review if they believe the decision was unlawful or procedurally unfair.

 

How can employers reapply after a cooling off period?

Employers must wait for the cooling off period to end before reapplying. They should address the reasons for the revocation, refusal, or suspension, and ensure compliance with all sponsorship requirements.

 

What happens to sponsored workers during a revocation?

When a licence is revoked, all sponsored workers’ visas will be curtailed, usually giving them 60 days to find a new sponsor or leave the UK. The individual’s curtailment letter will set out the specific requirements they are subject to.

 

How can employers avoid a cooling off period?

Maintaining compliance with sponsor duties, conducting regular internal audits, and seeking professional advice can help avoid licence issues that lead to revocation, suspension, or refusal.

 

Is the cooling off period ever longer than 12 months?

In some cases, UKVI may extend the cooling off period beyond 12 months, depending on the severity of the non-compliance or the specific circumstances of the case. Employers should verify their eligibility to reapply before submitting a new application.

 

Glossary

 

 

Term	Definition
Sponsor Licence	A licence issued by UK Visas and Immigration (UKVI) allowing employers to sponsor skilled workers from overseas.
Cooling Off Period	A mandatory waiting period, typically 12 months, during which employers cannot reapply for a sponsor licence after revocation, suspension, or refusal.
Revocation	The cancellation of a sponsor licence by UKVI due to non-compliance with sponsorship duties or other breaches.
Suspension	A temporary status applied to a sponsor licence, during which the licence holder cannot sponsor new workers or reapply for a licence.
Refusal	The rejection of a sponsor licence application by UKVI, often due to failure to meet eligibility or suitability criteria.
UKVI	UK Visas and Immigration, the government agency responsible for managing the UK’s visa and immigration system.
Compliance Obligations	The legal duties that sponsor licence holders must adhere to, including record-keeping, reporting changes, and preventing illegal working.
Judicial Review	A legal process that allows employers to challenge decisions made by UKVI if they believe the decision was unlawful or procedurally unfair.
Curtailment	The process by which UKVI shortens the visa duration of workers sponsored under a revoked licence, usually giving them 60 days to find a new sponsor or leave the UK.
Reapplication	The process of submitting a new sponsor licence application after the cooling off period has ended and compliance issues have been addressed.
Sponsorship Management System (SMS)	An online platform used by sponsor licence holders to manage their licence, including issuing Certificates of Sponsorship and reporting changes.
Certificates of Sponsorship (CoS)	Documents issued by sponsors to enable skilled workers to apply for a work visa under a specific route.
Internal Audits	Regular reviews conducted by employers to ensure they are meeting sponsor compliance obligations and identifying potential risks.
Skilled Worker Route	A visa route allowing UK employers to sponsor foreign workers for roles that meet skill and salary thresholds.
Eligibility Criteria	The conditions that employers must meet to apply for or maintain a sponsor licence, including proving genuine need and compliance capability.