Sponsorship compliance is a top priority for the UK Home Office, and the rules are getting tougher. Licence suspensions and revocations are on the rise, with the government planning even stricter penalties for non-compliant employers. The upcoming immigration policy white paper will only increase the stakes.

Losing a sponsor licence can wreak havoc on both businesses and employees. Sponsored workers risk losing their jobs and visas, often with just 60 days to find a new sponsor. For the business, the fallout can include damaged reputation, operational disruptions, and hiring challenges. With compliance visits becoming more targeted, it’s time to take action.

In this article, we break down the suspension and revocation process and provide steps to challenge these decisions if they occur.

The Home Office Compliance Visit

It often begins with a Home Office compliance visit. These are no longer routine and are now intelligence-driven. Suspicious sponsorship activity, tip-offs, or concerns about a business’s legitimacy can trigger a visit. These can be announced or unannounced.

While you can request to reschedule, the Home Office has the final say. Non-cooperation could lead to immediate licence revocation.

To prepare, do a pre-audit, simulate interviews, and ensure the sponsor knows what questions they might face, such as managing sponsored workers, reporting, and record-keeping.

During the visit, the Home Office will check:

  • HR systems and right-to-work checks
  • Sponsored worker compliance
  • Job role legitimacy
  • Authorising Officer and Key Contact details
  • Interview responses from staff and sponsored workers

Having a representative is helpful, but it’s even better if the sponsor can respond confidently. After the visit, the Home Office will issue a report outlining compliance. Breaches will be listed in Annexes C1 to C3 of Part 3 of the sponsor guidance.

What Happens After a Breach?

If the breaches are minor, the licence may be downgraded from A to B. The sponsor will be placed on a 3-month action plan, during which they can’t sponsor new hires but can continue assigning Certificates of Sponsorship (COS) to existing workers.

Serious breaches could lead to suspension or revocation.

Suspension of a Sponsor Licence

When suspended, the Home Office sends a letter outlining the reasons for the suspension. During this period:
No new COS can be assigned.

  • Ongoing visa applications are paused.
  • The sponsor has 20 working days to respond.

A well-prepared, evidence-based response is crucial. Evidence could include:

  • A statement from the Authorising Officer
  • Testimonies from sponsored workers
  • HR policies and compliance documents
  • Proof of visa holder eligibility
  • Client or stakeholder references

Even if breaches are undeniable, acknowledging the errors and showing a commitment to improvement can influence the decision. The Home Office will review all evidence and typically respond within 20 working days. The decision could be to lift the suspension, downgrade the licence, or proceed with revocation.

Revocation of a Sponsor Licence

Revocation is the harshest penalty. Once revoked, the sponsor is removed from the register and cannot reapply for at least 12 months (soon to be 2 years). Sponsored workers will have their visas cut to just 60 days.

While revocation usually follows suspension, the Home Office can revoke immediately in serious cases.

Challenging a Revocation

There’s no formal appeal process for licence revocation. The only option is judicial review, which checks if the Home Office acted lawfully and fairly.

To initiate:

  • Seek legal advice to assess the case.
  • Send a pre-action protocol letter explaining the basis of the challenge (e.g., errors, unfairness).
  • The Home Office has 14 days to respond.
  • If the Home Office maintains its decision or fails to respond, legal proceedings can be filed in the High Court.

During this process, the licence remains revoked unless the Home Office voluntarily reinstates it. Judicial review is costly and unpredictable, and the sponsor may face legal costs if unsuccessful.

Prevention Is Key

With UKVI cracking down on sponsorship compliance, sponsors must keep impeccable records and stay ahead of ever-changing regulations. The government is extending action plan periods and cooling-off periods, making prevention more critical than ever.

Sponsors should:

  • Fully understand their duties
  • Keep up-to-date records
  • Regularly review HR and compliance systems
  • Seek legal support and conduct mock audits

In Summary

Sponsorship compliance is under increased scrutiny. Licence suspensions and revocations are happening more often, making it crucial to maintain compliance and be prepared. Judicial review is a last resort, but consistent adherence to regulations, proactive audits, and comprehensive training are the best way to protect your licence.

Need Expert Guidance?

Ash Norton Solicitors, specialist UK immigration lawyers, are here to help you navigate these complex requirements and protect your sponsor licence.