ArticleSponsor Licence Revocation: Key Updates Employers Must Know

The UK Home Office recently updated its Guidance on sponsor licence revocation, introducing new grounds for action that could significantly impact businesses employing foreign workers. These changes are outlined in the document titled, ‘Workers and Temporary Workers: guidance for sponsors part 3: sponsor duties and compliance’. With the increasing complexity of immigration compliance, it is crucial for sponsor licence holders to stay informed.

Key Updates: Grounds for Revocation

The updated Guidance adds three new grounds for sponsor licence revocation under Annex C2, detailing circumstances under which a Home Office caseworker may revoke a licence. These include:

1. Recouping Certificate of Sponsorship Fees
   If a Certificate of Sponsorship (CoS) is assigned to a Skilled Worker on or after 31 December 2024, and the employer asks the worker to pay for part or all of the associated charge, or attempts to recoup these costs, the licence may be revoked.
2. Recouping Sponsor Licence and Administrative Fees
   For sponsors licensed under the Skilled Worker route, any attempt to recover the sponsor licence fee, administrative costs (including premium service fees), or related expenses from the worker could lead to revocation. This provision also comes into effect from 31 December 2024.
3. Sponsorship in a Personal Capacity
   Assigning a CoS to sponsor a worker for personal reasons, rather than legitimate business purposes, is now a ground for licence revocation.

Mandatory vs. Discretionary Grounds

While these new grounds for revocation are not mandatory, they represent situations where the Home Office will normally revoke a licence unless compelling reasons are presented. This introduces an element of discretion, but persuading a Home Office caseworker not to follow standard procedures can be challenging.

The Risks of Sponsor Licence Revocation

The implications of a sponsor licence revocation extend beyond administrative inconvenience. These include:

• Operational Disruption: Revocation could disrupt business operations reliant on skilled foreign workers.
• Impact on Sponsored Workers: Employees under sponsorship may face visa curtailment, jeopardising their legal stay in the UK.
• Reputational Damage: A revoked licence can tarnish a business’s reputation, affecting relationships with clients and potential hires.
• Personal Consequences: Business owners and key personnel may face scrutiny and long-term restrictions on reapplying for a sponsor licence.

Ensuring Compliance

To mitigate the risk of revocation, immigration solicitors recommend proactive steps to ensure compliance:

1. Policy Review and Updates: Regularly update HR policies and employment contracts to align with the latest Home Office Guidance.
2. Mock Audits and Training: Conduct mock audits and provide training for key personnel involved in sponsor licence management.
3. Legal Support: Engage professional immigration solicitors to review CoS allocations, manage sponsorship records, and handle potential compliance issues.

Professional Guidance: A Safety Net

As Home Office enforcement intensifies, businesses may benefit from transitioning to a fully professional Sponsor Licence Management Service. Immigration solicitors can assist with:

• Training and Audits: Preparing businesses for Home Office inspections.
• Case Representations: Advocating for discretion in cases where revocation is under consideration.
• Cooling-Off Period Reductions: Making strong representations to reduce the two-year cooling-off period following revocation.

Final Thoughts

The introduction of these new grounds for sponsor licence revocation highlights the need for businesses to remain vigilant and compliant. The consequences of non-compliance are severe, affecting not just business operations but also the lives of sponsored employees and their families. Seeking timely legal advice and implementing robust compliance measures are now more critical than ever.

For businesses concerned about their sponsor licence status, immediate legal consultation can be the difference between sustaining operations and facing enforcement action. With the right support, it is possible to navigate these regulatory challenges and secure the future of your workforce and business.