ArticleSponsor Licence Suspensions: Here’s How to Reclaim It

In recent months, the UK Home Office has ramped up efforts to tackle employer non-compliance, making Sponsor Licence Suspensions a pressing concern for businesses. For organisations holding sponsor licences, the stakes have never been higher, as even a minor oversight could result in a Sponsor Licence Suspension, jeopardising employee livelihoods and business stability. A recent case involving a care home group highlights the challenges and offers essential lessons for sponsors aiming to avoid a Sponsor Licence Suspension and navigate the increasingly stringent compliance landscape.

The Case in Focus

The care home provider in question operates multiple homes and employs over 50 sponsored workers. Its sponsor licence came under scrutiny following an onsite visit by the Home Office’s Sponsor Compliance Team in May 2024. By August 2024, the sponsor received notice of suspension, citing two key breaches:

1. Allegations of offering non-genuine vacancies.
2. Failure to report late start dates for some sponsored workers.

Faced with a 20-working-day deadline to respond, the sponsor sought urgent legal assistance to address the allegations. The outcome highlights not only the risks but also the strategies required to rectify such situations effectively.

The Impact of a Sponsor Licence Suspension

A sponsor licence suspension is often a precursor to more severe enforcement actions, including licence revocation. For the care home provider, the potential consequences were stark:

• Operational Disruption: The suspension created uncertainty for clients and employees alike. Revocation could have resulted in the termination of over 50 sponsored workers’ employment, leading to critical staffing shortages.
• Business Viability: Staffing losses could have forced the closure of care homes, affecting both sponsored and non-sponsored employees.
• Reputational Damage: Compliance failures, particularly in sensitive sectors like care, can harm an organisation’s credibility.

Given these stakes, resolving the suspension swiftly was paramount.

Defence Strategy: Addressing the Allegations

On engaging legal counsel, the sponsor took decisive steps to counter the Home Office’s allegations. The process highlights the importance of a robust, evidence-based response.

1. Genuine Vacancies

The Home Office alleged that some sponsored workers were performing duties outside their stated roles. Specifically, it was claimed that a healthcare assistant had been working in a kitchen role as a chef.

To refute this, the sponsor:

• Compiled detailed evidence, including witness statements from the worker and key staff members.
• Demonstrated that the worker had engaged in occasional meal preparation as part of their healthcare assistant duties but was not employed in a kitchen role.
• Explained the nuanced responsibilities of healthcare assistants, which can overlap with food preparation, particularly in care settings.

The Home Office accepted this evidence, recognising the role’s legitimacy and dismissing the allegation.

2. Late Start Dates

The second allegation concerned the failure to report delayed start dates for three sponsored workers.

Through diligent investigation, the sponsor:

• Confirmed that one worker had started within 28 days of visa issuance, negating the allegation in that instance.
• Reported the late start dates for the remaining two workers retrospectively.
• Implemented new systems to ensure timely reporting of start dates, supported by procedural updates and staff training.

This proactive approach satisfied the Home Office, addressing the breach effectively.

Outcome: Licence Reinstated

Following the submission of a comprehensive response, the Home Office lifted the suspension, reinstating the sponsor licence with immediate effect. The care home’s operations continued without disruption, preserving employment for all staff and ensuring uninterrupted care for residents.

Lessons for Sponsor Licence Holders

This case underscores the importance of proactive compliance and swift action in the face of enforcement measures. Common compliance pitfalls include:

1. Ensuring Role-Specific Duties

• Sponsored workers must perform duties aligned with their Certificates of Sponsorship (CoS) and the SOC code description.
• Changes in duties must be reported within 10 working days via the Sponsorship Management System (SMS). Significant changes requiring a new SOC code necessitate a fresh visa application.

2. Reporting Start Dates

• Start dates must align with the CoS, visa ‘valid from’ date, or the decision notification date.
• Delays beyond 28 days must be reported within 10 working days and justified with valid reasons.

Practical Compliance Tips

To minimise risks, sponsor licence holders should:

• Conduct regular audits of sponsorship processes to ensure ongoing compliance.
• Train HR and managerial staff on sponsorship duties, reporting obligations, and permissible worker activities.
• Develop clear policies for monitoring sponsored workers and addressing potential breaches.
• Engage legal and compliance specialists promptly if notified of a Home Office inspection or enforcement action.

Final Reflections

The Home Office’s heightened scrutiny of sponsor compliance is particularly evident in high-risk sectors such as care. For employers, the key to navigating this environment lies in preparation, vigilance, and swift corrective action when required.

If your organisation faces compliance challenges or receives a sponsor licence suspension notice, timely expert advice can make the difference between resolution and revocation. The lessons from this case provide a roadmap for sponsors striving to meet their obligations and safeguard their operations.