A sponsor licence is essential for UK businesses that employ overseas workers under routes such as the Skilled Worker visa. If your sponsor licence has been revoked, it can have serious consequences for both your business and your sponsored employees. Many employers are unsure whether a revoked sponsor licence can be recovered or what steps, if any, can be taken next.
In this article, we explain what sponsor licence revocation means, why it happens and what options may be available after revocation. We also explain how to access a free 30 minute consultation with an immigration solicitor if you need advice tailored to your business.
What does it mean if your sponsor licence is revoked?
Sponsor licence revocation is one of the most serious enforcement actions the Home Office can take against a sponsoring employer. When a licence is revoked, the business immediately loses the right to sponsor overseas workers.
Revocation is different from suspension. A suspended licence may be reinstated if issues are resolved, whereas revocation brings the licence to an end. Once revoked, the business is removed from the register of licensed sponsors and cannot assign new certificates of sponsorship.
Revocation also affects existing sponsored workers. Their visas are usually curtailed, meaning they are given a limited period to find a new sponsor or leave the UK. This can cause significant disruption to the workforce and wider business operations.
Related reading: Sponsor Licence Suspensions & Revocations: What Can You Do?
Common reasons sponsor licences are revoked
The Home Office may revoke a sponsor licence for a range of compliance failures. One of the most common reasons is failure to meet sponsor duties. These duties include keeping accurate records, reporting changes to sponsored workers’ circumstances and ensuring workers are genuinely employed in the roles stated on their visas.
Illegal working breaches are another major reason for revocation. If a sponsor fails to carry out proper right to work checks or is found to be employing workers unlawfully, revocation is likely.
Licences may also be revoked where a business provides false or misleading information in a licence application or during a compliance visit. Failure to cooperate with Home Office audits or to address issues identified during an inspection can also lead to revocation.
Immediate consequences for sponsored workers and the business
Once a sponsor licence is revoked, the business must stop sponsoring workers immediately. Existing sponsored employees are usually informed by the Home Office that their visas will be curtailed. They are typically given a short period to secure alternative sponsorship or make arrangements to leave the UK.
From a business perspective, revocation can lead to loss of key staff, disruption to projects and reputational damage. It may also affect future recruitment plans and commercial relationships.
Understanding these consequences is important when considering the next steps after revocation.
Can you challenge a sponsor licence revocation?
In most cases, there is no full right of appeal against a sponsor licence revocation. However, that does not mean a decision cannot be challenged. The options available depend on the circumstances and the reasons given by the Home Office, which a experienced sponsor license solicitor can help you determine.
In some situations, an administrative review may be available if there is evidence that the decision was based on an error or incorrect information. Where procedural unfairness or unlawful decision making is suspected, judicial review may also be an option. Judicial review does not reconsider the facts but examines whether the Home Office acted lawfully and fairly.
These challenges are time sensitive and require careful preparation. Taking legal advice quickly is essential to assess whether a challenge is realistic and to avoid missing deadlines.
Reapplying for a sponsor licence after revocation
Once a sponsor licence has been revoked, businesses are usually subject to a cooling off period before they can apply again. In many cases, this period is at least 12 months, although it can be longer depending on the seriousness of the breaches.
A reapplication will be closely scrutinised. The Home Office will expect to see clear evidence that the issues which led to revocation have been fully addressed. Simply waiting out the cooling off period is not enough on its own.
The previous revocation will form part of the Home Office’s assessment, making it essential to demonstrate genuine improvement and a strong understanding of sponsor duties.
Steps to improve the chances of a successful reapplication
To maximise the chances of success, businesses should take proactive steps to address past compliance failures. This may include reviewing and improving HR systems, updating record keeping processes and ensuring right to work checks are carried out correctly.
Appointing trained and reliable solicitors to assist with a sponsor licence suspension or revocation is also crucial. This helps ensure the business responds appropriately and avoids further compliance issues. The Home Office will look closely at who is responsible for sponsor compliance and whether they have the knowledge and authority to fulfil sponsor duties.
Businesses should also be prepared to demonstrate that they are trading lawfully and genuinely. This may involve providing updated financial documents, contracts, payroll records and evidence of genuine roles that meet sponsorship requirements.
Preventing future sponsor licence issues
Ongoing compliance is essential for any business that holds or plans to hold a sponsor licence. Sponsor duties continue throughout the life of the licence and do not end once a licence is granted.
Regular internal audits, staff training and legal reviews can help identify potential issues before they escalate. Being prepared for Home Office compliance visits and responding promptly to requests for information can also reduce the risk of enforcement action.
Taking a proactive approach to compliance is often the best way to protect a sponsor licence and the business that relies on it.
Moving forward after sponsor licence revocation
Sponsor licence revocation is a serious setback, but it does not always mark the end of overseas recruitment for a business. With the right strategy, careful preparation and support from an experienced sponsor licence solicitor, it may be possible to challenge a decision or successfully reapply in the future.
Understanding what went wrong and taking meaningful steps to improve compliance are key to moving forward with confidence.
Please note that this article is for informational purposes only and is not a substitute for legal advice. We encourage readers to contact Osbourne Pinner for case specific guidance.
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