When a UK employer sponsors a migrant worker under the Skilled Worker route or another sponsored visa category, they take on specific responsibilities – not only to the employee but also to the Home Office. One of the most common questions from both employers and workers is whether a sponsor can cancel visa sponsorship – and what happens next if they do.
In this article, we’ll explain how visa sponsorship works, when and why it might be cancelled, what happens afterwards and the alternative routes available – including the increasingly popular self-sponsorship visa.
What is a sponsorship licence and how does it work?
UK employers that wish to hire overseas workers need a sponsor licence issued by the Home Office. This allows them to issue Certificates of Sponsorship (CoS) to eligible candidates, enabling them to apply for a relevant visa – most commonly a Skilled Worker visa.
With this licence comes legal responsibility. The employer must:
- Ensure the role meets minimum salary and skill requirements
- Report key changes to the Home Office
- Keep accurate records of employment and immigration status
- Notify the Home Office if a sponsored worker leaves, breaches their conditions or no longer qualifies for the role
The sponsorship licence system is designed to ensure compliance with immigration rules and protect the integrity of the UK’s labour market.
Can a sponsor cancel a sponsorship?
Yes – a sponsor can cancel their sponsorship of a visa holder at any time, provided there is a legitimate reason. This typically happens if:
- The employee resigns or is dismissed
- The job role no longer exists (e.g. redundancy or business closure)
- The employee breaches the terms of their visa or employment contract
- There was an error in the sponsorship process or the job no longer meets eligibility requirements
To cancel a sponsorship, the employer must report the change via the Sponsor Management System (SMS) within 10 working days. This action prompts the Home Office to begin curtailment proceedings for the visa.
It’s important to note that cancellation of sponsorship is not the same as dismissal. While employers are free to terminate employment contracts (within the bounds of employment law), they must also follow immigration reporting duties when the employee is sponsored.
What happens after sponsorship is cancelled?
Once the Home Office is notified, they will typically curtail the visa – giving the worker 60 days (or less) to take action. This grace period allows time to:
- Find a new job with a licensed sponsor
- Apply for a different visa category (e.g. Graduate visa, spouse visa)
- Make arrangements to leave the UK voluntarily
If no action is taken within the specified timeframe, the individual may become an overstayer – which can lead to serious immigration consequences, including bans on re-entry.
For this reason, it’s vital that visa holders act quickly and seek legal advice to understand their next steps.
Self-sponsorship as an alternative
One potential route for skilled migrants facing sponsorship cancellation is the self-sponsorship visa. This option allows individuals to start a UK business, apply for a sponsor licence through their own company and sponsor themselves for a Skilled Worker visa.
While this route requires a viable business plan and compliance with sponsor duties, it offers greater control and long-term stability. It may be particularly attractive to:
- Experienced professionals with entrepreneurial plans
- Individuals who have previously held a sponsored role and wish to remain in the UK independently
- Workers who face frequent changes in employment or unstable sponsors
Self-sponsorship is not a shortcut – it involves a rigorous application process and ongoing Home Office scrutiny – but with expert guidance, it can be a powerful alternative to relying on external employers.
Can sponsorship be cancelled without notice?
While sponsors are legally required to report the end of sponsorship to the Home Office, there’s no obligation under immigration rules to give advance notice to the visa holder – though employment laws (e.g. contractual notice periods) may still apply.
In some cases, sponsored workers only discover their visa has been curtailed when they receive notification from the Home Office. This can be stressful and time-sensitive, especially if the worker has no alternative arrangements in place.
That’s why it’s crucial for employees on sponsored visas to stay informed, maintain good communication with their employer and have a basic understanding of their immigration status and options.
Can the Home Office cancel sponsorship directly?
Yes, although less common, the Home Office can intervene directly and cancel a sponsorship arrangement if they believe:
- The sponsor has failed to meet its legal duties
- The business has ceased trading or has had its sponsor licence revoked
- There is evidence of fraud or misuse of the visa system
If a sponsor’s licence is revoked, all workers sponsored by that employer will have their visas curtailed, even if they were not personally at fault. This can leave many individuals and families in sudden legal uncertainty.
Steps to take if your sponsorship is cancelled
If you receive notice that your sponsorship has ended – either from your employer or the Home Office – it’s essential to act quickly:
Check your visa conditions
Review the letter from the Home Office carefully. It should confirm the date your leave will be curtailed and what steps you can take.
Seek immigration advice
An experienced immigration solicitor can help you understand your options, including switching visas or applying for leave under a different route.
Explore re-sponsorship
If you plan to continue working in the UK, you’ll need to find a new job offer with an employer licensed to sponsor visas. Be aware of time constraints.
Consider self-sponsorship or business routes
If suitable, the self-sponsorship route can allow you to remain in the UK on your own terms, provided your business idea is viable and compliant.
Avoid overstaying
Remaining in the UK beyond your permitted stay without valid leave can result in serious immigration penalties and affect future applications.
Sponsor licence holders: Key considerations
Employers should not cancel a sponsorship lightly. Ending a worker’s sponsorship has consequences, not only for the individual but also for the sponsor’s record with the Home Office. Sponsors must:
- Record the reason for cancellation clearly
- Ensure reporting is done accurately and within 10 working days
- Continue to comply with other sponsor duties throughout the process
Poor compliance could result in a suspension or loss of the sponsor licence, jeopardising the company’s ability to hire international talent in the future.
Clarity and action are key
A UK sponsor can cancel visa sponsorship but doing so sets in motion a formal process that affects the visa holder’s legal status. Whether you’re an employer managing your licence or a worker facing cancellation, understanding your rights and obligations is vital.
For skilled migrants who wish to stay in the UK independently, self-sponsorship may offer a lifeline – one that combines entrepreneurial freedom with immigration control.
Related reading: Can a Sole Trader Apply for a Sponsor Licence?
Need advice on sponsorship cancellations or alternative visa options?
We offer a free 30-minute consultation to help you understand your position and the best steps forward. Contact Osbourne Pinner Solicitors via the form below, call 0203 983 5080 or email [email protected] to speak with an experienced immigration solicitor today.
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