A Sponsor Licence lets businesses import skilled staff outside the UK. But, if a company does not operate within the regulations issued by the UK Home Office, its Sponsor Licence can be canceled, and that means the company can no longer legally sponsor foreign employees. This can be a very negative move, as all sponsored workers could lose their visas and either be able to find a new sponsor or exit the UK.
This blog shares the top causes for a Sponsor Licence to be removed and how companies can prevent this.
What If You Can Cancel a Sponsor Licence?
There are various reasons for a sponsor license being canceled by the Home Office, some mandatory and some discretionary. These reasons can be further sorted into subtypes.
1. False Information
Employers need to submit documentation proving the business meets all sponsorship criteria to apply for a Sponsor Licence. The Sponsor Licence can be revoked if the Home Office suspects any of these documents contain untruths or are otherwise not by current regulations. This may be for things such as not having proper HR procedures or entering the wrong information regarding the business.
2. B-Rating
Sponsor licenses are either “A” or “B”. Employers with a good HR program that can show that they fulfill all sponsorship requirements receive an A rating. If the business doesn’t abide by the rules, is a slave to immigration fraud, or fails to deliver documentation promptly, it gets demoted to a B-rating. A B-rating is a signal that it can be better. Without correcting these things, the Sponsor Licence of the company might be canceled.
3. Hiring Illegal Workers
Should a firm be found to be hiring staff who are not entitled to work in the UK, it could be civilly prosecuted. Whether it’s hiring undocumented labor or contravening immigration rules. The Sponsor Licence may be denied or terminated for such breaches.
4. Fail the Resident Labour Market Test.
Resident Labour Market Test (RLMT) – the scheme that gives UK employees a shot at employment before businesses hire foreign workers. Employer: If an employer violates the RLMT rules or misuses the shortage occupation list, their Sponsor Licence can be canceled. This test is now going to be scrapped after Brexit according to the new points-based immigration regime, according to the UK government.
5. Stopping Business Operations
A company may be removed from its Sponsor Licence if it cease trading, insolvency, or liquidation. If the company has no longer a valid UK-based presence, the Home Office can cancel the license.
Is a Sponsor Licence Revocation Appealable?
Yes, you have the right to contest if your Sponsor Licence is terminated. The business will have 20 business days from the revocation notice to file a response. It’s always advised to hire immigration lawyers who have a background in this kind of stuff so they will be able to walk you through the process and show you how.
Businesses can address revocation and attempt to avoid revocation by Law and Visas. Our immigration lawyers can help collect information, prepare a revocation response, and follow through to address compliance issues. We can even work with you on a plan to apply again for a new Sponsor Licence after the cooling-off period.
A lost Sponsor Licence is nothing good for any company. It means you can’t employ competent foreign workers and this could impact your business. Businesses need to be on top of all immigration laws and stay on the right track to not get retracted.
If your Sponsor Licence is at risk or canceled, Law and Visas can work to reinstate your license. Call us today to have a lawyer and expert representation.
