A Sponsor Licence is essential for UK businesses that wish to sponsor foreign workers for visas. Employers with a valid sponsor license can assign Certificates of Sponsorship (CoS) to their employees through the Sponsor Management System (SMS), which is required for visa applications. However, if a sponsor fails to meet certain obligations, the Home Office can suspend their license.
In this article, we explore the common reasons a sponsor license may be suspended and what to do if it happens.
What Are the Sponsor’s Duties?
To maintain a sponsor license, businesses must meet certain responsibilities. These include:
- Monitoring immigration status: Ensuring all sponsored workers have the right to work in the UK.
- Maintaining contact details: Keeping up-to-date contact information for all sponsored employees.
- Record keeping: Properly documenting employment records, including contracts and job descriptions.
- Tracking and monitoring: Keeping track of sponsored workers’ absences and leave.
- Compliance with UK laws: Ensuring the business follows all UK laws and only sponsors workers for genuine job vacancies.
If a business fails to meet these duties, it could lead to a license suspension.
When Could Your Licence Be Suspended?
Your sponsor license could be suspended if the Home Office discovers non-compliance during a visit. These visits can be physical or virtual, and the Home Office will check if your recruitment practices, sponsorship plans, and business operations meet legal requirements.
If your business fails to pass the compliance check, your license may be suspended until you address the issues.
What Does a Licence Suspension Mean?
If the Home Office suspends your sponsor license, they will send you a written notice. Although your license remains technically valid, your business won’t be able to assign Certificates of Sponsorship (CoS), and your company will be removed from the sponsor register.
As a result, you won’t be able to sponsor any workers, and any visa applications you’ve already submitted may be put on hold until the suspension is resolved.
During the suspension, your business should continue to meet its duties under the license. Your current employees will not be affected unless the suspension leads to the license being revoked.
Common Reasons for a Licence Suspension
The most common reasons for a sponsor license suspension include:
- Employing illegal workers: If the Home Office finds you’ve hired someone who doesn’t have the legal right to work in the UK.
- Genuine vacancy concerns: If the Home Office believes that the job you’re sponsoring is not a genuine vacancy.
- False information on a CoS: If you provided incorrect or misleading information on a Certificate of Sponsorship.
- Failure to pay the correct salary: If you don’t pay your sponsored workers the agreed salary as stated in the CoS.
- Inadequate HR procedures: If you don’t have the proper systems for monitoring right-to-work checks or keeping employee records.
- Failure to report changes: If you don’t report changes in circumstances, such as a worker’s job title or your business’s contact details.
- Non-cooperation with a Home Office visit: If you refuse to provide requested information or documents during a compliance visit.
Can You Challenge a Licence Suspension?
If your license is suspended, you have 20 working days to challenge the decision. You can submit written representations explaining why the suspension should be lifted, providing evidence to support your case.
After reviewing your evidence, the Home Office may decide to reinstate your license, either with an A-rating (full reinstatement) or a B-rating (with an action plan). If your license is reinstated with a B-rating, you must comply with the action plan within three months.
What Happens if the Licence is Revoked?
If the breach is serious, the Home Office may decide to revoke your license entirely. In this case, your business will be removed from the register of sponsors, and any workers you sponsor will have their leave shortened to 60 days.
A revoked license cannot be appealed, and you will not be able to apply for a new sponsor license for 12 months after the revocation.
A sponsor license suspension can have serious consequences for your business, especially if it leads to a revocation. If you receive a suspension notice, it is crucial to respond within 20 days and provide strong evidence to support your case.
If you’re unsure about how to handle a sponsor license suspension or need help preparing your case, Law and Visas can assist you in navigating the process and ensuring your license remains in good standing.
By understanding the common causes of suspension and how to prepare for compliance visits, you can protect your business from the risks of losing your sponsor license.
