ARTICLE
10 January 2025

Sponsor Licence Revocation: Common Reasons And How To Avoid It

WB
WestBridge Business Immigration

Contributor

WestBridge Business Immigration, a London-based law firm with more than a decade of experience, advises businesses, entrepreneurs, and individuals on compliant and efficient immigration outcomes. The firm specialises in tailored guidance to navigate the complexities of the UK immigration system.
Sponsor licence revocation disrupts businesses, halting sponsorship for 12 months and risking operational continuity. Common compliance risks include underpaying employees, assigning CoS improperly, offering non-genuine roles, and failing reporting duties. Proactive compliance safeguards licences and business operations.
United Kingdom Immigration

Sponsor licence revocation is an extremely bad outcome for employers. It means that the business loses its sponsored employees and will not be able to sponsor for at least 12 months.

We will look at some common examples of non-compliance that may risk your licence below:

1. Underpaying Sponsored Employees

An important part of the skilled worker visa eligibility that underpins the whole scheme is the minimum salary requirement. This rule ensures that migrant workers are not underpaid, maintaining fair competition in the local labour market.

The certificate of sponsorship (CoS) will show the salary on offer so the Home Office can check the rule is met at the time the visa is approved/CoS is granted. Once the visa is approved you must pay the salary as is stated on the CoS to remain compliant with your licence.

The salary offered to a sponsored worker must meet the minimum requirements and match the figure stated on their Certificate of Sponsorship (CoS). If a Home Office audit or HMRC data reveals that employees are being underpaid, your licence may be suspended.

Without a compelling justification for the breach, the suspension can quickly escalate to revocation.

2. Assigning a Certificate of Sponsorship to a Close Relative, Partner, or Yourself

Assigning a CoS to a family member, partner, or yourself is a direct breach of sponsorship rules and leads to automatic licence revocation without the opportunity to defend your actions.This type of a breach is listed on the mandatory reasons for licence revocation.

For clarity, a close relative or partner includes:

  • Spouses, civil partners, or unmarried/same-sex partners
  • Parents, step-parents, children, or stepchildren
  • Siblings, step-siblings, nieces, nephews, or cousins
  • In-laws (e.g., mother-in-law, brother-in-law)

It is crucial to ensure that the Level 1 User or anyone involved in CoS assignments understands and adheres strictly to these rules.

Where you have a valid reason for sponsoring yourself or a family member in your business, you must make sure that the level 1 who assigns the CoS is not related to the migrant who is being sponsored and that a sponsor note is written clearly explaining any familial relationship.

3. Offering Non-Genuine Roles

The Home Office is vigilant against immigration fraud, including businesses misrepresenting low-skilled roles or selling visas for fake positions.

A "non-genuine role" allegation often arises when sponsors cannot provide sufficient evidence to support the job description or recruitment process stated in the CoS.

During compliance audits, interviews with sponsored workers may reveal inconsistencies that trigger these allegations.

To avoid this risk, ensure robust recruitment processes are documented and that the job duties that are listed on the CoS are accurate.

4. Breaching Sponsor Duties

Your compliance responsibilities begin the moment your sponsor licence is granted, even before sponsoring any workers. Common breaches include failing to report changes such as:

  • Office relocations or changes to your trading name
  • Legal structure: note these changes can require licence surrender and reapplication

Once you sponsor your first migrant, you must also report on relevant circumstances relating to the migrant.

Some examples include: where the migrant is placed on maternity leave, where the migrant has a change in job title (but not a change in core duties), where the migrant moves work location or if they change their visa type.

If you fail to understand and act on your reporting duties, the Home Office will suspend or potentially revoke your licence.

Avoiding Licence Revocation: Ensuring Compliance Through Proactive Measures

Revocation of a sponsor licence leaves businesses with limited recourse, as there is no formal appeal process. The only alternative—a judicial review—can be both expensive and challenging, with no guarantee of success.

Prevention is key to maintaining your licence and avoiding operational disruptions. WestBridge Business Immigration provides expert support to help businesses uphold compliance standards:

  • Tailored Compliance Training: Comprehensive guidance to ensure full understanding and fulfilment of sponsor duties.
  • Mock Audits: Detailed assessments to identify and address potential issues before they arise.
  • Ongoing Compliance Support: Continuous assistance to sustain best practices and adapt to evolving regulatory requirements.

Proactive compliance measures are essential for safeguarding your sponsor licence and avoiding the severe consequences of non-compliance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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