Sponsor Licence Compliance & Reapplication

Immigration Consulting Services: Sponsor Licence Specialists

Holding a Sponsor Licence is only the beginning. UK employers must continue to meet strict Home Office compliance requirements to maintain their licence and avoid enforcement action.

Whether your business has recently been granted a Sponsor Licence and needs ongoing compliance support, or your licence has been revoked and you are preparing to reapply, our specialist immigration team is here to help.

With 30 years of combined experience in UK immigration law, we advise businesses across a wide range of sectors on Sponsor Licence compliance, Home Office audits, licence revocations and reapplications. We help employers build robust compliance systems, minimise risk, and maximise the prospects of a successful outcome.

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We’ve recently been granted a Sponsor Licence

We want to reapply for a Sponsor Licence

1. How can businesses prepare for a Home Office compliance audit?

There are two main types of Home Office compliance audits: online compliance interviews and in-person compliance visits. The purpose of these audits is to assess whether a business is meeting its sponsor licence compliance duties and managing its sponsored workers in accordance with the UK Immigration Rules.

Businesses should ensure that they maintain accurate and up-to-date HR and financial records, as these are commonly requested during a compliance audit. In most cases, the Home Office will provide advance notice of the audit and allow the business time to prepare the required documentation.

It is also important to ensure that key personnel understand their sponsor duties and are familiar with the company’s recruitment and right to work procedures. If you are unsure whether your business is fully compliant, seeking advice from an immigration solicitor before the audit can help identify any issues and ensure you are well prepared.

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2. How can solicitors help with Sponsor Licence compliance?

An immigration solicitor can help your business identify and address potential compliance risks before they become serious issues. By reviewing your current HR systems, record keeping practices, and sponsor licence procedures, a solicitor can provide practical advice on improving your compliance and ensuring your business meets all sponsor licence duties.

Solicitors can also prepare your business for a Home Office compliance audit by explaining the types of questions that may be asked during interviews and advising key personnel on how to respond confidently and accurately.

If the Home Office requests documents or issues a compliance notice, a solicitor can review your records, identify any areas of concern, and assist in preparing a comprehensive and well organised document bundle. Where necessary, they can also draft legal representations and communicate with the Home Office on your behalf to help protect your sponsor licence.

3. What happens during a Home Office compliance visit?

A Home Office compliance visit is conducted to assess whether a business is complying their sponsor licence duties. During the visit, the Home Office officers may review the company’s HR records, right-to-work checks, payroll records, employment contracts, and employees’ data records relating to any sponsored workers. They may also inspect business premises to verify that the business is genuine and operating as declared. Interviews with key personnel, managers, and sponsored workers may be conducted as well to ensure that the information provided to the Home Office is accurate and aligned, and that sponsored workers are performing roles for which they were sponsored. Following the visit, reports will be prepared by the Home Office to conclude whether the business is compliant or take actions where immigration rules are being breached.

4. What are my duties as a sponsor license holder?

Firstly, an employer has to conduct proper right to work checks and maintain accurate records for each sponsored worker throughout the period of the sponsorship. This includes retaining copies of their passports, evidence of their right to work (such as eVisas), employment contract and salary information. This is to demonstrate that ongoing compliance has been carried out throughout the sponsorship and ensure that the records will be available for random inspection by the Home Office.

An employer has to ensure that the sponsored workers’ duties are in accordance with the job description, and their salaries are in accordance with what is stated on the CoS. Where there are changes to the workers’ job titles or salary, the employer has a duty to inform the Home Office via the SMS system within 10 working days. Where a worker fails to commence employment within 1 month of the grant of skilled worker visa, does not turn up to work for more than 10 days without reason, has unpaid leave for more than 1 month, or where a worker resigns before their skilled worker visa end date, the employer will also need to report these changes to the Home Office.

5. What is a Sponsor Licence suspension?

A Sponsor Licence suspension is when a business is temporarily stopped from sponsoring workers because the Home Office has concerns about breaching your sponsor duties that need to be looked into. It doesn’t always mean the licence will be taken away, but it can affect both the employer and the employees. What happens next depends on the situation and the action the business takes.

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6. Why might the Home Office suspend a Sponsor Licence?

The Home Office may suspend a Sponsor Licence if a business fails to meet its sponsor duties, for example, not reporting a worker’s absence or change of role, keeping incomplete records, or sponsoring someone for a non-genuine vacancy. A suspension can lead to revocation, so it is important to seek advice and respond quickly.

7. What happens if my Sponsor Licence is suspended?

If your Sponsor Licence is suspended, you can usually continue employing your existing sponsored workers, but you will not be able to assign new Certificates of Sponsorship or sponsor new workers while the suspension is in place. The Home Office will normally give you 20 working days to respond to the suspension notice and explain why your licence should be reinstated. If your response is successful, the suspension may be lifted. If not, the Home Office could decide to revoke your licence.

8. Can my business continue employing sponsored workers during a suspension?

If your sponsor licence is suspended, your existing sponsored workers can usually continue working for your business while the suspension is being investigated.

However, a suspension prevents your business from assigning any new Certificates of Sponsorship or sponsoring new workers during that period. If you need to sponsor additional employees, you will first need to respond to the Home Office’s suspension notice by making representations to challenge the suspension and seek to have your sponsor licence reinstated.

It is important to respond to a suspension promptly and provide any evidence requested by the Home Office, as the outcome may determine whether your sponsor licence is reinstated, downgraded, or revoked.

9. Can I challenge a Sponsor Licence suspension?

Yes. If your Sponsor Licence is suspended, you will usually have an opportunity to respond to the reasons given by the Home Office and provide evidence or explanations to address their concerns.

A suspension does not mean that your licence has been permanently lost. It is a temporary measure while the Home Office reviews the situation. It is important to act quickly, understand the concerns raised, and provide a proper response.

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10. What is the difference between suspension and revocation?

A suspension means your Sponsor Licence has been temporarily stopped while the Home Office investigates or considers concerns about your business. Your existing skilled workers may continue their employment however you will not be able to assign any Certificates of Sponsorship to new skilled workers.

A revocation means your Sponsor Licence has been taken away completely. Your business will no longer be able to sponsor any skilled workers.

In simple terms:

Suspension = temporary stop while the issue is reviewed.

Revocation = the licence is removed and sponsorship can no longer continue.

11. What happens if my Sponsor Licence is revoked?

If your Sponsor Licence is revoked, your business will no longer be able to sponsor any workers.

This can have serious consequences, including:

You cannot sponsor new workers.

Existing sponsored workers may lose their immigration permission and may need to find another sponsor or make alternative arrangements.

Your business may no longer be able to employ certain staff who rely on sponsorship. It may affect your business reputation and future ability to recruit internationally.

If your licence is at risk, it is important to seek advice early and respond properly to the Home Office concerns before the situation becomes more serious.

12. Can a revoked Sponsor Licence be appealed?

There is no direct appeal process or no right of appeal against the decision in Sponsor License revocation. However, the company can challenge the revocation decision through Administrative Review or Judicial Review (PAP before JR), if there are grounds to reconsider the revocation decision. The cooling off period is 12 months.