Sponsorship Licence Revocation
In some circumstances, the Home Office will initiate sponsorship licence revocation proceedings in writing by setting out alleged breaches of sponsor duties. This can occur if the Home Office suspects that the licence holder has breached the initial qualifying criteria or ongoing compliance duties as a sponsor. If this is the case, all categories that the sponsor is licensed under will be revoked. There is no right to appeal and the Home Office will curtail every sponsored worker’s permission to reside and work in the UK.
Instances in which a Sponsorship Licence may be suspended
1) Failure to Meet Salary or Skill Level Requirements
Sponsors must ensure that sponsored workers are paid at least the higher of the “going rate” for their occupation or the minimum salary threshold (currently £38,700 or the relevant going rate). The Home Office may initiate revocation if they discover workers are being underpaid, or if the role does not meet the required skill level (RQF Level 6 or above). Sponsors must retain payslips and contracts evidencing correct salary payments.
2) Lack of a genuine vacancy
In some instances, the alleged breach may centre on the lack of an existing genuine vacancy. This is usually when the Home Office suspects that the sponsored worker is working in a job different to that stated in the Certificate of Sponsorship (CoS). Sponsorship Licence holders will need to ensure that their migrant employees are performing the job role in question as stated in the CoS, and must be able to provide documentary evidence to confirm the same.
3) Failure to retain specified information in the format required by the UKVI
Sponsorship Licence holders are obliged to keep certain documents on file as outlined in appendix D. These documents demonstrate understanding, adherence and implementation of their obligations as a licensed sponsor. Failure to do so will result in a breach of the sponsor’s duties to adequately monitor and record sponsored worker activity.
4) Failure to Report Changes to the Home Office
Sponsors must report certain changes within strict timeframes using the Sponsorship Management System (SMS). This includes changes to company address, key personnel (Authorising Officer, Key Contact, Level 1 User), mergers or acquisitions, and changes to sponsored workers’ circumstances. Failure to report within the required timescales (typically 10-20 working days depending on the change) is a common trigger for compliance action.
5) Inadequate Right to Work Checks
Employers must conduct compliant right to work checks before employment begins and maintain records throughout the sponsorship period. The Home Office may revoke a licence if checks were not performed correctly, documents were not properly verified, or follow-up checks for time-limited permissions were missed. Sponsors should retain dated copies of all right to work documents.
6) Failure to Keep the Sponsorship Management System (SMS) Updated
Sponsors must use the SMS to report worker absences exceeding 10 consecutive working days, changes to job duties or salary, early employment end dates, and any contact detail changes. Failure to maintain accurate SMS records demonstrates poor compliance and may trigger revocation proceedings.
7) Employing Workers Outside Their Visa Conditions
Sponsored workers must only perform the role specified in their Certificate of Sponsorship. If the Home Office discovers workers performing substantially different duties, working excessive hours beyond their permitted limit, or working at unapproved locations, this constitutes a serious breach that often leads to immediate licence revocation.
Suspension vs Revocation: Understanding the Difference
It is important to understand that suspension and revocation are different outcomes:
Suspension (B-Rating): Your licence is temporarily downgraded while the Home Office investigates alleged breaches. During suspension, you cannot assign new Certificates of Sponsorship, but existing sponsored workers can continue working. You will be given an action plan to address compliance failures. If you successfully complete the action plan within the specified timeframe (usually 3 months), your licence can be reinstated to A-rating.
Revocation: This is the permanent cancellation of your sponsorship licence. Once revoked, all sponsored workers will have their visas curtailed (typically given 60 days to find a new sponsor or leave the UK). There is no right of appeal against revocation. You may face a 12-month cooling-off period before you can reapply for a new licence.
Key Timeframes You Need to Know
Response deadline: You typically have 20 working days from the date of the notice to submit your response to the Home Office.
Evidence gathering: Use the first 5 days to gather all relevant documentation and consult with legal advisors.
Home Office decision: After receiving your response, the Home Office typically takes 4-8 weeks to make a final decision.
Worker curtailment: If revocation proceeds, sponsored workers are usually given 60 days to find alternative sponsorship or make other immigration arrangements.
Cooling-off period: Following revocation, you must wait 12 months before reapplying for a new sponsorship licence.
Warning Signs: What Triggers Home Office Investigations
Being aware of common investigation triggers can help you maintain compliance:
HMRC Data Sharing: The Home Office regularly cross-references sponsor data with HMRC records. Discrepancies between reported salaries on CoS applications and actual PAYE payments often trigger investigations.
Compliance Visits: Random or targeted visits may occur without warning. Red flags during visits include missing HR records, workers not present at registered work locations, inability to produce right to work documents, and discrepancies between CoS details and actual job roles.
Worker Complaints: Reports from sponsored workers about underpayment, different job duties, or poor working conditions can prompt Home Office action.
Failed Extension Applications: When sponsored workers apply to extend their visas, the Home Office scrutinises the sponsor’s compliance history. Issues discovered during these applications may trigger wider investigations.
Anonymous Tips: The Home Office operates a reporting line for suspected immigration offences, and tip-offs from competitors, former employees, or members of the public can initiate investigations.
Impact on Your Business
Sponsorship licence revocation has serious consequences for your organisation:
Immediate workforce disruption: All sponsored workers will have their permission curtailed, typically to 60 days. This can cause significant operational disruption, especially if sponsored workers hold key roles.
Loss of skilled talent: Workers you have invested in training and developing may be forced to leave the UK or seek employment with competitors who hold valid licences.
Recruitment restrictions: Without a licence, you cannot recruit skilled workers from overseas. Combined with the 12-month cooling-off period, this may severely impact your ability to fill specialist roles.
Reputational damage: Licence revocation becomes a matter of public record on the Home Office register of sponsors. This may affect client relationships, partnerships, and your ability to win contracts.
Financial costs: Beyond legal fees for responding to revocation proceedings, you may face costs associated with recruitment, temporary staffing, lost productivity, and potential civil penalties if illegal working is discovered.
Future applications scrutinised: If you reapply for a licence after the cooling-off period, your application will face enhanced scrutiny, and you may be required to demonstrate improved compliance systems.
If you receive a revocation notice, take these steps immediately:
- Check your deadline – You typically have 20 working days to respond. Mark this date immediately.
- Do not ignore the letter – Failure to respond results in automatic revocation.
- Gather evidence – Collect all documents that address the specific allegations: HR records, payslips, contracts, right to work checks, and reporting logs.
- Identify remedial steps – The Home Office may suspend (rather than revoke) if you can demonstrate you have already taken steps to fix the breach and prevent recurrence.
- Seek legal advice immediately – Given the tight deadline and lack of appeal rights, professional representation significantly improves your chances of avoiding revocation.
How can NA Law Solicitors help?
You are strongly advised to seek legal advice when confronted with a potential revocation of your Sponsorship Licence, as this is a complex area of law where many different factors determine whether or not it is still possible to avoid the enforcement of the revocation. NA Law Solicitors specialise in this area of law and our immigration lawyers will work with you to build a response to the Home Office. Support and assistance will be provided when it comes to engaging with the Home Office, understanding the grounds for the revocation and what remedial steps need to be taken to ensure compliance in the future. Please feel free to get in touch for expert legal advice.
You have limited time to respond. Our immigration solicitors can help you challenge the Home Office decision and protect your sponsored workers. Contact us today.
