What can cause sponsor licence revocation, and what are the consequences?

 What can cause sponsor licence revocation, and what are the consequences?

April 4, 2024

Due to the need for more skills in the United Kingdom, UK sponsors are bound to hire skilled workers worldwide. However, due to the complex immigration rules and regulations, it is essential to implement a sponsor licence application. This licence comes with many responsibilities and compliance duties that are essential to fulfil for UK sponsors. The United Kingdom is undoubtedly one of the best countries in the world, where individuals from all over the world want to settle down for various reasons. UK businesses require talents to scale up their business and set a benchmark for the global business market. However, due to the complex UK immigration rules and regulations, UK employers must obtain a sponsor licence. This licence is the key to hiring overseas talents. To continue hiring non-UK talents, it is essential to future-proof your business against sponsor licence revocation.

Once your licence has been revoked, you won’t be able to hire immigrant workers worldwide for your company. A business requires an immense workforce and skills to grow and be sustainable. In this regard, this licence will make hiring overseas talents for your venture in the United Kingdom easier. However, if you maintain compliance with rules and regulations, your licence may be revoked by the UK Home Office. This comprehensive guide will discuss some of the essential aspects that can cause sponsor licence revocation and how it can affect your entire business operations. 

An Overview of Sponsor Licence Revocation

Before we go any further, you must know about sponsor licence revocation. This licence is the key to hiring overseas migrant workers for your business in the United Kingdom. Making a sponsor licence application can be easier, but managing it cannot be easy. You must know that every sponsor licence comes with specific responsibilities. A sponsor licence holder must fulfil those requirements to avoid the chances of revocation. Staying compliant with UK immigration rules and regulations is essential to avoid such situations. The lack of compliance with the duties is the primary reason behind the sponsor licence revocation. Maintaining employees ‘ handbooks and putting all the information in the Sponsor management system is the key to making your business sustainable in the United Kingdom by avoiding the reasons for revocation. In our next section, we have discussed the several consequences that cause sponsor licence revocation. 

Causes of Sponsor Licence Revocation 

To avoid the chances of licence revocation, it is essential to understand what causes sponsor licence revocation. In this section, we have mentioned some of the essential factors that cause revocation. 

  • The UK Home Office expects sponsor licence holders to comply with immigration rules and regulations and fulfil their sponsor duties. Thus, you must stay compliant and fulfil your sponsor duties. You must report to the Home Office about any specific changes in your business operation or the profile of migrant workers. 
  • The UK visas and immigration are strictly against illegal employment. As a sponsor, if you have employed any migrant worker who doesn’t have permission to work in the United Kingdom, it can lead to licence revocation. However, to minimise the chances of revocation, it is essential to perform right-to-work checks before employing migrant workers. As a sponsor, you must implement the right-to-work checks before employing an international worker. 
  • They are not keeping accurate records of migrant workers, such as their contact details, residential address, immigration status, salary threshold and daily attendance. Daily, you must ingest this information into the Sponsor Management System(SMS). 
  • You must maintain an employee handbook and ask your employees to update it with all the crucial information. There must be a biometric system to maintain migrant workers’ daily attendance records. Mismanagement in keeping these records can also lead to licence revocation. If we have an HR system, it would be best to tackle this situation. You can only fulfil your sponsor duties with a robust human resource team. The Home Office compliance officer checks that you must have a legal HR system to stay compliant. Your licence may get revoked if you don’t have a solid HR system.
  • The UK Home Office can only revoke your licence if you inform them about a decrement in an employee’s job role and a salary threshold. Increments are not subject to information, but decrements are, so be sure to inform them of all this information. 
  • The Home Office can also revoke your licence if you need a functional website and if you have advertised yourself as a recruitment agency. Your website must be functional, and you should advertise as something other than a recruitment firm. 
  • Updating a wrong CoS (certificate of sponsorship) code can also lead to licence revocation. The code should be correct, and working hours should be defined well; discrepancies can also become a reason for sponsor licence revocation. 

Hence, these are some of the primary reasons behind the licence revocation. However, if you are a new applicant, you may need help to fulfil your compliance duties. Moreover, it is crucial to understand your sponsor’s duties before making a sponsor licence application. In this regard, it can be beneficial to seek professional advice from immigration solicitors in London. Several renowned legal immigration firms in the UK, such as A Y & J Solicitors. Their team of expert lawyers and immigration experts can help you tremendously with the entire application process. 

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