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Sponsor Licence Suspension & Revocation

A guide to understanding the consequences of non-compliance, and the steps to take if your sponsor licence is at risk.

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OVERVIEW

Understanding Suspension and Revocation

Sponsor licence suspension occurs when UK Visas and Immigration (UKVI) temporarily pauses a company’s sponsor licence while investigating potential breaches of immigration rules. During suspension, a sponsor cannot assign any new Certificates of Sponsorship (CoS) or change key personnel. By contrast, sponsor licence revocation is a permanent termination of the licence. A revoked licence means the employer can no longer sponsor any workers, and UKVI will normally curtail the visas of all sponsored employees. Revocation triggers at least a 12-month cooling-off period before any new licence application can be submitted.

KEY DISTINCTIONS

Differences Between Suspension and Revocation

  • Duration: Suspension is temporary; revocation is permanent removal of the licence.
  • Business impact: Under suspension, your organisation remains registered but delisted publicly. In revocation, the licence is cancelled in all routes.
  • Sponsorship ability: While suspended, you cannot assign new CoS. A revoked licence means you can never issue new CoS unless re-approved.
  • Sponsored workers: During suspension, current workers usually continue with no immediate change. Following revocation, affected workers are typically given at most 60 days to switch visas or leave.
COMMON CAUSES

Common Reasons for Suspension and Revocation

UKVI may suspend or revoke a licence for many reasons related to non‑compliance. These include:

  • Sponsor duty breaches: Failing to carry out required checks, underpaying sponsored workers, or not reporting absences.
  • Record-keeping and HR failures: Poor HR systems or missing documentation discovered during UKVI compliance visits.
  • Issuing improper CoS: Assigning certificates to roles that do not meet skill, salary or genuineness requirements.
  • Reporting lapses: Not notifying UKVI of significant business changes within the required 20-day deadlines.
  • Serious misconduct or fraud: Providing false information in the licence application or CoS assignments.
  • Financial penalties for illegal working: Being hit with civil penalties for illegal employment and then failing to pay them.
IMMEDIATE ACTION

What to Do If Your Licence Is Suspended

If you receive a suspension notice, act immediately and methodically. UKVI will give you a written notice detailing the alleged issues and 20 working days to respond. Key steps include:

  • Review the notice carefully: Identify and prepare to respond to every point of allegation.
  • Gather evidence: Collect contemporaneous documents showing compliance to directly address UKVI’s concerns.
  • Rectify issues: Immediately fix any obvious compliance gaps and show corrective action.
  • Prepare a robust response: Draft a clear, point-by-point letter addressing each allegation with supporting evidence.
  • Continue fulfilling duties: Even while suspended, you must still meet all sponsorship obligations.
  • Seek expert advice: Engage an immigration solicitor experienced in sponsor licence issues immediately.
DAMAGE CONTROL

Immediate Steps to Protect Your Business and Workers

A suspension or revocation can disrupt your operations. Take urgent steps to safeguard your interests:

  • Check UKVI status: Immediately verify your licence status on the official Sponsor Register.
  • Communicate with workers: Notify affected sponsored staff promptly and explain the situation.
  • Freeze new hires: Immediately cease assigning any further CoS.
  • Conserve evidence: Preserve all relevant records (HR files, emails, audit logs).
  • Engage counsel: Fast-track legal help from corporate immigration specialists for a coordinated strategy.
  • Plan contingencies: Consider temporary workforce plans to handle any staffing gaps.

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