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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 in the Sponsorship Management System (SMS). Suspended licences remain valid pending review, and existing sponsored workers with valid permission can generally continue working (unless the licence is ultimately revoked).

By contrast, sponsor licence revocation is a permanent termination of the licence. UKVI formally cancels the licence for all sponsored routes. 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 (often 24 months for repeat offenders) before any new licence application can be submitted. There is no right of appeal against revocation, though in some cases a judicial review or fresh application after the cooling-off period may be available.

KEY DISTINCTIONS

Differences Between Suspension and Revocation

Suspension is a warning phase giving you an opportunity to respond to alleged breaches, whereas revocation is a final action that ends your sponsorship privileges.

  • Duration: Suspension is temporary; revocation is permanent removal of the licence.
  • Business impact: Under suspension, your organisation remains registered (though delisted) and must maintain all duties. 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 routine audit findings and serious breaches, such as:

  • Sponsor duty breaches: Failing to carry out required right-to-work checks, underpaying sponsored workers, or failing to report absences or changes in duties.
  • 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 (like address moves or mergers) 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 each allegation in UKVI’s letter. You must respond to every point.
  • Gather evidence: Collect contemporaneous documents (payroll records, right-to-work checks, etc.) showing compliance.
  • Rectify issues: Immediately fix any obvious compliance gaps. Showing corrective action demonstrates good faith.
  • 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. If revoked, their visas will be curtailed to 60 days.
  • Freeze new hires: Immediately cease assigning any further CoS and inform HR and recruitment teams.
  • Conserve evidence: Preserve all relevant records (HR files, emails, policy documents, 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.
LEXINGTON ASHWORTH

How Lexington Ashworth Can Help

Lexington Ashworth’s Manchester-based team is highly experienced in urgent sponsor licence compliance work. We live by our values of integrity, insight, impact, and precision in every case. Our corporate immigration solicitors can assist you with:

  • Emergency compliance audits

    We will conduct an immediate review of your systems and documents, identifying any vulnerabilities.

  • Response preparation

    Our lawyers will draft the formal response to UKVI’s suspension or revocation notice with supporting evidence.

  • Readiness & Reapplication

    We aim for full reinstatement. If revoked, we advise on judicial review and prepare your reapplication.

  • Reinstatement & Reapplication

    We aim for full reinstatement. If revoked, we advise on judicial review and prepare your reapplication.

  • Training and prevention

    To prevent future problems, we offer staff training and long-term compliance support on sponsor duties.

Contact Lexington Ashworth today for urgent assistance with sponsor licence suspension or revocation. Our experienced team will work with integrity and precision to help reinstate your licence and safeguard your workforce. Call us now to speak with our specialist immigration lawyers for immediate support.

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Contact us today to schedule your free consultation. We will listen to your situation, answer your questions, and outline a clear plan moving forward. Take the first step towards a confident resolution by booking your consultation now.

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