UK Visas and Immigration (UKVI) compliance visits are on the rise, putting companies with sponsor licences under greater scrutiny than ever before. The stakes are high, as failure to meet compliance duties and maintain robust record-keeping can lead to the suspension or revocation of your licence, with serious consequences for both your company and sponsored employees. This affects companies across all sectors, particularly those heavily reliant on international talent, including the technology and healthcare sectors.
The move aligns with the government’s ongoing efforts to tighten immigration control and reduce net migration. Another contributing factor is the aftermath of the pandemic, which brought frequent policy changes and periods of relaxed compliance rules - such as changes to right-to-work checks and allowances for remote working - with many businesses still struggling to navigate evolving rules and guidance. In response, UKVI has intensified both announced and unannounced visits, with some resulting in licence suspensions or revocations.
Contents:
- The difference between suspension and revocation
- When is a sponsor licence normally suspended or revoked?
- What are the consequences of suspension or revocation?
- Can you challenge the decision to suspend or revoke a licence?
- What to do after your sponsor licence is suspended or revoked?
- How to avoid suspension or revocation
The difference between suspension and revocation
Following a UKVI compliance visit, if your company fails to demonstrate that it complies with its sponsorship duties and record-keeping practices, there are two possible outcomes:
Suspension is a temporary measure that prevents your company from issuing any new Certificates of Sponsorship (CoS) to existing or new employees whilst the UKVI conduct further investigations. The existing sponsored employees’ right to work under their current visas remains unaffected during the suspension. However, this can create uncertainty for them, particularly for upcoming extensions or change of employment applications.
Revocation is the permanent withdrawal of the sponsor licence with immediate effect. Your company will lose the ability to sponsor migrant employees in the future. Any current sponsored migrant employees on the licence will have their visas curtailed within 60 days. This is the more serious consequence, which can happen in extreme cases.
When is a sponsor licence normally suspended or revoked?
Normally, following a routine UKVI compliance visit or if UKVI has been tipped off about potential misuse of the sponsor licence or potential illegal employment, they will thoroughly investigate your company’s compliance practices, including record keeping and reporting procedures.
The licence can be suspended where findings indicate that the company has failed to update UKVI on necessary changes or failed to undertake basic checks. This would include the following:
- Changes to Key personnel (e.g. Authorising Officer)
- Changes to the company structure and ownership
- Evidence of inadequate record keeping such as right-to-work checks and employee documentation (i.e. contact details)
- Poor monitoring of absences
- Unsatisfactory policies and procedures to comply with the sponsorship duties
For example, failing to report a change in Authorising Officer within the required timeframe can result in suspension. Any oversights, such as incomplete records for right-to-work checks, can escalate into significant issues during a compliance visit, emphasising the necessity for meticulous attention to detail. Your company is normally given 20 working days to submit additional documentation or address any failings to demonstrate that it has the necessary procedures and records in place to comply with its sponsorship duties. It is crucial to seek professional advice and guidance in dealing with a suspension to avoid further escalation and potentially a revocation.
If, following a suspension, the company is found to have repeatedly failed to comply with its sponsorship duties, or they have been found to have knowingly (and in some cases unknowingly) employed illegal employees, or they have provided fraudulent information or documentation regarding the licence or individual visa applications, or evidence of criminal activities, then the licence can be revoked.
Suspensions are typically enforced when UKVI needs to investigate compliance failings or allow time for the company to rectify those failings. In contrast, revocation can sometimes be mandatory, such as when a company fails to meet the criteria for holding a licence - for example, if your company has stopped trading or operating in the UK. There are also circumstances where revocation will be at the discretion of UKVI, mainly in cases of negligence or breaches by the company with some evidence of mitigating factors, such as failing to have a Level 1 User to maintain and update the licence. Each case must be evaluated on its own merits, and if you anticipate your company being at risk, it is best to seek professional advice as soon as possible to reduce the risk of a suspension or revocation.
What are the consequences of suspension or revocation?
During suspension, UKVI will normally give you 20 working days to provide additional documents or to implement necessary changes to record-keeping procedures. They will normally conduct another compliance visit to check the changes made and to review any additional documentation provided.
This can result in the licence being reinstated back to normal, allowing your company to continue issuing CoS. Alternatively, if UKVI remains unsatisfied with the corrective measures taken, in some cases, UKVI may extend the suspension period, giving your company more time to make the required improvements. During this extension period, some companies will have their licences downgraded to a B-rating and be issued with an action plan to address the compliance failings identified by UKVI. Failure to meet the requirements outlined in the action plan can lead to revocation of the licence.
In more severe cases, where the investigation has led to further evidence of non-compliance or more serious findings such as illegal employment or submission of fraudulent documentation or information, the sponsor licence may be revoked.
The company and its sponsor licence
Suspension can be a stressful time for both your company and the sponsored employees. For your company, it can mean halting recruitment and disrupting your business operations. It can jeopardise the trust of your sponsored employees which could then lead to problems with employee retention, and potentially impact team morale.
Revocation will be the most serious consequence where your company will lose its ability to sponsor employees and attract the best talent for vacancies. All sponsored employees will lose their right to work, which can severely disrupt your company’s operation and impact team morale. Records of UKVI licence revocations are public and can result in adverse publicity for your company among your employees, stakeholders, and clients. If a sponsor licence is revoked, there is a ‘cooling-off’ period of 12 months in which your company will not be able to reapply for a sponsor licence, resulting in further impacts to operations.
You could also face fines of up to £60,000 per illegal worker if illegal employment is identified and your company cannot provide a statutory excuse by evidencing adequate right-to-work checks. If you are found guilty of knowing or having ‘reasonable cause to believe’ the illegal employee(s) did not possess the correct right to work in the UK, it can also lead to imprisonment of five years and/or an unlimited fine.
The sponsored employees
Suspension can create a significantly stressful time for sponsored employees and their dependants. Uncertainty about their visa status and the ability to work and remain in the UK can negatively impact their performance and morale. It can also lead to complications for those with upcoming extensions or change of employment applications as your company will not be able to issue new CoS.
In the case of revocations, the current employees’ visas will be curtailed, and they will normally have 60 days to find alternative sponsorship or to leave the UK. This can be extremely detrimental to those employees and their dependent family members.
Can you challenge the decision to suspend or revoke a licence?
A suspension can be challenged by providing evidence of compliance if these were not available on the day of the compliance visit or if they had to be extracted from different sources (such as third-party software). It is highly recommended to seek professional advice on creating a robust action plan that rectifies the failings found and new implementation of HR practices and policies that ensure your company complies with all its sponsorship, reporting and record-keeping duties. UKVI must be convinced that your company has implemented all necessary measures before reinstating the licence.
Revocations can only be challenged through judicial review to the High Court if there are grounds for procedural unfairness, illegality, or irrationality in decision making.. This process has a high threshold, can be a long process, and there are strict deadlines for initiating the process which is usually three months. Again, it is highly advisable to seek professional assistance in assessing whether this is a viable option and the best way to present your case.
What to do after your sponsor licence is suspended or revoked?
Whether it is a suspension or revocation, it is essential to seek professional advice immediately as it can provide a better opportunity for your company to evaluate the findings of UKVI and the present situation of the company.
This can involve finding new supporting material that the company may not have been aware of through thorough investigation and developing a robust action plan to address deficiencies and implement correct policies and procedures, including right-to-work checks, monitoring absences, record keeping, and reporting duties. If these are conducted within the timeframe set by UKVI and they are satisfied the company can maintain compliance, the suspension can be lifted and the business will avoid revocation.
The same applies to cases of revocation. A thorough examination by professionals can assist in identifying any failings of UKVI and assessing the proportionality of the revocation and the wider implications and as a result the viability of a judicial review to have the licence reinstated. If reinstatement is not possible, professionals can assist in creating an action plan to prepare your company for reapplication for a sponsor licence after the 12-month ‘cooling-off’ period.
How to avoid suspension or revocation
Running a business and managing teams can be extremely time-consuming and often requires a lot of plate spinning. With so many challenges taking your focus, it can lead to issues around compliance falling by the wayside. Frequent policy and guidance changes make it difficult to ensure internal procedures, reporting and recording duties are compliant.
One of the best ways to avoid suspension or revocation is to conduct regular internal audits of your policies and practices related to sponsorship duties. Implementing automated tools or reminders to track key deadlines, such as visa expirations or reporting requirements, can significantly reduce the chance of human error. Combining these tools with regular internal reviews and immigration training ensures your policies and practices stay aligned with the ever-evolving UKVI guidance.
Our team is able to assist in guiding you with conducting internal compliance audits in line with UKVI requirements and can also review a sample of HR employee files for a thorough assessment. This approach fosters a culture of compliance within the organisation, reducing the risk of a last-minute rush during a UKVI compliance visit.
In any area where you identify deficiencies, it is useful to seek professional training for the Authorising Officer and relevant team members to allow them to understand the necessary requirements and risks of failing to meet these standards. Our team is also able to provide bespoke training based on your business needs together with training material for future reference.
Ensure any upcoming changes, such as changes in key personnel, business structure, or ownership are communicated to UKVI as soon as possible. Some changes may require assessing the type of notification required for UKVI and guidance on the supporting evidence. It is best to notify us of potential upcoming changes at your earliest convenience to allow us to work with your team and avoid missing any deadlines.
Our specialist immigration team is here to assist you at every stage of your business and help you maintain compliance. We have a variety of services, including training, internal compliance audits, and the analysis of complex compliance issues, to help your business navigate and thrive in today’s increasingly challenging immigration landscape.
