Skilled Worker Visas – What Happens if my UK Employer Loses Their Sponsor Licence?

Posted onJuly 6, 2022

If you have invested time and commitment into the UK by moving here to live and work under a sponsored visa route it can be uncomfortable when you realise that your future in the UK, and that of your family, rests on your employer retaining their Home Office issued sponsor licence.

Our immigration solicitors look at what happens to individual skilled worker visa holders if their employer loses their sponsor licence and your best options if that happens to you.

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Getting sponsored employment

When you first apply for a skilled worker visa you need sponsored employment and to meet the eligibility criteria for the relevant work visa. The UK employer needs a sponsor licence to sponsor skilled worker visa applicants (rather than employees on other types of work visa) and must allocate you a certificate of sponsorship to prove that you have an offer of employment. The certificate of sponsorship is a computerised reference number that contains all the information the Home Office needs to know about the job offer.

A sponsoring employer can't offer you a job with a set start date until their sponsor licence has been granted although they can choose to start the recruitment process in the hope that by the time that they complete the recruitment process their sponsor licence will have been granted by the Home Office.

A sponsoring employer losing a sponsor licence

You may assume that once your UK employer has got their sponsor licence that is it. Job done. That isn’t correct. A sponsor licence only lasts for up to four years before your sponsoring employer has to apply to renew the sponsor licence. The application may be refused by the Home Office if the employer has not complied with all their sponsor licence reporting and recording duties. Alternatively, an employer may choose not to renew their sponsor licence if they have found the reporting and recording too prescriptive or believe that they can recruit sufficient numbers of UK or settled workers so don’t need to continue to rely on sponsored workers.

If a sponsoring employer gets their sponsor licence suspended

If your sponsoring employer gets their sponsor licence suspended then as a skilled worker visa holder you can continue to work for them. The immigration rules say that your employer can't employ any additional skilled worker visa applicants.

In some cases, when a sponsor licence is suspended, the Home Office will provide the employer with an action plan to improve compliance with sponsor licence reporting and recording duties and to ensure that the employer’s sponsor licence rating goes back up to an A rating.

If an employer doesn’t comply with the action plan, the employer can't keep receiving a new Home Office action plan and trying again. If the employer does not follow the action plan the sponsor licence could be revoked. The revocation of the sponsor licence will have serious consequences for you. That is why many holders of skilled worker visas start looking at their best options when they hear that their employer has had their sponsor licence suspended, unless the employee is confident that the employer will treat the action plan seriously and ensure the reinstatement of sponsor licence category A rating.

If a sponsoring employer gets their sponsor licence revoked

If your employer has their sponsor licence revoked it means the sponsor licence is cancelled. Therefore, your employer can't continue to sponsor your employment. You no longer have a right to work in the UK because the conditions of your work visa are that you must be in sponsored employment. You also no longer have the right to live in the UK as your presence in the UK is linked to your sponsored employment.

If you want to stay in the UK your two best options are:

Find a new employer with a sponsor licence who can allocate a certificate of sponsorship to you so you can remain in the UK on a skilled worker visa
Switch visa to a category where you don’t need a sponsoring employer to live and work in the UK. For example, a spouse visa

Many sponsored employees assume the simple solution is that they move to work for an agency that holds a sponsor licence and they then work on an agency basis for their original employer until such time as their employer gets their sponsor licence reinstated. The immigration rules don’t work that way.

If a sponsoring employer merges with another company

Many sponsored employees assume that if there is a merger or takeover then the sponsor licence merges with the new company to protect the sponsored employees. The immigration rules don’t work that way. Instead, the merged company needs to sort out a sponsor licence. If the merged company chooses not to do so then they can't continue to sponsor your employment. Sometimes, with a takeover, there is a rationalisation of employees because of economies of scale or other reasons, resulting in the merged company believing there is no longer a requirement to hold a sponsor licence. Therefore, you won't be able to continue in employment with the merged company as you no longer have the right to work in the UK as your employer doesn’t hold a sponsor licence.

Leaving the UK if you lose your sponsoring employer

You can continue in employment if your sponsoring employer has their sponsor licence suspended. However, if the sponsor licence is revoked you can't continue in employment. Your certificate of sponsorship will be cancelled and the length of your visa limited to a maximum of sixty days. During that time, you will need to find a new sponsoring employer and apply for a new skilled worker visa or apply to switch visa. If your actions contributed to the sponsor licence revocation, then you may need to leave the UK before a sixty day time frame.

If your employer is at risk of losing their sponsor licence it is a worrying time for employer and employee. If you have immigration questions our team of specialist immigration lawyers can help you.