What indeed causes the UKVI to suspend someone’s sponsor licence? Or, rather, revoke it altogether. There is no simple answer. You need to follow plenty of rules and regulations if you are to sponsor a foreign worker to come and work in your country. If you follow these rules to a T-well, there’s no hassle. But even the slightest deviation can result in a very nasty end. Let us explore the differences between suspension and revocation and how to avoid them.

What is a Sponsor Licence?

A Sponsor licence is an official authorization that the UKVI issues to various persons of interest. With this in hand, they can now recruit foreign workers in the skilled category and employ them in their businesses and agencies. Now, every business that adheres to these rules and regulations is bound to follow a lot of compliance checks and systems. For example, they must maintain the standards of hiring foreign workers and cooperate with government agencies when asked to comply with various audits. One cannot bypass the laws set by UKVI. If you fail to meet these requirements, your licence can be revoked or suspended.

Sponsor Licence Suspension vs. Revocation

Both Sponsor Licence suspension and revocation indicate that a company has violated sponsor licence conditions, but they differ in severity and outcomes.

Suspension:

• When a sponsor licence is suspended, the UKVI has identified compliance issues but allows the company to address them. During suspension, businesses cannot sponsor new workers, but existing sponsored employees can continue working. If the company resolves the issues satisfactorily, the suspension can be lifted.
• However, if the company fails to rectify the problems, the suspension could lead to revocation.

Revocation:

• Revocation is a more severe action in which the sponsor’s licence is permanently withdrawn. Once revoked, a business loses its right to sponsor foreign workers, and all existing sponsored employees must find new jobs or leave the UK within a specified timeframe. This final decision cannot be reversed by addressing compliance issues after the fact.
• A company whose licence has been revoked must wait at least 12 months before reapplying for a new licence, making it a serious blow to business operations.

Reasons for Sponsor Licence Suspension and Revocation

Non-compliance with Sponsorship Duties

The UKVI sets out several duties for licence holders, including:

• Monitoring sponsored employees’ attendance and performance.
• Reporting changes in employment status, such as role changes, promotions, or termination.
• Conducting thorough right-to-work checks.
• Keeping up-to-date and accurate records of sponsored employees. Failure to adhere to any of these duties can result in a suspension. If the issues are severe or ongoing, the licence may be revoked entirely.

Reasons why a Sponsor Licence is Suspended or Revoked

Not fulfilling duties as a sponsor: This is one of the most common reasons your licence may be revoked or even cancelled altogether. As a sponsor, you have many duties and must follow through with them individually. For example, you must perform audits, checks, and right-to-work checks and keep the records of employees in your organisation. 

Providing False Information: If you provide the UKVI with false or misleading information, you will face many charges simultaneously. For once, your licence will be revoked, and at the same time, you will face serious charges in a court of law for misdemeanour. Thus, you have to be very clear when conducting background checks on your employees and providing authorities with the same. Information is currency in this age, and you must always remember it. 

Employing Unauthorised Workers: As a sponsor, you are not supposed to shelter and provide employment to workers who are in the country illegally. Employing individuals without proper authorization violates immigration law, and companies found doing so may face immediate licence suspension or revocation. It is a capital offence in some countries, and the UK is no stranger.

Keeping Poor Records: Accurate record-keeping is necessary when entrusted with a sponsor licence. Copies of passports, biometric records, and residence permits should be stored foolproof so that authorities conducting checks encounter no difficulties. 

Responding to Sponsor Licence Suspension

If your sponsor licence is suspended, acting quickly and effectively is important. Here’s what you should do:

1. Identify and Address the Issues

Please review the reasons UKVI cited for the suspension and address them immediately. This could involve updating records, improving monitoring practices, or providing additional training for HR staff.

2. Submit Representations

Companies have the right to submit representations to UKVI to challenge the suspension. This is your opportunity to explain how the issues have been resolved and why your licence should be reinstated. Be clear and concise, and ensure all supporting documents are accurate.

3. Seek Legal Advice

Suspension can be a complex situation to navigate, and seeking expert legal advice can help ensure you address the issues effectively and maximise your chances of having the licence reinstated.

Responding to Sponsor Licence Revocation

If your sponsor licence is revoked, the situation is more serious. Here’s how to proceed:

1. Understand the Consequences

Revocation means your business can no longer sponsor foreign workers, and existing sponsored employees will be required to find alternative employment or leave the UK. This can significantly impact business operations, particularly for companies that rely heavily on international talent.

2. Consider Your Options

Revocation is final, but you may be able to appeal the decision in some circumstances, especially if you believe it was made in error. However, you must act quickly and provide solid evidence to support your case.

3. Reapply After 12 Months

If your licence is revoked, you must wait 12 months before you can reapply for a new one. Take this time to address any compliance issues and ensure your business is fully prepared to meet UKVI requirements in the future.

Sponsor licence suspension should be treated like a warning that requires instant correction of your administrative process. It means that your HR department and the administration are not properly trained to ensure that you abide by the employee sponsorship laws. Unless you take immediate action and keep repeating the issues that led to it, you might be facing revocation. That will cause a significant loss to your business.

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