You will lose most of the skilled workers that your business relies on in case your sponsor licence is suspended. A suspension means you will not be able to issue new CoSs temporarily. This, in turn, leaves essential positions vacant and generally undermines your operation. It is a form of serious warning by the Home Office in response to the shortcomings identified. An understanding of what to do when a sponsor licence is suspended may be necessary to address the situation swiftly, get you hired again and avoid further action, including revocation.

Why Sponsor Licences Are Suspended

The Home Office conducts audits to ensure that a sponsor licence holder fulfils the duties he is entitled to, such as keeping proper records, conducting right-to-work checks and reporting any changes in circumstances of a sponsored worker. In instances where there has been a breach of duties, a sponsor licence may be suspended, and some of the very common reasons include when:

Failure to maintain records: Such failures range from mistakes in the employment record to failure to have proper documents for sponsored workers and failure to notify the Home Office about changes in employees' information.

Poor HR policies and procedures: In your business, if there is a lack of proper processes in managing sponsored employees, such as not having good systems for tracking visa compliance or checking the right to work, this can lead to suspension.

Failure to fulfil sponsorship responsibilities: This failure includes taking workers who do not qualify according to the sponsor's guidelines, not paying the workers correctly, or not obeying visa conditions.

What happens after your licence is suspended

A sponsor licence suspension is a temporary action aimed at giving your business time to clear up the concerns raised by the Home Office. Your suspension notice will outline the concerns and require you to respond within 20 working days. When your licence is suspended, you cannot create a new CoS, but the sponsored employees you already have can continue working, and their visas remain valid.

The suspension is a warning, and you are required to respond with justification and proof of remedial measures undertaken. If your response is acceptable and you have dealt with all matters, the Home Office may, in its absolute discretion, renew your licence and grant it an A-rating so you can sponsor new workers​.

What to Do When Your Sponsor Licence is Suspended

1. Understand Why You Are Suspended: You have to read the notice of suspension that was given to you by the Home Office very carefully to know with clarity what is expected of you as regards compliance and failure on their part. This is vital because your response has to address each point directly. Failure to address any of the points raised may cancel your sponsor licence​.

2. Resume Promptly and Thoroughly: You will have 20 working days to write back to the Home Office. In response, you should be able to show clearly that you have addressed the causes that led you to suspension. Evidence can include new policies updated in the HR book, documented, detailed evidence of compliance, and evidence of the measures you took to address the problem.

3. Internal Audit: Carry out a full internal audit of your human resource operations, recording, and compliance regimes. Such an audit will reveal weak areas in which you may make changes quickly. For example, improve your tracking of sponsored employees' visa statuses or right-to-work checks across your workforce.

4. Take Corrective Actions: It is now just a case of demonstrating to the Home Office that you are going to comply. You may, for instance, educate newly employed HR personnel, update the system to track responsibilities in terms of sponsorship or employ new personnel to ensure compliance remains in place. You may also be asked to institute an action plan whereby you outline what your business will do to correct the failure of compliance and improve from this point forward.

5. Legal Advice: Taking into account the complexity of the UK immigration rules in most cases, it would be very advisable to seek services from an immigration lawyer. They will help you draft a detailed and comprehensive response to the Home Office to clarify the points raised in the suspension notice. At the same time, legal advice may minimise the risk of any further breaches​.

Watch this video on how A Y & J solicitors handled a sponsor licence suspension and reversed the suspension in a success story. 

What if You Do Not Respond?

If you don't reply within 20 days or your response is deficient, additional measures may include revoking your sponsor licence. This will mean your business cannot sponsor any foreign workers anymore, and existing employees on sponsored visas could even have their visas curtailed. In such circumstances, employees would be permitted sixty days, during which they would have to look for employment with another licenced sponsor or depart from the UK.

How to Avoid a Suspension of a Sponsor Licence

1. Good HR Systems: Some of the suspensions result from bad practices that may be observed in the HR practice, including inadequate record-keeping or the failure to notify the Home Office of a change of circumstances by the worker being sponsored. Good HR systems, including automatic immigration status monitoring, employee attendance, and right-to-work documentation, remarkably reduce the risk of non-compliance.

2. Regular Internal Audits Compliance: Periodic internal audits can ensure that your business is always in compliance with sponsorship duties. They may include, for instance, conducting right-to-work checks to ensure that all employees have valid visas, among other procedures.

3. Train your HR Staff: You can avoid mistakes by training your HR team on the obligations related to sponsorship and the rules of Immigration laws. Continuous training will keep the staff abreast of any change in immigration law so that your business stays in compliance​.

4. Act on Home Office Notifications: As the Home Office might undertake surprise audits or issue compliance notifications, swift responses to any queries and open communication can help minor matters not turn into sponsor licence being suspended.

Seek Lawyers for Suspension of a Sponsor Licence

Sponsor licence getting suspended could be the greatest challenge you could face in your business; however, taking immediate action can allow you to stop further damage while at the same time providing an opportunity to possibly get the licence reinstated. Professional legal advice can prove to be a vital aid in advising you through the suspension process. A Y & J Solicitors specialising in dealing with sponsor licence suspension can assist you in navigating the entire procedure, from the response to the Home Office to corrective action ensured for long-term compliance. 

A Y & J Solicitors is a specialist immigration law firm with extensive experience in applying for a sponsor licence. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us at +44 20 7404 7933. We’re here to help!