What is a sponsor licence?
A sponsor licence is granted by the UK Home Office to a UK company or organisation (‘sponsor’) which permits them to sponsor foreign workers to come to the UK to work or study. A licence is usually granted for a period of four years and is recorded on a public register. The Home Office can downgrade, suspend or revoke the licence if a sponsor fails to comply with their sponsorship responsibilities.
Sponsorship licences are granted across many different sectors including but not limited to:
- Health and social care
- Education
- Information technology (IT)
- Engineering
- Finance
- Hospitality
- Agriculture
A sponsor licence enables the hiring of skilled workers from outside the European Economic Area (EEA) and Switzerland, including non-UK nationals. Companies who hold the license are known as “sponsors”. A sponsor can apply for a licence for skilled or long-term employment (‘workers’) and/or for temporary employment (‘temporary workers’). Once an A-rated sponsor licence is granted, the sponsor can assign a Certificate of Sponsorship (CoS) to a foreign worker. This will be downgraded to a B-rated sponsor licence when a sponsor fails to meet their sponsor responsibilities.
Sponsorship is not something that will automatically be granted, and several duties need to be upheld which can be summarised as:
- Reporting duties
- Record-keeping duties
- Compliance with immigration laws, including all parts of the Worker and Temporary Worker sponsor guidance
- Compliance with wider UK law
- Not engaging in behaviour or actions that are not conductive to the public good
Suspension or revocation of a sponsor licence
The Home Office can suspend a sponsor’s licence if there are grounds to suspect that they have:
- Breached their sponsor duties;
- Posed a threat to immigration control; and/or
- Engaged in behaviours or actions that are not conducive to the public good.
The most common reasons for the suspension of a licence include:
- A failure to pay a worker in accordance with the sponsor guidance;
- Inadequate HR policies and procedures;
- Genuine vacancy concerns;
- A failure to comply with record-keeping duties or to report relevant changes of circumstance.
During a period of suspension, a sponsor’s entry on the public register will be removed but the sponsor must continue to comply with their sponsorship duties. The sponsor will also be unable to assign any new Certificates of Sponsorship (CoS) during this period but current sponsored workers will not be affected.
The Home Office will write to a sponsor outlining their reasons for the suspension of the licence and in some cases, a full investigation will be instigated if further evidence is required. A sponsor will then have 20 working days from the date of the written notification to make written representations against the suspension.
This is an opportunity for a sponsor to seek a review of the decision to suspend, provide any relevant information or evidence to challenge the decision to suspend, and/or set out any mitigating arguments. It is vital that a sponsor robustly addresses every allegation made in detail and provides extensive supporting documentary evidence in support of their response in order to stand any prospect of being successful in their challenge.
Where further reasons for the suspension of the licence are identified, the Home Office will write to a sponsor setting out those further reasons and a sponsor will be given a further 20 working days to respond to these additional reasons.
The Home Office will then make a decision on the most appropriate action, which can include:
- Reinstating the licence with an A-rating
- Reinstating the licence with a B-rating (and issue an action plan)
- Preventing a sponsor from assigning any new CoS
- Preventing the use of any assigned, but unused, CoS
- Revoking the licence
The Home Office’s final decision will be issued within 20 working days of receiving the sponsor’s response, unless the matter is complex or requires further investigation or information from a third party. There is no further right of appeal against this decision.
The Home Office can also decide to revoke a licence immediately where certain circumstances apply.
It can be very challenging to keep on top of the requirements of a licence and the ever-changing legislation and guidance. Many sponsors may therefore find their license is downgraded, suspended, or revoked at short notice, which can impact the ongoing validity of a business; its reputation; and its permission to continue to sponsor new and existing foreign workers. If you receive notification of a downgrading, suspension or revocation, it is therefore important that you seek specialist legal advice as soon as possible and before taking any action. Call our specialist lawyers today on 0161 696 6250 or complete our online enquiry form and a member of the team will contact you to discuss your case.
Case studies
CQC Notice of Proposal to Refuse an Application (April 2025)
Our specialist lawyers represented a successful homecare agency operating from multiple locations who had applied to the CQC to register additional office locations after successfully obtaining a number of care contracts. The provider recruited staff from overseas under a UK Visa & Immigration (UKVI) sponsorship licence but during the course of the application, the UKVI sponsorship licence had been suspended and subsequently revoked. The provider successfully challenged the revocation and the licence was reinstated to suspended pending an investigation. The CQC therefore issued a Notice of Proposal to refuse the application on the basis of concerns surrounding the ratio of staff on a Certificate of Sponsorship compared to permanently employed staff; their ability to ensure the continuation of support in the absence of a sponsorship licence; their contingency plans; and their recruitment practices.
Our lawyers were instructed to make robust representations against the proposal, detailing their robust contingency plans and the measures taken by the provider to address any current or longer-term staffing shortages in the event that their licence was not fully reinstated, as well as their extensive recruitment efforts. After the submission of these representations and before a decision was made, the provider’s sponsorship licence was subsequently reinstated by UKVI. Our lawyers therefore made further robust representations on the proportionality and necessity of the continued refusal of the application on this basis. As a result, the proposal was withdrawn and the new locations were registered immediately.