Sponsor Licence & Redundancy: Employer Duties

Sponsor Licence & Redundancy: At a Glance

Employers can make sponsored workers redundant, but the process creates immigration compliance obligations alongside the usual employment law requirements. Where a Skilled Worker or other sponsored employee is affected, the employer needs to consider Home Office reporting duties, any proposed changes to the sponsored role and the effect of termination on sponsorship.

A genuine redundancy does not, in itself, jeopardise the employer’s sponsor licence, and sponsorship does not prevent a worker from being selected for redundancy. The risk arises from how the employer manages the sponsorship consequences, including redeployment, salary or duties changes and the end of sponsored employment.

Timing is particularly important. Employers may need to assess alternative roles, confirm whether a new Certificate of Sponsorship or immigration application is required, establish when sponsorship will end and submit the relevant notification through the Sponsor Management System (SMS).

The right to work requirements in force from 1 October 2026 may also be relevant where redundancy leads to redeployment or a different working arrangement. Continuing immigration permission does not automatically authorise a worker to take up a different role or form of engagement.

This guide explains how sponsor licence holders should manage sponsored worker redundancies, including consultation and redeployment, changes to salary or duties, cessation reporting and the implications for the worker’s immigration permission.

 

Section A: Can You Make a Sponsored Worker Redundant?

 

Yes. An employer can lawfully make a sponsored worker redundant where there is a genuine redundancy situation and the employer complies with the applicable employment law and sponsorship requirements.

A Skilled Worker visa does not protect an employee from redundancy. The worker remains entitled to the employment protections that apply to their circumstances, while the employer remains responsible for managing the immigration consequences of any change to or termination of sponsored employment.

In practice, the employer needs to manage two connected workstreams:

 

1. Employment law: the redundancy rationale, selection process, consultation, notice, alternative employment and any redundancy payments.
2. Immigration and sponsor compliance: continued sponsorship eligibility, changes to the sponsored role, Home Office reporting and the consequences of employment ending.

 

The redundancy process should therefore identify immigration issues early enough to influence consultation, redeployment and termination planning.

 

1. When Is a Redundancy Genuine?

 

A redundancy situation will generally arise where the employer closes its business or a workplace, or where its requirement for employees to carry out work of a particular kind has ceased or reduced.

Examples can include discontinuing a product line, consolidating functions or reducing headcount because demand has fallen. Sponsored employees can be affected by these changes in the same way as other employees performing comparable work.

The employer should be able to explain and evidence the commercial circumstances behind the redundancy. That becomes particularly important where the business expects to recruit into a similar role shortly afterwards or redistribute substantially the same work among other sponsored employees.

Those circumstances do not automatically make the redundancy unlawful, but they can raise questions about the genuine reduction in staffing requirement and the consistency of the employer’s explanation.

 

2. What Employment Rights Do Sponsored Workers Have?

 

Sponsored workers retain the employment protections that apply to their circumstances, including relevant rights concerning redundancy, consultation, notice, unfair dismissal and discrimination.

Entitlement to particular rights or payments will depend on factors such as employment status, length of service and the circumstances of the dismissal.

A worker’s dependence on employer sponsorship does not reduce those rights. Equally, the immigration consequences of losing sponsored employment do not, by themselves, make an otherwise lawful redundancy unfair.

The employer should therefore assess the employment law position and the immigration consequences as separate parts of the same process.

 

3. Does Redundancy Affect the Sponsor Licence?

 

A genuine redundancy does not ordinarily cause an employer to lose its sponsor licence. The licence is held by the organisation and is not dependent on retaining any particular sponsored employee.

The employer still needs to comply with its sponsor duties throughout the redundancy process and after sponsored employment ends.

Compliance problems can arise where the employer:

 

• Fails to report the end of sponsored employment.
• Continues sponsorship where the role or employment no longer meets the applicable requirements.
• Changes salary, duties or working hours without assessing the immigration consequences.
• Provides inaccurate or inconsistent information to the Home Office.
• Fails to retain the records required to evidence compliance.
• Fails to address applicable right to work requirements when changing the worker’s role or engagement.

 

The sponsor licence exposure therefore comes from failures in managing the consequences of redundancy, including reporting, redeployment and changes affecting the remaining sponsored workforce.

 

 

Back to top

 

Section B: Employer Obligations When Making Sponsored Workers Redundant

 

An employer considering redundancies involving sponsored workers should approach the process as a coordinated employment and immigration compliance exercise.

The employment law requirements are broadly the same as for other employees, but additional immigration considerations can influence how alternative roles are assessed, how changes are implemented and when sponsorship reporting obligations arise.

Employers must also take account of the right to work framework applicable from 1 October 2026, particularly where restructuring involves a change from employment to another form of working arrangement.

 

1. Follow a Fair Redundancy Process

 

Where an employee has the relevant employment protection, a fair redundancy process will generally require the employer to establish a genuine redundancy situation, consider an appropriate selection pool, apply fair selection criteria, consult affected employees and consider suitable alternative employment.

The precise requirements depend on the circumstances, including the number of proposed redundancies and the employees’ statutory rights.

Employers should be able to demonstrate that sponsored workers were included in the process on a lawful and objective basis.

This means, for example, that the employer should not automatically select a Skilled Worker visa holder for redundancy because their continued employment involves sponsorship costs or administrative responsibilities, without considering the legality and fairness of that approach.

Equally, a sponsored worker should not automatically be excluded from a redundancy pool solely because losing employment could affect their immigration status.

The appropriate approach is to assess the actual roles, business requirements and applicable selection criteria, while separately identifying any immigration consequences.

 

2. Avoid Discriminatory Selection Criteria

 

Redundancy selection criteria must comply with the Equality Act 2010.

Sponsored workers may be particularly exposed to risks where selection decisions are influenced by nationality, ethnicity or assumptions about a person’s right to remain in the UK.

For example, an employer should be cautious about selection criteria that disadvantage overseas workers without a legitimate and legally defensible basis.

Immigration sponsorship status is not itself a protected characteristic under the Equality Act. However, decisions based on sponsorship status may, depending on their circumstances and effects, give rise to discrimination concerns, including where they operate as a proxy for nationality or disproportionately disadvantage people sharing a protected characteristic.

Employers should therefore distinguish between legitimate business considerations and assumptions connected with a worker’s immigration status or background.

Selection criteria should be documented, consistently applied and capable of objective justification where required.

The Home Office’s right to work guidance and code of practice on avoiding discrimination, applicable from 1 October 2026, should also be considered where employers are checking immigration status during recruitment, redeployment or changes to working arrangements.

Employers should apply right to work procedures consistently and should not make assumptions about a person’s permission to work based on nationality, ethnicity, appearance or other protected characteristics.

 

3. Consult Affected Sponsored Workers

 

Sponsored employees should be included in the applicable redundancy consultation process.

Individual consultation may involve explaining the business rationale, discussing selection decisions, considering representations and exploring alternatives to dismissal.

Where collective consultation duties apply, the employer must also comply with the relevant statutory requirements concerning employee representatives, consultation periods and notifications.

The fact that some employees hold sponsored visas does not remove these obligations.

However, consultation may need to address additional practical issues, including:

 

• Whether an alternative role could support continued sponsorship.
• Whether proposed changes to salary, working hours or duties would affect immigration eligibility.
• Whether the employee would need to make a new immigration application before taking up a different role.
• Whether the proposed working arrangements are compatible with the worker’s immigration permission and applicable right to work requirements.
• When employment and sponsorship would cease if redundancy proceeds.
• What information the employee may need to obtain independent immigration advice.

 

Employers should avoid promising that a worker can remain in the UK for a particular period following redundancy. The consequences for immigration permission depend on Home Office decisions and the individual’s circumstances.

 

4. Consider Suitable Alternative Employment

 

Employers should consider whether suitable alternative employment is available in accordance with applicable employment law obligations.

Particular statutory protections may apply to employees who are pregnant or who are within a protected period associated with maternity, adoption or certain forms of shared parental leave. Where the relevant conditions are satisfied, these protections can give affected employees priority in relation to suitable available alternative vacancies.

For sponsored workers, however, a role that is suitable from an employment law perspective will not necessarily be permissible under the worker’s existing immigration permission.

For example, a proposed alternative position may involve a different occupation code, materially different duties or a salary that does not satisfy the relevant Skilled Worker requirements.

In some circumstances, the employee may need a new Certificate of Sponsorship and an approved change-of-employment application before beginning the new role.

In other circumstances, the employer may be able to continue sponsorship subject to applicable reporting requirements and continued compliance with the route’s conditions.

The employer should establish which position applies before implementing the transfer.

The employer must also assess the individual’s right to undertake the proposed work. A right to work check does not replace the need to comply with Skilled Worker sponsorship conditions, and an existing check should not be treated as authorisation for work outside the scope of the individual’s immigration permission.

The key principle is that an offer of alternative employment does not, by itself, establish that the sponsored worker can lawfully undertake that role under their existing immigration permission.

This is particularly important where redeployment is being considered during consultation. An employer may need to establish the immigration feasibility of an alternative position before treating it as a realistic means of avoiding redundancy.

 

5. Coordinate Employment and Immigration Decisions

 

Employers should establish a clear internal process for coordinating the redundancy exercise with sponsor licence compliance.

Responsibility may be divided between HR, operational management, the Authorising Officer and the personnel responsible for the SMS.

That division of responsibility can create risk where the person making the employment decision assumes that someone else will assess or report the immigration implications.

A coordinated process should identify:

 

1. Which affected employees are currently sponsored.
2. Which sponsored roles are proposed for removal or alteration.
3. Whether alternative roles could support continued sponsorship.
4. Whether any proposed changes require immigration action before implementation.
5. Whether the proposed role or engagement is permitted under the individual’s immigration conditions and the applicable right to work framework.
6. When employment and sponsorship are expected to end.
7. Who is responsible for making any required SMS reports.
8. What evidence and records must be retained.

 

These checks should begin during the redundancy planning stage rather than being left until after dismissal.

For larger restructuring exercises, maintaining a central record of affected sponsored workers, proposed outcomes and reporting responsibilities can help the organisation demonstrate a controlled and consistent approach.

 

 

Back to top

 

Section C: Can a Sponsored Worker Be Redeployed Instead?

 

Redeployment can provide an alternative to redundancy where an employer has a suitable vacancy for a sponsored worker whose existing position is no longer required.

However, employers need to distinguish between the employment law question of whether an alternative role is suitable and the immigration law question of whether the employee can undertake that role under their existing visa.

A sponsored worker may be willing and qualified to accept another position within the organisation, but this does not necessarily mean that their current sponsorship can continue without further action.

The proposed role must be assessed against the relevant immigration requirements before the employee begins work in the new position.

Employers must also consider the right to work requirements applicable from 1 October 2026, particularly where the proposed alternative involves a different form of engagement rather than continued employment under the existing contract.

 

1. Redeployment into a Different Role

 

Where an employer offers a sponsored worker a different position, the first step is to establish whether the new role falls within the occupation covered by the employee’s existing sponsorship.

The Skilled Worker route is linked to an eligible occupation, specified employment and applicable salary requirements.

A change in job title alone does not necessarily require a new immigration application. Equally, retaining the same job title does not establish that the employee’s duties remain within the scope of their existing sponsorship.

The substance of the role is important.

For example, an employer may propose moving a sponsored worker from a specialist technical position into a broader operational management role following departmental restructuring.

Even where the employee has the necessary skills and the employer is prepared to offer the position, the new duties may fall within a different occupation code.

Under the Skilled Worker rules, a change to a different occupation code will generally require a change-of-employment application, subject to the specific exceptions and provisions applicable to the worker’s circumstances.

Employers should also consider whether the proposed change involves an occupation on the Immigration Salary List or another category subject to particular change-of-employment requirements.

Where a new application is required, the sponsor will generally need to assign a new Certificate of Sponsorship (CoS), and the worker must obtain the necessary permission before commencing the new role.

Employers should not implement the transfer on the assumption that continued employment with the same sponsor is sufficient.

The immigration position should be confirmed before the employee starts the new role.

 

2. Redeployment Where the Occupation Code Remains the Same

 

Where the proposed alternative role falls within the same occupation code, a new immigration application may not be required solely because the employee’s duties or job title have changed.

However, this does not mean the employer can disregard the sponsorship conditions.

The sponsor must establish whether the new role continues to satisfy the relevant eligibility and salary requirements and whether the changes must be reported through the Sponsor Management System (SMS).

The employer should consider:

 

• Whether the occupation code remains appropriate for the actual duties.
• Whether the salary continues to meet the applicable immigration thresholds.
• Whether the employee’s working hours are changing.
• Whether the work location or other material employment circumstances are changing.
• Whether the proposed changes affect the conditions under which sponsorship was originally granted.
• Whether the worker is subject to any additional change-of-employment requirements associated with the particular occupation or immigration provisions.

 

Employers should also consider whether the alternative position is genuine and whether the duties described in their sponsorship records accurately reflect the work the employee will perform.

Where the changes are substantial, specialist immigration advice may be appropriate before the employer confirms the redeployment.

 

3. Reducing Salary or Working Hours Instead of Redundancy

 

Employers may consider reducing working hours, changing contractual arrangements or agreeing temporary salary reductions as alternatives to compulsory redundancy.

For sponsored workers, these options require particular care.

Skilled Worker sponsorship is subject to salary requirements, which may include both an applicable general salary threshold and an occupation-specific going rate.

The relevant thresholds and calculation rules depend on the worker’s circumstances and the immigration provisions that apply to their sponsorship.

A salary reduction that is permissible under employment law may nevertheless cause the worker to cease meeting the requirements of their immigration route.

Similarly, reducing working hours does not automatically mean the employer can reduce salary proportionately while continuing sponsorship.

The immigration rules contain specific provisions concerning salary calculations, working hours and certain permitted reductions or absences.

Employers should not assume that a worker’s consent to a contractual change resolves the immigration position.

Before implementing a reduction, the sponsor should establish whether:

 

1. The revised salary remains compliant with the applicable Skilled Worker requirements.
2. The change falls within any relevant permitted exception.
3. The reduction affects the worker’s continuing eligibility for sponsorship.
4. The change must be reported to the Home Office.
5. A new immigration application or other action is necessary.

 

Employers should also check the current sponsor guidance on salary reductions, including circumstances where continued sponsorship is permitted during specified absences or temporary arrangements.

Where the proposed arrangements would no longer satisfy the immigration requirements, the employer should not continue sponsorship on the basis of an ineligible role or salary.

 

4. Does Redeployment Require a New Certificate of Sponsorship?

 

Not every internal transfer requires a new Certificate of Sponsorship (CoS).

The requirement depends on the nature of the change and the immigration provisions applicable to the worker.

Broadly, where a Skilled Worker moves into a role requiring a change-of-employment application, the sponsor will generally need to assign a new CoS and the worker will need to obtain the necessary immigration permission before commencing the new employment.

Where a change can take place within the scope of existing permission, the employer may instead need to make an SMS notification, depending on the circumstances.

However, the same occupation code is not an absolute guarantee that a new application is unnecessary. Employers must consider the full change-of-employment rules, including relevant salary and occupation-specific provisions.

The distinction is important because reporting a change through the SMS is not a substitute for obtaining new immigration permission where the Immigration Rules require it.

Employers should not rely on an SMS notification to authorise a transfer that requires a change-of-employment application.

The proposed role should be assessed before the employee accepts or begins the alternative position.

 

5. What If the Sponsored Worker Refuses Alternative Employment?

 

A sponsored worker may decline an alternative role for reasons unrelated to immigration, such as salary, location, responsibilities or working arrangements.

The employment law consequences of refusing an offer of suitable alternative employment depend on the circumstances, including whether the refusal is reasonable and whether the offer meets the applicable legal requirements.

From an immigration perspective, the sponsor must also determine whether the employee will remain in their existing sponsored role, move into another permissible position or leave employment.

If the original role is redundant and no alternative arrangement is agreed, sponsorship will ordinarily end when the sponsored employment ceases.

The employer must then comply with its reporting duties.

Where an employee refuses a role because it would require a new immigration application or would not satisfy the sponsorship requirements, the employer should distinguish that issue from the separate employment law assessment of whether the alternative work was suitable.

 

6. Documenting Redeployment Decisions

 

Employers should maintain a clear record of how proposed alternative positions were assessed.

This should include the employment rationale for the redeployment, the proposed duties, occupation code, salary, working hours and any immigration advice or eligibility assessment undertaken.

Where a new CoS or immigration application is required, the employer should retain evidence of the steps taken before the employee commenced the revised role.

Where the transfer is permitted under existing sponsorship, the employer should record why that conclusion was reached and ensure that any necessary SMS notification is completed.

This documentation may be relevant if the Home Office subsequently examines the sponsor’s compliance with its duties.

 

7. Right to Work Checks Following the October 2026 Changes

 

From 1 October 2026, the right to work framework extends in specified circumstances to worker contracts, individual subcontracting arrangements and qualifying online matching arrangements.

This is relevant where an employer considers alternatives to redundancy that involve changing the contractual basis on which an individual performs work.

For example, an organisation may propose replacing an employed position with a consultancy arrangement or engaging the individual through another contractual structure.

Changing the contractual description of the arrangement does not necessarily remove the organisation’s right to work checking responsibilities.

Employers must assess whether the proposed engagement falls within the applicable right to work checking regime and whether the individual has permission to undertake the particular work.

For sponsored workers, the employer must also consider whether the proposed arrangement is compatible with the conditions of their immigration permission and the sponsor licence requirements.

A compliant right to work check does not, by itself, establish that a proposed role or engagement satisfies the Skilled Worker sponsorship rules.

Equally, holding a sponsor licence does not remove the need to comply with applicable right to work checking obligations.

Employers should ensure that personnel responsible for redundancy, redeployment and workforce restructuring understand both sets of requirements.

The revised Home Office guidance should be consulted when assessing the appropriate checking method, the evidence required and the circumstances in which follow-up checks are necessary.

 

 

Back to top

 

Section D: Reporting Sponsored Worker Redundancy to the Home Office

 

When a sponsored worker’s employment ends because of redundancy, the employer must consider its duty to report the cessation of sponsorship to the Home Office.

For sponsors of Skilled Workers, the relevant notification is generally made through the Sponsor Management System (SMS).

The reporting obligation is separate from the employer’s employment law responsibilities and from its right to work checking duties.

Completing consultation, issuing notice, paying redundancy entitlements or processing an employee’s departure through payroll does not, by itself, satisfy the sponsor’s Home Office reporting duties.

 

1. When Must Redundancy Be Reported?

 

Under the Home Office’s Workers and Temporary Workers sponsor guidance, a sponsor must generally report within 10 working days where it stops sponsoring a worker, including where the worker’s sponsored employment ends following redundancy.

The reporting obligation is triggered by the relevant change in the worker’s circumstances, rather than simply by the employer’s intention to make a position redundant.

For example, placing a worker at risk of redundancy or beginning consultation does not, by itself, necessarily mean that the employer has stopped sponsoring the individual.

However, where the employee’s sponsored employment actually ends, the sponsor must make the required notification within the applicable deadline.

The precise reporting requirement should be assessed against the current sponsor guidance and the circumstances of the employment termination.

Employers should not confuse the deadline for reporting a sponsored worker’s cessation of employment with deadlines that apply to other changes affecting the organisation or its licence.

For example, certain changes to the sponsor’s ownership, business structure or key personnel are subject to a separate reporting framework, with relevant organisational changes generally requiring notification within 20 working days.

Where a redundancy programme involves both the departure of sponsored workers and wider corporate restructuring, the employer may therefore have several distinct reporting obligations.

Each should be identified and managed separately.

 

2. What Date Should the Employer Report?

 

The sponsor should establish the date on which the worker’s sponsored employment has actually ended or the date on which another event requiring a cessation report has occurred.

This is not necessarily the date on which the employee was first told that their position was at risk of redundancy or the date on which a redundancy decision was communicated.

For example, an employee may be informed that their role is redundant but remain employed throughout a contractual notice period.

In that situation, the employer must distinguish between the date of the redundancy decision, the date notice was given and the date sponsored employment actually ceases.

The position may be different where the employer terminates employment immediately and makes a payment in lieu of notice.

The employer should also distinguish termination of employment from arrangements under which an employee remains employed but is not required to attend work, such as garden leave.

The correct reporting position depends on the actual contractual and employment arrangements, together with the applicable Home Office guidance.

Employers should avoid submitting a cessation report based solely on an anticipated termination date without confirming that the circumstances requiring the report have arisen.

 

3. What Information Must Be Reported?

 

The sponsor should use the relevant SMS function to report that it has stopped sponsoring the worker and provide the information required by the system and current sponsor guidance.

The report should accurately reflect the reason sponsorship has ended.

Where employment has ceased because of redundancy, the employer should not record a different reason merely because it is administratively more convenient.

The information submitted should be consistent with the employer’s records, including the employee’s termination documentation and relevant payroll information.

When reporting that sponsorship has ended, the sponsor must also provide the worker’s last recorded residential address, contact telephone number and any personal email addresses it holds.

The employer should ensure that the person submitting the report has access to accurate information and understands the reason for the notification.

 

4. Who Is Responsible for Reporting the Redundancy?

 

The responsibility for sponsor compliance rests with the licensed organisation.

In practice, SMS reporting will be undertaken by an authorised user with the relevant system permissions.

The Authorising Officer has overarching responsibility for the organisation’s sponsorship arrangements, but that does not mean the Authorising Officer must personally submit every SMS notification.

Employers should establish a clear internal allocation of responsibility.

For example, HR may manage the redundancy process and confirm the termination date, while a Level 1 User submits the required SMS report.

The process should include a mechanism for confirming that the report has actually been submitted.

An internal email requesting that a notification be made is not equivalent to completing the Home Office reporting requirement.

 

5. What Happens If the Employer Fails to Report the Redundancy?

 

Failure to report the cessation of sponsored employment can amount to a breach of sponsor duties.

The Home Office may consider reporting failures when assessing whether an organisation continues to meet the requirements of its sponsor licence.

The consequences depend on the nature and seriousness of the breach, the organisation’s wider compliance history and the circumstances identified by the Home Office.

Potential outcomes can include compliance action affecting the sponsor licence, including downgrading, suspension or revocation where the relevant grounds and procedures apply.

An isolated administrative error does not necessarily result in licence revocation. However, employers should not assume that a reporting failure will be treated as insignificant simply because the underlying redundancy was genuine.

Repeated failures, inaccurate reporting or evidence of inadequate sponsorship systems may indicate wider compliance weaknesses.

Where an employer discovers that a report has been missed, it should establish the facts promptly, make the necessary notification or correction through the appropriate Home Office process and retain a record of the remedial action.

 

6. Do Employers Need to Report a Proposed Redundancy Before Employment Ends?

 

A proposal to make a sponsored worker redundant does not, by itself, necessarily mean that sponsorship has ended.

During consultation, the employee may remain in their existing role, and the employer may ultimately decide not to proceed with dismissal.

The employer should therefore distinguish between an anticipated change and an event that triggers a reporting duty.

However, the absence of an immediate cessation-reporting obligation does not mean that all changes occurring during consultation can be ignored.

For example, a sponsored worker’s duties, salary, hours or working arrangements may change before their employment ends. Those changes may independently require assessment and reporting.

Employers should identify whether any reportable change has already occurred rather than waiting until the final redundancy date to review sponsorship compliance.

 

7. Reporting Redundancy During a Wider Restructuring Exercise

 

Where redundancies form part of a merger, acquisition, business closure or organisational restructuring, the sponsor’s reporting obligations may extend beyond individual employee departures.

The employer may need to consider whether the transaction or restructuring affects the identity of the sponsoring entity, the continuing validity of its licence or the sponsorship arrangements for employees who remain with the business.

For example, a transfer of employment to a different legal entity may require separate consideration under the sponsor guidance, even where the employee’s job remains substantially unchanged.

Changes affecting the sponsor organisation may be subject to the separate 20-working-day reporting requirements, while cessation of individual sponsored employment generally falls within the 10-working-day worker-reporting framework.

Employers should not assume that reporting the departure of redundant employees satisfies all obligations arising from a corporate transaction.

The wider restructuring should be assessed under the rules governing changes to sponsor organisations, while individual worker changes should be managed under the applicable worker-reporting requirements.

 

8. Record Keeping Following Redundancy

 

The employer should retain appropriate records relating to the sponsored worker and the termination of employment in accordance with the sponsor guidance and other applicable legal obligations.

Relevant documents may include:

 

• The redundancy consultation and termination correspondence.
• The confirmed employment termination date.
• Payroll and final payment records.
• Details of any alternative roles considered or offered.
• Immigration assessments relating to proposed changes or redeployment.
• The SMS cessation notification and evidence of submission.
• Relevant communications concerning the end of sponsorship.
• Records of applicable right to work checks and any assessment of alternative working arrangements.

 

The Home Office’s sponsor guidance and Appendix D set out record-keeping requirements, including applicable retention periods.

Employers should not assume that all sponsorship records can be deleted immediately after employment ends or that a single retention period applies to every category of document.

Data protection obligations must also be considered when retaining former employees’ personal information.

The objective is to preserve sufficient evidence to demonstrate that the organisation managed its sponsorship obligations correctly, without retaining personal information unnecessarily.

 

 

Back to top

 

Section E: What Happens to a Sponsored Worker’s Visa After Redundancy?

 

Redundancy can have significant immigration consequences for a sponsored worker because their permission to work in the UK is linked to their sponsored employment.

However, the termination of employment does not automatically cancel the worker’s immigration permission on the same date.

The employer’s decision to end employment, its notification to the Home Office and any subsequent decision by the Home Office to cancel the worker’s permission are separate events.

Employers should understand this distinction when communicating with affected employees, particularly where the worker needs to consider alternative sponsorship or other immigration options.

It is also important to distinguish between permission to remain in the UK and permission to undertake particular employment. A worker may continue to hold immigration permission following redundancy without being authorised to begin a different job or working arrangement.

 

1. Does a Skilled Worker Visa End Immediately After Redundancy?

 

No. A Skilled Worker visa does not ordinarily expire automatically on the date employment ends.

When the sponsor reports that it has stopped sponsoring the worker, the Home Office may take action to cancel the worker’s existing immigration permission.

The worker’s permission remains subject to the Immigration Rules and any subsequent Home Office decision.

The employer does not have the authority to cancel the employee’s visa. Its responsibility is to make the required sponsorship notification accurately and within the applicable deadline.

It is therefore important to distinguish between three dates:

 

1. Employment termination date: The date the worker’s employment with the sponsoring organisation ends.
2. Sponsor reporting date: The date the employer notifies the Home Office that sponsorship has ceased.
3. Immigration permission expiry or cancellation date: The date on which the worker’s permission actually ends under its existing terms or following a Home Office decision.

 

These dates may differ.

An employer should not tell a sponsored worker that their visa has been cancelled simply because their employment has ended or an SMS notification has been submitted.

Equally, the fact that the worker still holds immigration permission does not necessarily mean they can continue working in their former sponsored role or take up unrestricted employment elsewhere.

 

2. Does the Sponsored Worker Have 60 Days to Find Another Sponsor?

 

The period commonly referred to as the 60-day rule is frequently misunderstood.

Where a sponsored worker ceases employment, the Home Office will normally consider cancellation so that the worker has 60 days’ permission remaining, unless less than 60 days already remain or another cancellation outcome is appropriate.

The 60 days runs from the effective cancellation decision, not from the redundancy or employment termination date.

The Home Office may not issue its cancellation decision immediately after receiving the sponsor’s report, and the employer should not guarantee that the worker will receive a full 60-day period.

There are also important qualifications:

 

• The 60-day period is not an extension granted by the employer.
• Where 60 days or less already remain, permission will not normally be extended merely to create a new 60-day period.
• The applicable cancellation policy allows different outcomes in specified circumstances, including circumstances where immediate cancellation may be appropriate.
• The worker must continue to comply with the conditions of their immigration permission.
• The actual expiry or cancellation date should be established from the individual’s immigration records and any Home Office decision.

 

The practical implication is that a worker should not wait for a cancellation notice before investigating their immigration options.

Employers should avoid guaranteeing that an employee will have 60 days to find another sponsor or remain in the UK.

The employer’s responsibility is to report the cessation of sponsorship correctly, while the Home Office determines the immigration consequences.

 

3. Can the Worker Find Another Sponsor After Redundancy?

 

A sponsored worker who is made redundant may be able to remain in the UK by securing eligible employment with another licensed sponsor and obtaining the necessary immigration permission.

For a Skilled Worker, this will ordinarily involve a new employer offering an eligible role, assigning a Certificate of Sponsorship and supporting a change-of-employment application.

The proposed employment must satisfy the requirements applicable to the worker’s circumstances, including the relevant occupation and salary rules.

The worker should make any required application while they still have permission to remain in the UK and in accordance with the applicable Immigration Rules.

Where a valid in-time application is made, statutory provisions concerning the continuation of immigration permission may be relevant while the application is pending.

However, the worker should not assume that submitting an application immediately authorises them to begin working for the new employer.

A new principal sponsored role will generally require the appropriate immigration permission before the worker can commence that employment, subject to any specific exception permitted by the rules.

The new employer must also comply with the applicable right to work checking requirements and ensure that the individual has permission to undertake the proposed employment.

For the former sponsor, the worker’s ability to secure new sponsorship does not remove the obligation to report the end of the original sponsored employment.

 

4. Can the Worker Switch to a Different Visa Route?

 

Depending on their personal circumstances, a redundant sponsored worker may qualify for immigration permission under a different route.

Potential options may include a family-based route, another work route or an immigration category that does not require sponsorship by their former employer.

Eligibility depends on the specific requirements of the proposed route.

Some routes permit an application to be made from within the UK, while others impose restrictions on switching.

Employers should be careful not to present alternative immigration routes as guaranteed solutions to redundancy.

The employee may need independent immigration advice concerning their eligibility, application timing, financial requirements and the consequences for family members.

The employer’s primary responsibility remains to manage its own sponsorship duties correctly.

 

5. What Happens to the Worker’s Dependants?

 

Where a sponsored worker has family members in the UK as dependants, the loss of sponsored employment may also affect their immigration position.

Dependants’ permission is linked to the immigration status of the principal applicant, although each family member holds their own immigration permission.

If the principal worker’s permission is cancelled, the Home Office may also consider cancellation of the dependants’ permission in accordance with the applicable rules and guidance.

The consequences are not necessarily identical in every case.

For example, a dependant may have obtained immigration permission in another category or may have circumstances that require separate consideration.

Employers should therefore avoid stating that all family members must leave the UK immediately when the sponsored worker is made redundant.

Nevertheless, the potential impact on dependants can make the timing of immigration decisions particularly important.

Affected employees may need to consider whether family members can apply alongside them when changing sponsor or switching immigration route.

 

6. Can a Redundant Sponsored Worker Continue Working During Their Notice Period?

 

The position depends on whether the employee remains employed, the arrangements during notice and the conditions of their immigration permission.

Where an employee continues working in their existing sponsored role during contractual notice, the employment relationship may continue until the notice period expires.

However, the sponsor must ensure that the employment and sponsorship arrangements remain compliant throughout that period.

Different considerations may arise where the employer places the employee on garden leave, removes their duties, reduces pay or terminates employment immediately with a payment in lieu of notice.

The immigration consequences should be assessed by reference to the actual arrangements rather than the label used in the redundancy documentation.

Employers should not assume that a payment covering several weeks of notice means that sponsorship necessarily continues for the same period.

Similarly, the worker should not assume that they can take up a new full-time role with another employer merely because their previous employment has ended.

The conditions attached to their existing permission remain relevant until they obtain any necessary new permission or their immigration status otherwise changes.

 

7. What Should the Employer Tell the Sponsored Worker About Their Visa?

 

Employers should provide accurate information about the sponsorship steps they will take, without making decisions or promises on behalf of the Home Office.

In particular, the employer can explain:

 

• The date on which employment and sponsorship are expected to end.
• That the employer is required to report the cessation of sponsorship.
• That the Home Office, rather than the employer, determines whether and when immigration permission will be cancelled.
• That the Home Office will normally consider cancellation so that 60 days’ permission remains, unless less than 60 days already remain or another outcome is appropriate, and that the period runs from the effective cancellation decision rather than the redundancy date.
• That the employee may need to consider new sponsorship or another immigration route.
• That any immigration application should be considered promptly and before the relevant deadline.
• That continuing immigration permission does not necessarily authorise employment with another organisation or in a different role.

 

Employers should avoid guaranteeing a 60-day period, confirming an immigration expiry date they have not verified or advising the employee that a new role can begin without the necessary permission.

It may be appropriate to encourage the employee to obtain independent immigration advice, particularly where they have dependants or are considering an application under a different route.

A clear written explanation can help prevent misunderstandings while preserving the distinction between the employer’s sponsorship responsibilities and the worker’s personal immigration decisions.

 

 

Back to top

 

Section F: Redundancy Costs and Sponsorship Fees

 

Making a sponsored worker redundant can involve several categories of cost.

These may include statutory or contractual redundancy payments, notice pay, accrued holiday pay and other employment-related entitlements.

The employer may also have incurred immigration sponsorship costs, including the Certificate of Sponsorship fee, Immigration Skills Charge and potentially other expenditure associated with the worker’s recruitment.

These costs should be considered separately.

The fact that employment ends earlier than anticipated does not mean that every sponsorship-related payment will be refunded or that the employer can recover those costs from the employee.

In particular, the Home Office imposes restrictions on passing specified sponsorship costs to sponsored workers. Breaching those restrictions can have serious consequences for the sponsor licence.

 

1. Is a Sponsored Worker Entitled to Redundancy Pay?

 

A sponsored worker may be entitled to statutory redundancy pay where they satisfy the applicable employment law requirements.

Immigration sponsorship status does not, in itself, remove entitlement to statutory redundancy pay.

Eligibility and the amount payable depend on factors including the worker’s employment status, age, length of continuous service and relevant weekly pay, subject to the statutory rules and limits.

Some employees may also be entitled to enhanced redundancy payments under their employment contracts or an employer’s redundancy policy.

The employer should calculate any redundancy entitlement using the applicable employment law provisions rather than assuming that the employee’s immigration status changes the calculation.

Where there is a dispute about entitlement or the fairness of the redundancy, that is an employment law issue requiring separate consideration from the sponsor’s immigration reporting duties.

 

2. Notice Pay and Payment in Lieu of Notice

 

Sponsored workers may also be entitled to statutory or contractual notice.

The employer should determine the applicable notice period and whether the employee will work during notice, remain employed on garden leave or have their employment terminated with a payment in lieu of notice.

These arrangements can affect the date on which employment ends and, consequently, the timing of the sponsor’s reporting obligations.

A payment in lieu of notice should not automatically be treated as extending the period of sponsored employment.

Employers should therefore coordinate payroll, HR and sponsor licence administration when confirming the employee’s departure arrangements.

Any final payments should also be considered in light of the applicable immigration rules and sponsor guidance, particularly where changes to salary or employment arrangements occur before termination.

 

3. Can the Employer Recover Sponsorship Costs from the Redundant Worker?

 

Employers must distinguish between sponsorship costs that the Home Office requires the sponsor to bear and other immigration-related expenditure that may be subject to different contractual or legal arrangements.

The Home Office restricts sponsors from recovering specified sponsorship costs from sponsored workers, including the Immigration Skills Charge, relevant Certificate of Sponsorship fees and applicable sponsor licence fees.

The restrictions can apply to direct repayment demands and indirect recovery arrangements, including deductions from wages or other payments.

An employer cannot make a prohibited recovery permissible simply by including a repayment clause in the employment contract or obtaining the worker’s agreement.

Where the Home Office guidance prohibits recovery of a sponsorship charge, the sponsor must comply with that restriction regardless of whether employment ends through redundancy, resignation or another form of termination.

The Home Office will normally revoke a licence where a sponsor recoups or attempts to recoup prohibited sponsor licence or Certificate of Sponsorship fees and associated administrative costs from a sponsored worker. The Immigration Skills Charge must also be paid by the sponsor and cannot be passed to the worker.

Employers should therefore review any repayment or clawback arrangements before seeking recovery following redundancy.

Other immigration-related expenditure requires separate consideration.

For example, visa application fees and the Immigration Health Surcharge are distinct from sponsor-funded charges. Whether an employer can recover expenditure it voluntarily paid on behalf of an employee may depend on the nature of the cost, contractual terms, applicable employment law and any relevant sponsor guidance restrictions.

Employers should not assume that every immigration-related cost is recoverable merely because it falls outside the Immigration Skills Charge.

Any proposed deduction from salary, redundancy pay or other sums due to the employee must also comply with the applicable employment law requirements.

 

4. Can the Employer Obtain an Immigration Skills Charge Refund?

 

A sponsor may be entitled to a partial refund of the Immigration Skills Charge (ISC) where a sponsored worker’s employment ends earlier than the period covered by the charge.

The ISC is generally paid by the sponsor when assigning a Certificate of Sponsorship for a relevant worker.

Where sponsorship ends prematurely, including following redundancy, the Home Office may refund the charge attributable to eligible unused periods, subject to the applicable refund rules.

Partial refunds are generally calculated by reference to prescribed six-month periods rather than by refunding every unused day of sponsorship.

For example, where a worker leaves before the end date covered by their Certificate of Sponsorship, the sponsor may qualify for a refund relating to qualifying unused periods.

The amount depends on the charge originally paid, the period of sponsorship and the relevant Home Office refund conditions.

Employers should distinguish between:

 

• Full refunds: Which may arise in specified circumstances where sponsorship does not proceed or the relevant immigration application is unsuccessful.
• Partial refunds: Which may arise where a worker’s sponsored employment ends earlier than the period covered by the charge.
• Non-refundable amounts: Including periods or circumstances for which the applicable refund rules do not provide repayment.

 

Employers should ensure that the cessation of sponsorship has been reported correctly and that the relevant payment and sponsorship records are available.

Refunds are generally processed through the Home Office’s arrangements rather than through a separate claim for every eligible early departure, although employers should check the current procedure where an expected refund has not been received.

A refund should not be assumed until the applicable eligibility requirements have been established.

 

5. Are Certificate of Sponsorship Fees Refundable?

 

The Certificate of Sponsorship fee should be distinguished from the Immigration Skills Charge.

Where a CoS has been assigned and used to support an immigration application, the employer should not assume that the fee will be refunded simply because the worker is subsequently made redundant.

Refund arrangements depend on the circumstances and the Home Office’s applicable charging and refund rules.

The early termination of employment does not create a general entitlement to recover all immigration sponsorship expenditure.

Employers should therefore review each category of fee separately rather than treating sponsorship costs as a single refundable amount.

Any refund entitlement should also be distinguished from the separate prohibition on recovering applicable CoS costs from sponsored workers.

 

6. What Happens to Visa Fees and the Immigration Health Surcharge?

 

Visa application fees and the Immigration Health Surcharge (IHS) are separate from the sponsor licence fee, CoS fee and ISC.

Where a sponsored worker loses their employment before their visa expires, there is no general rule that the employer or employee will receive a refund of the original visa application fee.

The Immigration Health Surcharge is also subject to its own refund rules.

Early cancellation of immigration permission following redundancy does not ordinarily mean that the unused portion of the IHS is automatically refunded.

Different provisions may apply in particular circumstances, including certain overlapping periods where an individual makes a further immigration application and pays the surcharge again.

Employers should avoid promising refunds of visa fees or the IHS as part of a redundancy package unless the relevant entitlement has been established.

Where the employer originally agreed to fund these costs, it should also review any contractual obligations concerning repayment or reimbursement.

Any proposed recovery must be assessed separately from the sponsor guidance prohibitions concerning specified sponsorship charges.

 

7. Should Redundancy Costs Influence the Selection Decision?

 

Employers may legitimately need to consider the financial consequences of restructuring, but redundancy selection decisions must comply with applicable employment and discrimination law.

The fact that a sponsored worker has generated immigration-related expenditure does not automatically justify selecting that employee for redundancy or retaining them instead of another employee.

Likewise, an employer should be cautious about treating future sponsorship costs as a reason to disadvantage a worker without assessing the legal implications.

The appropriate selection process depends on the employer’s business requirements, the affected roles and the applicable legal protections.

Sponsorship expenditure should be managed as a separate financial and compliance consideration rather than being used as a substitute for objective redundancy criteria.

 

8. Budgeting for the End of Sponsored Employment

 

Where several sponsored workers are affected by a redundancy programme, the employer should prepare a coordinated assessment of employment and immigration-related costs.

This may include:

 

1. Statutory and contractual redundancy liabilities.
2. Notice payments and accrued holiday entitlements.
3. Outstanding salary and other contractual payments.
4. The cost of immigration advice or support provided to affected employees.
5. Potential Immigration Skills Charge refunds.
6. The administrative cost of sponsor reporting and record management.
7. The cost of new sponsorship arrangements where employees are redeployed into eligible alternative roles.
8. Any additional right to work compliance requirements arising from changes to working arrangements.

 

A clear distinction should be maintained between costs the employer is legally required to pay, costs it has contractually agreed to bear and costs it may choose to fund as part of its redundancy arrangements.

Employers should also identify sponsorship charges that cannot lawfully be transferred to workers, regardless of any contractual repayment provisions.

This helps ensure that financial decisions do not inadvertently create immigration compliance breaches or undermine the fairness of the redundancy exercise.

 

 

Back to top

 

Section G: Does Redundancy Affect the Employer’s Sponsor Licence?

 

A genuine redundancy does not automatically result in the loss of an employer’s sponsor licence. Licensed sponsors are permitted to reorganise their businesses, reduce staffing levels and terminate sponsored employment where there is a lawful basis for doing so.

However, the employer must continue to comply with its sponsorship duties throughout the redundancy process and afterwards.

The Home Office may examine whether the organisation has reported relevant changes, maintained appropriate records and continued to meet the requirements for holding a sponsor licence.

The risk is therefore not redundancy itself, but the possibility that the employer’s actions or omissions create a breach of the sponsor guidance.

 

1. Is Making a Sponsored Worker Redundant a Sponsor Licence Breach?

 

No. The Home Office does not generally require employers to retain sponsored workers where their positions have genuinely become redundant.

However, the sponsor must comply with its obligations when the employment relationship changes or ends.

These include reporting the cessation of sponsorship, maintaining appropriate records and ensuring that any continued sponsorship arrangements meet the relevant immigration requirements.

For example, an employer may lawfully close a department and make several sponsored employees redundant. Provided the redundancies are genuine and the organisation meets its sponsor duties, the redundancies do not themselves establish a breach of the licence conditions.

By contrast, failing to report those departures or continuing to sponsor individuals whose employment no longer satisfies the relevant requirements may expose the organisation to compliance action.

 

2. Can Multiple Redundancies Trigger a Home Office Investigation?

 

There is no general rule that making a specified number of sponsored workers redundant automatically triggers a Home Office compliance investigation.

However, significant changes to an organisation’s sponsored workforce may be relevant to the Home Office’s assessment of whether the sponsor continues to meet its obligations.

For example, the Home Office may examine circumstances in which an employer:

 

• Makes a substantial proportion of its sponsored workforce redundant.
• Reports repeated departures shortly after sponsored workers commence employment.
• Reduces staffing while continuing to assign Certificates of Sponsorship for apparently similar roles.
• Changes the duties or salaries of remaining sponsored employees.
• Closes business locations or transfers operations to another organisation.
• Fails to report changes consistently or accurately.

 

None of these circumstances necessarily establishes wrongdoing.

However, the sponsor should be able to explain the commercial rationale for the changes and demonstrate that its sponsorship arrangements remain genuine and compliant.

Maintaining a clear record of the redundancy exercise and its immigration consequences can help the organisation respond to any subsequent Home Office enquiries.

 

3. Can Redundancy Cause a Sponsor Licence Downgrade or Revocation?

 

Redundancy does not automatically cause a sponsor licence to be downgraded, suspended or revoked. While a licence is suspended, the sponsor cannot assign any Certificates of Sponsorship.

Home Office action may arise where the organisation breaches its sponsorship obligations or no longer satisfies the requirements for holding a licence.

Relevant failures may include:

 

• Not reporting that sponsored employment has ended.
• Providing inaccurate or misleading information about sponsored roles.
• Continuing sponsorship where the worker no longer meets the relevant immigration requirements.
• Failing to maintain required sponsorship records.
• Breaching restrictions on recovering sponsorship costs from workers.
• Failing to comply with applicable right to work checking requirements.
• Employing individuals in breach of their immigration conditions.
• Failing to report material changes affecting the sponsor organisation.

 

The Home Office’s response depends on the applicable guidance and the circumstances of the breach.

Some breaches may result in corrective action or other compliance measures, while others may fall within grounds for mandatory or discretionary licence revocation.

Employers should not assume that a breach will necessarily result in a warning or an opportunity to remedy the position before enforcement action is taken.

 

4. Can the Employer Continue Sponsoring Other Workers?

 

Yes. An employer can generally continue sponsoring eligible workers after making other sponsored employees redundant, provided it retains its sponsor licence and continues to meet the applicable requirements.

However, the employer should assess whether the restructuring has affected the roles or working arrangements of employees who remain sponsored.

For example, remaining employees may be required to take on additional responsibilities, move to different departments or work at alternative locations.

These changes may have immigration consequences even where the employee’s contract has not been terminated.

The sponsor should consider whether:

 

1. The employee’s occupation code remains appropriate.
2. The revised duties remain consistent with the sponsored role.
3. The salary and working hours continue to meet the applicable requirements.
4. The work location or other reportable circumstances have changed.
5. A new Certificate of Sponsorship or change-of-employment application is required.
6. Any necessary SMS report has been submitted.

 

Redundancy planning should therefore include a review of both departing sponsored workers and those who will remain with the organisation.

 

5. What Happens If a Department or Workplace Closes?

 

The closure of a department, branch or workplace may create additional sponsorship considerations beyond the redundancy of individual employees.

Where a sponsored worker moves to another work location, the employer should assess whether the change is reportable and whether the revised role continues to meet the immigration requirements.

Where an entire branch closes, the sponsor should consider whether the closure affects information previously provided to the Home Office about its operating locations or organisational structure.

If sponsored employees are transferred to another legal entity, separate sponsor licence and immigration considerations may arise.

Employers should distinguish between an internal relocation within the same sponsoring organisation and a transfer involving a different employer or legal entity.

The immigration consequences may be materially different.

 

6. What If the Employer Closes Its Business or Becomes Insolvent?

 

Where an organisation ceases trading or enters insolvency proceedings, the consequences for its sponsor licence may extend beyond the redundancy of individual workers.

A sponsor must continue to satisfy the requirements for holding a licence, including being a genuine organisation capable of meeting its sponsorship obligations.

If the sponsoring organisation ceases to exist or can no longer fulfil those obligations, the Home Office may take action affecting the licence.

The precise consequences depend on the circumstances, including whether the business is being wound up, sold, transferred or continued through an insolvency process.

Employers and insolvency practitioners should identify any sponsored workers at an early stage and consider the immigration implications of the proposed arrangements.

Where sponsorship cannot continue, the appropriate notifications must be made.

Where a business or part of a business is being transferred, the position should be assessed under the sponsor guidance governing changes of ownership and corporate transactions.

 

7. Mergers, Acquisitions and TUPE Transfers

 

Redundancies frequently arise during mergers, acquisitions, outsourcing arrangements and other corporate reorganisations.

These transactions can create distinct employment and immigration obligations.

For example, the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) may affect the employment rights and continuity of service of transferring employees.

However, the transfer of an employment contract does not automatically mean that sponsorship can continue without further consideration.

UK sponsor licences are granted to particular organisations and are not ordinarily transferable as assets between separate legal entities.

Where sponsored employees transfer to a new employer, the organisations involved must assess the sponsor guidance governing business transfers, changes of ownership and the continuation of sponsorship.

Depending on the circumstances, the acquiring or receiving organisation may need to hold or obtain an appropriate sponsor licence and take the necessary steps concerning the affected workers.

Separate Home Office reporting requirements may apply to the organisations involved.

Relevant organisational changes generally fall within the sponsor guidance’s 20-working-day reporting framework, while the cessation of an individual worker’s sponsorship is generally subject to the separate 10-working-day reporting requirement.

Employers should not assume that reporting the redundancies alone satisfies their obligations concerning the wider transaction.

The sponsorship implications should be assessed during transaction planning rather than after the employment transfers have taken place.

 

8. Right to Work Compliance Following the 1 October 2026 Changes

 

The right to work framework applicable from 1 October 2026 requires employers to consider checking obligations in relation to specified working arrangements beyond conventional contracts of employment.

This is particularly relevant where restructuring involves changing how individuals are engaged to perform work.

For example, an employer may consider replacing an employed role with a consultancy arrangement, engaging an individual under a personal service contract or using a different subcontracting structure.

The organisation should not assume that changing the contractual description of the arrangement removes its right to work responsibilities.

It must establish whether the proposed engagement falls within the applicable checking regime and whether the individual has immigration permission to undertake the work.

For sponsored workers, there is an additional question: whether the proposed role or arrangement is permitted under the worker’s immigration conditions and the sponsor licence requirements.

Right to work compliance and sponsor licence compliance are related but separate obligations.

A compliant right to work check does not authorise work that is prohibited by the conditions of a sponsored worker’s immigration permission.

Equally, holding a sponsor licence does not exempt an organisation from applicable right to work checking duties.

Failures may expose the organisation to illegal working enforcement and, where the relevant grounds apply, sponsor licence action.

Employers should therefore incorporate right to work assessments into their redundancy, redeployment and workforce restructuring procedures.

 

9. Maintaining an Audit Trail of the Redundancy Exercise

 

Employers should retain sufficient evidence to demonstrate that sponsored worker redundancies were managed in a controlled and compliant manner.

The relevant records may include the business rationale for the restructuring, the affected roles, consultation outcomes, alternative employment assessments and the dates on which sponsored employment ended.

The organisation should also retain evidence of immigration assessments, SMS notifications and any changes affecting remaining sponsored workers.

Where the restructuring involves corporate changes, the employer should document how the relevant sponsor licence obligations were identified and addressed.

Records should be retained in accordance with the applicable sponsor guidance, employment law and data protection requirements.

A clear audit trail can be particularly important where the Home Office subsequently examines whether sponsored roles were genuine, whether reporting duties were met or whether the organisation continued to comply with its licence conditions.

 

 

Back to top

 

Section H: Employer Checklist: Managing Sponsored Worker Redundancy

 

Employers should manage sponsored worker redundancies through a structured process that addresses employment law, immigration sponsorship and right to work compliance.

The following checklist identifies the principal steps to consider before, during and after the redundancy exercise.

 

1. Before Announcing Proposed Redundancies

 

1. Identify affected sponsored workers: Establish which employees hold immigration permission linked to the organisation’s sponsorship.
2. Confirm sponsorship details: Review the relevant immigration routes, Certificates of Sponsorship, occupation codes, salaries and permission expiry dates.
3. Establish the business rationale: Document the reasons for the proposed restructuring and identify the roles affected.
4. Assess redundancy selection: Consider the appropriate selection pools and criteria under applicable employment law.
5. Identify potential alternative roles: Review whether suitable vacancies may be available and whether they could support continued sponsorship.
6. Assess immigration feasibility: Consider whether alternative roles would require new sponsorship arrangements or immigration applications.
7. Review right to work implications: Identify whether proposed changes to roles or engagement arrangements require additional checks or assessments.
8. Allocate responsibilities: Confirm who will manage the employment process, immigration assessments, SMS reporting and record keeping.

 

These steps should be completed sufficiently early to inform the employer’s redundancy planning and consultation.

 

2. During Redundancy Consultation

 

1. Explain the proposed redundancy and the business reasons for it.
2. Apply the relevant consultation requirements consistently.
3. Consider representations made by affected sponsored employees.
4. Assess alternative employment opportunities and any applicable statutory priority rights.
5. Check whether proposed redeployment would satisfy the relevant immigration requirements.
6. Consider whether changes to salary, duties or hours would affect continued sponsorship.
7. Identify any immigration reporting obligations arising before employment ends.
8. Avoid guaranteeing a particular period of immigration permission following redundancy.
9. Document the consultation process and decisions reached.

 

Where collective consultation duties apply, the employer must also comply with the relevant statutory requirements.

 

3. When Confirming Redundancy

 

1. Confirm the outcome: Provide the relevant redundancy decision and termination documentation.
2. Establish the termination date: Distinguish the date notice is given from the date employment actually ends.
3. Review notice arrangements: Identify whether the worker will work during notice, remain on garden leave or receive payment in lieu.
4. Calculate employment entitlements: Address redundancy pay, notice pay, holiday pay and other contractual amounts.
5. Confirm sponsorship consequences: Determine when sponsorship will cease and whether any other reportable changes have occurred.
6. Identify reporting responsibility: Ensure the relevant SMS user has the information needed to make the required notification.
7. Communicate accurately: Explain the employer’s sponsorship reporting responsibilities without promising a particular Home Office cancellation outcome.

 

Where employment ends immediately, the sponsor should promptly assess the reporting obligation rather than assuming that the period represented by a payment in lieu of notice extends sponsorship.

 

4. When Sponsored Employment Ends

 

1. Confirm the actual date sponsored employment ceased.
2. Submit the required cessation of sponsorship report through the SMS within the applicable deadline, generally 10 working days.
3. Ensure the reason and other information reported to the Home Office are accurate.
4. Retain evidence of the SMS submission.
5. Update the organisation’s sponsorship and employment records.
6. Review whether an Immigration Skills Charge refund may be available.
7. Check that prohibited sponsorship costs have not been recovered from the worker.
8. Apply the appropriate record retention and data protection requirements.

 

Where the departure forms part of a wider corporate transaction, the employer should separately confirm that any organisational reporting obligations have been addressed.

 

5. After the Redundancy Exercise

 

1. Review the sponsored workforce that remains with the organisation.
2. Confirm that remaining roles and occupation codes accurately reflect the work being undertaken.
3. Check continued compliance with salary and working hours requirements.
4. Report relevant changes to work locations, duties or other circumstances.
5. Review whether any transfers require new immigration permission.
6. Confirm that revised working arrangements satisfy applicable right to work requirements.
7. Check that sponsor licence records and SMS information remain accurate.
8. Review any compliance weaknesses identified during the redundancy exercise.
9. Retain an appropriate audit trail of decisions and remedial action.

 

Employers undertaking substantial restructuring may also benefit from a wider sponsor compliance review to confirm that the organisation’s remaining sponsorship arrangements continue to satisfy Home Office requirements.

 

6. Sponsored Worker Redundancy Decision Matrix

 

The following matrix summarises common redundancy and restructuring scenarios and the principal immigration compliance considerations.

 

Scenario	Principal Immigration Issue	Employer Action
Sponsored role is eliminated and employment ends	Cessation of sponsorship and potential visa cancellation	Confirm the employment end date, report cessation through the SMS and retain supporting records.
Worker is redeployed into a different occupation	Potential requirement for a new CoS and change-of-employment application	Assess the occupation and applicable rules before the worker begins the new role.
Worker moves into a revised role within the same occupation code	Continued salary, occupation and sponsorship compliance	Check the full immigration requirements and submit any necessary SMS report.
Salary or working hours are reduced	Potential breach of Skilled Worker salary requirements	Assess the revised salary, applicable thresholds and any permitted exceptions before implementation.
Multiple sponsored workers are made redundant	Multiple worker-reporting obligations and potential wider compliance implications	Maintain a central reporting schedule and document the business rationale.
Worker secures employment with a new sponsor	Requirement for appropriate new sponsorship and immigration permission	Report the end of the original sponsorship; the new employer must manage its own sponsorship and right to work obligations.
Proposed redundancy is withdrawn	Whether any reportable changes have occurred	Confirm that sponsorship remains compliant and correct any inaccurate records or notifications through the appropriate process.
Redundancy forms part of a merger or business transfer	Corporate reporting and potential changes to the sponsoring entity	Assess the transaction under the sponsor guidance and address both organisational and worker-reporting duties.
Employment is replaced with a consultancy or subcontracting arrangement	Immigration permission, right to work checks and potential cessation of sponsorship	Assess the actual working arrangement, applicable October 2026 right to work requirements and whether sponsorship can lawfully continue.

 

The matrix is a practical screening tool rather than a substitute for assessing the applicable Immigration Rules and sponsor guidance.

Where a proposed change involves a new occupation, salary reduction, corporate transfer or alternative contractual arrangement, the immigration position should be confirmed before the change takes effect.

 

7. Dual-Track Redundancy Timeline: Employment and Immigration Duties

 

Employers should manage redundancy through two coordinated workstreams: the employment law process and the immigration sponsorship process.

The two workstreams are connected, but they do not necessarily operate to identical deadlines.

 

Stage	Employment Law Workstream	Immigration and Sponsor Compliance Workstream
1. Planning	Establish the business rationale, identify affected roles and consider selection and consultation requirements.	Identify sponsored workers, review CoS details and assess the potential immigration consequences.
2. Consultation	Consult affected employees, consider representations and assess alternative employment.	Evaluate whether alternative roles satisfy immigration requirements and identify any changes requiring reporting.
3. Decision	Confirm redundancy outcomes, notice arrangements and relevant entitlements.	Determine whether sponsorship will cease or continue under revised arrangements and identify any required immigration applications.
4. Implementation	Implement termination or redeployment in accordance with applicable legal requirements.	Make required SMS notifications, generally within 10 working days for cessation of sponsorship, and complete any necessary immigration steps.
5. Post-termination	Complete final payments and retain appropriate employment records.	Retain sponsorship records, review ISC refund eligibility and assess the compliance position of remaining sponsored workers.

 

The employer should also identify any separate organisational reporting obligations where the redundancy programme involves changes to ownership, business structure or the identity of the sponsoring entity.

The objective is to prevent employment decisions from being implemented without the necessary immigration assessment, and to avoid sponsor reporting failures arising from gaps between HR and sponsorship administration.

 

 

Back to top

 

Section I: Common Mistakes When Making Sponsored Workers Redundant

 

Many sponsorship problems arising from redundancy are avoidable.

They often result from treating redundancy solely as an employment law matter or assuming that the immigration consequences follow automatically from the employment decision.

The following mistakes can expose employers to unnecessary compliance risk.

 

1. Assuming the Visa Is Automatically Cancelled on the Redundancy Date

 

Employment termination and cancellation of immigration permission are separate events.

The employer must report the cessation of sponsorship, while the Home Office determines whether and when the worker’s permission will be cancelled.

Employers should not provide employees with an assumed cancellation date unless it has been established from the relevant immigration records or Home Office decision.

 

2. Missing the Home Office Reporting Deadline

 

The cessation of sponsored employment must generally be reported through the SMS within 10 working days.

Employers should not assume that payroll termination, issuing a P45 or completing internal HR records satisfies this obligation.

The reporting deadline should be monitored independently and evidence of submission retained.

 

3. Reporting the Wrong Employment Termination Date

 

The date on which redundancy is announced may differ from the date employment actually ends.

Notice periods, garden leave and payment in lieu of notice can create uncertainty if the employer does not distinguish the relevant dates.

Incorrect information may affect the accuracy of the sponsor’s Home Office records.

The employer should confirm the actual arrangements before submitting the report.

 

4. Redeploying a Worker Without Checking Immigration Requirements

 

A sponsored worker cannot necessarily move into any available position simply because the same employer is offering the role.

A different occupation code or other material change may require a new CoS and change-of-employment application.

Employers should assess the proposed role before the worker begins performing the revised duties.

 

5. Reducing Salary Without Checking Skilled Worker Thresholds

 

A salary reduction agreed with an employee may still breach the requirements of their immigration route.

Employers should assess the applicable general salary threshold, occupation-specific requirements, working hours and any relevant exceptions.

The fact that the reduction is intended to avoid redundancy does not remove the sponsor’s obligation to comply with the Immigration Rules.

 

6. Treating the 60-Day Period as Guaranteed

 

Employers should not tell sponsored workers that they automatically have 60 days from redundancy to find another sponsor.

The Home Office will normally consider cancellation so that 60 days’ permission remains, unless less than 60 days already remain or another cancellation outcome is appropriate. The period runs from the effective cancellation decision rather than the redundancy date.

 

7. Attempting to Recover Prohibited Sponsorship Costs

 

Employers should not assume that redundancy entitles them to recover the cost of sponsorship from the departing worker.

The Home Office restricts recovery of specified sponsorship charges, including the Immigration Skills Charge and applicable CoS and sponsor licence fees.

These restrictions cannot be avoided simply by inserting a repayment clause into an employment contract.

Recovery or attempted recovery of prohibited charges can result in serious sponsor licence consequences, including revocation under the applicable guidance.

 

8. Ignoring Changes Affecting Remaining Sponsored Workers

 

Redundancy may change the duties, reporting lines, work locations or salaries of employees who remain with the organisation.

Those changes can create sponsorship obligations even where the employees themselves are not at risk of dismissal.

Employers should review the continuing compliance of the remaining sponsored workforce rather than focusing exclusively on employees who are leaving.

 

9. Treating Corporate Restructuring as Ordinary Redundancy

 

Mergers, acquisitions, outsourcing and business transfers can involve additional sponsor licence obligations.

Reporting that individual employees have left does not necessarily satisfy the requirements concerning changes to ownership, organisational structure or the sponsoring entity.

Employers should assess both the worker-reporting and organisational-reporting frameworks where a redundancy programme forms part of a wider transaction.

 

10. Failing to Retain a Compliance Audit Trail

 

Employers may struggle to demonstrate compliance where redundancy decisions, immigration assessments and SMS reports are recorded in separate systems without a clear central record.

The organisation should retain appropriate evidence of the business rationale, employment outcomes, sponsorship decisions and reporting actions.

Records should be maintained in accordance with the relevant sponsor guidance and data protection requirements.

 

11. Assuming a Consultancy Arrangement Removes Right to Work Duties

 

Following the right to work changes applicable from 1 October 2026, employers should not assume that replacing an employment contract with another working arrangement removes all right to work checking responsibilities. The expanded statutory framework applies in specified circumstances to worker contracts, individual subcontracting arrangements and qualifying online matching arrangements.

The applicable obligations depend on the actual working arrangement and the scope of the right to work framework.

Where the individual is a sponsored worker, the organisation must also assess whether the proposed work is compatible with their immigration permission and sponsorship conditions.

Changing the contractual label does not automatically authorise a different role or engagement.

 

12. Confusing Right to Work Checks with Sponsor Reporting

 

Right to work checks and sponsor licence reporting serve different legal purposes.

A right to work check may establish a statutory excuse against a civil penalty where the applicable requirements are met, but it does not replace the sponsor’s duty to report changes through the SMS.

Likewise, making an SMS report does not necessarily satisfy the organisation’s separate right to work checking obligations.

Employers should ensure that both compliance processes are addressed when sponsored workers are redeployed, transferred or engaged under revised arrangements.

 

 

Back to top

 

Section J: How DavidsonMorris Can Help

 

Redundancy involving sponsored workers requires employers to manage immigration compliance alongside their wider workforce restructuring obligations.

Where sponsorship arrangements are not considered early enough, an otherwise legitimate redundancy exercise can result in missed Home Office reporting deadlines, unsuitable redeployment arrangements or failures to maintain compliant sponsorship records.

DavidsonMorris advises UK employers on the immigration and sponsor licence implications of redundancies, business reorganisations and changes affecting sponsored workers.

Our business immigration solicitors can assist with:

 

• Sponsor licence compliance: Reviewing the organisation’s obligations where sponsored roles are being removed or changed.
• Home Office reporting: Advising on the SMS notifications required when sponsored employment ends or workers’ circumstances change.
• Sponsored worker redeployment: Assessing whether alternative roles satisfy the relevant immigration requirements.
• Change-of-employment applications: Advising where a new Certificate of Sponsorship or immigration application may be required.
• Salary and role changes: Reviewing proposed changes to working hours, remuneration and duties against the applicable Skilled Worker requirements.
• Corporate restructuring: Advising on sponsorship implications arising from mergers, acquisitions, TUPE transfers and changes to sponsoring entities.
• Right to work compliance: Assessing checking obligations where employers propose alternative roles or revised working arrangements.
• Sponsor compliance audits: Identifying weaknesses in reporting, record keeping and workforce monitoring procedures.
• Home Office enforcement: Advising employers facing sponsor licence compliance concerns, investigations or enforcement action.

 

Employment law issues, including redundancy selection, consultation, unfair dismissal and statutory redundancy entitlements, should be addressed with appropriately qualified employment law advisers.

DavidsonMorris’s role is to help employers understand and manage the immigration compliance consequences of their workforce decisions.

For advice on sponsored worker redundancies, redeployment or the impact of restructuring on your sponsor licence, contact DavidsonMorris.

 

Back to top

 

Section K: Conclusion

 

Employers can lawfully make sponsored workers redundant where there is a genuine redundancy situation and the applicable employment law requirements are satisfied.

However, the end of sponsored employment creates immigration compliance responsibilities that must be managed separately from the redundancy procedure.

In particular, employers must identify when sponsorship ceases, submit the required Home Office notifications and maintain accurate records of the circumstances surrounding the worker’s departure.

Where redeployment is being considered, the proposed role must be assessed against the relevant immigration requirements before the employee begins the new duties. A suitable alternative position under employment law will not necessarily qualify for continued sponsorship.

Employers must also distinguish between the end of employment and cancellation of immigration permission. The Home Office determines whether and when a worker’s permission is cancelled, and the commonly cited 60-day period should not be treated as an automatic entitlement beginning on the redundancy date.

The right to work requirements applicable from 1 October 2026 add a further consideration where restructuring involves alternative contractual or working arrangements. Employers should not assume that changing the basis of an individual’s engagement removes the need to assess their permission to work or the organisation’s checking obligations.

Where redundancies form part of a merger, acquisition, business closure or wider restructuring exercise, additional sponsor licence reporting and organisational requirements may also arise.

The most effective approach is to coordinate redundancy planning, immigration assessments, Home Office reporting and record keeping from the outset.

This allows employers to make necessary workforce decisions while reducing the risk of avoidable sponsorship breaches, immigration complications and Home Office enforcement action.

 

Back to top

 

Section L: Sponsor Licence & Redundancy FAQs

 

Can a Company Make Only Its Sponsored Employee Redundant?

Yes, potentially. A redundancy affecting only one sponsored employee is not automatically unlawful.

The employer must establish that there is a genuine redundancy situation and comply with the applicable employment law requirements, including fair selection and consultation where relevant.

The employee’s sponsorship status should not be used as a substitute for an objective assessment of the role and the business requirements.

Employers should also consider whether the selection decision raises discrimination concerns, particularly where immigration sponsorship status is being used in a way that may disadvantage workers because of nationality or another protected characteristic.

If the sponsored employment ends, the employer must comply with its Home Office reporting duties.

 

Can a Sponsored Worker Volunteer for Redundancy?

Yes. A sponsored worker may volunteer for redundancy where the employer operates a voluntary redundancy programme.

However, the employer should assess whether the proposed departure is consistent with the terms of the programme and applicable employment law.

From an immigration perspective, the fact that the worker volunteered does not remove the sponsor’s reporting obligations.

Where the employer accepts the voluntary redundancy and sponsored employment ends, the sponsor must report the cessation of sponsorship within the applicable deadline.

The Home Office may subsequently consider cancellation of the worker’s immigration permission in accordance with the relevant policy.

 

Can a Sponsored Worker Be Made Redundant While on Maternity Leave?

Yes, but particular statutory protections may apply.

Employees who are pregnant or within a protected period associated with maternity, adoption or certain forms of shared parental leave may have priority rights in relation to suitable available alternative vacancies where the statutory conditions are satisfied.

Employers must also comply with applicable discrimination and unfair dismissal protections.

The fact that the employee is sponsored does not remove these rights.

From an immigration perspective, employers should separately assess whether any alternative role satisfies the relevant sponsorship requirements and whether changes to pay or absence arrangements affect compliance.

Where employment ultimately ends because of redundancy, the sponsor must comply with the applicable reporting duties.

 

Can a Sponsored Worker Be Made Redundant During Probation?

Yes. Sponsored workers can be affected by genuine redundancy during a probationary period.

The employment law requirements and potential remedies will depend on the worker’s circumstances, including their length of service and any applicable statutory or contractual protections.

Probation does not remove the sponsor’s immigration obligations.

Where the employee’s sponsored employment ends, the employer must report the cessation of sponsorship in accordance with the sponsor guidance.

The Home Office may then consider the implications for the worker’s immigration permission.

 

Can a Sponsored Worker Be Made Redundant Before Their Visa Expires?

Yes. A sponsor is not generally required to continue employing a worker until the expiry date of their Skilled Worker visa where a genuine redundancy situation arises.

However, the employer must comply with applicable employment law and sponsor licence requirements.

The worker’s visa expiry date and employment termination date are separate matters.

Following the end of sponsorship, the Home Office may consider cancellation of the worker’s permission before its original expiry date.

The employer should not assume that the worker can continue undertaking sponsored employment until the original visa expiry date after the employment relationship has ended.

 

Can a Redundant Skilled Worker Work for Another Employer While Looking for Sponsorship?

A Skilled Worker’s ability to undertake employment with another organisation depends on the conditions of their immigration permission and the nature of the proposed work.

The Skilled Worker route permits certain supplementary employment in specified circumstances, but those provisions should not be treated as unrestricted permission to begin a new principal job following redundancy.

Where the worker wishes to move to a new principal sponsored role, they will generally require the appropriate new sponsorship and immigration permission.

The prospective employer must also comply with the applicable right to work checking requirements.

The worker should not assume that continuing immigration permission automatically authorises any employment they choose to undertake.

 

Can an Employer Keep Its Sponsor Licence If It Has No Sponsored Workers?

An organisation does not necessarily lose its sponsor licence immediately because it temporarily has no sponsored workers.

However, the sponsor must continue to meet the requirements for holding a licence, including maintaining appropriate sponsorship arrangements and complying with relevant reporting obligations.

The Home Office may consider whether the organisation continues to have a genuine need for its licence and whether it remains capable of fulfilling sponsor duties.

The position may be different where the organisation has ceased trading, no longer exists or has undergone changes affecting the validity of its licence.

Employers should not assume that a licence remains valid indefinitely regardless of the organisation’s circumstances.

 

Can an Employer Recruit Another Sponsored Worker After Making Someone Redundant?

Potentially, yes. There is no general prohibition on recruiting a sponsored worker after a previous sponsored employee has been made redundant.

However, the employer should be able to explain the genuine business circumstances surrounding both decisions.

Where a new worker is recruited into substantially the same role shortly after redundancy, questions may arise about the original redundancy rationale and the consistency of the employer’s explanation.

The employer must also ensure that the new role satisfies the applicable sponsorship requirements.

The circumstances should be considered carefully where recruitment and redundancy form part of the same restructuring exercise.

 

Can the Employer Delay Reporting Redundancy While the Worker Finds Another Job?

No. An employer should not deliberately delay a required Home Office report to give a sponsored worker additional time to secure alternative employment.

Where sponsorship has ceased, the sponsor must comply with the applicable reporting deadline, generally 10 working days.

The employer cannot extend the worker’s immigration permission by withholding an SMS notification.

Any subsequent cancellation of permission is a matter for the Home Office.

Employers can communicate accurately with affected employees and allow them to obtain independent immigration advice, but must not compromise their own reporting obligations.

 

Must the Employer Pay for the Worker’s New Visa After Redundancy?

There is no general immigration rule requiring a former sponsor to pay for a redundant worker’s new visa application with another employer.

However, the employer should consider whether it has made any relevant contractual commitments or agreed to provide immigration support as part of the redundancy arrangements.

Costs associated with new sponsorship will also be subject to the rules applicable to the new sponsoring employer.

Employers should distinguish between visa application expenses and sponsorship charges that the Home Office requires sponsors to bear.

Specified sponsorship costs, including the Immigration Skills Charge and applicable CoS fees, cannot be passed to sponsored workers contrary to the sponsor guidance.

 

Can a Sponsored Worker Challenge Redundancy Because They Will Lose Their Visa?

The fact that redundancy may affect a worker’s immigration permission does not, by itself, establish that the redundancy is unlawful.

However, a sponsored worker may have grounds to challenge the employment decision where the applicable legal requirements have not been met.

Potential issues may include whether the redundancy was genuine, whether the selection process was fair, whether consultation obligations were satisfied or whether unlawful discrimination occurred.

The worker’s immigration circumstances may form part of the factual background, but the legal assessment depends on the relevant employment law provisions.

Any challenge to the redundancy should be distinguished from the separate immigration consequences of the cessation of sponsorship.

 

Can the Home Office Conduct a Compliance Visit After Sponsored Worker Redundancies?

Yes. The Home Office can undertake sponsor compliance activity where it considers this appropriate.

A redundancy programme does not automatically trigger a compliance visit, but changes to the sponsored workforce may be relevant to the Home Office’s assessment of the organisation.

During a compliance visit or investigation, the Home Office may examine whether sponsored roles were genuine, whether relevant changes were reported and whether the employer maintained appropriate records.

It may also review whether remaining sponsored workers continue to meet the applicable immigration requirements.

Employers should therefore retain an appropriate audit trail of the redundancy exercise and the sponsorship actions taken.

 

Do the October 2026 Right to Work Changes Affect Redundant Sponsored Workers?

They may be relevant where redundancy leads to redeployment, recruitment by another employer or a change in the basis on which the individual performs work.

From 1 October 2026, the right to work framework extends to specified working arrangements beyond conventional employment contracts.

Employers should therefore assess whether a proposed alternative engagement falls within the applicable checking requirements.

For a sponsored worker, the employer must also establish whether the proposed work is permitted under their immigration conditions.

A right to work check does not replace the need to satisfy sponsor licence requirements or obtain a change-of-employment application where required.

 

Can a Redundant Sponsored Worker Become a Consultant for Their Former Employer?

Not automatically.

Where an employer proposes replacing sponsored employment with a consultancy or personal service arrangement, the immigration position must be assessed before the individual begins work under the revised terms.

The worker’s existing permission may not authorise the proposed engagement, and the arrangement may affect whether the organisation can continue sponsorship.

The employer must also consider whether the arrangement falls within the right to work checking requirements applicable from 1 October 2026.

Simply changing the contractual label from employee to consultant does not establish that the individual can lawfully undertake the proposed work.

 

Back to top

 

Section M: Glossary

 

Term	Meaning
Sponsor Licence	Permission granted by the Home Office allowing an eligible organisation to sponsor overseas workers under specified immigration routes, subject to continuing compliance obligations.
Sponsored Worker	An individual whose immigration permission is supported by sponsorship from an organisation licensed under the relevant UK immigration route.
Skilled Worker Visa	A UK immigration route allowing eligible individuals to undertake qualifying employment with an approved sponsor, subject to occupation, salary and other applicable requirements.
Certificate of Sponsorship (CoS)	An electronic sponsorship record assigned by a licensed sponsor to support a worker’s immigration application. It contains information about the sponsored employment and is not a paper certificate.
Sponsor Management System (SMS)	The Home Office’s online system through which licensed sponsors manage sponsorship activities, assign Certificates of Sponsorship and report specified changes affecting workers or the organisation.
Authorising Officer	The senior individual designated by a sponsor organisation as responsible for overseeing its sponsorship arrangements and compliance with sponsor duties.
Level 1 User	An authorised user of the Sponsor Management System with permissions to undertake specified sponsorship administration and reporting functions.
Redundancy	A potentially fair reason for dismissal under employment law, generally arising where a business or workplace closes or the employer’s requirement for employees to carry out work of a particular kind has ceased or diminished.
Redeployment	The movement of an employee into another role or position, potentially as an alternative to redundancy. For sponsored workers, redeployment may require a separate immigration eligibility assessment.
Occupation Code	A classification used under the immigration system to identify the occupation associated with sponsored employment. The appropriate code is determined by the actual duties and relevant classification rules.
Change-of-Employment Application	An immigration application that a sponsored worker may need to make when changing employer or moving into another role in circumstances where the Immigration Rules require new permission.
Immigration Skills Charge (ISC)	A charge payable by sponsors in specified circumstances when assigning Certificates of Sponsorship. Refunds may be available under the applicable rules where sponsorship does not proceed or ends early.
Immigration Health Surcharge (IHS)	A charge payable in connection with many UK immigration applications, generally providing access to relevant NHS services during the period of immigration permission, subject to the applicable rules and exemptions.
Cancellation of Immigration Permission	A Home Office decision bringing an individual’s existing immigration permission to an end before its original expiry date, or shortening its remaining duration, in accordance with the applicable rules and guidance.
Garden Leave	An arrangement under which an employee remains employed during a notice period but is not required to perform their usual duties, subject to the terms of the employment relationship.
Payment in Lieu of Notice (PILON)	A payment made instead of requiring an employee to work all or part of their notice period. The effect on the employment termination date depends on the applicable contractual and legal arrangements.
TUPE	The Transfer of Undertakings (Protection of Employment) Regulations 2006, which provide employment protections in qualifying business transfers and service provision changes. Separate immigration sponsorship requirements may apply to transferring sponsored workers.
Sponsor Compliance Visit	A Home Office compliance assessment of a licensed sponsor, which may involve examining its records, systems, personnel and compliance with sponsorship duties.
Right to Work Check	A check undertaken in accordance with the applicable Home Office framework to establish whether an individual has permission to undertake relevant work in the UK and, where the statutory conditions are satisfied, provide protection against a civil penalty for illegal working.
Statutory Excuse	A defence against liability for a civil penalty for illegal working that may be established where the organisation has carried out the prescribed right to work checks and satisfied the applicable legal requirements.

 

Back to top

 

Section N: Useful Links

 

The following official resources provide further information on sponsorship duties, immigration permission, right to work compliance and redundancy law.

 

Description	URL
Home Office — Workers and Temporary Workers: Guidance for Sponsors Official guidance covering sponsor duties, reporting requirements, changes to sponsored employment, record keeping and sponsor licence compliance.	https://www.gov.uk/government/collections/sponsorship-information-for-employers-and-educators
Home Office — Immigration Rules: Appendix Skilled Worker The Immigration Rules governing Skilled Worker eligibility, salary requirements and relevant employment changes.	https://www.gov.uk/guidance/immigration-rules/immigration-rules-appendix-skilled-worker
Home Office — Immigration Permission Cancellation Guidance Official caseworker guidance covering cancellation of immigration permission, including circumstances arising from the cessation of sponsored employment.	https://www.gov.uk/government/collections/immigration-staff-guidance
Home Office — Appendix D: Sponsor Record Keeping Home Office requirements concerning records that sponsors must retain for sponsored workers.	https://www.gov.uk/government/collections/sponsorship-information-for-employers-and-educators
Home Office — Employer’s Guide to Right to Work Checks Official guidance on right to work checking methods and obligations, including the framework applicable from 1 October 2026.	https://www.gov.uk/government/publications/right-to-work-checks-employers-guide
Home Office — Code of Practice on Preventing Illegal Working Official codes addressing illegal working liability and the operation of the civil penalty framework.	https://www.gov.uk/government/publications/illegal-working-penalties-codes-of-practice-for-employers
Home Office — Code of Practice on Avoiding Discrimination Guidance on avoiding unlawful discrimination when carrying out right to work checks.	https://www.gov.uk/government/publications/right-to-work-checks-code-of-practice-on-avoiding-discrimination
UK Government — Redundancy: Your Rights Government guidance on employee redundancy rights, including consultation, notice and redundancy pay.	https://www.gov.uk/redundancy-your-rights
UK Government — Making Staff Redundant Government guidance for employers managing redundancy procedures and associated legal obligations.	https://www.gov.uk/staff-redundant
UK Government — Immigration Skills Charge Official information on ISC payment requirements and applicable refund arrangements.	https://www.gov.uk/uk-visa-sponsorship-employers/immigration-skills-charge
Employment Rights Act 1996 Primary legislation governing relevant employment protections, including redundancy and dismissal rights.	https://www.legislation.gov.uk/ukpga/1996/18/contents
Equality Act 2010 Primary legislation governing discrimination protections relevant to redundancy selection and employment decisions.	https://www.legislation.gov.uk/ukpga/2010/15/contents
Trade Union and Labour Relations (Consolidation) Act 1992 Primary legislation addressing collective redundancy consultation and associated obligations.	https://www.legislation.gov.uk/ukpga/1992/52/contents

 

Back to top