Sponsor Licence Suspension: Employers’ Guide

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Anne Morris

Employer Solutions Lawyer

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Key Takeaways

  • Sponsor licence suspension halts overseas recruitment.
  • Don’t underestimate the resource demand of resolving a suspended sponsor licence.
  • You need to engage with the Home Office and rectify the issues within the timescales, or your licence will be revoked and sponsored workers’ visas curtailed.
If your organisation has received a sponsor licence suspension notice, you will need to act quickly to get your licence reinstated. If you don’t respond to the Home Office on time, the licence will almost certainly be revoked.

The Home Office has powers to suspend a sponsor licence where it alleges an organisation has failed to manage its licence correctly and to meet its immigration compliance duties. You will need to determine how you will respond and to submit your response within 20 working days. Depending on the facts of the case, your options could include challenging the Home Office’s decision to suspend the licence, or resolving the issues and evidencing the steps you have taken.

The ability to sponsor foreign workers is business-critical for most sponsor licence holders, making it imperative to take action to address the allegations and resume normal operations. Dealing with a suspended sponsor licence will be intense, typically requiring external professional advice given the severity of the situation and the complexity of the rules. HR will need senior management time and support, and extensive evidence and documents will need to be collated.

In this guide, we take a practical look at how to deal with a sponsor licence suspension. For expert advice to protect your sponsor licence, speak to our legal specialists.

SECTION GUIDE

 

Section A: What is a Sponsor Licence Suspension?

 

A sponsor licence suspension is one of the most serious compliance actions the Home Office can take against an employer. It is imposed where UKVI believes a sponsor may not be meeting its legal duties, and it immediately restricts the ability to issue new Certificates of Sponsorship. Suspension does not mean automatic loss of the licence, but it signals that the business is under investigation and at risk of revocation if concerns are not resolved.

 

1. Sponsor licence compliance

 

The ability to sponsor overseas nationals to fill essential skills gaps in your workforce can help you to achieve vital growth, and remain operational and competitive. However, sponsorship imposes a number of responsibilities on the organisation that must be complied with, otherwise you risk enforcement action, such as suspension of your sponsor licence.

Key sponsor licence duties include:

 

a. Record-keeping: Retaining personnel documentation for your sponsored workers, as required under Appendix D of the Sponsor Guidance.

b. Monitoring & Reporting: Sponsored worker monitoring and reporting to Home Office significant changes such as amended employment contract terms or absence from work without permission for more than 10 consecutive working days (reportable within 10 working days).

c. Notifying Changes: Reporting organisational changes such as change of company address or Authorising Officer.

d. Prevention of Illegal Working: Complying with the prevention of illegal working regime by conducting Right to Work checks.

e. Cooperation: Being responsive and cooperative when dealing with the Home Office.

 

Importantly, as a sponsor licence holder, you can be subject to enforcement action even if you unknowingly breached the requirements and were not aware of your obligations. As such, if the Home Office alleges you have breached any of these duties, you could be subject to a licence suspension.

A sponsor licence suspension means the Home Office has temporarily restricted your organisation’s ability to use the licence to sponsor new workers. During the suspension period you cannot assign new Certificates of Sponsorship and UKVI will not decide applications supported by a CoS assigned before suspension until the suspension is resolved. Existing sponsored employees with valid permission may continue working, but the suspension creates uncertainty for both the business and its workers until the investigation is concluded.

The power to suspend a sponsor licence is set out in the Immigration Rules and detailed in sponsor guidance issued by UK Visas and Immigration (UKVI). The Home Office has wide discretion to suspend a licence if it believes the sponsor has failed to comply with its duties or poses a threat to immigration control. Importantly, there does not need to be proof of deliberate wrongdoing. Even administrative failings, such as missing files or late reporting, can justify a suspension while the matter is investigated.

Once suspended, your organisation will be removed from the public Register of Licensed Sponsors.

 

Enforcement ActionWhat It MeansImpact on EmployerImpact on Sponsored Workers
SuspensionLicence temporarily restricted while UKVI investigates suspected breachesCannot assign new Certificates of Sponsorship, removed from public register, pending applications put on holdCan usually continue working, but new applications or extensions will be held until UKVI decides
Downgrade to B-ratingLicence remains valid but sponsor must complete a paid action plan within a set periodFreeze on sponsoring new workers, limited CoS for extensions only, extra compliance monitoringExisting workers can stay, but new hires blocked until A-rating is restored
RevocationLicence permanently removed due to serious or repeated breachesEmployer loses all sponsorship rights, must wait 12–24 months before reapplyingVisas normally curtailed to 60 days (or less if permission ends sooner), must switch sponsor or leave UK
Cooling-off periodBan on reapplying after revocation12 months if first revocation, 24 months if revoked more than onceNo direct impact, but workers dependent on employer’s ability to secure a new licence

 

For employers who rely heavily on sponsored workers, suspension can have a severe operational impact. Recruitment plans may stall, particularly where overseas hires are time-sensitive, and you may have to put projects on hold.

While existing sponsored employees can usually continue to work during a suspension, the uncertainty can be unsettling. If the licence is later revoked, those workers will generally have their visas curtailed, requiring them to find a new sponsoring employer or leave the UK. Employers should be prepared to manage communication with staff to avoid disruption and anxiety in the workforce.

A suspension directly affects business continuity and workforce stability. The Home Office expects sponsors to treat licence duties as ongoing obligations, integrated into day-to-day HR processes. Businesses that take a proactive approach by investing in compliance training, conducting regular audits, and ensuring management oversight are better protected against the risk of suspension. Even where a suspension occurs, being able to demonstrate a clear compliance framework can support your case when responding to the Home Office and seeking reinstatement.

 

2. Impact of Sponsor Licence Suspension

 

Sponsor licence suspensions are disruptive and damaging to the organisation, demanding time, effort, expertise and expenditure to resolve the issues.

 

a. Impact on Your Organisation

 

You will be required to take remedial action to address the issues raised by the Home Office in the suspension notification. As well as taking corrective compliance measures, you must also continue to comply with all sponsor duties throughout the period of suspension.

During the period of the licence suspension, the organisation will not be able to assign any new Certificates of Sponsorship, meaning it will be prohibited from sponsoring new migrant workers. The suspension will apply across all visa categories under your licence. Any CoS assigned prior to the suspension with an application pending will be put on hold until a decision is made by the Home Office on the suspension.

Your organisation will also be removed from the public register of sponsors for the duration of the suspension period.

 

b. Impact on Existing Sponsored Workers

 

Your existing sponsored workers’ leave will not be affected by the suspension, unless the Home Office decides to escalate the penalty to a licence revocation. However, if existing sponsored workers are already in the UK and are awaiting a decision on a visa extension, their extension application will be placed on hold until a decision is made on the suspension.

Should the Home Office decide to withdraw the suspension following your response, your sponsored workers’ status will remain unchanged.

 

c. Impact on New Sponsored Workers

 

New sponsored workers who are overseas and who are awaiting a decision on their visa will see their application put on hold until a decision is made on the suspension. Any new sponsored workers who are overseas and have not yet started work but have a visa will be contacted by the Home Office directly. Any new sponsored workers already in the UK can begin work only if they already hold permission granted on a CoS assigned before suspension. If they still require a decision or a new CoS, they cannot start during suspension.

 

 

 

DavidsonMorris Strategic Insight

 

A suspended sponsor licence should rarely come out of the blue for the employer. As one of the more severe penalties, a suspension usually follows some form of interaction with the Home Office, which has either been ignored or not acted on sufficiently in the Home Office’s eyes. If you don’t want to lose your licence, act quickly. Ultimately, a suspended sponsor licence is a risk to your entire operations, not just HR or the legal team. It needs a concerted, cross-function response.

 

 

 

Section B: Common Reasons for Sponsor Licence Suspension

 

The Home Office can suspend a sponsor licence if it identifies concerns that an employer has not complied with the duties set out under the Immigration Rules and sponsor guidance. Suspension is often triggered by audits, inspections or reports from third parties. While every case will depend on its facts, there are recurring themes in the reasons given for sponsor licence suspension. Understanding these helps employers to assess their risk areas and strengthen compliance before problems escalate.

 

BreachExample in PracticeWhat UKVI Expects
Poor HR record-keepingMissing Appendix D documents such as passports, BRPs or recruitment evidenceMaintain complete, accessible worker files that can be produced immediately during inspection
Late or missed reportingFailure to report unauthorised absence after 10 days or changes to job roleUse the Sponsorship Management System to notify reportable events within required timescales
Non-genuine rolesJob description does not match actual duties or role created to secure a visaEnsure roles meet Skilled Worker criteria with accurate SOC codes and salary levels
Illegal workingEmploying individuals without valid permission to work in the UKConduct compliant Right to Work checks at onboarding and repeat them where status is time-limited
Failure to notify organisational changesNot reporting a change of trading address, ownership or Authorising OfficerSubmit change of circumstances promptly through SMS to keep licence details current
Lack of cooperation with UKVIIgnoring information requests or obstructing a compliance visitProvide full access and timely responses to UKVI officers during audits or inspections

 

 

1. Failures in HR Systems and Record-Keeping

 

One of the most common grounds for suspension is the failure to maintain adequate HR systems. Employers are expected to retain documents listed under Appendix D, including passports, biometric residence permits, contact details and evidence of recruitment. Where files are incomplete or not readily accessible, the Home Office may conclude that the sponsor lacks the systems required to ensure compliance. Even if documents exist elsewhere in the organisation, not being able to produce them during an audit is enough to raise concerns.

 

2. Inadequate Monitoring and Reporting

 

Employers must monitor the immigration status, attendance and role of each sponsored worker, and report specific events such as unauthorised absences, changes to job duties or reductions in salary. A failure to notify these within the strict timeframes can result in suspension. The Home Office views late or missed reporting as evidence that the organisation cannot be relied upon to uphold immigration control, even if the omission was unintentional.

 

3. Non-Compliance with Visa Conditions

 

Suspensions frequently arise when the Home Office believes sponsored workers are breaching the conditions of their visas. Examples include being paid below the required salary threshold, working in a different role from the one stated on the Certificate of Sponsorship, or exceeding permitted hours if the worker is a student. Where employers fail to prevent or detect such breaches, they risk being treated as complicit in undermining the visa system.

 

4. Organisational Failings and Mismanagement

 

Significant changes within the business must be reported, such as changes to the Authorising Officer, company structure, trading address or ownership. Where these updates are not submitted, the Home Office may question whether the sponsor licence is still valid. Failures in internal communication, such as HR not being informed about structural changes, are a common cause of missed notifications that can lead to suspension.

 

5. Evidence of Non-Genuine Roles

 

Where there are signs that a sponsored role does not meet the Skilled Worker requirements, the Home Office may treat this as an abuse of the system. Red flags include job descriptions that do not reflect the duties carried out, roles that appear to exist only to secure a visa, or salaries set at a level far below market rate. Allegations of creating sham roles will often result in an immediate suspension pending further investigation.

 

6. Employing Workers Without Permission

 

If an employer is found to have employed individuals without the right to work, this can lead directly to suspension. The prevention of illegal working regime requires robust Right to Work checks to be carried out. Where checks are missing, incomplete or incorrectly conducted, the Home Office may take the view that the sponsor licence cannot remain valid.

 

7. Serious Breaches or Criminality

 

The Home Office may also suspend a licence if it suspects more serious wrongdoing, such as fraud, money laundering or facilitating illegal immigration. While these cases are less common, they attract the highest level of scrutiny and often result in licence revocation rather than reinstatement. Allegations of this nature will typically involve referrals from law enforcement bodies or intelligence-led investigations.

 

8. Lack of Cooperation with the Home Office

 

Finally, suspension can follow from failing to engage with the Home Office during compliance activity. This includes not responding to requests for information, refusing to allow site visits, or obstructing investigators. Sponsors are required to demonstrate full cooperation, and a lack of responsiveness is often enough to trigger enforcement action.

 

 

DavidsonMorris Strategic Insight

 

Sponsors are often surprised at how trivial and administrative the allegations they’re facing seem to be. Even where there are more systemic issues, it can feel unfair and overly harsh to suspend the licence and the permission to sponsor new workers. This is quite deliberate on the part of the Home Office, deterring employers through damaging penalties designed to push through compliance. Focus on preventing breaches and reducing risk exposure through your everyday HR compliance.

 

 

 

Section C: Home Office Suspension Process

 

When the Home Office suspects that a sponsor may not be complying with its duties, it has the power to suspend the sponsor licence while it investigates. Suspension is not an automatic finding of wrongdoing, but it restricts an employer’s ability to sponsor new workers until the matter is resolved. Understanding how the suspension process works is vital for employers so they can act promptly, prepare an appropriate response, and minimise disruption to their workforce and recruitment plans.

A suspension is usually triggered by evidence obtained during a compliance visit, an unannounced inspection, or intelligence reports received by the Home Office. Concerns can also be raised through inconsistencies in applications, complaints from workers, or information shared by other government agencies. Once an issue is identified, the Home Office may decide to suspend the licence immediately while it conducts further inquiries.

If the Home Office decides to suspend a sponsor licence, it issues a formal suspension notice. This letter sets out the reasons for the suspension and explains the areas of concern. It will highlight the specific duties that the sponsor is alleged to have breached, along with examples or evidence relied upon by the Home Office. The letter also confirms the deadline for the sponsor to respond and the format in which representations must be submitted.

Once the notice is issued, the sponsor cannot assign any new Certificates of Sponsorship. Pending visa applications linked to unused certificates may be placed on hold. Existing sponsored workers are generally permitted to continue in their roles, but the uncertainty caused can lead to anxiety for both employees and management teams.

The suspension notice will usually give the sponsor 20 working days to provide a response. During this period, the employer has the opportunity to challenge the allegations, supply missing information, and demonstrate that compliance issues have been addressed. It is important to use this time effectively, as a weak or incomplete response can significantly increase the risk of the licence being downgraded or revoked.

Once the sponsor’s response is submitted, the Home Office will review the evidence and consider whether the breaches have been explained or remedied. In some cases, additional clarification may be requested. The Home Office assesses not only whether the breaches occurred, but also whether the sponsor can be relied upon to meet its duties in future. The decision is then made to lift the suspension, downgrade the licence to a B-rating with an action plan or revoke the licence entirely.

 

StageEmployer PositionUKVI ActionTimescale
Trigger eventEmployer subject to audit, inspection or intelligence reportUKVI identifies potential breaches of sponsor dutiesAny time during the life of the licence
Suspension notice issuedEmployer formally notified of reasons for suspensionUKVI sets out allegations and confirms response deadlineNotice normally gives 20 working days to respond
Employer responseProvide written representations with evidence addressing allegationsUKVI reviews evidence and may request clarificationResponse must be submitted by deadline; extensions rare
Review and investigationEmployer remains unable to assign new CoSUKVI considers whether breaches are remedied or ongoingTypically within 20 working days of receiving response, longer if complex
DecisionEmployer notified of outcomeUKVI lifts suspension, downgrades to B-rating with action plan, or revokes licenceImmediate effect from date of decision

 

Employers under suspension must be able to produce comprehensive evidence to support their response. This may include HR files, payroll records, absence logs, and internal communications. Where employers can show clear systems and a willingness to correct issues, the Home Office is more likely to consider reinstatement. Conversely, if evidence is missing or inconsistent, the sponsor risks escalation to revocation.

During suspension, communication with your key stakeholders is important. Sponsored workers will be concerned about their immigration status, while business leaders and clients may be worried about delivery risks. Employers should manage these communications carefully, balancing transparency with the need to avoid causing unnecessary alarm. Demonstrating that the matter is being taken seriously can help maintain confidence while the investigation is ongoing.

 

 

DavidsonMorris Strategic Insight

 

Once you receive a suspension notice, consider your organisation squarely on the Home Office enforcement treadmill. You’re now under a compliance spotlight designed to examine your capability and commitment to meet the licence duties. You can only do this through evidence. Every allegation has to be directly addressed in your response with documented proof of the remedial actions and fixes. No assumptions or promises, just hard facts and proof.

 

 

 

Section D: Received a Sponsor Licence Suspension Notice?

 

If your sponsor licence has been suspended, you need to act quickly to avoid further disruption to your organisation. Failing to respond on time is likely to result in your licence being revoked.

If UKVI (the Home Office department responsible for managing the UK’s visa and immigration system) has evidence that justifies a decision to suspend your licence pending a full investigation, it will write to you giving its initial reasons for the suspension and letting you know that an investigation will be taking place. UKVI may not be able to specify how long the investigation will take, but you should be kept regularly updated on its progress.

 

1. Options If Your Sponsor Licence is Suspended

 

The first step is to consider your options and formulate a plan of action to avoid any detrimental impact on business operations and your employees’ visas. Generally, your options are to either:

 

  • Respond to the letter, challenging the allegations, with supporting evidence, and seeking to reinstate the licence, or
  • Respond to the letter by accepting the allegations and identifying how you are addressing the breaches.

 

The notification letter will detail the grounds for suspension, which you must address carefully and in detail in your response to the Home Office. Our compliance experts can review the suspension notice and advise on your options in the circumstances so that you proceed with the best course of action for your organisation.

At this stage, it is sensible to establish a dedicated internal response team led by the Authorising Officer. The team should include HR, payroll, and legal support. Assign a single point of contact for all Home Office correspondence and keep a full audit trail of every step taken. Recording how deadlines are calculated, when correspondence is sent, and what evidence has been collated can protect you if UKVI raises procedural issues later in the process.

 

2. How to Respond to a Sponsor Licence Suspension Notice

 

The notice should advise you of the deadline to respond to UKVI. You will usually have 20 working days from the date of the suspension notification to respond. Use this time to review the suspension decision, seek professional advice on your options, and to compile and submit your response.

Your response to UKVI must be in writing and fully set out, with any relevant supporting evidence, which suspension grounds you believe to be incorrect and the reason(s) for this. The response will need to be thorough and robust on all points. Extensive and compelling documentary evidence should be collected to support your position.

If UKVI raises additional reasons during the response window, they must give you a further 20 working days to respond to those new points.

Taking professional advice can help to identify your options and ensure you respond in way that addresses the Home Office’s immediate concerns and identifies necessary remedial steps. For example, is there a factual error in the stated grounds that can be challenged with supporting evidence? Are there measures you need to take or have already taken to rectify the breach? Are there any mitigating circumstances?

It will also be important to engage positively with the Home Office throughout the process, to demonstrate your commitment to meeting the duties placed on your organisation. Use your response to show not only that you understand the rules but that you have embedded improvements to avoid repetition. The Home Office is less likely to revoke if it sees a genuine willingness to remedy breaches.

At the same time, plan for what suspension means in practice. You will be removed from the Register of Licensed Sponsors and will not be allowed to assign any new Certificates of Sponsorship during this period. Pending applications linked to unused CoS may be placed on hold, and while existing sponsored workers can usually continue working, they may need reassurance about their immigration position. Manage communication carefully to keep staff informed but avoid speculation that may cause unnecessary anxiety.

 

3. Preparing for Inspection and Evidence Submission

 

You should also prepare for a site inspection from immigration enforcement officials if you haven’t already been visited. These visits often involve interviews with key personnel and sponsored workers, as well as requests for immediate access to HR records. Organise files in advance, ensure that documents required under Appendix D are accessible, and brief staff on what to expect. Practical arrangements, such as having a dedicated room for inspectors and ensuring IT access, help the process run smoothly and demonstrate cooperation.

Alongside inspection readiness, focus on building a well-structured evidence pack to submit with your written response. Map each allegation raised in the suspension notice against specific documents, and number exhibits clearly in a schedule. Typical evidence will include right to work check records, payroll data, attendance logs, training records, SMS screenshots, and updated policies or contracts. For every remedial measure taken, provide documentary proof that it has already been implemented. For example, if salaries have been adjusted to meet visa thresholds, include payslips showing the correction.

Remedial action should not just be promised but evidenced. This might involve rolling out new HR policies, retraining managers on reporting obligations, or tightening systems for absence monitoring. The more proactive the measures, the stronger your case for reinstatement. UKVI looks for reassurance that the organisation can be trusted to comply in future, not just explanations of past failings.

Finally, understand the possible outcomes once UKVI has reviewed your case. If your response is successful, the licence can be reinstated at an A-rating. In some cases, it may be downgraded to a B-rating with a time-limited action plan and a fee. If the Home Office is not satisfied, revocation follows, and there is no right of appeal other than judicial review. That outcome also triggers visa curtailment for your sponsored workers, requiring them to find a new sponsor or leave the UK within a short timeframe. For this reason, every effort should be made to use the suspension stage as the opportunity to salvage your licence and protect your workforce.

 

 

DavidsonMorris Strategic Insight

 

The licence suspension notification is a key source of information. It will set out the full case the Home Office is presenting against you with details of the alleged breach(es). You’ll only have 20 working days to respond, which starts from the date of the notification letter, not the date you receive it. As you’ll appreciate, this is not a lot of time to take professional advice, devise a strategy and build the actual response, so you will need to act quickly after receiving the notification. All that said – avoid a knee-jerk reaction. Your UKVI reputation and record is at stake – as well of course as your ability to sponsor overseas workers – you have to be fully considered in all your interactions with the Home Office.

Beyond the suspension response, you will also have to deal with the practical implications of the licence suspension. You’ll need to enforce a recruitment freeze on sponsored roles and halt changes to existing sponsored workers’ roles.
Also remember stakeholder engagement – be honest, calm and factual with your staff to avoid rumours and panic.

 

 

 

Section E: Outcomes following Licence Suspension

 

Following receipt of your response, the Home Office will carry out further investigations into your organisation and its compliance. UKVI will usually issue its final decision within 20 working days of receipt of your response, unless the consideration is especially complex or information is pending from a third party, such as another government department. In this case, UKVI will notify you of the delay.

The suspension will remain in place until UKVI makes a decision on what action to take, which could be:

 

1. Sponsor Licence Reinstated

 

Your licence could be reinstated if the Home Office is satisfied the issues have been addressed. If the licence is reinstated with an A-rating, your licence will resume with full status.

 

2. Sponsor Licence Downgraded

 

Your licence could be downgraded if the caseworker is not satisfied with your response to the allegations. This means the licence is reinstated but with a “B” rather than an “A” rating. If your licence is downgraded, you will be required to pay for an action plan to help reinstate your “A” licence rating.

 

3. Sponsor Licence Revoked

 

If you fail to respond to the suspension notice, or if your response is not adequate, the Home Office has powers to revoke the licence, and your organisation will lose the ability to sponsor foreign workers.

There is no right of appeal to a licence revocation, and you will not be permitted to re-apply for a sponsor licence until the end of the relevant cooling-off period, which runs from the date your licence is revoked.

Licence revocation will result in any applications the organisation has pending with the Home Office usually being refused. It also means that any leave granted to migrant workers currently in the UK will be curtailed, and if they fail to find sponsored employment promptly with another sponsor licence holder, or to secure new lawful status under a different immigration category, they will need to leave the UK.

This makes it all the more important to resolve – and not ignore – the suspension. For help and advice with reinstating your sponsor licence following a suspension, please contact us.

 

 

 

DavidsonMorris Strategic Insight

 

It’s sensible to plan for each of these possible eventualities during the suspension period, otherwise you could be left with a resourcing and recruitment cliff-edge, whatever the Home Office’s decision.

If you’re reinstated with an A-rating, overseas recruitment can only restart once you’re back on the official register. If you’re left with a B-rating, you’ll be put on an action plan (at a notable cost to you) while still on a recruitment freeze. In the case of licence revocation, you need to be prepared to facilitate the exit of your sponsored workers and re-strategise workforce planning through alternative routes, such as domestic recruitment or unsponsored visa categories.

 

 

 

Section F: Preventing Licence Suspension & Immigration Penalties

 

 

The Home Office applies a continuous monitoring approach, meaning any lapse can trigger suspension or revocation. Employers must therefore view compliance as a permanent obligation. From accurate record-keeping and reporting through to robust right to work checks, every stage of recruitment and workforce management carries risk if handled incorrectly. Taking preventative measures is the most effective way to avoid enforcement action and the significant disruption that follows a licence suspension.

 

1. Wider immigration compliance

 

By law, UK employers are required to carry out Right to Work checks on all workers you employ – including sponsored workers – to ensure that they are legally entitled to work in the UK and to undertake the work in question.

If migrant workers are found to be working illegally in circumstances where you have failed to carry out the required checks, you are at risk of a civil penalty and, in some cases, criminal prosecution potentially resulting in imprisonment or an unlimited fine.

Right to Work checks should form part of the pre-employment screening process, enabling you to meet your obligations to prevent illegal working.

You must also conduct follow-up checks on workers that have time-limited permission to work in the UK, such as Skilled Worker visa holders, to verify their continued lawful status and eligibility to work.

Right to Work checks can be conducted in one of following ways:

 

a. Manual document checks – where you confirm the identity of the individual using certain acceptable, original form documents.

 

b. Online share code checks – where the workers provides you with their share code.

 

c. Digital checks – using Identity Document Validation Technology through an identity service provider.

 

d. Employer Checking Service – using the Home Office’s online system.

 

The type of check to use will depend on factors such as the immigration status of the worker. We can advise if you are unsure of which checks to use and how to meet your Right to Work obligations. We also provide a range of training and e-learning solutions to enable organisations to meet their Right to Work obligations.

 

 

2. Sponsor licence compliance

 

Sponsor licence compliance should form part of everyday operations for licence holders. The Home Office expects licence holders to be compliant at all times, and to be up to date with their record keeping, monitoring and reporting duties.

All personnel involved in your organisation’s recruitment, onboarding, supervision or management of sponsored workers should also be adequately trained and equipped to meet the relevant duties.

Your HR processes, policies and procedures should be reviewed regularly to ensure compliance with the regulations – which are subject to frequent change, adding further risk. Immigration audits are the most effective way to assess compliance, and to identify and resolve potential breaches. Also ensure that these best practices apply across the organisation consistently, to avoid pockets of non-compliance.

Approach compliance as an ongoing process rather than a one-off exercise. This means ensuring new hires are logged correctly on the Sponsorship Management System (SMS), absence monitoring systems are maintained and all changes in circumstances are flagged internally. Creating clear escalation channels so that HR is informed of job changes, long absences or address updates reduces the risk of missed reports. Building compliance into everyday HR workflows helps prevent breaches that could otherwise result in suspension.

Regular mock audits conducted to the same standards as Home Office visits will expose weak spots before inspectors arrive. Training should not be limited to HR but should extend to line managers and payroll staff who interact with sponsored workers. Simple gaps, such as managers authorising changes in working hours without notifying HR, can lead to breaches. Organisations that make training mandatory and track completion rates demonstrate to UKVI that compliance is taken seriously.

In addition to sponsor licence suspension or revocation, the Home Office can impose civil penalties for illegal working, naming and shaming employers on a public register, and reporting matters to other regulators. For example, regulated businesses such as law firms or care providers may face scrutiny from professional bodies if their licence is suspended. The commercial impact can include contract loss, damage to reputation and employee attrition. Employers should therefore view compliance as part of wider corporate governance and risk management, not just an immigration issue.

UK immigration rules and sponsor duties are regularly updated, sometimes at short notice. Employers should subscribe to Home Office update bulletins and review changes against current HR policies. For example, adjustments in salary thresholds, reporting triggers or document retention periods can affect ongoing compliance. Having a nominated compliance lead responsible for monitoring updates ensures the business adapts quickly and avoids accidental breaches.

 

 

DavidsonMorris Strategic Insight

 

There’s no way around immigration compliance for employers. All UK employers are bound by the right to work regime, and sponsor licence holders have their additional sponsorship compliance obligations. Regular mock audits are a solid foundation for good compliance practices. You can see where you’re going wrong, you can take the steps to fix these and then check in again with the next audit to stay on top of your compliance. Where there’s ownership of responsibilities, documented plans and processes and a momentum to the activities, you’ll find compliance becomes manageable.

 

 

 

Section G: Summary

 

Sponsor licence suspension is when UK Visas and Immigration (UKVI) temporarily halts an employer’s ability to sponsor foreign workers. This action is usually taken when UKVI identifies breaches in an employer’s compliance with their sponsorship duties, such as keeping accurate personnel records, conducting Right to Work checks, and reporting relevant changes in a timely manner. Regular internal audits and training are recommended to ensure ongoing compliance with UKVI’s requirements.

For UK employers, a suspended licence presents significant challenges. During the suspension, employers cannot issue new Certificates of Sponsorship, restricting their ability to employ new foreign workers or extend the visas of current sponsored workers.

Ignoring a sponsor licence suspension is not an option. If the issues that led to the suspension are not promptly addressed, there is a risk of licence revocation, which would permanently remove the organisation’s permission to sponsor foreign workers.

As such, employers must act quickly to review their processes, correct any non-compliance, and respond to UKVI’s concerns. Failure to do so could lead to long-term damage, including reputational harm and operational disruption.

 

Section H: Need Assistance with a Sponsor Licence Suspension?

 

DavidsonMorris’ team of specialist UK immigration lawyers bring substantial experience in advising companies facing a sponsor licence suspension.

With expertise in challenging licence suspensions and reinstating employers’ permission to employ sponsored workers, we can minimise the impact of a suspended licence on your business operations.

Whether you have been given initial warning that a licence suspension is being considered, or whether the licence has been suspended, we can help. Our services include:

 

a. Assisting with understanding the grounds for suspension

b. Advice on collating the supporting evidence

c. Advice on remedial steps to address areas of non-compliance

d. Support in engaging with UKVI

e. Advice and support in relation to any subsequent follow-up scrutiny such as Home Office site visit

 

At the initial stage, we will assess all the facts and merits of your case, including the alleged breaches as notified by the Home Office and your current general position to ascertain potential areas for challenge, such as weaknesses in the investigation process.

We would then provide a recommended course of action, advising on all compliance and evidentiary requirements critical to a prompt response and dealing with Home Office officials on your behalf. This could take one of many approaches, determined by the strength of your position and the case against you.

This will inevitably involve careful liaison with the Home Office, which we would undertake on your behalf. The aim is to negotiate to bring the matter to a satisfactory conclusion for both parties whereby the Home office is satisfied the issues raised in the suspension letter are addressed and the employer is able to retain their licence.

In instances where early resolution is not possible, while rare, we are experienced in managing any resulting court proceedings. This may include making an application for interim relief preventing the Home Office from taking your matter to revocation while court proceedings are live. This will be in the interests of your sponsored workers, who will be forced to find alternative entry clearance or to leave the country should your licence be revoked.

For expert guidance on how to protect your sponsor licence and avoid further disruption to your organisation, contact us.

 

Section I: Sponsor Licence Suspension FAQs

 

What is a sponsor licence suspension?

A sponsor licence suspension is a temporary measure taken by UK Visas and Immigration (UKVI) when an employer is found to be non-compliant with the terms of their sponsorship duties. It means the employer is not allowed to issue new Certificates of Sponsorship until the suspension is lifted.

 

How long do I have to respond to the Home Office suspension notice?

In most cases, you will have 20 working days from the date of the notification to respond to the Home Office. The notification letter will state the deadline you need to work to.

 

Can you appeal a sponsor licence suspension?

There is no statutory appeal against a suspension. You can make written representations within 20 working days, with supporting evidence, seeking reinstatement.

 

Can I continue employing sponsored workers during a suspension?

You can continue to employ your current sponsored workers during the suspension period. However, you won’t be able to sponsor new employees or renew the visas of existing sponsored workers until the suspension is resolved.

 

What happens to my sponsored employees if my sponsor licence is suspended?

During the suspension period, your sponsored employees can continue to work, but you won’t be able to issue any new Certificates of Sponsorship. It’s important to address the issues raised in the suspension notice promptly to minimise disruption.

 

How long does a sponsor licence suspension last?

The duration of a suspension can vary depending on the complexity of the issues involved and the time it takes for you to respond. The Home Office will lift the suspension once they are satisfied that you have rectified the issues.

 

Is there a difference between suspension and revocation of a sponsor licence?

Suspension is a temporary measure, giving you the opportunity to address compliance issues. Revocation, however, is permanent and means you lose the ability to sponsor workers altogether.

 

What are the common reasons for a sponsor licence suspension?

Common reasons include failing to comply with your sponsor duties, not keeping accurate records, conducting inadequate Right to Work checks, or being involved in illegal working practices.

 

What steps can I take to avoid sponsor licence suspension?

To avoid suspension, ensure you are fully compliant with all sponsorship duties. This includes conducting regular internal audits, keeping up-to-date records, and ensuring all HR staff are trained in sponsor licence requirements.

 

Will my business reputation be affected by a sponsor licence suspension?

A suspension can affect your business’s reputation, especially if it becomes public knowledge. It may also cause concerns among your existing sponsored employees and potential future employees. Acting quickly to resolve the suspension can help mitigate these effects.

 

Why is my sponsor licence being revoked?

If the Home Office decides to take further action by revoking the licence, all of the organisation’s CoS will be cancelled. This will mean you can no longer employ migrant employees. Your sponsored workers’ visas will be curtailed to 60 days, or however long they have left on the visa if less than 60 days. They must then leave the UK, unless they can secure permission under a different visa category.

 

Section J: Glossary

 

TermDefinition
Sponsor LicenceA permit issued by the UK Home Office that allows employers to hire foreign workers under specific visa categories.
Sponsor Licence SuspensionA temporary halt on the use of a sponsor licence, imposed by the Home Office due to non-compliance with sponsorship duties.
Sponsor Licence RevocationThe permanent removal of a sponsor licence by the Home Office, preventing the employer from sponsoring any more workers.
Certificate of SponsorshipAn electronic document assigned by a licensed sponsor to a foreign worker, enabling them to apply for a work visa in the UK.
Right to Work ChecksLegal checks that employers must conduct to ensure that an employee is legally allowed to work in the UK.
Home OfficeThe UK government department responsible for immigration, security, and law and order, including the administration of sponsor licences.
ComplianceAdhering to the rules and regulations set out by the Home Office regarding the responsibilities of a sponsor licence holder.
AppealA formal request made to the Home Office to review and potentially overturn a decision, such as a sponsor licence suspension.
RepresentationsSubmissions made by the sponsor to the Home Office during a suspension, providing evidence and arguments to challenge the suspension or to rectify the issues raised.
Internal AuditA self-assessment conducted by the employer to ensure they are complying with their sponsorship duties and to identify any potential areas of non-compliance.

 

 

Section K: Additional Resources and Links

 

 

ResourceDescriptionLink
Sponsor Guidance Part 1Applying for a sponsor licence, eligibility requirements and application processhttps://www.gov.uk/government/publications/sponsor-a-skilled-worker
Sponsor Guidance Part 2How to sponsor a worker once you have a licencehttps://www.gov.uk/government/publications/sponsor-a-skilled-worker
Sponsor Guidance Part 3Compliance duties, Home Office powers and enforcement action including suspensionhttps://www.gov.uk/government/publications/sponsor-a-skilled-worker
Appendix DDocument retention requirements for sponsor licence holdershttps://www.gov.uk/government/publications/appendix-d-keeping-documents
Right to Work ChecksEmployer guidance on preventing illegal working and verifying statushttps://www.gov.uk/government/publications/right-to-work-checks-employers-guide
Sponsorship Management System GuidesOfficial SMS user manuals for managing your sponsor licencehttps://www.gov.uk/government/collections/sponsorship-management-system-user-guides
Skilled Worker VisaOverview of the Skilled Worker route for employers and applicantshttps://www.gov.uk/skilled-worker-visa
Compliance Visit GuidanceGuidance for UKVI compliance officers on conducting site inspectionshttps://www.gov.uk/government/publications/visit-guidance-for-uk-visas-and-immigration-compliance-officers

 

About our Expert

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Anne Morris

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.
Picture of Anne Morris

Anne Morris

Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.She is recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.

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The matters contained in this article are intended to be for general information purposes only. This article does not constitute legal advice, nor is it a complete or authoritative statement of the law, and should not be treated as such. Whilst every effort is made to ensure that the information is correct at the time of writing, no warranty, express or implied, is given as to its accuracy and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should be sought.