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Sponsor Licence Suspended! – What Happens When a Sponsor Licence is Suspended?

The implications of a suspended sponsor licence, including its impact on employers and sponsored workers, the Home Office response process, and potential outcomes like licence reinstatement, downgrading, or revocation. Learn what actions to take.

Date: 06/12/2024

If a sponsor licence is suspended, the Home Office provides the sponsor organisation with 20 working days to submit their representation addressing the issues outlined in the suspension letter, along with any supporting evidence.

What Happens When A Sponsor Licence is Suspended:

The organisation’s name is removed from the Register of Sponsors.
The organisation cannot sponsor any new workers until the suspension is lifted.
Pending visa applications for sponsored workers may be delayed, as the decision-maker will wait for the final resolution of the suspension matter.
Stakeholders, such as the Care Quality Commission or local authorities (for care providers), are informed by the Home Office.
Local authorities may request a contingency plan to address the situation.

Also Read: How Nara Solicitors Resolved an Impossible Looking Revoked Sponsor Licence Case

Submission and Decision Process for suspended Licence

Once the sponsor organisation submits its response to the suspension letter within the 20 working days:

• The Home Office reviews the representation and the evidence provided.
• The Home Office may request additional information or make a decision based on the submitted documentation.

Also Read: Sponsor License Reinstated after successful Judicial Review Victory, Safeguarding Client’s Business and Employees

Possible outcomes include:

1. Reinstatement of the Licence: The sponsor licence is restored to an A-rating.
2. Downgrading of the Licence: The licence is downgraded to a B-rating, and the employer is placed on an action plan for three months. After this period, compliance is reassessed to determine the final decision.
3. Revocation of the Licence: If the response is unsatisfactory, the Home Office may revoke the sponsor licence.

Implications of Revocation

If the licence is revoked:

• Sponsored migrant workers cannot continue working in the UK.
• The Home Office will curtail the workers’ visas, granting them a 60-day period to find a new sponsor or leave the UK.
• This not only affects the migrant workers but also impacts businesses reliant on their sponsored workforce. Revenue and operations may suffer significantly if the business is unable to continue employing these workers.
• The sponsor organisation is barred from applying for a new licence for 12 months due to the cooling-off period.

Also Read: Success Story: Suspended Sponsor Licence Reinstated for Care Provider

The impact of suspension and potential revocation is substantial for both the organisation and its sponsored workers, underlining the importance of swift and effective compliance measures.