Sponsor License Suspension: A Brief Guide For Businesses

Introduction
A sponsor license is your gateway to attracting top talent from outside the EEA and Switzerland. But with that privilege comes responsibility. The Home Office closely monitors sponsor compliance and may suspend a license if they believe these duties are not being met. The Home Office takes sponsor compliance seriously, and a suspension can disrupt your business and unsettle your sponsored workforce.

This guide equips you with the knowledge to navigate a sponsor license suspension, but remember, If you’re facing suspension, don’t wait seek immediate legal support.

Understanding Your Sponsor Duties

As a sponsor, you have a legal obligation to fulfil specific duties outlined by the UK Visas and Immigration (UKVI). These include:

Genuine Vacancy: Ensure advertised positions are truly open, not created solely for sponsorship.
Fair Recruitment: Prioritize settled workers through a transparent recruitment process.
Salary Compliance: Pay sponsored workers the minimum salary threshold as stipulated by the sponsor guidance.
Meticulous Record-Keeping: Maintain accurate and up-to-date records of sponsored workers (employment contracts, payslips, immigration documents).
Prompt Reporting: Notify UKVI of any changes in circumstances, including those related to sponsored workers, your business, or key personnel.

Common Reasons for Suspension
The Home Office can suspend a license for various reasons, including:
Breaches of Sponsor Duties: This is the most frequent cause, encompassing any of the aforementioned duties.
Misinformation: Providing inaccurate details during application or failing to report crucial changes.
Serious Criminal Offences: If the sponsor or a key person is convicted of a serious criminal offense.
Financial Concerns: If the Home Office believes you cannot financially support sponsored workers.

The Suspension Process
If the Home Office suspects a breach, they may conduct a compliance check. This is where a prompt and legally sound response becomes crucial. A Notice of suspension (NoS) outlining the grounds of suspension and your right to respond will follow.
A detailed response addressing the concerns raised in the (NoS) is crucial.    It’s highly recommended to seek legal advice at this stage to ensure a robust response is submitted within the given timeframe.
Following your response, the Home Office will make a final decision. If they proceed with suspension, you’ll receive a Notice of Suspension outlining reasons, the suspension period, and the implications.

Immediate Suspension
Please note that, where the home office suspects a serious breach of your sponsorship license, they may suspend your license without conducting a compliance investigation this is known as C1 breaches (as cited in Annex C1 of Part 3 Sponsor duties and compliance). If this happens it is important to access whether the evidence relied on by the home office are so substantial to warrant a suspension without compliance visit. Such cases are so rare, any wrong move by the home office could mean that their actions may be unlawful, and they may have to compensate you for any disruptions your business may face.

Impacts of a Suspended License: Minimize the Damage
A suspended sponsor license can have a significant impact on your business, including:
Reporting business to regulators: Once your sponsor license is suspended, the home office will normally report your business to your regulators who may take action against your business or at least micromanage it.
Sponsorship Freeze: Your business cannot sponsor new migrant workers during the suspension period.
Impact on Existing Workers: Existing sponsored workers may face a 60-day grace period to find new sponsorship or leave the UK.
Reputational Damage: A suspension can damage your company’s reputation and make it difficult to attract skilled workers in the future.

Sponsor Licence Suspension: Can the Decision be Challenged?
If a sponsor receives a suspension letter from UKVI after an audit, they have 20 working days to submit written representations. These must be supported by strong evidence addressing each concern in the suspension letter. The success of the challenge largely depends on the quality and comprehensiveness of the evidence provided.
The Home Office will review the representations and evidence before deciding on the next steps. It is crucial for sponsors to thoroughly address every allegation in the suspension letter.

How We Can Help

If your license is suspended, the Home Office will outline the steps required to regain compliance. Our team can help you implement these steps effectively, whether it involves new procedures, addressing record-keeping deficiencies, or demonstrating financial stability.

Don’t Wait – Contact us Today

Sponsor license suspension is a stressful situation, but with the right legal support, you can overcome it. At Kings Court Law, we understand the complexities of sponsor compliance and possess a proven track record of successful reinstatement. Don’t wait until it’s too late. Contact us today at office@kingscourtlaw.com or call 02080883088 to book a free consultation to discuss your situation and explore the best course of action.

Remember, a prompt and effective response is key. Kings Court Law can be your trusted partner in navigating sponsor license suspension and ensuring a successful reinstatement.

Additional Resources

UK Visas and Immigration (UKVI): https://www.gov.uk/uk-visa-sponsorship-employers
Immigration Law Practitioners’ Association (ILPA): https://ilpa.org.uk/

Disclaimer: This guide provides general information and should not be considered legal advice. For specific guidance regarding your sponsor license