On what grounds can the Sponsor Licence be revoked

On what grounds can the Sponsor Licence be revoked?

A sponsor Licence offers the ability to access the global talent pool. However, sponsor licence revocation is equally business-critical with a devastating impact on the business. The Home Office outlines certain duties to be carried out by Sponsored Licence holders throughout the period of its validity. If the Home Office finds the sponsor breaching these duties, it may result in Sponsor Licence Revocation.  

A revoked sponsor licence implies that the company has lost its potential to lawfully employ sponsored skilled workers. This calls for punitive measures. With Sponsor Licence revocation, all you can expect curtailed visas of its sponsored employees who must find employment with another sponsor or leave the country. 

Following a Sponsor Licence revocation, an employer will be prohibited to apply for a new Sponsor Licence for a specific time period which is also called the cooling-off period which is typically a time frame of 12 months right from the date of the Sponsor Licence being revoked.

The Home office revokes a Sponsor’s Licence for a number of circumstances out of which some are mandatory and others are discretionary. 

False Information

In support of the online application of sponsor licence, an employer must submit supporting documents in order to meet evidential requirements. These documents evidence that the company meets all the compliance duties under the Sponsor Licence. These documents also demonstrate that the company is lawfully operating in the UK, having effective HR and recruitment practices in place, offering genuine employment that meets Tier 2 skills and salary thresholds, and appointing reliable key personnel. Any false information in support of the sponsor licence application may result in the sponsor licence revocation by the Home Office whilst carrying out other further inquiries. 


A sponsor licence rating can be either “A” or “B”. A company is awarded A-rating when the company has proper HR procedures in place and the ability to carry out compliance duties. Any evidence of immigration abuse, employing HR processes that do not fully comply with sponsor duties, or unable to share the documents on a given timeframe may result in the sponsor licence being downgraded to B-rating. 

Civil penalties and Sponsorship 

If the employer is found employing an illegal migrant worker, issued with a civil penalty due to recruiting employees without proper documents or breach of an authority to carry scheme, these offences can cause refusal of a Sponsor Licence application, awarding B-rating to an existing sponsor licence or withdrawing a sponsor licence. 

Improper Steps were undertaken during the Resident Labour Market Test 

The main purpose of the Resident Labour Market is to safeguard the settled workforce which entails that the employer must ensure job advertisement in order to provide settled workers a chance to apply for the role or position. If the employer is found that the test did not meet the requirements according to the guidance, a Sponsor Licence can be revoked. Another circumstance that supports Sponsor Licence revocation is when the Home Office finds improper use of a shortage occupation list. 

It is noteworthy that the Government has announced to abolish the Resident Labour Market Test, post-Brexit under the new points-based system. 

Stop trading or operating

If the Home Office finds that the employer has sold the business or has become insolvent, gone into liquidation, a court issued a bankruptcy order against the employer, or stopped having an operating presence in the UK, these reasons will be sufficient for Sponsor Licence Revocation. 

Sponsor Licence Revocation: Can the decision be challenged? 

After receiving formal notification of suspension of the sponsor licence, the organisation will have 20 business days to submit representations against that decision. One can take the help of qualified and experienced UK immigration law firms who can provide advice, assistance, and representation in Sponsor Licence Revocation. The immigration law firm starts by imparting knowledge about the grounds of revocation, supporting on collating necessary documents, and assisting in building a response that states business implication following a Sponsor Licence revocation, and addressing areas of non-compliance and advice remedial steps. 

An experienced team of immigration solicitors has reasons to believe that Sponsor Licence revocation attracts a greater Home Office attention. Therefore, they provide advice and assistance regarding UKVI Inspection. At A Y & J Solicitors, we believe that Sponsor Licence Revocation must be handled cautiously to maintain the potential of reinstating the status of the Sponsor Licence. On that account, we build a strategy to avoid further punitive measures by the Home Office. Our lawyers help in identifying grounds for judicial review by incorporating years of experience in legal advice as well as representation. 

Employers must know that a new sponsor Licence will require them to provide pieces of evidence that support their previous revocation grounds being successfully redressed. We, at A Y & J Solicitors, advice and assist in correcting the previous revocation and also make sure that proper, compliant practices are in place.

Need to know more about Sponsor Licence Revocation?  We can help. 

A Y & J Solicitors is a multi-award winning UK Immigration law firm with a decade of experience recommended by Legal 500 based in Central London. Get in touch with our qualified solicitors to help in reinstating your sponsor licence. For further information about our immigration service, please email us at [email protected] or Whatsapp us / call on +44 7448 5656 70. 

A Y & J Solicitors

A Y & J Solicitors is a multi-award winning, 14+ years experienced, recommended by Legal 500, boutique UK immigration law firm based in Central London. Having assisted 5000+ clients, we are well equipped to help you with our ‘In It To Win It’ approach. For your assurance and confidence, we are pleased to share our trust rating of 4.9/5 based on 1000+ reviews on Trustpilot & Google.

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