The Home Office’s latest ‘sponsorship transparency data’ for the second quarter of 2024 paints a clear picture that UK Visas and Immigration (UKVI) are clamping down on non-compliance with sponsor licences. Understandably, employers in many sectors are deeply concerned about the impact of the increasing number of sponsor licence suspensions and revocations. In this article, we will look at the latest data from the Home Office, what a sponsor licence suspension or revocation means, and what you can do to prevent your organisation from losing your right to sponsor valued overseas staff.
What does the latest sponsor licence transparency data tell us?
The Q2 2024 data shows that so far this year, 833 skilled worker sponsor licences have been suspended and 709 revoked. These figures for the whole of 2023 were 569 and 337, respectively, and 331 and 273 in 2022. This means that the number of suspensions is on track to triple, and revocations may quadruple if the same rate is maintained. It is easy to see why so many employers who rely on skilled foreign workers are concerned about what might happen if they are audited by the UKVI and a breach is discovered.
Why is the volume of sponsor licence compliance action so high in 2024?
Over the past few years, the Home Office has made no bones about its intentions to crack down on sponsors who are not meeting their legal obligations and requirements to prevent any abuse of the system. In the past couple of years, and especially in 2024, this has led to more resources and efforts being placed by UKVI into enforcement checks in the form of sponsor desktop and onsite compliance audits.
Why are sponsors so concerned?
Sponsoring businesses are facing a quadruple whammy:
- UKVI are substantially increasing their enforcement efforts
- Tightening of the work visa rules. The most impactful of these changes was the recent increase in the minimum income threshold for skilled workers from £26,200 to £38,700
- High skilled worker application fees, and
- Fewer skilled workers are coming to the UK.
According to the latest data, 286,382 work visas were issued by the Home Office in the year ending June 2024. This represents a drop of 11% from the previous year. To make matters worse, the number of Health and Care Worker visas fell to 89,035 over the same period, a fall of 26% from the previous year.
What happens if a sponsor licence is suspended or revoked?
Sponsor licence suspension
A notice of sponsor licence suspension is a warning that a problem has been found by a UKVI compliance officer, and further enquiries are being made. Your Sponsor Licence may be suspended if they believe you are in breach of your sponsor obligations or otherwise present a risk to immigration control. This may happen if they discover that you are not keeping accurate records on sponsored staff or carrying out proper right-to-work checks. While a sponsor licence is suspended, you can continue to employ existing sponsored staff, but you cannot issue new Certificates of Sponsorship to new foreign workers. If the breach is of a minor nature, UKVI may temporarily downgrade your sponsor licence from an A-rating to a B-rating, allowing you time to resolve the issues in the action plan provided.
Sponsor licence revocation
At the end of the investigation process, UKVI may decide to reinstate your sponsor licence or revoke it entirely. A Sponsor Licence may be revoked (i.e. cancelled completely) if there is a breach that falls within the mandatory revocation grounds. This may happen if a sponsor is found to be consistently breaching the sponsorship rules or if there is a serious breach. It may also happen if the sponsoring business no longer has a trading presence. If your Sponsor Licence is revoked, you cannot sponsor new foreign workers, and your existing sponsored workers may have their leave curtailed. In addition, your organisation cannot apply for a new one until 12 months have passed from the date of the revocation letter.
What can sponsoring employers do now?
If your sponsor licence has already been downgraded, suspended, or revoked, speak to an immigration solicitor as soon as possible, who will recommend what to do and how to reinstate your full licence.
To mitigate the risk of possible sponsor licence enforcement action by UKVI, we recommend that you review your sponsorship policies, procedures, systems, and training. It is vital to ensure that you are meeting your right-to-work check, reporting, monitoring, and record-keeping requirements at all times and to a high standard. This may necessitate the use of technology and systems to help automate some of the tasks required (e.g. automated reminders to carry out right-to-work checks). Ensure that you provide regular and updated sponsorship management training to your key personnel and anyone else who is involved in the sponsorship process within your organisation.
Another key step is to have regular mock compliance audits carried out by an impartial, external business immigration law specialist. This involves looking for breaches and making recommendations regarding how they can be resolved. The immigration specialist will also check that the necessary changes have been actioned to the standard expected of UKVI.
Final words
Under the new Labour government, while we can’t be sure, it is better to assume that the pressure placed on sponsor licence holders by the Home Office will be maintained. At the same time, overseas skilled staff will continue to play a vital role in private and public entities across the UK, and hence, employers will need to make sure that they do all they can to mitigate the potential for adverse compliance action. By following the guidance above, especially seeking the help of an external specialist to carry out impartial mock audits, you can relax in the knowledge that if UKVI does make an unannounced virtual or in-person visit, your business will pass with flying colours.
A Y & J Solicitors is a specialist immigration law firm with extensive experience with all types of visa applications. We have an in-depth understanding of immigration law and are professional and results-focused. For assistance with your visa application or any other UK immigration law concerns, please contact us on +44 20 7404 7933 or contact us today. We’re here to help!
