Holding a sponsor licence comes with significant responsibilities. If UK Visas and Immigration (UKVI) believes that an organisation is not meeting its sponsor duties or poses a risk to immigration control, enforcement action can follow – sometimes with serious consequences for both the business and its sponsored workforce.
This blog explains how sponsor licence suspensions and revocations arise, the sectors most commonly affected, and what steps employers should take if their licence is at risk or has already been revoked.
Suspension and revocation of sponsor licences
If UKVI identifies compliance concerns, it may suspend a sponsor licence while it carries out further investigations. During a suspension, the organisation cannot sponsor new migrant workers, although existing sponsored workers can continue working as normal.
Following its review, UKVI may choose to:
- reinstate your licence
- downgrade it
- revoke it entirely.
A revocation is the most serious outcome. Where this occurs, all sponsored workers will have their leave curtailed and will normally be given 60 calendar days to either find a new sponsor or leave the UK.
Common reasons for sponsor licence revocation
Sponsor licences are typically revoked where UKVI identifies serious or repeated compliance breaches. Common reasons include:
- Paying sponsored workers below the required salary thresholds
- Failing to provide the role described in the Certificate of Sponsorship
- Assisting unlawful entry or enabling visa abuse
- Poor HR and compliance practices, such as inadequate record-keeping or missed reporting obligations
- Offering non-genuine roles
- Deliberately manipulating immigration rules to maintain staffing levels
- Breaching core sponsor duties
- Assigning a Certificate of Sponsorship to a close relative, partner, or yourself
Even seemingly administrative failures can escalate if UKVI considers them systematic or deliberate.
Sectors most commonly affected
While sponsor licence enforcement applies across all industries, revocations are particularly common in:
- Adult social care
- Hospitality
- Retail
- Construction
These sectors often rely heavily on sponsored workers and face increased scrutiny due to workforce pressures and historical compliance issues.
Is there a right of appeal?
Revocation of a sponsor licence leaves businesses with very limited options, as there is no formal right of appeal against a sponsor licence revocation. In most cases, the only available route is through a judicial review.
Judicial review is often a costly, complex legal process and carries no certainty of success -which makes early assessment and expert advice essential.
What to do if your sponsor licence is revoked?
If your sponsor licence has been revoked, swift and structured action is critical.
Step 1: Conduct an internal audit
Carefully review your internal systems and processes, including HR records, right-to-work checks, reporting history, and personnel files. Look for gaps or failures such as missed notifications of staff departures, missing or inconsistent documentation, or recurring administrative errors.
Step 2: Consider your legal options
Once the issues are identified the issues, assess your legal position. If the Home Office has relied on incorrect facts, you may be able to submit a correction request. If the decision appears flawed or disproportionate, unlawful, or unreasonable, judicial review may be an option – but timing is critical and delays can be fatal to a claim.
Step 3: Support your sponsored employees
Sponsored workers will be under significant pressure following a revocation. Employers should communicate clearly, informing sponsored workers of the situation and help them explore their options. This may include referring them to alternative sponsors within their networks, providing reference letters, or advising on alternative visa routes.
