Tracey Grayson | Sponsor Licence Adviser

Sponsor Licence Suspended: What Can I Do?

02/05/2025

Having your Sponsor Licence suspended can be an incredibly stressful situation. We’ve written this comprehensive guide to support anyone going through a Sponsor Licence suspension.

We’ll first explain some of the reasons why sponsors might have their Sponsor Licence suspended. We’ve then gone through what you need to do to challenge a suspension and how you can avoid it happening in the first place. Finally, we’ve also included information about what to do if you’re a sponsored Skilled Worker and your company has had its Sponsor Licence suspended, and what can happen if you’ve had your Sponsor Licence revoked.

Reasons Why Companies Can Have Their Sponsor Licence Suspended

The Home Office is able to suspend Sponsor Licences for any sponsors it deems are breaking the law or not keeping up with their compliance duties.

All UK Sponsor Licence holders are expected to follow certain rules and uphold responsibilities known as their Sponsor Duties. These rules are in place to make sure sponsors are operating lawfully, and that their Skilled Workers are protected. The Home Office regularly conducts compliance visits to check whether companies are keeping up with their Sponsor Duties.

A Sponsor Licence suspension will often come as a result of one of these compliance visits, though not always. Suspensions can happen for a variety of reasons, but some of the most common reasons include:

Concerns that a job being given to a Skilled Worker is not a genuine vacancy
Skilled Workers not being paid the correct amount
Failure to keep records for sponsored workers
Failure to report changes of circumstances to the Home Office, like changes to your Skilled Worker’s role or changes in your company ownership
Sponsors attempting to recoup Sponsor Licencing immigration fees from workers
Sponsors not conducting Right to Work checks
Sponsors breaking general UK employment laws, such as pension scheme enrolment and Working Time Regulations

What Happens if I’ve Had My Sponsor Licence Suspended?

Usually a suspension will only happen following a lengthy audit process. If at the end of this process the Home Office has decided to suspend your Sponsor Licence, you will receive a letter from them directly. This letter will include all the reasons why they’ve chosen to suspend your licence.

After receiving this letter, you won’t be able to issue any new Certificates of Sponsorship (CoS). If you have any outstanding immigration applications, these will also be put on hold.

You’ll have 20 working days from the date provided on this letter to respond and challenge the suspension.

Challenging a Sponsor Licence Suspension

You should always seek qualified immigration advice from the moment you receive your Sponsor Licence suspension letter. This is because challenging your suspension means responding to the specific reasoning given by the Home Office. Advisers at White Rose Visas will be able to advise you on the evidence and response you need to provide to stand the best chance of your suspension being overturned.

There’s also some general advice that anyone challenging a suspension should follow. You must always respond to your suspension in writing, and by providing documents that support your case.

If the Home Office have made a factual error in their allegations, you should provide evidence that proves this fact.

You should respond to every allegation made in your suspended Sponsor Licence letter, in as much detail as possible. If the Home Office has uncovered failings in your compliance, explain how you plan to modify your processes or take the necessary remedial action.

It is vital to submit your challenge within the 20 working day time limit, otherwise the Home Office are able to proceed directly to revocation.

How Can I Avoid Having My Sponsor Licence Suspended?

With Sponsor Licence suspensions, prevention is better than the cure. Upholding your Sponsor Duties at all times, and before any compliance audits take place, is the best way to avoid your Sponsor Licence being suspended.

If you’re struggling with your Sponsor Duties, it might be worth accessing support. We offer a Sponsor Premium Support Package, where our team of qualified immigration advisers can help handle your Sponsor Duties on your behalf. You can find out more about the support we can offer on our Sponsor Licence page.

If you have been notified that an audit is about to take place, again it’s vital to seek experienced support to help you through all aspects of this process.

What Can I Do If My Sponsored Company Has Had Their Sponsor Licence Suspended?

A Sponsor Licence suspension can also impact Skilled Workers. If your employer’s company has received a suspension letter, you can continue to work for them as normal whilst they challenge the suspension. If you’re in the process of extending your visa when the suspension happens however, a decision won’t be made on your application until the suspension ends.

If you’re outside the UK and haven’t received your Skilled Worker visa yet, your application will be put on hold until the suspension is over. You may be contacted by UK Visas and Immigration directly if you’ve received your visa but haven’t yet travelled to the UK.

The rules are more severe in cases where a Sponsor Licence has been revoked. If your sponsor has had their licence revoked, you may be issued with a cancellation notice, which will limit your current visa to 60 days. If this has happened to you, please contact us directly so we can advise based on your individual situation.

What Can I Do If I’ve Had My Sponsor Licence Revoked?

If your challenge is unsuccessful, you may have your Sponsor Licence revoked. A Sponsor Licence revocation means that your company has lost its licence, and you can no longer employ people from overseas. It also means that all your current Skilled Workers will have their visas curtailed.

Where a suspended Sponsor Licence is a temporary measure, having your Sponsor Licence revoked is a more severe decision. You will immediately feel the effect of a revocation, and there isn’t a formal right to appeal the decision.

You can seek a reversal of your revoked Sponsor Licence, but you will likely need to go through a Judicial Review. If you choose to take this route, it’s of paramount importance that you first obtain expert legal advice, as it involves disputing the decision in court.

Having your Sponsor Licence revoked does not mean that your company will never be allowed to sponsor again. You’ll be able to apply for a new Sponsor Licence in the future, but you will need to wait before you do so.

Sponsor Licence Suspension Support

If you’ve had your UK Sponsor Licence suspended, you need to act quickly. Our team has successfully worked with many suspended sponsors in the past; we can advise on the response you need to give and the changes you need to make to stand the best chance of the decision being reversed.

Please contact us immediately if you require support with a Sponsor Licence suspension, as you’ll only have 20 working days from the date you received your letter to prepare your response.

If you’re unsure whether you’re upholding your Sponsor Duties properly, we can also help through our Sponsor Premium Support Package. Contact our office using the details below for a free 30-minute consultation, and we can discuss how we can help you maintain your licence on an ongoing basis.