Why Do Sponsor Licence Get Suspended? Common Mistakes to Avoid

A sponsor licence enables many agencies and persons of interest in the UK to hire skilled migrant workers, and it is a very valuable sought-after licence. With this authorization, you can employ a virtual army of skilled workers from abroad, but remember that keeping the licence is another tale altogether. You must follow many rules and regulations to make it a success story.
 



Reasons Why Sponsor Licence Get Suspended

Let us explore why sponsor licences get suspended and what you must do to avoid them. 

1. Non-compliance with Sponsor Duties

A sponsor licence isn’t just a ticket to hire foreign talent; it’s a commitment to following the rules set by UK Visas and Immigration (UKVI). When an organisation is granted a sponsor licence, it agrees to fulfil certain duties, which include

• Monitoring Sponsored Employees: Tracking attendance, absences, and performance-related issues. Businesses must know where their employees are, whether they are fulfilling their job responsibilities and any patterns that may suggest non-compliance with their visa terms.
• Timely Reporting of Changes: Changes to an employee’s circumstances, such as job role changes, resignations, or promotions, must be promptly reported to the UKVI. Failure to do so can be seen as a compliance breach, which could lead to a suspension.
• Conducting Right-to-Work Checks: Employers must ensure that all sponsored employees have the legal right to work in the UK before they begin and continue to verify this throughout their employment. Neglecting this duty can raise red flags during compliance checks.
• Maintaining Records: Accurate and up-to-date records are essential. This includes copies of the employee’s passport, visa, biometric residence permits, and employment contracts. Without proper documentation, a business risks appearing unorganised and non-compliant.

Businesses must diligently maintain these duties. If the UKVI suspects these obligations aren’t met, it may suspend the sponsor licence until the issues are addressed.

2. Providing False or Misleading Information

Accuracy and honesty are crucial when applying for and maintaining a sponsor licence. If the UKVI discovers that a business has provided false or misleading information at any point—whether in the application process or during routine checks—it could lead to a suspension. Immigration laws are no joke; mess with one and you're likely to face a lot worse than just prison time. At the same time, you cannot hire any more workers. You have to be careful about how you choose your next step.

For instance, stating incorrect job titles, inflating salaries, or giving inaccurate business data can have severe consequences. Even if errors are unintentional, they can still be viewed as a lack of due diligence, which could jeopardise the licence. Therefore, businesses must double-check all information they submit and ensure it’s correct. When in doubt, consult with legal professionals specialising in immigration and employment law.

3. Employing Unauthorised Workers

One of the fundamental responsibilities of a sponsor licence holder is to ensure that every employee has the legal right to work in the UK. Bringing on unauthorised workers not only breaches UK immigration laws but also calls into question the compliance practices of the entire organisation. And that is a very serious allegation if you ask us.

If an employer is found employing individuals without the correct authorization, their sponsor licence can be immediately suspended. Furthermore, the company could face fines, legal penalties, and damage to its reputation. During compliance checks, UKVI officials will review the records to confirm that right-to-work checks have been conducted correctly and that no unauthorised employees have been hired.

4. Inadequate Record Keeping

Now, this one needs no introduction. UKVI suspends many licences merely because they failed to keep adequate records of the people they hire. You need to avoid this if you do not want your licence to be cancelled. At the same time, once you are done hiring, you might want to take good care of copies of passports and visas, payslips, proof of payment, and several other legal documents. If UKVI requests these documents and you are found lacking, you will be up to your neck in trouble. Legal or otherwise. They take these things very seriously.

5. Not Meeting Job or Salary Requirements

When you hire an immigrant worker, you are not just filling a role. It is a delicate position; you must work hard to keep it spotless. Be very clear about the kind of job you are recruiting for, and at the same time, check carefully to ensure you are aligned with the requirements that UKVI sets through its official dictates. If you fail, your sponsor licence will likely be suspended. Businesses should always ensure that:

• The job titles and roles align with what was submitted in the Certificate of Sponsorship.
• The salary meets or exceeds the minimum level set by the UKVI for the visa type.
• Employees are not assigned tasks outside their sponsored role, which could indicate a discrepancy.

A Suspension will be Very Bad for Business.

Wading into legal trouble can be very bad for your reputation. You cannot hire more workers for your agency during the suspension period. At the same time, the workers already employed at your firm may face much scrutiny or, at times, even lose their positions because word of mouth spreads faster than wildfire. Thus, most companies work hard to adhere to the UKVI rules during the suspension period and get it lifted fast. The sooner you do it, the better your agency will not suffer from the discrepancies. We have to warn you that UKVI is extremely strict about rules and regulations at the current time, so take the utmost care about what you do and how you do it. 

Maintaining a sponsor licence is a long-term responsibility that requires careful attention to detail and ongoing commitment to compliance. While suspensions can be disruptive, they are often avoidable. By understanding the reasons for suspension and taking proactive measures, businesses can safeguard their ability to hire international talent and continue to grow in a global market. It is also important to keep training your HR and administrative workforce to ensure that compliances are met and such unwanted situations like sponsor licence suspension are avoided.