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Why This Matters to You
As your business holds a sponsor licence, it’s important to understand that inspections are becoming increasingly frequent and stringent. Failing to comply can result in serious consequences, such as losing your licence, which immediately terminates your ability to employ overseas workers.
Here’s a quick guide to your compliance:
- Maintain a correct record of staff and right to work checks
- Report changes (salaries, job roles, contact information) on time
- Cooperate fully during compliance visits
Staying proactive not only prevents penalties but ensures the safety of your workforce and business continuity.
Common Compliance Failures
Here are some common reasons licences are revoked:
- Poor record-keeping (missing contracts, failure to conduct right-to-work checks, and incomplete absence records).
- Paying incorrect salary payments or ineligible jobs.
- Delaying the reporting changes using the Sponsor Management System.
- Failing to cooperate during compliance visits, such as refusing access or failing to provide documents.
Tougher Enforcement Ahead
Building on the recent surge in licence revocations, regulators are adopting a more stringent approach: they are no longer issuing simple warnings. With tougher penalties and a zero-tolerance policy for negligence, these enforcement measures will have immediate and significant impacts on affected businesses.
Those who fail to comply with the requirements will instantly lose the right to employ overseas workers.
The Consequences of Losing Your Licence
When your sponsor’s licence is revoked, the consequences may include:
- Losing your registration on the Home Office sponsor list, which will block you from hiring new employees.
- Terminating the visas of all sponsored workers, forcing them to find a new sponsor or leave the UK.
- Damaging your reputation and increasing costs through legal disputes and urgent recruitment needs.
Furthermore, you may have the opportunity to appeal against the revocation depending on the circumstances. Engaging with legal counsel or compliance experts can sometimes mitigate the impact or facilitate reapplication. Our team can advise you on these options.
Protect Your Licence Now
In the past year, the Home Office revoked almost 2,000 sponsor licences. Even minor mistakes in record-keeping, salary payments, or reporting can now lead to licence suspension or revocation, especially if they are repeated or serious. At Legend Consults, we help prevent this by:
- Carrying out full compliance audits to avoid any risks.
- Fixing gaps and training staff to meet Home Office standards.
- Managing sponsor duties day-to-day so you don’t slip up.
You could face catastrophic disruption if your licence is revoked. Schedule your compliance audit with Legend Consults today and protect your business before it’s too late.
