Increase in sponsor licence suspensions and revocations

July 2, 2024

There has been a significant increase in compliance action taken by UK Visas & Immigration (UKVI) against sponsors with regards to suspension and revocations of sponsor licences.

Recent statistics published by UKVI confirm that between January 2024 and March 2024 UKVI revoked 210 sponsor Skilled Worker licences and suspended 309. This data shows the largest number of suspensions taking place in almost 10 years.

Whilst this marked increase in sponsor licence revocations is likely due to UKVI's efforts to prevent abuse of the UK immigration system, there are other factors which are likely to have contributed to this increase.

Prior to 6 April 2024, sponsor licences were valid for a period of four years, following which subsequent sponsor licence renewal applications were required to be submitted. Whilst UKVI can and do audit sponsors at any time, sponsor licence extension applications tended to increase the potential of an audit as UKVI would occasionally conduct an audit prior to granting a sponsor licence extension application.

Since 6 April 2024, sponsors whose licences were due to expire after this date were automatically granted extended durations for 10 years. The removal of the sponsor licence renewal requirements has likely created additional capacity within UKVI, which is likely to drive an increase in the number of compliance audits.

Since 4 April 2024, the salary threshold under the Skilled Worker route increased from £26,200 to £38,700 - an uplift of 48%. In addition, the Immigration Salary List (ISL) replaced the Shortage Occupation List (SOL). Under the previous SOL, there were 53 occupational codes which could benefit from a reduced salary under the Skilled Worker route. Following the introduction of the ISL, this was reduced to 23 occupational codes.

These changes, together with increases in the "going rates" for occupational codes, were part of the UK government's five-point plan to reduce migration. As it stands, the plan is expected to drastically decrease the number of visas issued and reduce net migration by at least 300,000 per year. This is likely to lead to a reduction in the number of visa applications submitted and, therefore, may create further capacity within UKVI to focus on sponsor compliance and right to work.

The renewed focus on immigration compliance was also reinforced on 13 February 2024, when the fine for employers who employ illegal workers more than tripled from £15,000 up to £45,000 per illegal worker for a first breach, and from £20,000 up to £60,000 for repeat breaches.

Implications

There are severe implications for sponsors if their licence is suspended as the sponsor would not be able to sponsor new migrants. In order for the licence to be reinstated, sponsors would need to demonstrate progress against an action plan within a prescribed timeframe - otherwise, the licence could be revoked.

In the event that a sponsor has their licence revoked, the ramifications would be as follows:

• the leave for all current sponsored migrants would be curtailed;
• the sponsor would be prohibited from applying for a new licence for a specified cooling-off period of 12 months from the date the sponsor licence was revoked; and
• reputational damage.

Considering the above, the suspension or revocation of a sponsor licence can have severe and detrimental impacts on business operations.

Sponsors who have not carried out a correct right to work check and established a statutory excuse for each employee could also face fines as described above and be ordered to pay a civil penalty for an illegal worker.

Recommendations

In light of UKVI's increased focus on immigration compliance, we would advise that sponsors ensure that:

• they are aware of their sponsor licence obligations, in line with UKVI requirements;
• they are aware of the record-keeping and reporting requirements as these tend to be common areas where sponsors fall short on immigration compliance;
• key personnel and corporate details on the sponsor licence are accurate and up to date;
• they have robust right to work check processes which adhere to UKVI guidance; and
• they are prepared for a UKVI audit which can take place on an announced or unannounced basis.

We offer a variety of UK immigration and compliance services, including preparation for audits and training for internal stakeholders. Therefore, if you have any concerns with regards to your sponsor licence compliance, please do not hesitate to contact us.