How restructuring your business can affect your sponsor licence

18 Jan 2023, 48 mins ago

If your business has a sponsor licence, you are able to employ overseas workers, which can be an advantage to your business, as you are able to recruit from a larger pool of applicants.

However, sponsors need to be vigilant that they comply with their sponsor duties at all times. Most businesses are aware that they need to report changes to a sponsored migrant’s job or circumstances, and also changes to the key personnel registered on the licence (especially the Authorising Officer). What most businesses are not so aware of is the fact that they need to report changes in their organisational structure as well. Mergers, acquisitions, hive offs, restructuring, change of ownership – are all examples of organisational changes that also need to be reported. 

This is especially important if sponsored migrants are involved in these processes. Very specific procedures have to be followed on the part of the business to ensure it complies with its reporting duties in these scenarios, and also on the part of the migrants involved in these processes. It may be the case that the business has to hand back its sponsor licence and apply for a new one, and it may be the case that sponsored migrants need to apply for new visas.

Failure to comply with the sponsor obligations may result in downgrading of your licence, suspension or revocation of your existing sponsor licence, resulting in your sponsored workers no longer having permission to work. It is important to remember that sponsor-reporting obligations require sponsors to notify the Home Office of certain events within 20 working days.

Reporting organisational changes as a sponsors licence holder can be complex and are often not easy to navigate. It is important to seek guidance on the steps that need to be taken as early in the process as possible.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on UK visa matters. If you have any questions arising from this blog, please do not hesitate to contact us for advice, send us an e-mail, or, alternatively, follow us on TwitterFacebook, or LinkedIn to stay-up-to-date.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

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