Sponsor Licence revocation and the impact of longer cooling-off periods

08 Jan 2025, 51 mins ago

The Home Office has announced plans to intensify enforcement against businesses breaching immigration laws or Sponsor Licence requirements. While these changes align with existing policies, they highlight the Government’s determination to adopt stricter measures against non-compliance and worker exploitation.

Since July 2022, the Government has revoked approximately 450 Sponsor Licences in the care sector as part of its ongoing efforts to address abuse. Significant efforts are underway, involving collaboration between the government and the care sector, to uphold high standards within the immigration system and support care workers in finding alternative employment when their sponsor’s licence is revoked.

Currently, businesses with revoked Sponsor Licences face a minimum 12-month cooling-off period before being eligible to reapply. Under proposed changes, this period would increase to 2 years for repeat or serious breaches. While 12 months is standard, longer cooling-off periods can already be applied for specific violations, such as those involving civil penalties or criminal convictions.

Sponsors found to have minor breaches during compliance checks may be downgraded to a ‘B’ rating and required to follow an action plan to restore their ‘A’ rating. Previously limited to 3 months, the new action plans for compliance could extend up to 12 months. Although the restrictions during action plans remain unchanged, the extended timeline allows for sustained compliance monitoring. Employers who fail to meet the requirements of their action plans risk having their licence revoked.

To further protect migrant workers, the Home Office intends to ban employers from transferring sponsorship costs to employees. This policy reinforces existing rules prohibiting sponsors from recouping costs like the Immigration Skills Charge from workers, as such actions are grounds for licence revocation.

Employers can safeguard their Sponsor Licences by ensuring robust internal compliance systems, staying updated with policy changes and fostering a culture of adherence to immigration rules. Regular training for HR and compliance teams, alongside prompt action to rectify any breaches, is crucial to maintaining their sponsorship status. If you need assistance with your company’s compliance health checks, please contact us.

Updated: 8 January 2025

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