What happens if your sponsor loses their sponsor licence?

For sponsored workers, an employer’s sponsor licence is not merely an administrative permission held by the business. It is the legal foundation that allows the employer to sponsor migrant workers in the UK. If that licence is suspended, revoked, expires or is otherwise lost, the consequences for sponsored workers can be immediate and severe.

This article explains what typically happens when a Skilled Worker sponsor loses its sponsor licence, what to expect from the Home Office in this event and the practical steps a sponsored worker should take to protect their immigration status.

Why a sponsor licence matters

A Skilled Worker visa depends on sponsorship by a UK employer with a valid sponsor licence for the relevant route. The employer must assign a valid Certificate of Sponsorship (“CoS”), comply with sponsor duties and continue to be authorised by the Home Office to sponsor workers.

If the sponsor no longer holds a valid licence, it can no longer lawfully sponsor Skilled Workers. This affects both future recruitment and existing sponsored employees.

What does it mean for a sponsor to “lose” its licence?

A sponsor may lose the ability to sponsor workers in several ways, including:

• Revocation: the Home Office cancels the sponsor licence, usually because of serious or repeated compliance failures;
• Suspension: the Home Office puts the licence on pause, whilst a suspected compliance issue is investigated. During this period, no new CoS can be assigned, meaning that no new hires or visa extensions can be processed;
• Downgrading the licence to a B rating: the Home Office will require the sponsor to meet a time-limited sponsorship action plan;
• Surrender: the employer voluntarily gives up the licence;
• Business closure, insolvency or restructuring: the sponsor ceases trading or no longer meets the requirements to hold a licence.

The most serious scenario is revocation. Revocation normally means the Home Office have concluded that the sponsor should no longer be permitted to sponsor migrant workers. Common reasons include employing workers in roles that do not match the sponsored position, failing to keep required records, not paying the salary stated on the Certificate of Sponsorship, using inadequate right to work systems or providing false or misleading information to the Home Office.

Suspension is different from revocation

A sponsor licence suspension does not automatically mean the licence has been revoked. During suspension, the employer is usually prevented from assigning new Certificates of Sponsorship while the Home Office investigates compliance concerns. Existing sponsored workers are usually not immediately curtailed simply because of a suspension.

However, suspension is a warning sign. If the Home Office proceeds from suspension to revocation, sponsored workers may then face visa curtailment. A sponsored worker whose employer’s licence has been suspended should monitor the situation closely and prepare contingency options.

What happens to your visa if the licence is revoked?

If your sponsor’s licence is revoked, the Home Office will normally curtail your permission to stay in the UK. Curtailment means shortening the validity period of your visa. In most cases, the Home Office grants a curtailed period of 60 calendar days, or until the original visa expiry date if that is sooner.

The 60-day period is often described as a “grace period”, but it is not an extension of sponsorship. It is a short period in which you must regularise your immigration status, usually by finding a new sponsor and making a new visa application, switching into another eligible immigration route or leaving the UK.

When does the 60-day period start?

The 60-day period does not necessarily start on the day you first hear that the employer has lost its licence. It normally starts from the date of the Home Office curtailment decision or from the date specified in the curtailment notice. The notice may be sent by email, post or through other Home Office communication channels.

It is important not to rely solely on informal information from the employer. You should check your email, postal address and UKVI account details carefully to ensure you do not miss any direct correspondence from the Home Office.

Can you keep working during the curtailed period?

This is one of the most important practical questions. If the sponsor licence has been revoked, the employer is no longer authorised to sponsor you. In many cases, continuing to work for that employer will not be a viable long-term option and may create immigration and right-to-work issues.

The precise position will depend on the wording in the Home Office notice letter and the circumstances of the curtailment. Workers should avoid assuming that the 60-day period gives them unrestricted permission to continue working as before. The safest course is to obtain specific immigration advice promptly, preserve all Home Office correspondence and avoid any work that is inconsistent with the conditions of permission.

What are your options if your sponsor loses its licence?

Option 1: Find a new Skilled Worker sponsor

For many sponsored work visa holders, the most straightforward solution is to find a new UK employer that holds a valid sponsor licence and is willing to sponsor them.

The new employer must:

• hold a valid sponsor licence for the relevant route;
• offer a genuine eligible role;
• assign a new Certificate of Sponsorship;
• pay a salary that meets the applicable salary requirements; and
• comply with all sponsorship duties.

You must then submit a new visa application before your curtailed permission expires. You should not start work for the new sponsor until you are legally permitted to do so under the applicable immigration rules and conditions.

Option 2: Switch to another immigration route

Depending on your circumstances, you may be able to switch into another immigration category without leaving the UK. Possible options may include a partner route, Global Talent, Innovator Founder, Student, Graduate or another work route if the requirements are met.

Eligibility depends on your personal circumstances, timing, financial requirements, relationship evidence, English language requirements and the specific rules of the selected route. As a rule, a new application must be made before your curtailed permission expires.

Option 3: Leave the UK before your permission expires

If you cannot secure a new sponsorship or switch into another route before the curtailed period ends, you should leave the UK before your permission expires. Remaining in the UK after the expiry of your permission will be classed as overstaying, which can have serious consequences for future immigration applications.

What if you do not receive a curtailment notice?

In practice, there can be delays between sponsor licence revocation and the issue of a curtailment notice. A worker should not treat silence from the Home Office as confirmation that there is no risk. If you know your sponsor’s licence has been revoked, you should act immediately even if you have not yet received formal curtailment correspondence.

You should ensure that your contact details are up-to-date with UKVI. Missing a curtailment notice because your address or email details are outdated can create avoidable risk.

What happens to dependants?

If your permission is curtailed, the permission of your dependent partner and children will also be affected. Their immigration status is normally linked to yours. Any plan to move to a new sponsor, switch route or leave the UK should take your dependants into account.

If you apply for a new visa, your dependants may also need to apply to extend or vary their own permission. Timing is important so that the family’s immigration status remains protected.

Does this affect settlement?

Loss of sponsorship can affect settlement plans. A period of overstaying, a gap in lawful residence or a failure to move into a qualifying route in time may disrupt eligibility for indefinite leave to remain.

However, the revocation of the sponsor’s licence does not automatically erase time that you have already spent lawfully in the UK. The key focus is to maintain your lawful status, move into a qualifying route, if required, and satisfy the continuous residence and other settlement requirements at the relevant date.

Practical steps to take immediately

If you are a sponsored worker and your sponsor has lost, or may lose, its sponsor licence, you should act quickly. The following steps are usually prudent:

1. Confirm the sponsor’s status: ask your employer for written confirmation of whether their licence has been suspended, revoked, surrendered or allowed to expire;
2. Check for Home Office correspondence: check your email, post and UKVI account for any curtailment notice;
3. Record key dates: note the date you learned of the issue, the date of any Home Office notice and the deadline by which you must act;
4. Assess whether you can move to a new sponsor: search only for employers that hold a valid sponsor licence and can assign a CoS;
5. Do not wait for the final days of the curtailed period: recruitment, sponsorship approval, CoS assignment and visa preparation can take time;
6. Protect your dependants’ status: consider whether applications for any dependants must be submitted at the same time;
7. Avoid overstaying: submit a valid application before permission expires or leave the UK in time.

Can the employer appeal or challenge the revocation?

A sponsor may seek to challenge Home Office action in limited circumstances, depending on the nature of the decision and available remedies. However, a worker should not rely on the possibility that the employer will reverse the outcome. Sponsor licence challenges can be difficult, and the worker’s immigration deadline may continue to run.

From the worker’s perspective, the priority is preserving lawful immigration status. Even if the employer intends to dispute the revocation, the worker should prepare an independent plan and act accordingly.

Key takeaway

If your sponsor loses its sponsor licence, your visa is at risk of curtailment. In most cases, the Home Office will shorten your permission to 60 days or to the original visa expiry date, whichever is sooner. During that period, you must usually secure a new sponsorship and submit a new application, switch into another eligible immigration route or leave the UK.

The central point is timing. A sponsor licence revocation can convert a stable immigration arrangement into an urgent deadline. Sponsored workers should act promptly, preserve all evidence and ensure that any new application is submitted before the current permission expires.

Frequently asked questions

Will I automatically have to leave the UK if my sponsor loses its licence?

No, not automatically. You may be able to remain in the UK if you obtain sponsorship from a new licensed employer or switch into another immigration route before your curtailed permission expires.

How long do I have to find a new sponsor?

The Home Office will usually curtail permission to 60 days or to the original visa expiry date, whichever is sooner. The exact deadline should be printed in the curtailment notice.

How Gherson can assist?

If your sponsor’s licence has been revoked this does not mean that you must leave the UK immediately, but it is a situation that requires prompt action and careful planning. Our experienced immigration team can assist you in navigating this process.

If you are concerned about your sponsor’s licence status or need urgent immigration advice, contact Gherson for a confidential consultation.

Gherson’s Immigration Team are highly experienced in advising on all 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 X, Facebook, Instagram, 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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