The latest immigration statistics published by the Home Office reveal the highest ever recorded number of employers losing their licence to sponsor migrant workers.
Over 1,000 Skilled Worker licences were suspended or revoked in the second quarter of 2024, compared to 117 in the same period last year – this is an unprecedented leap in enforcement action.
This comes on the back of the new Home Secretary announcing measures this week to “boost border security,” including “a range of sanctions, including financial penalty notices, business closure orders and potential prosecution… against those employing illegal workers.”
There has been an increase in Home Office enforcement activity in recent months, including both sponsorship compliance and also illegal working raids. These have largely been aimed at certain sectors such as beauticians and nail salons.
We have also seen the care sector targeted following an extremely critical report on visa management in the sector by the Independent Chief Inspector for Borders and Immigration last year. Yet no sector can afford to be complacent.
How to avoid sponsor licence suspension or revocation
The ability to sponsor migrant staff can be business-critical for many employers, so to avoid a suspension or revocation of their licence, employers must ensure they keep on top of the Home Office’s latest guidance on licence compliance and management and that they keep up to date with relevant changes in the status of sponsored employees.
Even genuine mistakes can cause sponsors big problems. Common errors include failing to retain records required by the Home Office or to update the Home Office when something relevant changes, such as the employer moving office, replacing key personnel on sponsorship systems when they leave an employer or reporting changes to visa holder’s jobs.
Employers should have robust systems to remind them to report any changes to the employment conditions of sponsored staff. If in doubt, employers should seek legal advice and also carry out a regular audit of their compliance systems.
The importance of a Skilled Worker sponsor licence
The latest Home Office figures reveal more organisations than ever rely on sponsor licences to hire the talent they require – the figure almost doubling in the last year alone, so it is crucial employers keep on top of sponsor compliance and right to work legislation.
The Skilled Worker visa remains the most important post-Brexit work visa route for UK employers.
The number of businesses that rely on Skilled Worker sponsor licences for hires almost doubled in the year from June 2023 to June 2024 – from 67,432 to 100,082. There were 30,278 businesses with Skilled worker sponsor licences when Brexit ended freedom of movement with Europe at the end of 2020, so the increase in the UK’s most popular work immigration route shows how important it is for UK companies.
The latest Home Office figures record 286,382 visas granted (not including family dependants) in all work categories in the year ending June 2024, 11% fewer than the previous year, but more than double (+109%) 2019 levels.
The Conservative government enacted measures targeting work immigration and family visas last Spring after a post-Brexit, post-pandemic spike in net migration, largely driven by Health and Care workers.
It is perhaps early to see the full effect of the previous government banning care workers from bringing family with them as dependants, as well as requiring care sector sponsors to be CQC registered, but Health and Care Worker visas issued to main applicants have fallen in the most recent quarter – down 81% between April and June 2024 compared with the same period in 2023. Dependant visas have also fallen by 66% over the same period.
Other skilled work immigration routes and Temporary Worker visas also increased since 2021, but numbers now appear to be remaining constant.
Help with sponsor licence compliance
UK Visas and Immigration may revoke or downgrade your sponsor licence if you fail to comply with your sponsor duties. This could come about as a result of an inspection associated with an initial sponsor licence, an application to renew or at any point while you hold a licence.
Such sanctions can have serious implications for sponsors as well as sponsored staff who may find their leave to stay in the UK curtailed unless they can switch to a different sponsor or type of visa. They may also consider whether they have a case in employment law against an employer in such cases. Prospective staff set to travel to the UK may be left stranded if UKVI takes such sanctions against a sponsor.
Employers may also become saddled with costly action plans which must be completed before they may sponsoring further staff.
None of these are ideal situations to be in, but we can help employers negotiate all the above sanctions with the least disruption to business and employees.
We can provide you with support in relation to your compliance, either on-site or remotely. We can also accompany you during any UKVI inspection.
The firm’s friendly team is highly regarded for such work. Chambers and Partners, Best Lawyers 2025, The Times Best Law Firms and The Legal 500 all rank Vanessa Ganguin Immigration Law highly for immigration, with Vanessa and Philip Trott ranked in The Legal 500’s Hall of Fame. To find out how we can help you please call us on 0207 033 9527 or email [email protected].