The ability to hold a sponsor licence should be approached as a privilege not a right, and the Home Office makes it clear that sponsorship is based on two fundamental principles:
- Those who benefit directly from migration (including employers) must play their part in making sure the system is not abused.
- The Home Office needs to be assured that those applying to work in the UK are eligible to do so with a reputable employer that genuinely wishes to employ or enrol them.
Failure to comply with the following key responsibilities, in line with Home Office guidance, can result in a sponsor having its licence suspended or revoked:
- Record keeping in relation to sponsored workers.
- Monitoring and reporting relevant information in relation to the sponsored worker and in relation to any organisational changes, e.g. change of company address.
- Compliance with UK law.
A failure to meet the expected Home Office obligations can also have serious implications for the sponsoring organisation’s migrant workers, including loss of sponsorship and job losses.
Care sector compliance
As demonstrated by its own statistics, the Home Office is cracking down on abuse of the immigration system and sponsors who are not meeting their obligations under the immigration rules. It was reported by the Home Office that between July 2024 and June 2025, 1,948 companies had their sponsor licences revoked. This is more than double the number of licences revoked in the previous year.
The Home Office has determined that adult social care (along with other sectors such as hospitality and construction) is one of the sectors with the highest levels of abuse; making it a target for compliance and enforcement action. Clamping down on sponsors has the dual effect of tackling abuse of the immigration system and reducing net migration numbers. Figures from the Office for National Statistics indicate that net migration stood at 171,000 in 2025 against a peak of 944,000 in 2023.
In an increasingly digitised age, with data sharing across Government and law enforcement, it is becoming easier to assess employers and sponsors without the need for a physical compliance visit. In particular, data sharing between HM Revenue & Customs and the Home Office will make it easier for breaches to be uncovered, or to prompt further investigation (including compliance visits).
Putting the statistics to one side, the practical implication is that between the increased compliance scrutiny and increasing challenges around the sponsorship of care workers and senior care workers, the ability to recruit and retain staff within social care settings is becoming increasingly challenging. Sponsors will need to ensure that they are up to speed with the requirements of the Home Office to minimise the risk of their ability to sponsor being further restricted.
Care homes are no longer required to recruit from pools of displaced workers. However, given the current restrictions on sponsorship, employers will need to consider all options to ensure safe and efficient running of their services. Whilst the immigration landscape is continually evolving, sponsors will need to take a more proactive approach. In particular, focussed workforce planning (including reviewing staffing, service and cost factors) will be essential to ensure that service demands are adequately met and to minimise the risk of gaps in staffing.
Digital compliance checks
Rather than attend in person, the Home Office can conduct a digital (desk-based) compliance check in order to collate information. Sponsors are typically given just 10 working days to reply to the Home Office request for further information when an investigation is underway.
Given the large volume of data requested and email size limits, consideration should be given to how best to facilitate the request practically. A failure to respond or incomplete responses could be treated as non-compliance and result in a sponsor licence being suspended or revoked. In addition, given the large volume of data being collated and shared, care should be taken to ensure that the correct information is being disclosed to avoid potential data breaches.
Compliance visits
The Home Office can conduct unannounced compliance visits to investigate. As aforementioned, the perceptions regarding the abuse of sponsored workers and breaches of sponsor licence obligations within the care sector will leave care homes and nursing homes under more scrutiny.
Care homes and nursing homes must ensure that their systems and records are ready in the event of an unannounced compliance visit. During compliance checks, officials can review documents (including employee records, payroll information and attendance records), review systems and interview staff. If concerns arise that there has been material non-compliance with sponsor obligations, this can result in the suspension or revocation of a sponsorship licence.
What happens if a licence is suspended or revoked?
Licences can be revoked or suspended for a wide range of reasons, including:
- Reporting failures.
- Underpayment of workers.
- Failure to provide work as promised.
- Allowing staff to work contrary to the restrictions of the visa.
- Using sponsorship to circumvent immigration rules.
- Inappropriate use of Standard Occupational Classification (SOC) codes and discrepancies in the role being performed when compared with the description of the role as assigned on the employee’s certificates of sponsorship.
Even if an error has led to a breach of sponsor licence obligations, this can lead to suspension or revocation of a sponsor licence.
Suspension
If an organisation receives a sponsor licence suspension notice, prompt remedial action will be required in order to get the licence reinstated. A failure to engage with the Home Office suspension
Revocation
If the Home Office revokes a sponsor licence, the employer is removed from the register of sponsorship. The employer will not be able to sponsor any new staff and will have to stop sponsoring existing staff. The revocation decision itself takes effect immediately. There is no right of appeal against the revocation of the licence and an application for a new licence will not be able to be made for at least a year potentially.
If an organisation is struggling with managing its obligations as a sponsor, advice and support should be sought, including compliance audits and training. Consideration can also be given as to whether it is appropriate for an employer to stop sponsoring and surrender its licence.
However, this still requires careful planning, particularly for staff who will lose sponsorship and future recruitment. Surrender of a sponsorship licence removes future sponsorship responsibility but will not necessarily avoid any Home Office concerns arising from historic sponsorship activity. Surrender of a sponsorship licence can be undertaken via the sponsorship management system (SMS).
Consequences of losing a sponsor licence
The loss of a sponsor licence has significant implications for both the employer and any sponsored staff. In circumstances where a sponsor loses its licence, not only does it lose the ability to sponsor migrants going forward, but it has to stop sponsoring its existing cohort of sponsored staff.
Subject to why a licence has been revoked, there is the potential that the employer could face civil or criminal penalties. Civil penalties for illegal working can reach up to £60,000 per illegal worker. Something that can also be overlooked is the reputational damage caused by the fallout following the loss of a sponsor licence.
If an employer loses its sponsor licence, it cannot continue to sponsor migrant staff, whose leave may then be curtailed by the Home Office. Curtailment is a step taken by the Home Office to shorten or cancel a UK visa before its expiry. Migrants whose visas are curtailed typically have 60 days (or the expiry of their visa if shorter) to find a new sponsor, switch visas or leave the UK.
The 60 days typically begins on the date of a cancellation letter that the Home Office will send to the migrant. Curtailment has significant implications for the employee (as aforementioned) when considering their ability to continue to live and work in the UK. In addition, any dependants whose visas are linked to the employee will also have their leave curtailed.
What can employers do to protect themselves?
The main thing that a sponsor can do to protect its sponsor licence is to ensure that its HR systems, policies and reporting processes are clear, consistently implemented and easy to interrogate. Undertaking routine audits is recommended to ensure systems are maintained. This will also help to identify any errors and provide an opportunity to address any issues that arise.
Immigration rules and the guidance around sponsorship is complex and ever changing. If in doubt, do seek specialist advice and training.
How does your organisation keep on top of immigration policy updates? Comment on this feature or join the conversation to share your thoughts.
Nicole Johnson is Legal Director at Hempsons.
Email: [email protected] LinkedIn: @Hempsons