Record numbers of licences to sponsor migrant workers have been revoked in the UK in the last year. Adult social care, hospitality, construction and retail are among the sectors most affected. According to Home Office reports there have been 1,948 licences revoked in 2024/2025, more than double the previous year (937 in 2023/2024).
What is a licence to sponsor migrant workers?
A sponsor licence is formal authorisation from the Home Office which permits an organisation to employ skilled workers from outside the UK. Without a licence, an employer cannot assign a Certificate of Sponsorship, which is required for most working visas. For employers facing ongoing shortages in the domestic workforce, a sponsor licence is now an essential element of recruitment and staff retention.
What are the conditions of holding a sponsor licence?
When an organisation holds a sponsor licence, it agrees to compliance duties set by the Home Office. To keep a licence active, the employer must demonstrate awareness and compliance with their duties.
- Sponsors must show that any migrant worker has the required skills, qualifications, and experience.
- Sponsors must keep accurate, up-to-date records for each sponsored worker (e.g., right-to-work evidence, contact details, absences, and recruitment documentation).
- Sponsors are expected to maintain strong HR systems to monitor immigration status, track and act on changes in circumstances, and report key updates via the Sponsorship Management System.
Sponsors must co-operate fully with the Home Office during compliance audits and unannounced visits. These inspections are an integral part of the sponsorship regime and are used to assess whether the organisation is adhering to its obligations. Failure to comply can place the licence at risk.
What can the Home Office do if they think conditions are not being met?
If the Home Office believes that a sponsor is not meeting its duties, it has the power to intervene. The nature of the action will depend on the severity of the concerns.
In some cases, the Home Office may suspend the licence. A suspension means the employer cannot assign new Certificates of Sponsorship while the investigation is ongoing, but it can continue to employ its existing sponsored workers. A suspension notice will explain the concerns in detail and give the employer an opportunity to respond. If the sponsor can show that it is meeting its duties, the issues have been rectified or that no breach has occurred, the licence may be reinstated.
If the Home Office concludes that the breaches are serious or systemic, or that the sponsor has failed to address its concerns adequately, it may revoke the licence. Revocation is the most severe sanction available and has immediate effect. Once revoked, the sponsor is removed from the Register of Licensed Sponsors and can no longer sponsor migrant workers. No new certificates may be issued, and all existing sponsored workers will have their immigration status curtailed, typically to a 60-day period within which they must find alternative sponsorship or leave the UK. The impact on a business can be substantial, affecting its workforce, its ongoing projects, and its long-term recruitment strategy.
What can you do if you do not agree with the decision?
There is no statutory right of appeal against the decision to revoke a sponsor licence. The only way to contest a revocation is through judicial review.
In Scotland, to challenge a Home Office decision revoking a sponsor licence you must submit a petition to the Court of Session. The petition must be lodged within three months of the decision. The court will initially consider whether to grant permission to proceed with the review, assessing whether the applicant has a “sufficient interest” in the matter and whether there is a “real prospect of success.”
If permission is granted, a full hearing follows, focusing on the lawfulness of the decision. If successful, the court can quash the revocation or send it back to the Home Office for reconsideration. Judicial review is generally sought on three main grounds –
- Illegality: The Home Office acts beyond its powers, misapplies the Immigration Rules, or ignores legal requirements.
- Procedural impropriety: The sponsor is denied a fair chance to respond, key evidence is overlooked, or internal procedures are not followed.
- Irrationality: The decision is so unreasonable that no reasonable decision-maker could have made it, such as revocation for a minor administrative error.
What TC Young can do to help
The rules surrounding sponsor licences are complex, particularly when dealing with suspension or revocation. It can be challenging for organisations, especially those without dedicated HR or compliance teams, to understand exactly what has gone wrong and what options remain open.
If you have received a suspension notice or are facing revocation, legal advice can help you navigate the process and respond appropriately.
If your licence has been revoked and you are considering judicial review, advice at an early stage can help you understand the process, the time limits involved and the practical steps required.
TC Young has experience in successfully challenging Home Office decisions to revoke sponsorship licences through representation at Judicial Review. You can contact us here.
