A sponsor licence is permission, in the form of a licence, given by the Home Office to businesses and organisations to be able to recruit staff outside the UK and Ireland.
Once a business has a sponsor licence, they are required by the Home Office to abide by the specific laws and regulations set out for sponsors. Where the sponsor fails to meet these obligations, the Home Office may suspend or revoke the licence.
In this article, we will explain why sponsor licence’s can be revoked, and what you can do if that happens to your orginisation.
My Sponsor Licence has Been Revoked – What are my Options?
Sponsor licences can be removed for a myriad of reasons, some of which are at the discretion of the Home Office, including:
- The sponsor knowingly provided false or inaccurate information in their application for a sponsor licence
- Failure of the sponsor to address issues raised following a sponsor licence suspension.
- The Home Office discovers that a business has employed a migrant for a job that does not actually meet the user’s skill requirements.
A revoked sponsor licence prohibits the applicant from applying for a new licence for the specified length of the cooling period, typically 12 months.
There is no right to appeal against the Home Office’s decision to revoke a sponsor licence. In many cases, it is beneficial to use the 12-month cooling-off period provided to assess why the sponsor licence was revoked and what you can do to improve when you are finally able to apply once again.
However, if you believe that your sponsor licence was revoked unlawfully or unfairly, you may be able to apply for a judicial review. According to the Courts and Tribunals Judiciary website, a judicial review (JR) is ‘a type of court proceeding in which a judge reviews the lawfulness of a decision or action made by a public body. In other words, judicial reviews are a challenge to the way in which a decision has been made, rather than the rights and wrongs of the conclusion reached.’
This route may be appropriate for you if you believe a mistake was made in the decision to revoke your sponsor license.
The Process of Applying for a Judicial Review
There are two main steps in lodging a judicial review.
The first step is to complete a pre-action protocol (PAP) letter to the litigation team to review the decision that has been made. The team may overturn or reconsider the decision. They have 14 days to consider the pre-action protocol.
The Home Office decision necessitates that the JR be submitted within three months of receipt.
A JR does not suspend the operation of the decision. In order to suspend the operation of a suspension, you will need an injunction. This will allow the court to suspend the Home Office decision pending the court decision.
The injunction may also allow the case to go to court, skipping others in between processes.
It should be noted that an injunction and pre-action protocol may be lodged concurrently with each other, and a short notice period is given to the Home Office where an injunction is submitted.
Will There be Costs Involved?
In this case, it is advisable to involve a barrister as the case will reach the Administrative court and possibly higher courts as well.
As solicitors, we do not have rights of audience in JR matters. However, the barrister and ourselves will work together, advocating for your needs and concerns.
There will be costs involved in each stage of the judicial review:
· Pre-action protocol
· Application for judicial review permission
· Oral hearing
· Post hearing
It’s important to note that if you are not successful, a cost order may be made against you. As such, you may want to check if your business insurance covers the cost of JR and what percentage.
What Will Happen if I Decide Not to Challenge the Decision?
Should you decide not to challenge the decision, you will be unable to continue sponsoring immigrant workers.
The Home Office has previously informed us that the current sponsored employees can continue to work for you until they receive their curtailment letters and the 60 working days have passed.
It is advisable for you to inform staff immediately so they can start considering their options immediately should you decide not to challenge the revocation decision.
You can still employ sponsored workers on 20-hour overtime, provided they are working their contracted hours with their sponsor. You can still employ dependents, British citizens, or people with indefinite leave to remain or limited leave to remain as normal.
If you do not challenge the revocation, you will not be able to apply for a licence in the next 12 months. Thereafter, you can reapply, and the Home Office will want to know how you have improved your systems and procedures.
Conclusion
Navigating sponsor licence revocation can be daunting for any business owner or HR professional.
The repercussions are significant and can impact your business operations, especially if you rely heavily on talent from outside the UK and Ireland. While the Home Office’s decision to revoke a sponsor licence is final, understanding your options—whether it’s reassessing your compliance during the cooling-off period or pursuing a judicial review—can provide a pathway forward.
If the Home Office revokes your sponsor license, you must act swiftly and seek expert legal advice. At Tann Law Solicitors, we specialise in helping businesses like yours understand and challenge sponsor licence revocations.
Our experienced team can guide you through the complexities of judicial reviews, ensuring that you have the best chance of overturning an unfair decision. To learn more about how we can help you, see our corporate services here.
Don’t leave your business’s future to chance. Contact Tann Law Solicitors today to discuss your case and explore your options for retaining your ability to sponsor talented individuals from around the globe.