UK Sponsor Licence Crackdown – Sponsor Licence Suspensions and Revocations at all time High

The UK Visas & Immigration (UKVI) has significantly increased its enforcement actions in 2024. In a recent report from UKVI, In Q1 2024, there were 309 suspensions and 210 revocations, followed by an even greater rise in Q2 2024, with 524 suspensions and 499 revocations. This sharp increase in actions marks a new high, far surpassing the numbers from 2023, where Q1 saw 148 suspensions and Q2 recorded 89 suspensions.

Key Factors for the Rise in Compliance Actions

One of the major contributors to this rise is the change in sponsor licence durations. Previously, licences required renewal every four years, often triggering audits. However, after April 2024, licences are now valid for 10 years, freeing UKVI to focus on more frequent compliance audits throughout the year.

Additionally, the salary threshold for the Skilled Worker route increased to £38,700 in April 2024, alongside the introduction of the Immigration Salary List (ISL), which reduced the number of eligible occupations for lower salaries. These measures were part of the government’s strategy to curb immigration, leading to tighter scrutiny of sponsors.

Moreover, unethical recruitment practices in sectors like care work have drawn attention. Anti-slavery charity Unseen reported a 606% increase in care work-related modern slavery cases in 2022, reflecting severe exploitation of overseas workers, prompting UKVI to take stricter actions against non-compliant employers.

Implications for Sponsors

Businesses with revoked or suspended sponsor licences face serious consequences, including:

•The inability to sponsor new workers.

•A potential 12-month ban from applying for a new licence.

•Curtailment of visas for current sponsored workers and potential damage to their reputation.

Sukhvinder Singh Nara, Owner at Nara Solicitors highlighted the importance of maintaining sponsor compliance and said “Maintaining sponsor compliance is essential, not just for the success of the business, but for the stability of the employees and their families. A single lapse can affect livelihoods and force families into uncertain situations, making it critical that businesses remain vigilant and adhere to UKVI regulations.”

Given the growing focus on compliance, sponsors are advised to:

•Keep records and personnel details up to date.

•Ensure strict adherence to UKVI reporting and right to work checks.

•Prepare for unannounced audits by UKVI.

Maintaining compliance with UKVI regulations is essential for businesses and their sponsored employees. To avoid severe consequences, such as suspensions or revocations, sponsors should remain vigilant.