Sponsor licence revocations are happening more and more. Over the past few months, I have advised on a number of revocation matter from the first call, all the way through to court proceedings. And in almost every single case, I notice the same thing.

Most of these revocations were not the result of deliberate wrongdoing. They happened because of compliance gaps that, with the right systems in place, could have been avoided.

But the thing that keeps coming up the question that employers, HR managers, and even some advisers consistently get wrong is what actually happens to sponsored workers when a licence is revoked.

What Does Revocation Actually Mean for Your Business?

When the Home Office revokes a company sponsor licence, the impact on the business is immediate. Under the Workers and Temporary Workers Sponsor Guidance, a revoked sponsor can no longer:

• Sponsor new migrant workers

• Assign Certificates of Sponsorship

• Extend the visas of existing sponsored workers

• Recruit overseas workers who require sponsorship

• Apply for a new sponsor licence for at least 12 months following the revocation

For businesses operating in sectors with real labour shortages the care sector being the most obvious example these restrictions can hit hard and fast. Recruitment stalls, expansion slows, and uncertainty sets in about the future of the workforce.
The business consequences tend to be well understood. What is not well understood is the position of the people who are already working for you.

Do Sponsored Workers Automatically Lose Their Right to Work?

This is the question most employers get wrong, and it matters enormously.

The common assumption is that if the sponsor licence is revoked, the workers sponsored under that licence immediately lose their right to work. I hear this from employers, HR leads, and even from advisers who should know better.

The reality is more nuanced.

A worker’s right to work in the UK is linked to their immigration permission their leave to remain not to the sponsor licence itself. Whilst revocation will usually trigger the Home Office to take action in relation to the worker’s immigration status, it does not automatically mean that the worker’s leave to remain is cancelled at the same moment.

The right question is not: has the licence been revoked?
The right question is: does the worker still hold valid leave to remain?
If the answer is yes, employers need to think very carefully before taking any action that affects that person’s employment.

Why Getting This Wrong Is Costly

When a revocation happens, employers often find themselves pulled in two directions at once.

On one side, there is real concern about illegal working penalties. On the other, there is the risk of dismissing someone who still has valid immigration permission and then facing an employment claim as a result.

Employment claims are increasingly common. A decision made too quickly, based on assumptions rather than evidence, can create unnecessary legal exposure on top of the compliance issues already in play.
Both risks are real. The way to manage them is not to act fast it is to get the right information first.

The One Practical Step Every Employer Should Take

If your sponsor licence has been revoked, one of the most important things you can do is contact the Home Office directly and ask for written clarification.

Rather than acting on assumptions or verbal advice, contact either:

• The Sponsor Licence Unit responsible for the revocation decision, or

• The Home Office Business Helpdesk

Ask them this, in writing:

“Our sponsor licence has been revoked. Can our sponsored workers who continue to hold valid leave to remain continue working for our organisation?”

In a number of cases I have dealt with, written responses from the Home Office Business Helpdesk have confirmed that workers with valid leave to remain may continue working, notwithstanding the revocation of the licence.

That is a point that most employers miss and it can make a significant difference to how the situation is handled.

Home Office Written Confirmation - A Real Example

The image below shows a recent written response received from the Home Office Business Helpdesk regarding the employment position of sponsored workers following a sponsor licence revocation.

Home Office Business Helpdesk - written confirmation of worker employment position following revocation.

Whilst every case will depend on its own facts and you should always seek written confirmation specific to your situation this response gives useful insight into how the Home Office approaches cases where workers continue to hold valid leave to remain.

What Should Employers Do Following Revocation?

Here is a practical checklist for any organisation that has received a revocation decision.

1. Conduct Fresh Right to Work Checks
   Review the immigration status of all sponsored workers immediately. Use the Home Office online right to work checking service and retain the evidence. Do not rely on records from the point of hire.

2. Record and Monitor Immigration Status
   Make sure visa expiry dates and right to work records are up to date and actively monitored. A robust system here protects you going forward, a note in an email does not.

3. Get Written Confirmation from the Home Office
   Contact the Sponsor Licence Unit or the Business Helpdesk and ask the question set out above. Keep the response. Do not act on assumptions.

4. Do Not Rush to Dismiss
   Before terminating anyone’s employment, consider both the immigration and the employment law picture. A premature dismissal where the person still holds valid leave to remain could result in an employment claim that compounds the situation.

5. Take Specialist Legal Advice Early
   Revocations are legally complex and the decisions made in the first few days can significantly affect the outcome. Early advice is almost always more cost-effective than trying to undo decisions made in a rush.

6. Consider Challenging the Revocation
   Depending on the circumstances, there may be grounds to challenge the decision through a Pre-Action Protocol Letter, followed by issuing Judicial Review proceedings should the Pre-Action Protocol Letter not be successful. The sooner advice is sought; the more options are likely to be open.

Frequently Asked Questions

Can workers keep working after a sponsor licence is revoked?

Possibly, yes. If a worker still holds valid leave to remain in the UK, revocation of the sponsor licence does not automatically remove their right to work. Employers should conduct fresh right to work checks and obtain written confirmation from the Home Office before making any employment decisions.

How long do sponsored workers have to find a new sponsor?
When a sponsor licence is revoked, affected workers are typically given 60 days by the Home Office to find alternative sponsorship before any action is taken in relation to their leave. However, this depends on individual circumstances and the specific terms of the revocation.

Can a revocation be challenged?
Yes, in some cases. Depending on the grounds for revocation, it may be possible to challenge the decision through pre-action correspondence or judicial review. Early specialist advice is essential, as time limits can apply.

What are the most common reasons for sponsor licence revocation?
Based on the revocation decisions I have reviewed, the Home Office most commonly cites failures under Annex C1 and C2 of the Workers and Temporary Workers Sponsor Guidance including failures to comply with sponsor duties, maintain adequate HR systems, keep appropriate records, monitor sponsored workers, or ensure that sponsored employment matches the Certificate of Sponsorship.

Final Thought

Sponsor licence revocation is one of the most serious enforcement tools available to the Home Office. But one of the biggest mistakes employers make is assuming that their sponsored workers automatically lose the right to work the moment the decision is issued.

That assumption can be costly both for the business and for the people who work for it.

Before making any decisions, establish the worker’s current immigration status, conduct the right checks, and get written clarification from the Home Office. In many cases, that one step can change the outcome significantly.

If your organisation has received a sponsor licence suspension or revocation notice, please do not wait. Early advice can make a real difference to what options remain available both for the business and for the workers involved.