Here's How Employers Can Renew Their Sponsor Licenses

Renewing your sponsor license in the UK is essential for employers based in the country who rely on sponsoring migrant workers to address workforce shortages and skills gaps. Sponsor licenses are typically valid for a 4-year period. As a sponsor license holder, it is your responsibility to apply for a sponsor license renewal with the Home Office before your current license expires. Failure to do so can result in issues with your ability to sponsor overseas workers.

When you successfully renew your license, it will be extended for an additional 4 years. It's important to note that sponsor license renewal applications tend to receive more scrutiny from the Home Office compared to initial license applications. This is because organizations are expected to have complied with their sponsor duties during the time they held the license. The renewal process allows immigration officials to thoroughly assess your organization's immigration compliance procedures, processes, and documentation. They also verify the legal status of your migrant workers.

Checking Your Sponsor License Expiry Date:

You can find your sponsor license application date on the Sponsorship Management System (SMS). It's crucial to keep this date in mind and share it with key personnel to ensure you don't miss the renewal deadline.

Importance of Renewing Your Sponsor License:

Sponsor licenses automatically expire after 4 years if not successfully renewed. Allowing your license to expire can have serious consequences for your business. Without a valid license, you won't be able to sponsor foreign workers. This means you can't hire new sponsored workers or continue employing existing ones until you renew your license. During this time, your existing sponsored workers' visas are at risk of being curtailed, making them illegal workers.

When to Submit a Sponsor License Renewal Application:

The UK Visas and Immigration (UKVI) will remind sponsoring organizations about renewing their licenses 120 calendar days before the expiration date, with subsequent reminders at 30 calendar-day intervals and two weeks before expiry. However, it's ultimately the organization's responsibility to submit the renewal application on time. UKVI advises submitting renewal applications at least three months before the current license's expiry date.

Duration of a Sponsor License:

A sponsor license is typically valid for 4 years, but you can apply for renewal shortly before its expiration to extend it for another 4 years.

Renewal Process Duration:

Once you've submitted your renewal application, along with any requested documents, it may take several weeks to receive a decision from the Home Office. This duration can be longer if the UKVI decides to conduct a pre-renewal compliance visit. In general, you can expect a decision within 8 weeks if there are no issues with your renewal application. Importantly, if you submit a valid renewal application before your existing license expires, your license will be temporarily extended while your renewal application is under review.

Number of Times You Can Renew Your License:

There are no restrictions on how many times your organization can renew its sponsor license, provided it remains eligible and meets the sponsor requirements.

There are no restrictions on how many times your organization can renew its sponsor license, provided it remains eligible and meets the sponsor requirements.

Sponsor License Renewal Fees:

The renewal fee for your sponsor license depends on whether your organization is classified as a small or charitable sponsor or a medium or large sponsor. The fees also vary depending on the specific worker category. Small or charitable sponsors generally have lower renewal fees compared to medium or large sponsors.

Preparing for Your Sponsor License Renewal:

To ensure a smooth renewal process, it's crucial to start preparing well in advance of your license's expiration date. This allows you to identify and address any compliance issues before submitting your renewal application. You should treat the renewal process as if it were a new application, ensuring that you meet all the latest requirements and rules.

Sponsor License Renewal Process:

To renew your sponsor license, you need to submit an application using your SMS account and pay the appropriate fee online. An authorized Level 1 user can complete this process on your behalf. During the renewal process, you must demonstrate that your organization continues to meet the requirements of the route in question and complies with its sponsorship duties.

Streamlined Sponsor License Renewal Process:

Some organizations may qualify for a streamlined renewal process, which involves fewer checks if they've successfully renewed their license at least twice before. This process can save time and expedite your renewal application.

Home Office Renewal Inspection:

The Home Office may visit your business premises as part of the renewal process to ensure compliance with sponsorship duties. This visit can be announced or unannounced. It's crucial to prepare for an inspection if your organization hasn't previously undergone one.

Outcome of a Renewal Application:

If your renewal application is approved, your organization can continue sponsoring foreign workers as long as you meet ongoing compliance requirements. However, if your renewal application is refused, you have limited options. There is no right to appeal the refusal, and your sponsor license will expire when your existing license ends. Seek legal advice for possible error correction requests or judicial reviews in case of refusal.

Common Reasons for Refused Sponsor License Renewals:

Several factors can lead to a refusal of your sponsor license renewal, including: Key personnel posing a risk to immigration control. Key personnel subject to immigration control losing valid UK permission. Unverifiable sponsor license structure. Outstanding compliance activities or sponsor action plans. Lack of necessary accreditation or registration. Non-compliance with sponsorship duties, discovered during a pre-renewal compliance visit. Avoiding Refused Sponsor License Renewals: To prevent common grounds for refusal, take proactive steps such as retaining required documentation on sponsored workers, paying the correct renewal fee, notifying UKVI of significant changes, providing requested information on time, and ensuring compliance with security standards, audits, and reporting duties.

Failing to renew your sponsor license can lead to significant disruptions and potential legal issues for your organization. Therefore, it's crucial to manage the renewal process diligently and consider seeking professional assistance when necessary. DavidsonMorris' team of immigration specialists can provide comprehensive support for your sponsor license renewal, ensuring compliance with Home Office requirements and a successful renewal process. If your license has already expired, seeking legal advice promptly can help you determine the best course of action.