What a sponsor licence authorises
A sponsor licence grants a UK-registered business the ability to issue Certificates of Sponsorship (CoS) to foreign workers. The licence covers specific routes — "Worker" licences cover Skilled Worker, Health and Care Worker, Global Business Mobility, Minister of Religion, International Sportsperson, Scale-up, and Seasonal Worker. "Temporary Worker" licences cover shorter routes like Creative Worker and Charity Worker.
A business applies to the Home Office, pays a fee (£574 for small/charity sponsors, £1,579 for medium/large), and undergoes a compliance assessment. If granted, the licence lasts 4 years and is renewable. A business must have a UK bank account, meet HMRC records, and have at least one UK-based director or owner.
The compliance duties
Holding a licence comes with 6 core duties. Reporting duties: notify the Home Office within 10 working days of events like an employee resigning, changing role, relocating, or missing work without notice. Record-keeping duties: maintain right-to-work checks, contact details, salary records, and training evidence for every sponsored employee, and keep these for the duration of sponsorship + 1 year.
Compliance duties: ensure sponsored workers do the role on their CoS, at the CoS salary, for the stated sponsor. Migrant-monitoring duties: track visa expiry dates, qualification updates, and any changes requiring CoS amendments. Co-operation duties: permit Home Office visits and audits with minimal notice. Following the rules duty: generally comply with UK immigration law.
Audits, suspensions, and revocation
The Home Office conducts audits either pre-licence (before approval) or post-licence (ongoing compliance). Pre-licence audits inspect HR processes, right-to-work systems, and recruitment practices. Post-licence audits can be announced or unannounced, lasting 1-3 days on-site.
Suspension happens when an audit identifies serious gaps. During suspension, the employer cannot issue new CoS but existing sponsored workers typically keep their visas. Revocation is worse: the licence is cancelled and the Home Office curtails all sponsored workers' visas to 60 days — they must find a new sponsor or leave the UK in that window. See our dedicated guide on what happens if your sponsor's licence is revoked.
What this means for candidates choosing an employer
If you're weighing job offers, the sponsor's track record matters enormously. Always check: how long has the employer held its licence (4+ years is mature, first renewal passed)? How many CoS do they issue annually (high volume = experienced HR compliance team)? Are they listed on the public Register of Licensed Sponsors? Have they had any tribunal decisions or news coverage suggesting non-compliance?
Our Sponsor Licence Checker cross-references the public register in one click. For larger offers or when switching to a smaller / newer sponsor, also ask the employer whether they have had any suspension or revocation actions — a legitimate sponsor will answer openly.
What candidates can do if their sponsor is revoked
If your employer's licence is revoked while you're on a Skilled Worker visa, you typically receive a curtailment letter giving 60 calendar days to either find a new sponsor (and apply for a change of employment) or leave the UK. The 60 days start from the date on the letter.
Options during the 60-day window: aggressively job-hunt through sponsor-licence-verified employers (our platform is specifically designed for this — every listing is from a verified sponsor), transfer to a dependant visa if eligible, or apply for a different visa route if you qualify (Global Talent, Innovator Founder, family route). Leaving the UK and re-applying from abroad is also possible if you secure a new sponsor.