A UK Sponsor Licence refusal can prevent your business from hiring overseas talent. Understand the common reasons for sponsor licence refusal and how to do a strong new application. Get guidance from our experts at Visa and Migration.
The UKVI writes an email to the mailbox of the Authorising Officer stated in the online sponsor application after it has decided on the application. The email tells whether the UKVI has approved or refused an application for a sponsor licence and the reasons for the decision if it has refused the application.
The applicant knowingly sends any false document with their application. If this happens, and UKVI believes that a criminal offence has been committed, it will refuse their sponsor licence application and refer their case for prosecution.
The applicant holds an unspent conviction for a relevant offence, such as employing illegal workers or certain other crimes, such as fraud or money laundering.
The applicant has been issued a civil penalty for employing illegal worker (s).
The applicant has previously held a sponsor licence of any type (worker or temporary worker), and that licence was revoked, or they surrendered that licence while UKVI was taking compliance action against them in:
The 12-month period before the date of their licence application; or
The 24-month period before the date of their licence application if they have had a sponsor licence revoked more than once (or would have had it revoked had they not surrendered it)
The applicant does not send any documents or information requested by UKVI within the given time limit.
The applicant does not meet one or more of the requirements of the route (s), on which they are applying to be licensed, as set out in the relevant route-specific guidance – for example, if they are applying under Skilled Worker route, and UKVI is not satisfied they can, and genuinely intend to, offer genuine employment which meets the skill level threshold or salary level requirements of those routes.
The applicant does not have the necessary HR systems in place or other processes to comply with sponsor duties.
The applicant fails to nominate in their application form an AO (Authorising Officer) and at least one Level 1 User who meets the relevant requirements.
The applicant’s application is sent by a representative.
The applicant has had a sponsor licence application refused within the last 6 months for any reason (or would have had it refused had they not withdrawn the application), unless specified conditions apply.
Frequently cited circumstances in which UKVI will normally refuse a sponsor licence application include:
The applicant has given a false statement/ information, or has not given information that they held to UKVI or any other Government Department when required.
The applicant has been issued with two or more civil penalties in the five-year period immediately before their application for employing an illegal migrant worker.
The applicant is or has been an owner, a director, or an AO at a sponsor that has been ordered to pay costs to the Home Office in any legal proceedings, and those costs have not been paid.
The applicant has previously been named as ‘Key Personnel’ at a sponsor where:
• the sponsor's worker or temporary worker licence has been revoked within the last 12 months (or last 24 months if it was revoked more than once while the applicant was named as Key Personnel); or
• the applicant has been named as Key Personnel at more than one sponsor that has had its sponsor licence revoked within the last 24 months; or
• the sponsor's worker or temporary worker licence application has been refused within the last 6 months
The applicant is employing a worker (whether sponsored or not) who is subject to immigration control and:
does not have permission to enter or stay in the UK; or
• is working in breach of the conditions of their visa, and the applicant could reasonably have been aware of this breach.
The UK Government or the UN (United Nations) has imposed sanctions on the applicant, which will be contravened by granting them a sponsor licence.
The applicant engages in actions/behaviours that are not conducive to the public good.
UKVI has reasons to believe that the applicant otherwise poses any risk to immigration control.
Below are some of the circumstances in which UKVI will consider refusing a sponsor licence application. Generally, UKVI will not refuse an application if only one of these circumstances arises, but it reserves the right to do so, depending on the gravity of the issue.
The applicant has a previous record of poor or non-compliance with sponsor duties.
The applicant has previously been asked to submit evidence to allow UKVI to decide whether an organisation with which the applicant is, or has been, involved was complying with its sponsor duties, and that information was not submitted.
The applicant has, or the applicant is aware that a sponsor organisation they have been involved with in a similar role within the last 5 years has been imposed a penalty for failure to pay VAT (Value Added Tax) or duty.
If a licence application is refused, the applicant may be able to:
ask the UKVI to review the decision through the ‘Error correction request’ process, if they believe there has been a simple case working error
re-apply – but only after the appropriate ‘cooling-off period’, if applicable, has ended.
Error correction request
There is no right of appeal against the refusal of a sponsor licence application. However, if the applicant believes the refusal decision is the result of:
a caseworker error – for example, if the UKVI has incorrectly applied a cooling-off period and the applicant sends evidence to the UKVI showing that this is the case; or
evidence/ supporting documents sent as part of the licence application not being considered by the UKVI – for example, if the UKVI has not considered a specific piece of information and the applicant sends evidence to show this was received by UKVI
They can send an ‘Error correction request form’.
The error correction request must be sent within 14 calendar days from the date of the refusal decision letter. The UKVI aims to reply within 28 working days of the receipt of an error correction request form.
The error correction review process does not fully reconsider a decision to refuse a sponsor licence application. UKVI will not consider additional evidence or information that was not available to it when it made the original decision. The applicant may only apply for one error correction review of the decision to refuse their sponsor licence application.
If UKVI establishes that there is a simple caseworker error, or a piece of information sent with the sponsor licence application has not been considered, it will write to the applicant inviting them to send a new online sponsor licence application. The applicant will be required to pay the application fee again, but UKVI will refund this after receiving the application. Please note that sending a new application is in no way a guarantee that a licence will be granted.
If UKVI maintains its original decision to refuse an application for a sponsor licence, it will write to inform the applicant. The cooling-off period will still apply, starting from the date of the original refusal decision. A refusal decision will not be reviewed a second time under the error correction review process.
If UKVI refuses an application for a sponsor licence, the applicant will not normally be able to further apply for a licence until a specified period of time (known as a ‘cooling-off period) has elapsed since the refusal.
The cooling-off period will also normally apply in any of the following circumstances:
The applicant withdrew their application for a licence while UKVI was undertaking checks on them, and it is likely that UKVI would have refused the application had the applicant not withdrawn it.
The applicant previously held a sponsor licence and:
it was revoked, or
they surrendered the licence while UKVI was taking compliance action against them (and the licence would have been revoked as a result of that compliance action)
The applicant has been issued a civil penalty or charge specified in the table listed below
The applicant holds an unspent conviction for a relevant offence
The length of the cooling-off period depends on the applicant’s circumstances.
If one applies or reapplies while still subject to a cooling-off period, their application will be automatically refused, even if the reasons that led to the cooling-off period no longer apply.
|
Circumstance |
Length of cooling off period |
|
The application was refused (or would have been refused had the applicant not withdrawn it) because: |
No cooling-off period |
|
The applicant's previous sponsor licence application was refused (or would have been refused had they not withdrawn it) for any reason not otherwise mentioned in this table |
6 months from the date their application was refused (or the date UKVI notified them that it had accepted their withdrawal request, as the case may be). |
|
The applicant previously held a sponsor licence and it was revoked (or it would have been revoked had they not surrendered it) – first revocation or surrender |
12 months from the date of the notice informing the applicant that their licence had been revoked (or the date UKVI notified them that it had accepted their request to surrender their licence, as the case may be). |
|
The applicant had had a sponsor licence revoked on more than one occasion (including where they would have had their sponsor licence revoked had they not surrendered it) |
24 months from the date of the most recent notice informing the applicant that their licence had been revoked (or the most recent date that UKVI notified them that it had accepted their request to surrender their licence, as the case may be) |
|
The applicant has been issued with a civil penalty for employing an illegal worker and that penalty has been paid in full |
12 months from the date the applicant paid the penalty in full. |
|
More than one civil penalty has been issued to an owner, a director or an Authorising Officer of the applicant's organisation (either individually or collectively) under section 23 or section 25 of the Immigration Act 2014 for authorising occupation of premises under a residential tenancy agreement by an adult who is disqualified because of their immigration status, and those penalties have been paid in full |
12 months from the date the penalties were paid in full. |
|
The applicant has been issued with a civil penalty or charge for carrying clandestine entrants, carrying passengers without proper documents, or bringing a passenger to the UK in breach of an authority to carry scheme and that penalty or charge has been paid in full |
5 years from the date the applicant paid the penalty or charge in full. |
|
The applicant has been issued with 2 or more civil penalties for employing an illegal worker |
UKVI may refuse the applicant's licence application for up to 5 years after the date they paid the penalty in full |
|
The applicant has (or a person mentioned above has) an unpaid civil penalty or charge for any of the offences listed above and they are (or that person is) still liable once the applicant's or that person's objection and appeal rights are exhausted |
Indefinite – UKVI will not grant a licence while the applicant has an unpaid civil penalty or charge. |
|
The applicant has an unspent conviction for a relevant offence |
Until the conviction is spent by the applicant |
Before one reapplies, they must ensure that the reasons why UKVI refused (or would have refused) their previous application, or revoked (or would have revoked) their previous licence, no longer apply. The fact that the cooling-off period has expired does not mean UKVI will grant the application – the applicant must fully satisfy the requirements.
A UKVI compliance officer may conduct a compliance check on the applicant. If this happens, the officer will undertake relevant checks to establish that the applicant has the necessary systems and procedures in place to meet their sponsorship obligations.
If UKVI is not satisfied that the applicant can fully satisfy the sponsor's obligations or they otherwise remain not suitable to hold a sponsor licence, it will refuse their application again, and in that case, the applicant will be subject to a further cooling-off period.
We provide support to an organisation in the UK to apply for and obtain a sponsorship licence by guiding them through the entire process and ensuring compliance with Home Office requirements. We also help you if your sponsor licence application has been refused. We help you address the refusal reasons and accordingly advise you on whether to apply for an error correction review or wait for a cooling-off period.
We help you in preparing the error correction application form, making sure all sections of your application are completed accurately, and you are able to highlight the caseworker’s error.
If you are re-applying, our role is to ensure you successfully satisfy all the requirements. We help you address any unspent criminal convictions, any civil penalties, or other reasons for previous licence refusals.
Once you submit your sponsorship licence application, we will help you with any follow-up questions or inspections from the UKVI.
We increase your chances of a successful licence after refusal while ensuring you meet all legal and procedural requirements.
For expert advice and queries, you can call us at +44 (0)20 3411 1261 or write at info@visaandmigration.com
A sponsorship licence from UKVI allows an employer in the UK to sponsor workers from abroad.
A sponsorship application refusal happens when UKVI decides that the applicant does not meet the required immigration rules. For example, failing to provide necessary documents, not having proper systems and people in place to carry out the sponsor duties.
No, in most conditions, you may reapply for a sponsor licence provided you address the refusal reasons and are subject to a cooling-off period.
Yes, any past non-compliance by the business or key personnel can cause refusal.
Yes. UKVI may conduct a pre-licence compliance visit.
You can seek an error correction review of your application if you believe it was refused because the caseworker processing your application for a sponsor licence made a mistake and/or your supporting documents were not considered.
No. There is no right of appeal.
Yes, but in most circumstances after a cooling-off period.
The cooling-off period is typically 6 or 12 months, depending on the refusal reasons.
Yes. UKVI may scrutinise your future applications more closely.
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