Minimising Potential Impact of Revocation of Tier 2 Sponsorship Licence

Employers who hold a Tier 2 Sponsorship Licence should ensure they comply with their Tier 2 Sponsorship Licence duties, or risk losing their Tier 2 Sponsorship Licence all together. The consequence of losing the Tier 2 Sponsorship Licence would not only have a detrimental impact on the Tier 2 worker and Sponsorship Licence holder, but also on the entire business. Depending on the structure of the company, it may be beneficial for businesses to apply for multiple Tier 2 Sponsorship Licences, which would protect the business as a whole as each branch of that company would have its own Tier 2 Sponsorship Licence and therefore the other branches of the business may not be liable. 

How to minimise the potential impact of revocation of the Tier 2 Sponsorship Licence

The best way to avoid having a Tier 2 Sponsorship Licence revoked is to comply with the Home Office and UK Visas and Immigration (“UKVI”) requirements. Employers can do this by way of carrying out a Right to Work Check to ensure that any potential employees from non-EEA countries are eligible to work in the UK. There are numerous documents that you will be required to check, and compliance with the Home Office rules is vital to ensure the safe future of your business. UKVI enforcement officers can carry out random compliance audits to ensure that businesses are fulfilling their duties and acting in accordance with the Home Office and UKVI rules.

Our business immigration lawyers assess each matter on a case by case basis in an initial consultation, in order to give the appropriate advice. If you are unsure about any of the Home Office requirements in staying compliant, or wishing to make a Tier 2 Sponsorship Licence application, contact our immigration team and we can guide you through the process and assist with preparing a strong application. The consequence of losing the Tier 2 sponsorship licence is severe; the Tier Sponsor would not only lose their privilege to obtain another Certificate of Sponsorship (“CoS”) but also have no chance to act in mitigation to the damage caused to business by the revocation, since all Tier 2 workers under this licence would have their leave reduced to 60 days upon revocation. For entities employing a large number of Tier 2 workers, apart from vigorous examination on complying with the immigration law, one can also consider reducing the risk by applying for sponsorship licences fit for your corporate structure in a way which would definitely prevent hundreds of Tier 2 workers from losing their leave to remain status and protect your organisation from interference to business continuity.

Multiple Tier 2 Sponsorship Licence in accordance with the corporate structure

Businesses that have a number of different offices, UK based subsidiaries or entities, locations or campuses (“branches”) may apply for separate Tier 2 Sponsorship Licences for each branch. The Tiers 2 and 5: guidance for sponsors states that Tier 2 Sponsorship Licence holders can choose to apply for a single licence for the entire organisation with multiple offices in the UK, or apply for a separate licence for each branch. If they so choose, the Tier 2 Sponsor can apply to convert licences of separate branches into a single licence for the entire establishment in the UK. However, for large businesses, the convenience of registering for a single Tier 2 Sponsorship Licence for all their branches and operations in the UK comes with significant risk because if that sponsorship licence gets revoked, all of the Tier 2 workers will find themselves having to find  a new Tier 2 Sponsorship Licence holder and risk their own immigration status if they fail to do so.

Common Ownership or Control of a business with a Tier 2 Sponsorship Licence

Another way that a business can ensure they comply with the Home Office requirements but that don’t have a Sponsorship Licence may employ a Tier 2 worker via an existing Tier 2 Sponsorship Licence of another business. This is absolutely fine provided that they can prove the two entities are directly linked by common ownership or control. This is assessed by the Home Office in the same way as the Tier 2 Intra-Company Transfer (“ICT”) visa.

Common ownership or control between two entities is typically found in one of the following ways:

  1. One entity holds or controls:
    (i)the other entity’s board; or
    (ii)more than half the maximum number of votes at the general meeting of the other entity; or
    (iii)more than half the issued share capital of the other entity.
  2. Two entities have a common parent entity which itself, or through another company, holds or controls:
    (i)the other entity’s board; or
    (ii)more than half the maximum number of votes at the general meeting of the other entity; or
    (iii)more than half the issued share capital of the other entity.
  3. Two entities are linked by a Joint Venture Agreement;
  4. Two entities linked by a Joint Venture Agreement are also linked to the entity formed under the Joint Venture Agreement;
  5. Accountancy or law firms linked to each other running under one name by agreement; and
  6. A registered company receiving the Tier 2 worker is linked to an unincorporated association sponsoring the Tier 2 worker, if the Articles of Association of the registered company with the unincorporated association show a relationship of control, such as the power to appoint the other entity’s trustees.

Using Legal Representation to apply for a Tier 2 Sponsorship Licence

Legal representatives, such as our specialist immigration and visa law firm, are qualified to advise you on immigration law and your immigration status. It is possible to instruct an immigration and visa legal representative to submit a Tier 2 Sponsorship Licence application. Caseworkers at the Home Office are trained to reject applications which are improperly prepared, for example by failing to provide the correct supporting evidence. In order to ensure your application succeeds, all necessary documents must be provided. This can be a significant administrative task and you will need to submit the correct documentary evidence. The UK Immigration Rules are complex and a legal representative can help ensure that your application meets the Immigration Rules.

Successful Tier 2 Sponsorship Licence Applications

Our team of solicitors and barristers are specialist immigration lawyers who act in your best interest. We offer a client-tailored approach from the outset. From the very first meeting, we will be able to advise you in respect of your immigration status and the merit of your visa and immigration application before your matter even reaches the Home Office UK Visa & Immigration department. We can assist you with the preparation of your immigration and visa application and ensure that you meet all the requirements of the relevant rules.

We are based in the legal epicentre of London, just across the road from the Royal Courts of Justice in order to ensure we get the best results for our clients.  We are minutes away from the Immigration and Asylum Tribunal, the Royal Courts of Justice and other central London courts.

Preparation is the key to successful immigration applications. Our UK immigration and visa solicitors are here to guide you through the complex immigration rules and requirements. If you wish to meet one of our lawyers, please call our Immigration Team so we can assess your case and arrange your legal consultation.

Contact our London immigration solicitors on 02071830570 or complete our contact form.

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