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    Sponsor Licence Refusals: Reasons and Solutions

    In order for the sponsor licence application to be approved by the competent authorities, the company must provide specific goals for attracting staff to work and organizing their employment in the UK. The article takes into account the main reasons for failure and ways to avoid them. Having considered the specifics of applying in full detail, we have collected valuable recommendations for those who plan to obtain a sponsor licence in the near future. We conduct a thorough analysis of the reasons why applications are rejected. After studying the material, companies will be able to reduce the risks of failures and learn everything they need to successfully complete the procedure.

    In what cases you can get a refusal or rejection

    When considering applications for a licence, the Home Office of the UK may refuse to submit documents to the applicant during the initial review. It is also possible to reject the request after consideration and invalidate it if the applicant does not meet certain requirements. In the process of reviewing applications, they can be assigned categories A and B. These are peculiar ratings reflecting the sponsor’s compliance witоh his duties.

    If the application is assigned A rating, it means that the sponsor guarantees a high level of competence and fulfillment of all requirements. It allows the applicant to continue to sponsor foreigners employed and to issue certificates. B category indicates that the sponsor does not comply with all the requirements that are imposed on his activities.

    Invalid application

    A number of standard requirements present for companies submitting licence applications. If the organization has recently started its activities, its representatives will be asked to present a current bank account that is used for commercial activities. It must be registered by the UK Financial Services Prudential Regulatory Authority (PRA), whose activities are aimed at reducing potential business risks and maintaining stable cash flows.

    For example, an application will be considered invalid if an error is detected in the payment of the mandatory registration fee. The applicant will receive a notification about this from representatives of the Home Office. The registration fee will be refunded. After the error has been corrected, the interested person will be able to re-apply for the right to own a sponsorship licence.

    Application refused

    What are the grounds for rejecting the submitted application:

    • Identification of cases of outstanding convictions that have been imposed for offenses committed by the owner of the company, the executive director or any trusted person. Provided that the offender was involved in the organization of business processes.
    • Hiring an employee in violation of the law.
    • Unless personnel management systems have been developed or put into effect, which are governed by the rules for fulfilling the sponsor’s duties.
    • Identification of counterfeit papers in a package of documents.
    • If it is impossible to provide evidence of an operational or business presence in the UK.

    It should be borne that upon receipt of a refusal, the company will be able to apply for a license again only after the end of the waiting period.

    For avoiding the rejection risk, seek the help of experienced lawyers. They will check the package of documents, and tell you how complete it is, and what exactly is missing in it.

    Sterling Law has extensive experience in obtaining sponsorship licences. Read about some of our successful cases here.

    When can I submit another application in case of refusal?

    Regardless of the reason for the rejection, the applicant does not have the right to appeal against it. The decision can be reviewed only if an error in the work of a worker is detected. According to the current rules, a request indicating illegal actions can be sent within 2 weeks after receiving a refusal.

    Many applicants who are faced with a problem in obtaining a sponsor licence are interested in the question: how long is the waiting period. It depends on the specific reasons for the failure.

    If it is due to the fact that the application was submitted by a representative who is not involved in the company’s business processes, a repeat application can be submitted at any time. When revoking a previous application, you must wait 12 months from the date set on the revocation notification. If a lot of fines are imposed for the misconduct of the applicant, the waiting period may be 5 years.

    How to make a successful application

    First, you need to make sure that the eligibility criteria are met. It is described below exactly what you need to pay attention to.
    Sponsor Licence Eligibility Criteria.

    The organization must collect a package of documents that serve as confirmation of its authenticity and legality of activities in the UK. If you seek a UK Expansion Worker Sponsor Licence, you must demonstrate that your business has a presence in the UK but is not presently engaged in active trading there.

    Sponsor Licence Suitability Criteria

    To meet the suitability criteria, the Home Office will assess your HR infrastructure and your approach to fulfilling sponsor responsibilities.

    These duties include:

    • quick notification of a change in the circumstances of the employee (it should be done no later than 10 days after the changes are detected);
    • storage of documents specified in Appendix D;
    • sponsors can hire only those employees who have the required level of qualifications;
    • hiring of illegal aliens is prohibited.

    You will be asked to provide the Home Office with information about the availability of highly qualified managers who will provide access to the sponsorship management system in order to identify how the license requirements are met. Representatives of the Home Office have the right to check the biographies of the company’s directors in terms of criminal records and obligations to pay fines.

    It is very important that the position really exists and does not contain job descriptions that have been exaggerated to meet the requirements. What is it a genuine vacancy:

    • the applicant performs specific duties and is fully responsible for the work done;
    • job responsibilities are clearly defined and they do not imply the performance of low-skilled work;
    • position fits perfectly into the business model.

    The Skilled Worker, Scale-up, and Global Business Mobility routes have specific criteria regarding salary thresholds and skill levels.

    Compliance Visits

    Before making a decision, the Home Office may conduct various types of verification of information for authenticity. Our lawyers, who specialize in immigration issues, have the necessary experience to understand how ready the applicant is right now. Their recommendations will help you get a positive response even if the previous application was rejected.

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