Here's how we helped our client with their Sponsor License issues

At Mercury Careers, we understand that dealing with sponsor licences and compliance can be a minefield for businesses. Our aim is to make the process as straightforward and stress-free as possible, so companies can stay focused on what they do best—growing their business.

In this blog post, we’ll take you through a recent case where we supported a client in resolving a sponsor licence issue triggered by an unexpected share transfer and a subsequent Home Office notice. We’ll explain how we worked closely with the client to resolve the issue and secure a new sponsor licence. Most importantly, we’ll share our key recommendations to help businesses avoid facing similar challenges in future.

The Challenge: A Share Transfer Prompted a Home Office Notice

Our client, a company operating under a sponsor licence, went through an internal share transfer between directors. However, they did not notify us of this change, which prompted a Home Office notice flagging the alteration in ownership. The UK Visas and Immigration (UKVI) department stated that the company’s sponsor licence could be affected due to this unreported change, potentially putting them at risk of non-compliance.

What happened:

• The shareholding changed from a 50/50 split between directors to a 25/75 structure.

• The Home Office notice requested documentation confirming the new shareholders and how the change impacted the sponsor licence.

The notice read:

“Please provide us with the stock transfer document, including details of the % shareholding and the full name of the individual who owns the percentage. Failure to do so may result in the rejection of your request for additional CoS (+10).”

This indicated both the urgency and the potential consequences of inaction.

Our Solution: Engaging with the Home Office and Restoring Compliance

Our team acted swiftly to address the issue, providing all necessary documentation to the Home Office, including:

• Stock transfer records confirming the updated shareholder information

• Full names and ownership percentages of the current directors

To minimise disruption and maintain compliance, we also reverted the shareholding structure back to its original state, avoiding the risk of the Home Office treating the change as a formal transfer of ownership.

Despite our efforts, the client stood by their internal policy. After seeking further legal advice from their immigration solicitor, it was concluded that the best course of action would be to accept the situation and apply for a new sponsor licence, rather than pursuing an appeal.

Why this mattered:

The client considered the potential legal fees and time involved in challenging the Home Office’s decision. Following a group Zoom discussion exploring all options, we advised that applying for a new licence would be the most efficient route forward.

The Outcome: A New Sponsor Licence Secured

Once the decision was made, Mercury Careers led the process of securing a new sponsor licence. We worked closely with both the client and their immigration solicitor to ensure that all required documents and details were submitted to the Home Office, including information regarding their existing migrant workforce.

Key steps included:

• Submitting the new sponsor licence application on the client’s behalf

• Transferring migrant workers from the old licence to the new one, including notifying the Home Office

• Providing additional information as requested, and liaising with the Home Office throughout the process

After several months (as is often the case with government processes), the new sponsor licence was granted. However, there was a complication: although the Home Office had initially implied they would transfer existing sponsored workers, they did not do so. As a result, the new licence was issued without those transfers in place.

Final outcome:

• The new sponsor licence permitted sponsorship of new migrant workers only

• Existing sponsored workers remained under the old (now inactive) licence until the end of their current sponsorship period

What This Means for Employers: Know Your Sponsorship Duties

This experience highlights how even small changes in a company’s internal structure, such as a share transfer, can trigger significant implications for sponsor licence compliance. Overlooking these details can lead to complex and costly issues with the Home Office.

Our advice to employers:

• Be fully aware of your sponsorship duties, especially regarding changes in company ownership or structure

• Always inform your immigration solicitor or consultant about such changes in advance

• Work with an experienced partner like Mercury Careers to stay compliant and ahead of potential issues

How Mercury Careers Can Help

If your business is facing challenges related to sponsor licence compliance, Mercury Careers is here to help. Whether you’re applying for a new sponsor licence, transferring your migrant workforce, or ensuring compliance with Home Office regulations, we have the expertise to guide you through every step.

Get in touch today for a free consultation to discuss your sponsor licence needs.

Let’s work together to keep your business compliant and focused on growth.