Secured correct sponsor status to ensure compliance after new business acquisition

This case study details how Latitude Law safeguarded a company’s sponsor licence after corporate takeover.

The Challenges Faced

In 2022, our client was acquired by a UK subsidiary of a US-based multi-national, operating in the software development and IT services sector. Our client’s employees, including their sponsored workers, were transferred to the new multi-national under the Transfer of Undertakings Protection of Employment Rights (TUPE) regulations. On initial instruction, it became clear that the multi-national’s existing sponsor licence had not been well-managed, and was only valid for intra-company transferees. The risk of compliance action, which can carry heavy sanctions, was very real since reporting deadlines, contained in Home Office guidance, had also not been adhered to.

How Latitude Law Helped

In the first instance, Latitude Law ensured relevant changes were made to our client’s outgoing sponsor licence before we embarked on a review of the new multi-national’s Sponsor Management System (SMS) compliance. Latitude Law worked urgently with them to their legacy sponsor status, partnering them with them to appoint both a new Authorising Officer and a new Level 1 User to the Home Office Sponsor Management System (SMS), and add a skilled worker tier to their licence.

The Outcome

All sponsored workers were ultimately successfully transferred to a new, compliant skilled worker licence and the risk of sanctions by the Home Office for non-compliance was averted.