With nearly 2,000 sponsor licences cancelled in the past year, employers can’t afford to slip on immigration compliance. Gary McIndoe explains what to do now.

The Home Office has revealed that in the 12 months to June 2025, almost 2,000 companies lost their sponsor licences, more than double the number the year before. That’s not a blip, that’s the Government sending a clear signal that it’s taking a much tougher line on immigration compliance.

Enforcement activity has stepped up significantly. UK Visas & Immigration is revoking and suspending sponsor licences at record rates, and the trend shows no sign of slowing. At Latitude Law, we are seeing certain sectors being hit particularly hard - with social care, hospitality, retail and construction in particular all seeing a sharp rise in enforcement action - but no sector can assume it’s safe.

For employers, the risk is real. Losing a licence doesn’t just stop you from recruiting overseas talent; it can also disrupt existing staff arrangements, cause operational headaches, and damage your organisation’s reputation. And the truth is, it doesn’t always take deliberate wrongdoing – small errors, out-of-date processes, or missing records can be enough to get you into trouble.

Why Now?

The immigration landscape is changing faster than ever. Salary and skill thresholds are rising, certain roles are being restricted, and right to work checks are under ever closer scrutiny. As I have warned previously, sponsorship is being treated by the Government as a privilege, not a right and employers must be proactive, not reactive, when it comes to compliance.

That means reviewing your systems regularly, checking whether jobs you sponsor are still eligible, and ensuring your HR team is up to speed on all the latest requirements.

Compliance Checklist for Employers

If you rely on migrant workers, here are some of the areas you should be reviewing right now:

• Sponsorship roles: Make sure any jobs you’re sponsoring still meet the latest skill and salary thresholds. Roles that qualified a year ago may no longer be eligible, which will affect how extensions and settlement applications are handled in future.
• Right to work checks: Confirm that all employees have valid documentation under the current guidance, and that records are complete and up to date.
• Record keeping: Keep accurate records of sponsored staff, including Certificates of Sponsorship and changes in job roles or salaries, and ensure you’re reporting to the Home Office where required.
• Policies and training: Update your HR and recruitment processes, and train staff so they understand the latest rules.
• Risk planning: Consider how your business would cope if a sponsor licence were suspended or revoked and then prepare a contingency plan.
• Regular audits: Schedule periodic compliance audits with a specialist adviser who can flag issues before they become a problem.

What Employers Should Do Immediately

Review Your Sponsor Licence Status
Check whether any of your licences are at risk under new enforcement trends or rule changes.

Audit All Sponsored Roles and Hires
Ensure new roles are still eligible for sponsorship and that existing sponsored staff meet current requirements.

Strengthen Internal Controls
Update HR and compliance systems, confirm roles are genuine, salaries are correct, and right to work checks are robust.

Engage Immigration Advice
A specialist can flag weak points, advise on strategy (for example, restructuring roles or moving positions in-house) and support you with renewals, investigations, or enforcement issues.

Staying ahead of compliance isn’t just about box-ticking or avoiding penalties, it’s about protecting your workforce and safeguarding your business.

Need Help Navigating Sponsor Licence Compliance?

At Latitude Law, we support employers in staying compliant, challenging unfair decisions, and preparing for future changes. If you're concerned about suspension or revocation, or simply want peace of mind, call us now on 0300 131 6767 or complete our online enquiry form and we’ll be in touch promptly.