Court of Appeal confirms UKVI’s approach to sponsorship licence revocations
A recent Court of Appeal ruling has confirmed that the Home Office is not legally required to assess the wider impact of revoking a Skilled Worker sponsorship licence, reinforcing the importance of compliance with sponsor duties.
Background
The case of R (Prestwick Care Ltd) v Secretary of State for the Home Department and R (Supporting Care Ltd) v Secretary of State for the Home Department involved two care providers, Prestwick Care and Supporting Care Limited (SCL), both of whom had their sponsorship licences revoked for breaches of sponsor duties. In both cases, UKVI identified discrepancies between the roles actually performed by sponsored workers and the job descriptions stated on their Certificates of Sponsorship (CoS).
The key legal issue was whether the Home Office was required to consider the wider impact of revocation on the employer’s business, its employees, and service users. The Court of Appeal confirmed that UKVI has no legal duty to conduct such an assessment, but retains discretion to do so.
The Court of Appeal’s ruling
In Prestwick’s case, the Court ruled that the Home Office acted lawfully in revoking the licence without assessing the wider impact. The decision reaffirmed that sponsorship is a privilege, not a right, and that UKVI’s primary responsibility is to ensure compliance with immigration control, rather than assess business or sector-wide consequences.
In SCL’s case, the Home Office’s decision was overturned, but on procedural grounds. The Court found that UKVI had failed to follow a fair process when alleging that SCL had dishonestly exaggerated a worker’s role. However, the ruling did not dispute UKVI’s right to revoke a licence if sponsor duties are breached.
The Court confirmed that UKVI has a residual discretion to consider wider impact, but it is not required to do so unless it chooses to exercise that discretion.
Key takeaways for employers
Employers must strictly adhere to UKVI’s sponsor guidance. The Home Office will not assess business impact when making revocation decisions, so sponsors cannot rely on arguments about operational disruption if compliance failures occur.
The ruling highlights the high level of trust placed on sponsors, who must ensure that all job descriptions accurately reflect the roles performed by sponsored workers. Failure to do so can result in licence revocation, even where employers believe they are acting in good faith.
For employers facing compliance inspections or potential enforcement action, early legal advice is essential. Engaging with UKVI and presenting a strong case during the representation process may help avoid revocation or mitigate enforcement action.