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LS Legal News Bulletin

High Court Upheld Revocation of Sponsor Licence

High Court Upheld Revocation of Sponsor Licence

Thursday 4th January 2018

The High Court has recently upheld the Home Office's decision to revoke an IT consultancy's Tier 2 sponsor licence in R (Sri Prathinik Consulting Limited) v Secretary of State for the Home Department [2017] EWHC 3204 (Admin).

Tiers 2 and 5: guidance for sponsors ('the Guidance') sets out specific obligations for sponsors and very strict penalties for failure to comply with their duties. As a rule, a Sponsor Company that wishes to employ a migrant worker from outside the European Union is required to conduct a Resident Labour Market Test, that is to advertise the vacant position in a specific way for 28 days. If within these 28 days it can be proved that no settled worker can fill in the vacancy, the Sponsor is allowed to assign a Certificate of Sponsorship (CoS) to a migrant worker to come and work in the UK. Such a CoS is required to be assigned within six months of placing the first advertisement.

The issue of the present matter was that the Company failed to assign a CoS within six months of carrying out a Resident Labour Market Test, which is a mandatory ground for revocation of a licence. As a result of non-compliance with the duties, the Company's sponsor licence was revoked.

The decision reinforces the Guidance and once again signals that sponsors must take their duties seriously. An omission or oversight might not seem to be serious in the first instance, however, may bring serious consequences for the business operation and its reputation.

We strongly advise all sponsors to seek legal advice, whether at the stage of initial application for a licence or in the subsequent operational process. Competent and professional legal advice will enable your business to flourish and help it to avoid serious reputational and financial consequences. LS Legal Solicitors are well versed in assisting businesses with their sponsor licence applications.

Please contact our firm on 020 81 44 55 88, via email on info@LSLegaLUK.com or use the contact box to discuss your matter or make an appointment.