Podcast | Workforce Worldview

    Sponsor Licences – What Should Sponsoring Entities Do After a Corporate Change of Ownership?

    October 2024
    Region: Europe
    Featuring:

    Corporate Changes of Ownership – How Do They Affect UK Sponsor Licence Holders?

    Sponsor licence holders are required to update the Home Office on changes relating to sponsored foreign employees, but what about when there are changes to the sponsor organisation itself? All changes in ownership must be reported, but a change in the immediate parent companies of sponsor licence holders may require a new sponsor licence. In this episode, Annabel Mace and Osheenn Giam discuss what actions are required of sponsors to ensure their sponsored workers are not negatively affected by corporate transactions and restructures.


    A few key takeaways from the discussion include:

    When do changes in ownership trigger new duties for sponsor licence holders?

    Changes in the ownership often occur during the selling of a company, merger or restructuring. Particularly, when restructuring removes the immediate parent of a sponsor licence holder it can trigger new obligations to the Home Office despite not affecting day-to-day operation.

    What duties do sponsor licence holders have in the event of a change of ownership?

    If the immediate parent company of the sponsoring entity remains unchanged then you only have to notify the Home Office and explain the nature of the change in company structure. But if it does change, you will still have to notify the Home Office and apply for a new sponsor licence.

    How long do sponsoring entities have to apply for a new sponsor licence?

    As a baseline, sponsoring entities have 20 working days after a change of ownership to report the change and apply for a new sponsor licence. After which the existing sponsored employees will need to be transferred to the new licence in order to maintain their visas.

    What evidence needs to be provided to the Home Office for sponsored employees to transfer to a new sponsor licence?

    There are several possible pieces of evidence that can be used for reporting to the Home Office. We recommend a letter explaining the situation to them from a practicing solicitor, but Annabel goes into detail about the other options as well. 

    What should a sponsoring entity do if they miss the reporting deadline for a new sponsor licence?

    If you miss the reporting deadline by days, months or even years due to an oversight it is important that you immediately notify the Home Office and report the changes yourself. They will be generally sympathetic if you explain the mistake and still provide the required evidence to action your request. However, this is less likely if they discover the mistake themselves through an audit of the company.

    Featuring

    Osheenn Giam London
    Annabel Mace London

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