Sponsor Licence Application Refusal

A refusal means the business cannot sponsor overseas workers.

Common reasons include insufficient evidence, compliance concerns, or ineligible business activities.

No right of appeal exists but sometimes a fresh application is possible.

Some refusals come with a 6-month cooling-off period, preventing re-application during that time.

Businesses should carefully assess refusal reasons before reapplying.

Eligibility issues – The organisation does not meet basic criteria (e.g., not a genuine business, wrong business category).

Inadequate HR systems – Failure to show proper monitoring systems for sponsored workers.

Incorrect or missing documents – Failure to provide the required supporting evidence (e.g., corporate bank statements, VAT registration, lease agreements).

Past immigration breaches – History of employing illegal workers or failing to comply with immigration rules.

Misleading information – Providing false or incomplete details in the application.

Failure to meet the genuineness test – The Home Office is not satisfied the business genuinely requires overseas workers.

Strong HR and record-keeping systems are essential.

Past non-compliance makes refusal more likely.

Even small errors in documentation can lead to rejection.

The Home Office issues a refusal letter explaining the reasons.

The business cannot issue Certificates of Sponsorship (CoS).

The company must decide whether to wait out the cooling-off period (if applied) or prepare for a fresh application or error correction request can be made.

Refusal letters are detailed and must be reviewed carefully.

Businesses should avoid reapplying without fixing the identified issues.

If refusal was due to non-genuine reasons (e.g., false documents), future applications will face stricter scrutiny.

The cooling-off period is usually applied where serious issues were found, such as dishonesty or gross non-compliance.

Cooling-off is mandatory in serious refusal cases.

Businesses must wait before making a fresh application.

Use this time to strengthen compliance systems.

Prepare thoroughly – Submit all required documents in the correct format.

Strengthen HR practices – Show robust systems for monitoring migrant workers (absence tracking, right-to-work checks, record-keeping).

Check eligibility carefully – Ensure the business type and role meet Skilled Worker visa requirements.

Seek professional advice – Many refusals result from technical errors that could be avoided with legal guidance.

A pre-application compliance audit is highly recommended.

Employers should keep records ready for an unannounced Home Office audit.