Care Homes Face Sponsor Licence Revocations Amid Crackdown

By Sanwar Ali:

Sanwar Ali, founder of Workpermit.com, has always been at the forefront of using innovative technology to simplify complex immigration processes. He has designed, the AI-powered Sponsor Licence Application Tool, which revolutionises the way UK businesses apply for sponsor licences, essential for hiring skilled workers from overseas. This tool is powered by ChatGPT technology and is designed to provide detailed advice and assistance for making sponsor licence applications. Please note that  AI systems can make mistakes and "hallucinate".

The UK care sector is experiencing an increase in sponsor licence revocations due to alleged breaches of Home Office regulations. These actions are affecting businesses that depend on migrant workers, particularly in healthcare. Recent cases, such as those involving Prestwick Care Ltd and Supporting Care Ltd, underscore the consequences of non-compliance and have sparked criticism of the Home Office’s strict approach to immigration enforcement.

Prestwick Care Ltd: Sponsor Licence Revoked Following Allegations

Prestwick Care Ltd, which operates 15 care homes and employs 219 sponsored workers, had its sponsor licence revoked after a Home Office inspection uncovered alleged breaches. The main allegations include:

1. Inflated Job Descriptions: Some sponsored workers were reportedly not performing the duties outlined in their certificates of sponsorship (CoS), indicating the roles may not have been genuine vacancies. Ensuring that the position filled by a sponsored worker is a "genuine vacancy" is critical under sponsor licence rules.

2. Unapproved Salary Deductions: The Home Office also claimed that Prestwick Care made unauthorized salary deductions, violating both employment and immigration regulations.

Despite challenging the decision through judicial review, the court upheld the Home Office’s findings. The case highlights that even minor errors can lead to severe penalties under the current enforcement regime.

Supporting Care Ltd: Judicial Review Success, but Uncertain Outcome

In contrast, Supporting Care Ltd successfully challenged its licence revocation via judicial review. The Home Office had revoked the company’s licence based on claims that a sponsored worker was not performing duties outlined in their CoS. Supporting Care argued that the Home Office failed to consider the broader impact of revocation on its operations and clients.

Although the court agreed that the Home Office had not fully assessed the consequences of its decision, the successful judicial review does not automatically lead to reinstatement. The Home Office is now required to reconsider the decision, but Supporting Care could still lose its licence if the Home Office maintains its stance.

Sponsor Licence and Skilled Worker Visa Requirements

Employers in the UK seeking to hire foreign workers under the Skilled Worker Visa or Health and Care Worker Visa route must hold a valid sponsor licence. This licence allows them to issue Certificates of Sponsorship (CoS) to migrant workers. The cost for a sponsor licence varies based on the size of the organisation, with smaller businesses paying £536 and larger organisations paying £1,476.

To sponsor a skilled worker, employers must ensure the job meets specific criteria, including:

• The role must be at an RQF level 3 (A-level equivalent) or above.
• For care workers under the Health and Care Visa, the salary threshold is £20,960 per year or the going rate for the job, whichever is higher.
• The worker must accrue 70 points under the points-based system, with points awarded for the job offer, salary, English language proficiency, and other tradeable criteria.

Immigration Skills Charge and Compliance

Employers must also pay the Immigration Skills Charge (ISC), which ranges from £364 to £1,000 per year per sponsored worker, depending on the size of the organisation. Failure to maintain compliance with reporting requirements and to notify the Home Office of any changes can result in licence suspension or revocation.

Criticism of the Home Office’s Approach

The recent surge in sponsor licence revocations has raised concerns within the care sector, which heavily relies on migrant workers to fill essential roles. Critics argue that the Home Office’s strict approach focuses too heavily on technical compliance failures and fails to consider the broader operational challenges faced by care homes.

While compliance is essential, businesses are calling for a more flexible approach that allows them to rectify minor compliance issues without facing the immediate threat of losing their sponsor licence. The loss of a sponsor licence can lead to staff shortages and a significant disruption in care services.

Conclusion

UK care home operators must remain vigilant in maintaining compliance with sponsor licence regulations, especially as the Home Office continues its crackdown on non-compliance. While the consequences of revocation can be severe, businesses should take proactive steps to ensure all sponsor licence obligations are met, including regular audits and accurate record-keeping for sponsored workers.

As the Home Office increases its focus on enforcement, care home operators should seek legal guidance to ensure they navigate the complexities of the UK’s immigration system effectively, avoiding the risks of licence suspension or revocation.

How Workpermit.com Can Help with sponsor Licences

If you need help with employing Skilled Workers and applying for a Sponsor Licence, including complying with your Sponsor Licence obligations, HR responsibilities, etc workpermit.com can help.

For more information and advice, please contact us at 0344 991 9222 or at london@workpermit.com(link sends e-mail)