M&A warning for Sponsor Licence holders in the care sector

Contrary to popular belief, a sponsor licence is not transferrable! 

If a sponsor licence holder is involved in a merger or acquisition, there are key steps that need to be completed to remain compliant with sponsor duties. 

In our recent blogs we discussed the Home Office’s recent focus on sponsor licence holders within the care sector. Statistics published by the Home Office showed that between April and June 2024, almost 500 sponsor licences were revoked, which is the highest number of revocations that have taken place in the last 10 years. 

Unsurprisingly, we have received an increase in enquiries from sponsor licence holders within the care sector who are currently considering the steps required if they decide to sell part or all of their business and the implications for their sponsored workers. 

Mergers and acquisitions for sponsor licence holders is a complex area of immigration policy as specific steps must be completed by both the buyer and the seller within set timeframes. Additionally, the steps required differ depending on a number of factors, including the type of transaction taking place, whether sponsored workers will be transferring over by TUPE or not and if the buyer does or does not already have a sponsor licence.

Failure to comply with the relevant steps could lead to serious consequences for both the buyer and the seller. The Home Office could shorten the sponsored workers’ visas, revoke the sponsor licence and if applicable, impose hefty fines for employing workers illegally. 

It is therefore critical to a business to ensure that when involved in a merger or acquisition and a sponsor licence is part of the mix, all parties are aware of the required steps to avoid adverse consequences. 

Our immigration team are experienced in advising on sponsor licence matters, including mergers and acquisitions. Should you need any assistance, our team are available to help.