What Happens if My Skilled Worker Sponsor Loses Their Licence?

If My Skilled Worker Sponsor Loses Their Licence in 2025, the uncertainty can feel overwhelming. For many visa holders, their right to live and work in the UK is tied directly to their sponsoring employer, so a loss of that licence can feel like the rug being pulled out from under them. It’s not just about paperwork — it’s about livelihoods, careers, families, and plans.

When a sponsor licence is revoked, suspended, or simply not renewed, Skilled Worker visa holders often have questions: What happens next? How much time do I have? Do I need to leave immediately, or can I find another employer? What about my family members who are here as dependents?

The answers matter deeply because they determine whether a person can continue building their life in Britain or must make abrupt changes. Knowing how the rules apply in 2025 and what rights exist during this period is crucial for making informed decisions at a difficult moment.

What Does the Law Say?

From GOV.UK’s guidance “Employees: if your visa sponsor loses their licence”, here are the core legal facts.

• If your employer loses their sponsor licence (or it is suspended, or not renewed, or the business is taken over and the new entity does not apply for a licence), your Certificate of Sponsorship (CoS) may be cancelled.
• Once the CoS is cancelled, your visa permission is usually limited to 60 days, or the time remaining on your visa if that is less than 60 days.
• You must either find a new sponsor and make a new visa application, or leave the UK. If you cannot act within that period, you risk being an overstayer, which can have long-term immigration consequences.

These rules are the same whether you are already in the UK or yet to travel, though the implications differ depending on your situation.

What Happens in Different Scenarios?

Here are some common situations and how the law treats you:

Scenario	What Happens to You?
You are in the UK when your sponsor licence is revoked	Your CoS is cancelled. Your visa becomes curtailed or limited to 60 days (unless less remains). You need to apply for a new visa with a different employer that holds a valid sponsor licence.
Your employer’s licence is suspended	If you’re already working, you can often continue working unless the suspension explicitly stops new work. For new applications or visa extensions, processing might be delayed until the suspension is resolved.
You are outside the UK, applied for a visa via your employer, or haven’t travelled yet	If the employer is no longer a valid sponsor, your visa application will likely be refused, or your permission to enter the UK will be cancelled.
The employer doesn’t renew the licence/business takeover	After a takeover, the new entity has 28 days to apply for a sponsor licence. If they fail, your visa will be curtailed, and you’ll have at most 60 days (or until your visa expiry) to regularise or leave.

What Are My Rights When My Sponsor Licence is Revoked?

Knowing your rights is essential. Here are what worker rights you retain or may exercise if your employer’s sponsor licence is revoked:

1. Right to stay for 60 days: Once your CoS is cancelled, you have up to 60 days (or less, if your visa expiry comes sooner) to either find a new sponsor or otherwise regularise your situation.
2. Right to find a new sponsor: You may be able to switch to a different employer who has a valid sponsor licence. That employer must issue a fresh CoS, and you must apply for a Skilled Worker visa (or relevant route) under that new sponsorship.
3. Right to remain while applying: In many cases, you can stay in the UK while your visa application with a new sponsor is in process — provided that the application is submitted within the timeframe given (e.g. during the 60 days).
4. Protection from employer-charge abuses: As of 31 December 2024, sponsors are prohibited from passing on the costs of the sponsor licence or Certificate of Sponsorship (and associated administrative fees) to workers. If your employer has asked you to pay such costs, this is now a ground for licence revocation.
5. Support offers (in certain sectors): For example, the Department of Health & Social Care has introduced support for international adult social care workers whose employer’s sponsor licence has been revoked, aimed at helping them back into work under a compliant employer.

Timelines: What Deadlines Must I Meet?

In 2025, these are the key deadlines and timelines you should know:

Event	Timeline / Deadline
CoS cancellation for a new visa application or leave the UK	Typically, 60 days, or less if your visa expires sooner.
28-day window after business takeover for the new employer to apply for a licence	If the sponsor’s business is taken over, the new business has 28 days to apply for a sponsor licence. If they don’t, current sponsored employees are subject to visa curtailment/cancellation.
Cooling-off period for the employer’s licence re-application	Once a licence is revoked, the employer must wait generally 12 months before applying again. In certain serious cases (repeat revocation, criminal conduct, etc.), this cooling-off period can be longer.

What Should You Do If It Happens to You?

If your sponsor licence is revoked (or you believe it might be), here’s what you should do:

1. Check the Register of Licensed Sponsors on GOV.UK to confirm the status of your employer. If they’re no longer listed, you may be affected.
2. Speak with your employer to understand why the licence was lost, whether there’s a grace/suspension period, and whether they have appeal or rectification options.
3. Find a new sponsor: Start looking for employers with valid sponsor licences who can offer you a role matching the Skilled Worker route requirements.
4. Prepare your documentation: When switching, ensure you meet salary thresholds, genuine vacancy criteria, and any updated compliance requirements.
5. Submit your visa application before the 60-day grace period ends, or before your current visa expires (if sooner).
6. Seek legal or immigration advice: Because each case can have complexities (length of stay, dependants, unusual circumstances), getting specialist support can make a difference.

Recent Data & Trends: What’s Changing in 2025?

• The UK government is cracking down harder on misuse of sponsor licences.
• The Sponsorship Guidance has been updated: new grounds for revocation include sponsors recouping licence or CoS fees from workers (which is now illegal for Skilled Worker routes from December 2024).
• The guidance “Workers and Temporary Workers: guidance for sponsors – Part 3” is current as of July 2025. This sets out clearly that non-compliance may lead to revocation, often without suspension first.

The Final Take!

While the official process may feel clinical, the reality is that behind every sponsorship change are individuals and families making real decisions about their future. Losing a sponsor can be unsettling, but it does not have to define your path. With the right mindset, timely action, and awareness of the routes available, you can take control of the situation rather than let it control you.

It’s easy to feel overwhelmed by deadlines and uncertainty, yet many workers successfully move through these transitions every year, finding new opportunities, stronger employers, and in some cases, even a clearer long-term plan. The key is not to panic, but to stay informed, seek support if needed, and keep your focus on the bigger picture.

In moments like these, reliable guidance becomes invaluable. That’s why following trusted sources of information can help you cut through the noise and feel confident about the choices ahead. For clear updates, practical insight, and steady advice on every aspect of the Skilled Worker route, make sure you follow Skilled Worker Mag.