Business Transfers and Migrant Worker Sponsorship

Where there is a transfer of a business or part of a business from one organisation to another and there are sponsored migrant workers who are transferring with the business, the incoming employer will need a sponsor's licence when it takes over the business. This applies, for example, when the assets of an organisation are bought and its employees transfer under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).

If a licensed sponsor is taken over by another organisation and/or there is a transfer of employment, the incoming employer must apply to become a licensed sponsor within 28 calendar days of taking over the business. If the incoming employer does not apply for a sponsor's licence within 28 days or if the appropriate license is refused, certificates of sponsorship issued by the previous employer will become invalid. In addition, the UK Border Agency is likely to curtail the permission of its sponsored migrants to remain in the United Kingdom to 60 days as they will no longer be working for a licensed sponsor. Any sponsored migrant with less than 6 months of his/her leave remaining will not have his/her leave curtailed.

The UK Border Agency advises that any organisation involved in a takeover should check all records kept for any existing migrants of the company to be acquired to ensure it is able to meet its sponsorship duties.