We sought clarification from the Home office on the above issue.  Home office responded back as below:

“When a Sponsor Licence is revoked, the sponsored migrants leave will be curtailed.  However, their work rights continue right up until their (curtailed) leave expires.

So if a Sponsor’s Licence is revoked the migrants could continue working with the Sponsor until their curtailed leave expires.

In absence of the correct guidance if the Employer was to terminate the employment of Tier 2 sponsored worker/s as soon as the Tier 2 sponsor licence get revoked then:

  1. The business would lose Skilled Sponsored Workers Immediately.
  2. Tier 2 migrant workers may lose the qualifying period that they have earned under Tier 2 category to qualify for settlement towards 5 years continuous residence. Let me explain this in detail below.

Please pay close attention to Paragraph 245AAA(b) of the Immigration rules below

(b) Except for periods when the applicant had leave as a Tier 1 (General) Migrant, a Tier 1 (Investor) Migrant, a Tier 1 (Entrepreneur) Migrant, a Tier 1 (Exceptional Talent) Migrant, a highly skilled migrant, a Businessperson, an Innovator, an Investor, a self-employed lawyer or a writer, composer or artist, the applicant must have been employed in the UK continuously throughout the five years, under the terms of their Certificate of Sponsorship, work permit or in the employment for which they were given leave to enter or remain, except that any breaks in employment in which they applied for leave as a Tier 2 Migrant, or, under Tier 5 Temporary Worker (International Agreement) Migrant as a private servant in a diplomatic household, where in the latter case they applied to enter the UK before 6 April 2012, to work for a new employer shall be disregarded, provided this is within 60 days of the end of their employment with their previous employer or Sponsor.

Let me put an example here to explain bit further.

Someone has spent 4 years 8 months in the UK under Tier 2  category, his/her sponsor’s Tier 2 licence get revoked. If  the employer was to terminate  the employment of sponsored migrant worker immediately, this migrant may be out of job for more than 60 days before he/she finds next sponsor that will jeopardise his/her qualifying period of settlement as per 245AAA(b).

This immediate termination not only causes disruption for the business but also ruin few years of investment of hard working skilled migrant worker.

Therefore, it is not mandatory to stop employment of sponsored migrant workers as soon as the Tier 2 licence gets revoked, the migrants could continue working with the Sponsor until their curtailed leave expires.

YDVISAS specialise in all visa categories and are specialist immigration lawyers

Disclaimer: The material contained in this article is for general information only, and is not intended as a substitute for professional advice. Readers should seek an appropriate professional for advice regarding their particular circumstances.
Yash Dubal
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With over seven years of experience in setting up this company and advising over a thousand clients, Yash holds a great passion for the job he does and the results he wants to achieve for his clients. A man with 'In it to Win it' approach, he holds a strong acumen in terms of client requirements and getting things done with the maximum commitment providing 100% satisfaction.