Sponsor Licences
Mergers and Acquisitions
Protection for your Sponsor Licence and sponsored employees during corporate restructuring
Enquire Now See How We Can HelpExpert guidance on Sponsorship through Mergers and Acquisitions
Corporate mergers and acquisitions carry significant implications for UK sponsor licences and overseas employees. Structural changes usually require SMS reporting and may require an entirely new licence to be made, although responsibility for existing sponsored workers can often be transferred to the new owner.
Businesses should conduct thorough due diligence early, developing clear transition plans covering timelines, record updates, and ongoing compliance monitoring. Transparent communication with both employees and authorities is essential to avoid penalties.
Professional legal guidance is strongly recommended to successfully navigate these complex immigration obligations and protect all parties involved. Get in touch now and we’ll ensure you get it right from the start.
Immigration Compliance during Corporate Restructuring
Does a merger or acquisition affect sponsor licences?
If your organisation’s direct owner changes or the controlling number of shares transferred to a new owner, this must be reported and a fresh application submitted within 20 working days.
Mergers, acquisitions and restructures can be complex – immigration advice must be tailored accordingly to ensure all necessary actions are identified and completed within the specified timescales.
What happens to sponsored employees during a restructure?
Where TUPE or similar protection applies and job roles remain unchanged, employees can usually continue working under the new owner’s licence. However, if roles, salaries or occupation codes change, fresh Certificates of Sponsorship and new visa applications may be necessary.
Failure to act correctly may result in workers existing visas being cancelled to 60 days to find alternative sponsorship or leave the UK. The complexity of these situations makes professional immigration guidance invaluable.
Does TUPE automatically transfer our sponsor licence to the new employer?
Whilst TUPE protects employees’ contractual rights during a business transfer, it does not transfer the sponsor licence itself. In addition to obtaining a new licence where appropriate, the new owner must confirm it will take full responsibility for those transferred and meet its duties as a licenced sponsor. Right-to-work checks become the new owner’s immediate responsibility from day one.
How will the Home Office scrutinise organisations after a transaction?
Corporate transactions frequently trigger Home Office compliance reviews, sometimes involving unannounced visits. Officers examine HR systems, sponsored worker records and whether reporting obligations were met. Organisations must demonstrate they remain capable of fulfilling sponsorship duties under the new structure as being unprepared for such scrutiny carries serious risks.
What steps should HR teams take?
HR teams should be involved from the very beginning of any transaction. Key priorities include auditing sponsored worker records, verifying right-to-work documentation, identifying roles requiring new Certificates of Sponsorship, and meeting all reporting deadlines. Immigration compliance should feature alongside legal and financial due diligence. Given the potential consequences for both business operations and individual employees’ lives, seeking the right immigration advice before, during and after any corporate transaction is essential.
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