Wed 02 Oct 2024

Redundancy and sponsored workers: key immigration points to consider

Redundancies can be one of the most difficult processes to go through for both employers and employees. It can be more difficult where an employee at risk holds a visa tied to their employment, such as a Skilled Worker visa. This creates additional obligations on the employer, and for the employee a redundancy can mean the loss of a visa and being required to leave the UK.

Here are some of the key immigration points to consider in a redundancy situation:

Alternatives to redundancy 

Often, during a redundancy process, employees will suggest alternatives such as part time working or trying a different role in the organisation. Where the employee holds a Skilled Worker visa, the employer will need to balance consideration of these alternatives with the need to comply with the Immigration Rules. For example, a reduced working pattern may result in a reduction in salary which takes the person below the required threshold for their visa, or an alternative role may need a visa application to be made. 

Duty to Notify

Employers with a sponsor licence have an ongoing duty to notify the Home Office if a sponsored employee's contract of employment ends earlier than the end date stated on their certificate of sponsorship. There is a duty to report this to the Home Office within ten working days of the end date of their employment. Reporting this information must be made on the sponsor management system. 

Once the Home Office receives this notification, it will write to the sponsored employee to inform them that their visa is being curtailed to 60 days from the date of the letter (unless their existing visa is due to expire before then). Often, it can take some time for the Home Office to issue this letter, so the employee may have longer than 60 days from the time the notification is made to find new sponsored employment or switch into an alternative immigration category should they wish to stay in the UK, but should seek their own advice as soon as possible. 

Keeping records up to date

It is important to make sure that the employee's address and contact details are up to date so that the employer can pass those details to the Home office in the termination of sponsorship notification. This will reduce the risk of the individual unknowingly overstaying their visa if the Home Office has sent a 60-day notice letter that was never received. 

Employers must retain all documents relating to the individual until either one year has passed from the date on which they stopped sponsoring the employee, or the date on which a compliance audit officer and approved them. 

Consequences of employment ending

Once their employment has ended, the employee's right to work in the UK ends so the employee will not be able to work until they obtain new immigration permission that provides a right to work. 

Whilst there aren't any specific legal requirements in terms of what information sponsors need to provide the individual in these circumstances, we recommend that it is made clear to the individual that they will no longer be able to work in the UK without obtaining another visa and notify them that their visa will be curtailed to 60 days from the date they receive the letter from the Home Office. Any dependent family member's visas will be cancelled at the same time as the sponsored employee's visa ends. Given the serious implications for a sponsored employee and potentially their family, any additional support will be appreciated. For instance, employers may be able to assist the individual obtaining independent advice about their immigration status as it may be that they can switch to another eligible visa category. 

Time is of the essence when dealing with redundancy for both employers and sponsored employees, and it is crucial to be aware of the legal requirements from both an employment and immigration law perspective to ensure the process is fair, non-discriminatory and in line with sponsorship duties. If you need any advice, please do not hesitate to contact one of our experienced solicitors and we would be happy to assist. 

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