Clearer rules for sponsors: mergers and acquisitions

This month saw the publication of new sponsor guidance for Tiers 2 & 5 which contains key changes to the way sponsor licence holders comply with the UK immigration rules.

Below, the third instalment of our four-part summary looks at the clarifications the Home Office has set out for sponsors in the case of a merger or an acquisition specifically affecting their business.

Mergers and acquisitions

Sponsors have a duty to inform the Home Office if they are involved in a merger, takeover, de-merger, or have undergone any other similar change.

The new Annex 8 has been added to clarify the rules surrounding these mergers and acquisitions for sponsor licence holders, along with giving a few helpful examples for sponsors wishing to understand more about this complicated area. Here are two such examples:

• If, as part of a group restructure, a company’s immediate owner changes, the sponsor will need to obtain a new sponsor licence. If this new owner is higher up the corporate chain than its previous owner, however, it will not need a new licence.
• If a sponsor’s immediate owner changes, and in any other circumstance where the majority number of shares in the organisation have been sold but the employer has not changed, a new sponsor licence will be required. In this case, the sponsored employees will not be required to make change of employment applications.

If you would like to know how well your sponsor organisation is adhering to its sponsor duties, contact Smith Stone Walters today.

We can offer your sponsor organisation a compliance audit which will alert you to any potential breaches and help you to alter your internal processes in order to ensure a sustainable level of compliance to the UK Immigration Rules.

Read more on the new sponsor guidance for Tiers 2 & 5:

Part one: Key changes for UK sponsors

Part two: New rules for sponsor licence applicants

Part four: New sponsor guidance expands licence revocation rules