Sponsor licence be transferred to a new company owner — it’s a question that often arises when businesses go through change. Transitioning a company by way of merger, takeover, or restructuring is never a simple process, and the responsibility of handling your sponsor licence adds another important layer. Managing these sponsor licence transfer rules thoughtfully helps ensure that your business continues to meet its obligations, while also providing reassurance and continuity for the employees who rely on it.
When ownership changes hands, what truly matters is maintaining stability, both for your business operations and for the global talent who form part of your team. Understanding how to approach this stage with care can smooth the process, prevent unnecessary disruption, and safeguard your ability to recruit and retain skilled people in the future.
Think of it less as a hurdle and more as part of your company’s natural growth. A clear, well-prepared approach allows you to align with the Home Office’s expectations, while showing your employees and stakeholders that their future is secure. This balance of compliance and compassion is key: it reassures staff that they remain valued, and reassures you that the business is ready to step confidently into its new chapter.
The Rule: Sponsor Licences Are Not Transferable
Under UK immigration law, sponsor licences cannot be transferred to a new owner or entity. That means when a company changes hands — via sale, share transfer, merger, or asset purchase- the sponsor licence does not pass automatically to the new owner. The licence may become dormant or be revoked as a result.
When a New Licence Is Required?
Here are the key scenarios:
- Takeover or Acquisition: If the acquiring company (Company B) does not already hold a sponsor licence, it must apply for a brand-new licence to continue sponsoring workers. This must be done within 20 working days of the transaction completion. If no application is made, sponsored employees risk visa curtailment — typically limited to 60 days to secure a new sponsor or leave the UK.
- Existing Licence: If the new owner already holds a sponsor licence for the relevant immigration route, they can report the organisational change via the Sponsor Management System (SMS) and request that existing sponsored employees be assigned to their licence. Still, the original licence cannot be directly transferred.
TUPE Transfers and Restructures: What You Need to Know?
TUPE applies in two main scenarios:
- Business Transfer: When a business, or a part of it, is sold as a going concern, and its identity is maintained.
- Service Provision Change: When services previously provided by one company are now provided by another, for example, through outsourcing.
What Happens to Employees?
- Automatic Transfer: Employees automatically transfer to the new employer under the same terms and conditions of their original contract.
- Continuity of Employment: Their length of service is protected and continues with the new employer.
- Employer Liability: The new employer inherits all the liabilities and obligations of the previous one.
Employer Obligations
- Information and Consultation: Employers must inform and consult with affected employees and their representatives about the transfer and any “measures” (changes) planned, according to this.
- Employee Liability Information: The outgoing employer must provide information about the transferring employees to the incoming employer.
Summary Table: When to Apply for a New Licence vs. Transfer
| Situation | Licence Required? | Actions Needed |
| The new owner has no sponsor licence | Yes | Apply within 20 working days; transfer sponsored workers |
| The new owner already holds the appropriate licence | No | Report via Sponsorship Management System, request responsibility transfer |
| No application/report was made in time | Yes (forced) | Workers’ visas curtailed; risk of licence revocation |
Why Getting It Right Matters — A Word of Caution
A Guardian investigation revealed the human cost of sponsorship licence lapses. Thousands of migrant care workers were left stranded and threatened with deportation after their sponsoring employer lost their licence, sometimes through no fault of their own. For many, this meant their sense of security was shaken overnight, their livelihoods thrown into uncertainty, and their future in the UK placed at risk. They were given just 60 days to find a new sponsor or leave the country, a timeframe that can feel impossibly short when one’s job, home, and family life all hang in the balance.
This serves as a powerful reminder that behind every sponsorship licence are real people with hopes, responsibilities, and families depending on stability. It reinforces how vital it is for businesses to follow the sponsor licence transfer rules precisely — not only to remain compliant with immigration requirements, but also to honour the trust placed in them by their employees. Managing a transfer carefully is as much about compassion as it is about compliance. It is about ensuring that valued members of staff do not face unnecessary upheaval and that the business can move forward with integrity and confidence.
Take Away!
Managing sponsorship through business changes requires both careful planning and decisive action. It is not just about ticking regulatory boxes, but about ensuring that your business and its people continue to thrive without unnecessary interruption. Approaching sponsor licence transfers with clarity, openness, and responsibility allows you to protect your workforce, reassure your team, and strengthen the foundations of your organisation as it grows. By acting swiftly and communicating with transparency, you create stability during times of transition and show your commitment to doing things the right way. For ongoing guidance, encouragement, and expert support in navigating sponsor licence transfer rules, continue to follow SponsorLicenceHub — your trusted partner in managing change with confidence and care.
