Lay off my visa – what happens when sponsored workers are made redundant: common questions answered

As the the UK experiences freezing temperatures and snow storms, so employers continue their hiring freezes. In particular, redundancies in the tech sector have been coming in thick and fast, as reported in the FT recently. According to https://layoffs.fyi/, which tracks job cuts in the tech sector, well over 100,000 tech jobs have already been lost in 2023 and many more are being announced every other day. The UK economy is expected to shrink in 2023.

The consequences of redundancy can be extremely difficult to navigate, and particularly so for sponsored workers whose UK visas are dependent on their employment. Not only do they face losing their jobs, but also their permission to remain in the UK. Many are left wondering what to do next. Below are some of the key legal and practical issues at play in the event of redundancy.

Is a sponsored worker’s visa and work permission tied to one employer?

Generally, a sponsored worker’s visa and right to work will be tied to the sponsor.  This is the case for the Skilled Worker category.  Sponsored workers’ permission to live and work in the UK is dependent on their continued employment with the sponsor and in the sponsored role.

In certain circumstances, a sponsored worker’s visa conditions may permit them to carry out limited supplementary employment with another employer in the same occupation. However, when the sponsored worker’s employment comes to an end, so does their ability to engage in any supplementary employment.

 

When and how does the Home Office need to be informed about the end of sponsored employment?

When a sponsored worker’s employment comes to an end the sponsor must, as part of their compliance duties, report the end of employment to the Home Office. The report is made via the sponsor’s Home Office online Sponsor Management System (SMS) within 10 working days of the last working day of the sponsored worker’s employment.

 

What happens when the sponsor informs the Home Office of the end of employment – does the visa end immediately?

Once the employment comes to an end, the sponsored worker no longer has a right to work in the UK. But when the sponsor reports the end of the employment via the SMS, this does not immediately end the visa and right to remain in the UK. Rather, the Home Office should send the sponsored worker a letter notifying them of the cancelation of the visa (sometimes referred to as a curtailment letter).

Even on receipt of any letter, the visa will not end immediately. The letter will explain that the sponsored worker is permitted to remain in the UK for either 60 calendar days (the end date should be specified in the letter) or, if they have less than 60 calendar days left on the visa, the visa will end on the expiry date.  

Often, there are delays (of a few weeks or even months) in the Home Office issuing cancellation letters so some sponsored workers will find themselves being able to stay for longer than 60 days from when the report is being made via the SMS. 

In some cases, a letter may never be issued by the Home Office. Sponsored workers must though leave the UK before the expiry of their current visa. On a practical level, if sponsored workers travel and are asked by an Immigration Officer whether anything has changed in relation to their visa this will likely result in them being refused entry to the UK. They should therefore seek to apply for a new visa or leave the UK as soon as practicably. 

 

What are the options for sponsored workers to continue staying in the UK?

During the period after the sponsor reports in the SMS, sponsored workers can either apply for a new work visa with sponsorship of another employer or alternatively, they can switch into another eligible visa category.

Sponsored workers can switch to a number of different visa categories.  For example, a Global Talent visa. Whatever category chosen, it is important to take advice before proceeding. In particular, if they are aiming to settle in the UK, sponsored workers should check whether they can aggregate time spent under their Skilled Worker visa and any new category to make up their 5 years residence for settlement - in some cases they may lose all the time built up towards settlement and the 5 years clock would restart.

The application, whether that is to obtain a new Skilled Worker visa sponsored by another employer or to switch immigration categories, should be made as soon as possible before the end of the relevant period mentioned above. Providing a valid application is made, the sponsored worker’s immigration status will be protected until a decision is made on the application. This is particularly important if they are aiming to settle in the UK.

If a visa application is not submitted in time, sponsored workers must leave the UK before the end of the relevant period.

 

After the sponsor informs the Home Office of the end of employment, can the sponsored worker travel?

From the point the sponsor reports the end of employment in the SMS, travel outside the UK should be avoided unless the sponsored worker intends to leave the UK permanently.  Even if they have plenty of time remaining on their visa, if they leave the UK and the cancellation letter is issued, they will not be able to return to the UK under their work visa. If the cancellation letter is in the process of being issued, re-entry to the UK under their visa could still be refused. As the date of issue of the letter will not be known, travelling after notification of the end of employment is risky. Also, whether the letter has been issued or not, if the sponsored worker is asked by an Immigration Officer whether there are any changes to the visa this will likely lead to them being refused entry to the UK.

If they are eligible to enter the UK using the eGates, sponsored workers should be aware that where their sponsored employment has ended, they could be landing in the UK as a visitor rather than as a sponsored worker. They may not find this out until they try to change their sponsor or visa category and this is refused on the basis they are in the UK as a visitor.

 

What about working during a notice period – is that allowed?

From an immigration perspective, as the employment will be continuing, sponsored workers are entitled to serve out their full notice period even if placed on gardening leave.  Only once the employment ends should the sponsor notify the Home Office. Sponsored workers can apply for a new work visa whilst serving their notice period and can continue serving their notice period with their current/previous sponsor if required even after the visa with the new sponsor is granted. 

 

What happens to dependent family members, and can children finish their studies in the UK?                    

Dependants’ visas will be cancelled at the same time as the sponsored worker’s visa and the same travel restrictions will apply to them. They will need to apply for a new visa to remain in the UK. A Child Student visa may be a possibility for children and, subject to meeting the rules, a parent could apply for a visa as a Parent of a Child Student.

 

What happens about future travel back to the UK for business trips or work?

After cancellation of a sponsored visa, any future travel back to the UK for work would require a visa permitting the same. Individuals can also enter the UK as a visitor (subject to obtaining a visa if required) and carry out limited business activities. Care should be taken in relation to the change of intention from working in the UK to visiting the UK.

 

Is settlement (indefinite leave to remain) in the UK still possible?

Depending on the work route, sponsored workers may apply for settlement after completing a continuous period of 5 years in the UK. Skilled Worker visas lead to settlement after 5 years. However, only certain visa categories can be combined to meet the 5-year requirement. Alternatively, depending on the sponsored worker’s circumstances, it may also be possible to qualify for settlement after 10 or even 20 years continuous residence.

If a sponsored worker is nearly eligible for settlement on the basis of 5 years as a Skilled Worker (or a combination of Tier 2 and Skilled Worker), the sponsor must provide a letter in support confirming the employment is continuing “for the foreseeable future”.  If the sponsor is considering a sponsored worker for redundancy, they may still provide the letter in support.  However, once notice of redundancy has been given to the sponsored worker and either the employment ends immediately or there is a notice period, the sponsored worker will not be able to apply for settlement as they cannot provide the letter in support stating that the employment will continue for the foreseeable future.  Instead, the sponsored worker will normally need to obtain a Skilled Worker visa with a new sponsor (or switch immigration categories to one which can be combined with the Skilled Worker visa for settlement purposes) while they continue to hold permission to stay as a Skilled Worker and before the end of any 60-day period (if a cancellation letter is ever issued).  Once they have a new Skilled Worker visa they should be able to apply for settlement. 

If sponsored workers fail to find a new sponsor or switch to an eligible visa category within any 60-day period (if a letter is issued), this will normally break their continuous residence for the purposes of settlement.

 

What if the sponsored worker remains in employment but there are changes to their job?

Changes to a sponsored worker’s job role and salary require careful consideration by both sponsors and sponsored workers. This could be relevant where a sponsored worker’s job is made redundant but they are offered a different job within the business.  Whilst some changes can simply be reported to the Home Office with no further action, other more significant changes may require an application for a new visa.  Generally, if the new role is still best matched to the same occupation code (job type) and the relevant minimum salary requirements are still met, this can be reported in the SMS to the Home Office and a new visa application will not be required.

 

Key points to note:

• Sponsors should ensure they make a compliant report of the end of employment to the Home Office.
• If sponsored workers intend to stay in the UK, they should not travel following the end of their employment.
• Sponsored workers should check the personal email address they used in their visa application for a curtailment letter from the Home Office.
• Sponsored workers should seek to secure a new job as soon as possible if they wish to stay in the UK.
• Consider suitable alternative visa categories, such as Global Talent and check any impact this would have on eligibility for settlement.

It is imperative for both sponsors and sponsored workers to act quickly when dealing with redundancy. Prompt legal advice is recommended to ensure that sponsors comply with their legal obligations and sponsored workers are afforded the opportunity to preserve their immigration status. 

FURTHER INFORMATION

If you have any queries in relation to the issues raised above or any other immigration matter, please contact a member of the immigration team. Our employment team is also able to assist with redundancy processes.

 

ABOUT THE AUTHORs

Nick Rollason heads our immigration team and advises on all areas of UK immigration and nationality law. He has particular expertise in providing strategic advice to businesses on their global immigration needs. He is regularly consulted by the UK immigration authorities on proposed changes to the UK immigration rules and policy.

Vandana Ruda joined the immigration team as an Associate in September 2022 and is a member of the departments's corporate client Team. She has experience advising both corporate and private clients on all stages of the immigration process across a wide range of business and personal immigration matters.