What Happens to Your Skilled Worker Visa if Your Employer Goes Bust
What you need to know
- •Your visa is not cancelled the instant your sponsor becomes insolvent.
- •The sponsor or insolvency practitioner must report it, and the licence usually lapses.
- •The Home Office normally curtails your visa to 60 days.
- •In that window you can find a new sponsor, switch route, or leave.
- •Act fast, because the 60-day clock can start with little warning.
When your sponsor goes insolvent, your Skilled Worker visa is not cancelled automatically. The sponsor or the insolvency practitioner must report it, the sponsor licence usually lapses, and the Home Office normally curtails your visa to 60 days. In that window you can find a new sponsor, switch to another route, or leave.
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What "insolvent" means for your sponsor
Insolvent means your employer can no longer pay its debts. The company may go into administration, liquidation, or simply stop trading. When this happens, the business that holds your sponsor licence often stops operating.
This matters because your Skilled Worker visa is tied to that licence and to your specific job. If the job ends and the licence falls away, your permission to stay is affected.
Your visa is not cancelled automatically
This is the most important point. Your visa does not vanish the moment the company collapses. You keep your existing permission until the Home Office takes action.
What changes things is the reporting. The sponsor, or the insolvency practitioner appointed to wind up the company, must report the end of your employment to the Home Office. The sponsor licence then usually lapses or is revoked. Once the Home Office knows your sponsorship has ended, it normally curtails (shortens) your visa.
The 60-day curtailment window
When the Home Office curtails your visa, it normally gives you 60 days. This is sometimes called the 60-day rule. The 60 days run from the date on the curtailment letter, or until your visa's original expiry date, whichever comes first.
If your visa already had less than 60 days left, you only get the time that remains. So check your visa expiry date and compare it with the curtailment date.
This is similar to what happens after redundancy or a sponsor licence being revoked. The trigger differs, but the 60-day outcome is usually the same.
Option one: find a new sponsor and switch
The most common route is to find a new employer who holds a sponsor licence. You can then switch sponsors from inside the UK.
- Check the register of licensed sponsors on GOV.UK to confirm an employer can sponsor you.
- The new employer assigns you a new Certificate of Sponsorship (CoS).
- You submit a fresh Skilled Worker application before your current leave runs out.
For the full process, see our guide on changing jobs on a Skilled Worker visa.
Option two: switch to another route
If you cannot find a sponsor in time, you may qualify for a different visa that does not need a sponsor. Common examples include a partner or spouse visa, the Graduate route if you finished a UK degree recently, or the Global Talent route. You must apply before your current leave expires.
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Option three: prepare to leave
If neither switching sponsors nor switching routes works for you, you should plan to leave the UK before your curtailed leave ends. Leaving on time protects your immigration record and makes future applications easier. Overstaying can harm later visa applications.
Section 3C leave: when you can keep working
If you submit a new visa application before your current leave expires, your existing permission usually continues while the Home Office decides. This protection is called Section 3C leave. It can allow you to start work with a new sponsor once you have applied. You must apply in time, because Section 3C does not help if your old leave has already ended.
How this affects ILR
A gap in sponsored work can affect your route to ILR (Indefinite Leave to Remain). ILR needs a set period of lawful residence, and the Skilled Worker route also looks at continuous employment.
If you move to a new sponsor quickly and keep lawful status, your continuous residence can usually carry on. A long gap may still need explaining. Read our guide on a gap in employment on a Skilled Worker visa for the detail.
Practical steps to take now
- Check your email and your UKVI account for any curtailment letter.
- Confirm your visa expiry date and work out your true deadline.
- Make sure the insolvency practitioner has your correct contact details.
- Claim any unpaid wages, notice pay, and redundancy pay you are owed.
- Start applying to licensed sponsors immediately.
- Keep records of every job application you send.
- Get advice from an IAA-authorised immigration adviser if you are unsure.
Next steps
Related guides:
This guide is general immigration information, not immigration advice under s.82 Immigration and Asylum Act 1999. Immigration rules change frequently. For advice on your specific situation, consult an IAA-authorised adviser or an SRA-regulated immigration solicitor. Always check GOV.UK for the authoritative current rules.
Related guides
Preparing a UK visa application?
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