Terminating a Sponsored Employee: UK Employer Guide
When a sponsored employee leaves your organisation, you have specific reporting obligations to the Home Office. Failure to comply can put your sponsor licence at risk. This guide explains what you must do, the timelines involved, and how to handle common scenarios.
- Section
- Employers & Sponsors
- Reading time
- 10 min
- Last checked
- 24 March 2026
- Source
- The published Immigration Rules and GOV.UK guidance, linked throughout this guide.
- Rowan does not
- Look at your own case, tell you which route to choose, or say what the Home Office will decide. This guide shows the published rules and where to read them.
In short
- Report all departures to the Home Office within 10 working days.
- Use the Sponsorship Management System to make the report.
- The employee's visa may be curtailed to 60 days after reporting.
- Follow normal employment law procedures for dismissal or redundancy.
- Failure to report can result in sponsor licence sanctions.
When a sponsored employee stops working for you, you must report it to the Home Office within 10 working days through the Sponsorship Management System. This applies whether the employee resigned, was dismissed, or was made redundant. The employee's visa may be curtailed, giving them 60 days to find alternative arrangements. This guide covers your obligations, the process, and practical considerations.
Your Reporting Obligation
As a sponsor licence holder, you have a duty to report when a sponsored worker's circumstances change. When someone stops working for you, you must report this through the Sponsorship Management System (SMS) within 10 working days.
This applies in all circumstances:
- Resignation
- Dismissal (including gross misconduct)
- Redundancy
- End of a fixed-term contract
- Mutual agreement to end employment
- The worker not starting the job — reportable if they have not started within 28 days of the start date on their certificate of sponsorship
See our employer sponsorship responsibilities guide for a full overview of your ongoing duties.
What Happens After You Report
Once you report that a sponsored worker has left, the Home Office may:
- Curtail the worker's visa — the visa is shortened, typically to 60 days from the curtailment date or the original expiry date, whichever comes first
- Contact the worker to inform them of the curtailment and their options
During the 60-day period, the worker can:
- Find a new sponsoring employer and apply for a new Skilled Worker visa
- Switch to a different visa category (such as a spouse visa)
- Make arrangements to leave the UK
For more on the worker's perspective, see our guide on the 60-day rule.
Employment Law Considerations
Sponsored employees have the same employment law rights as any other worker. When terminating employment:
- Follow your normal disciplinary or redundancy procedures
- Provide the correct notice period as per their contract
- Pay any outstanding wages, holiday pay, and statutory entitlements
- Issue a P45 for tax purposes
- Pay statutory redundancy pay if they qualify (2 years' service)
Permission that is due to expire is not the same as permission that has ended. Someone who applied to extend before their permission ran out keeps their permission and their right to work while the application is being decided, under section 3C leave.
Redundancy of Sponsored Workers
Making a sponsored worker redundant follows the same employment law process as for any employee. Additionally:
- You must report the redundancy to the Home Office via SMS
- The worker's visa may be curtailed
- If you are making multiple workers redundant, the selection criteria must not discriminate based on nationality or immigration status
Impact on Your Sponsor Licence
Your reporting record is part of how the Home Office assesses your suitability as a sponsor. Failing to report:
- Can lead to compliance action against your licence
- May result in your licence being downgraded from A-rated to B-rated
- Could lead to suspension or revocation of your licence
For information on licence ratings, see our guide on A-rated vs B-rated sponsors. For audit preparation, see the Home Office audit guide.
TUPE Transfers
If your sponsored worker is transferring to another employer through TUPE (Transfer of Undertakings), the situation is different from a standard departure. See our TUPE transfer guide for Skilled Worker visa holders for specific guidance.
Next Steps
As soon as you know a sponsored worker will be leaving, prepare your SMS report. Follow your normal HR procedures for the termination and ensure the report is made within 10 working days. Check current guidance on GOV.UK.
Related guides:
Questions and answers
Do I have to report when a sponsored employee leaves?
Yes. You must report to the Home Office when a sponsored worker stops working for you, regardless of the reason. This includes resignation, dismissal, redundancy, or the end of a fixed-term contract. You must report within 10 working days using the Sponsorship Management System (SMS).
What happens to the employee's visa when I report their departure?
Once you report that a sponsored worker has stopped working for you, the Home Office may curtail (shorten) their visa. The worker typically has 60 days from the date of curtailment (or until their visa was due to expire, whichever is shorter) to find a new sponsor, switch visa categories, or leave the UK.
Can I make a sponsored employee redundant?
Yes. Sponsored employees have the same redundancy rights as any other employee. You must follow normal redundancy procedures, including consultation periods and statutory redundancy pay if eligible. You must also report the redundancy to the Home Office through the SMS.
Do I need to pay for the employee's flight home?
The sponsor guidance does not require you to pay for a sponsored worker's return travel. Some employment contracts or relocation agreements include it, so the contract terms are what decide the question.
This guide is general information about published immigration rules. It is not advice about an individual application under s.82 Immigration and Asylum Act 1999, and Rowan is not regulated by the Immigration Advice Authority. Immigration rules change several times a year. For advice on a particular situation, contact an adviser authorised by the Immigration Advice Authority or an immigration solicitor. Always check GOV.UK for the authoritative current rules.