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?

There is no legal obligation to pay for the employee's return travel. However, some employment contracts or sponsorship agreements include this provision. Check your contract terms. It is good practice to offer support, particularly if the departure is due to redundancy.

Terminating a Sponsored Employee: UK Employer Guide

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 failing to start the job

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)

You cannot dismiss someone solely because their visa is expiring if they have applied to renew it (as they may have section 3C leave). Seek legal advice if you are unsure.

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
Consider offering support such as time to attend job interviews and immigration advice
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.

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