The High Court’s decision in R (on the application of Jaggi Construction Ltd) v Secretary of State for the Home Department [2026] EWHC 1431 (Admin) highlights the importance of lawful decision-making in sponsor licence cases. The judgment considers whether the Home Office correctly interpreted its Sponsor Guidance and whether it should have made further enquiries before revoking a sponsor licence.
Later in the article, we also outline when the Home Office can revoke a sponsor licence and what employers can do to keep their sponsor licence.
Written by Mahfuz Ahmed, Immigration Supervisor
Background
Jaggi Construction Ltd was granted a sponsor licence in July 2024 and assigned a Certificate of Sponsorship (CoS) to a migrant.
During the visa application interview, the migrant referred to one of the company’s directors as his “aunt”. The Home Office concluded that the CoS had been assigned to a “close relative”, contrary to the Workers and Temporary Workers Guidance, and revoked the company’s sponsor licence with immediate effect.
The company challenged the decision by way of judicial review.
The Key Issue
The case centred on the meaning of “close relative” in the Sponsor Guidance.
Although the guidance includes “aunts” among the prohibited relationships, the director was the migrant’s aunt by marriage rather than by blood. The company argued that the guidance does not expressly include relatives by marriage and that the Home Office had interpreted its policy too broadly.
The Court’s View
The High Court granted permission for the judicial review on the basis that it was arguable that the Home Office had misapplied its own guidance.
The Court noted that, where the Immigration Rules intend to include relationships by marriage, they do so expressly. The absence of similar wording in the Sponsor Guidance raised a genuine question as to whether an aunt by marriage falls within the definition of a “close relative”.
The Court also accepted that it was arguable that the Home Office should have made further enquiries before revoking the licence. Rather than relying solely on the migrant’s description of the director as his aunt, the interviewing officer could have clarified the precise nature of the relationship.
When can the Home Office revoke a sponsor licence?
A sponsor licence allows a UK employer to recruit eligible overseas workers, but it comes with ongoing responsibilities. The Home Office can revoke a licence if an employer breaches its sponsorship duties, no longer meets the relevant requirements or is considered unsuitable to act as a sponsor.
Under the current sponsor guidance, grounds for revocation include serious or systematic breaches of sponsor duties, failing to maintain the necessary systems and processes, certain criminal convictions or civil penalties, and conduct that poses a threat to immigration control or is not conducive to the public good. A business that ceases to have a genuine trading presence may also lose its licence.
Common compliance issues include:
- Failing to report relevant changes to a sponsored worker’s circumstances,
- Not keeping the required employment records,
- Failing to monitor attendance
- Allowing a sponsored worker to carry out a role that does not meet the applicable sponsorship requirements.
- Failure to carry out the required right-to-work checks can also have serious consequences.
Not every breach automatically leads to revocation. Depending on the circumstances, the Home Office may downgrade or suspend a licence while it investigates. However, some grounds permit immediate revocation, without a prior suspension or warning. The applicable sponsor guidance distinguishes between mandatory grounds, grounds that will normally result in revocation and circumstances where revocation is discretionary.
This is why employers should treat sponsor compliance as an ongoing responsibility rather than something to consider only when applying for or renewing a licence.
How can employers protect their sponsor licence?
The issues raised in Jaggi Construction demonstrate the importance of understanding the rules that apply to a sponsorship arrangement and ensuring that the relevant facts are accurately established. While compliance procedures cannot eliminate every risk, employers can take practical steps to reduce the likelihood of breaches and respond effectively if the Home Office raises concerns.
Keep accurate and up-to-date records. Maintain the documents required for each sponsored worker, including relevant employment records and evidence of right-to-work checks. Ensure records can be retrieved promptly if the Home Office requests them.
Meet reporting obligations. Report changes to sponsored workers’ employment and circumstances within the applicable deadlines. Employers should also understand which changes to their own organisation must be reported.
Monitor sponsored workers and their roles. Make sure sponsored employees are undertaking the work for which they are sponsored, and monitor attendance. Investigate unexplained absences and report them where required.
Maintain effective internal systems. Assign clear responsibility for managing the sponsor licence, keep HR procedures up to date and ensure that relevant staff understand how to use the Sponsorship Management System and comply with reporting requirements.
Review compliance regularly. Carry out periodic checks to identify gaps in record-keeping, reporting or internal procedures before they become more serious problems. The Home Office may consider whether a sponsor has adequate systems in place when deciding what action to take.
Respond promptly to Home Office enquiries. If the Home Office raises concerns or requests documents, take the correspondence seriously, preserve relevant evidence and respond within the specified deadline. Where allegations could put the licence at risk, seek specialist immigration advice promptly.
The Home Office expects sponsors to comply with their duties throughout the life of their licence. Having clear procedures in place, and acting quickly when problems arise, can help employers demonstrate that they take those responsibilities seriously.
Conclusion
Although this was only a permission for a judicial review decision, it serves as an important reminder that the Home Office must not only enforce sponsor licence compliance but also apply its own guidance correctly and make decisions based on adequate enquiries.
For sponsor licence holders, the case demonstrates that enforcement decisions are capable of challenge where they are based on an incorrect interpretation of the rules or an incomplete understanding of the facts.
This case reinforces that sponsor licence revocation is subject to judicial scrutiny. While businesses must meet their sponsorship obligations, the Home Office must also ensure that its decisions are lawful, fair, and supported by sufficient evidence. Where a licence has been revoked following a potential misinterpretation of the Sponsor Guidance or an inadequate investigation, obtaining specialist legal advice at an early stage can be crucial in protecting both the business and its sponsored workforce.
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