There never seems to be a dull moment in mergers and acquisitions (M&A). In fact, M&A activity is seemingly on the rise. And, it's a timely reminder that such events can lead to unintended consequences in relation to violations for sponsor licenses.
This article in HR Review provides helpful insight to the potential pitfalls which if poorly managed, can have a significant knock-on effect for the rest of the organisation. Are you merging or acquiring any time soon, if so, keep these critical points in mind:
- Inform the home office
- Is a new sponsor license necessary?
- Strict deadlines apply
- Impact on employees
- Assess the broader risks
Businesses with a sponsorship licence to hire non-EEA workers operate under a raft of Home Office-enforced compliance duties. Failure to meet these obligations will impact the validity of the licence, and by extension the company’s permission to lawfully employ Tier 2 and Tier 5 visa holders. Beyond the day-to-day management of the company sponsor licence, additional, lesser-known requirements will also arise as a result of organisational changes – creating unexpected issues and risks for employers if not handled in accordance with the legislation.