Managing Business Changes Mergers, TUPE, Moves and Reporting Duties to UKVI: Practical Guidance for Employers

Business changes like mergers, takeovers or moving parts of your operation can affect sponsor licences and the people you employ. You need to know when TUPE protects staff, what you must tell UKVI, and how to keep sponsored workers compliant through the change.

Get this right and you protect employees, keep your sponsor licence intact, and avoid serious immigration penalties.

This article breaks down the key scenarios—complete takeovers, partial transfers, service changes and relocations—and explains your reporting duties and practical steps to manage sponsored workers and TUPE transfers. Follow the clear actions here to reduce risk and make any transition smoother for your business and your team.

Key Business Changes Affecting Sponsor Licences

You must report ownership or structure changes quickly and keep sponsored workers’ records accurate. Failure to tell UKVI on time can lead to licence suspension, visa curtailment or removal of sponsorship duties.

Mergers and Acquisitions Impact

When your organisation merges with or is bought by another, UKVI treats the event as a material change. You must update the Sponsor Management System (SMS) within 20 working days of the change taking effect. Provide details of the new legal entity, Companies House number, trading name and any new senior personnel responsible for sponsorship.

Check whether the acquiring or merged entity meets sponsor licence requirements. UKVI will assess your continued ability to meet duties such as record keeping, right-to-work checks and genuine vacancy checks. If the new combined business changes job roles, pay or work locations, you must tell UKVI and, where relevant, reassign or re‑issue Certificate of Sponsorships.

Takeovers and Changes in Direct Ownership

A change in direct ownership or a takeover can affect the licence’s validity even if day-to-day operations stay the same. You must inform UKVI of share sales, changes to directors or major shareholders, and any change of registered office or trading address. Report these on the SMS within 20 working days.

UKVI may review your licence if owners linked to past non-compliance take control. Keep clear audit trails: board minutes, sale agreements and updated contact details for the Authorising Officer and Key Personnel. Prepare for possible compliance visits and supply documents quickly to avoid enforcement action.

Business Transfers and Splitting Entities

If you transfer part of the business, spin off a division or sell a subsidiary, determine which sponsored workers move and whether their sponsorships transfer under TUPE or require new Certificates of Sponsorship. For TUPE transfers, preserve contractual terms and check immigration status; you still must report staff movements and any change in job duties or location.

When you split entities, decide which legal entity will hold the sponsor licence. Notify UKVI of any licence transfers, or apply for a new licence if the transferee cannot assume responsibilities. Keep separate, clear records for each entity—payroll, contracts and right-to-work evidence—to show compliance for every sponsored worker.

Understanding TUPE and Employee Protections

This section explains how TUPE keeps employees’ contracts and rights when a business or service moves to a new employer. It covers when TUPE applies, what rights transfer, and special rules for sponsored workers with Home Office ties.

Transfer of Undertakings (Protection of Employment) Regulations Overview

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations.It protects employees’ terms and conditions, continuity of employment, and accrued rights when a relevant transfer occurs.

Key protections you should note:

• Contracts transfer automatically to the new employer with no break in service.

• Existing terms and conditions stay the same unless a valid economic, technical or organisational (ETO) reason permits changes.

• Employees retain continuity of employment for pension and redundancy calculations, though pension rights have specific rules.

Employer duties:

• Both old and new employers must inform and consult affected employees.

• You must provide employee liability information to the buyer before transfer.

• Unfair dismissal or unlawful variations can lead to tribunal claims.

When TUPE Applies in Corporate Transactions

TUPE applies to two main types of relevant transfers: business transfers and service provision changes.A business transfer occurs when a business or part of it moves to a new owner. A service provision change covers outsourcing, insourcing or contract re-tendering where staff move to the incoming contractor.

Factors that determine a transfer:

• Whether an organised grouping of employees and assets continues its identity after the move.

• The nature and scope of activities transferred, and whether key assets or customers transfer with the staff.

Practical steps for you:

• Identify which employees are assigned to the transferring activities.

• Review contracts, collective agreements and employee liability information.

• Plan consultation early to meet statutory timescales and reduce legal risk.

TUPE Protection for Sponsored Workers

If you employ sponsored workers under UKVI visas, TUPE still protects their contracts and continuity of employment.However, you must also meet Home Office reporting duties when sponsorship changes hands.

Key points for sponsors:

• The sponsoring licence does not transfer automatically. The new employer must hold or apply for its own licence if it will employ the sponsored workers.

• You must report relevant changes to UKVI, such as a change of employer (if the new employer becomes the sponsor) or a cessation of sponsorship.

• Sponsored workers’ visa conditions may affect whether they can stay in post after a transfer; check the worker’s permission and any restrictions.

Action checklist:

• Confirm the new employer’s sponsorship status before transfer completes.

• Notify UKVI within required timescales about changes to employment or sponsorship.

• Keep clear records of communications and steps taken to preserve the worker’s immigration status.

Reporting and Sponsor Duties During Changes

You must tell UKVI about key business changes and keep your sponsor licence records up to date. This includes reporting mergers, TUPE transfers, office moves and any change that affects your ability to sponsor workers.

Essential Reporting Requirements to UKVI

You must report any change of circumstances that affects your sponsor licence or sponsored workers. Reportable events include changes of trading name, change of legal entity, mergers or acquisitions, TUPE transfers of sponsored workers, and changes to your business address. You must also tell UKVI about significant reductions in staff numbers, breaches of sponsor duties, and where a sponsored worker’s job ends early.

When reporting, give precise facts: dates, new legal names, Companies House numbers, which workers are affected and whether their roles, salaries or duties change. Keep records of notifications and receipts from UKVI. Failing to report is a breach of sponsor duties and can lead to licence suspension or revocation.

Sponsor Management System Procedures

Use the Sponsorship Management System (SMS) for most reports and for managing Certificates of Sponsorship (CoS). Log in as one of your authorised users to update licence details, assign or withdraw CoS and record worker changes.

Where the SMS does not cover an event, use the change of circumstances form or email the dedicated UKVI contact given in your guidance.

Keep a clear audit trail in the SMS: note who made each change and why. Update vacancy details and right to work records promptly. For offshore workers, follow any new SMS prompts or separate reporting routes UKVI requires.

Role of the Level 1 User and Authorising Officer

The Level 1 user and the Authorising Officer carry the main compliance responsibilities. The Level 1 user manages the SMS day-to-day: assigning CoS, updating worker statuses and filing SMS reports. The Authorising Officer holds senior accountability for immigration compliance and signs off major changes to the licence.

Both must ensure right to work checks are completed and retained. They must train staff who act as Level 2 or Level 3 users and must review SMS logs regularly. If leadership changes, notify UKVI with names, contact details and the date of change, so the register of licensed sponsors stays accurate.

Reporting Deadlines and Documentation

Report organisational changes to UKVI within 20 working days of the change where guidance specifies this timeframe. For terminations of sponsored workers or unreported breaches, report immediately through the SMS. Attach supporting documents such as Companies House filings, TUPE transfer letters, new contracts, and proof of updated right to work checks.

Keep copies of: CoS assignments and withdrawals, change of circumstances forms, meeting minutes about the change, and any correspondence with UKVI. Maintain records for the full period UKVI requires so you can prove compliance in audits or compliance visits.

Managing Sponsored Workers and Immigration Compliance

You must keep sponsored workers’ immigration status secure, follow reporting duties to UKVI, and manage Certificates of Sponsorship correctly during mergers, TUPE transfers, and business moves. Act quickly to record changes, check right to work, and update your sponsor licence details where required.

Transferring Sponsored Employees Under TUPE

When employees transfer under TUPE, their employment contracts move to the new employer, but immigration status does not automatically change.

• Check each sponsored worker’s current visa and CoS details before transfer.

• If the new employer already holds a sponsor licence, you must assess whether existing Certificates of Sponsorship (CoS) remain valid for the new employer’s sponsorship records.

• If the new employer does not hold a licence, they must apply for one or sponsoreess will need a new sponsor to maintain lawful employment under the Skilled Worker route.

• Report transfers to UKVI if they affect your ability to meet sponsor duties, and ensure payroll, contact details and monitoring records are updated.

Document every decision. Keep written records of immigration checks, advice given, and communications with the worker about their visa options.

Continuity of Immigration Status and Right to Work

You must preserve each worker’s right to work throughout the transaction to avoid illegal working breaches.

• Confirm the worker’s visa end date, any conditions, and whether the CoS used was employer-specific.

• If the transfer could break continuous employment required for settlement or future visa applications, explain the implications to the worker and seek immigration advice.

• Re-check right to work documents after transfer using the Home Office online service where possible.

• If a worker needs a new CoS or to switch employer on their Skilled Worker visa, time the application to prevent gaps in lawful status.

Keep copies of right to work checks and any UKVI correspondence for the required retention period under sponsor duties.

Sponsorship Duties for New and Existing Employers

Both the outgoing and incoming employers must meet specific UKVI sponsorship duties during and after a change.

• The sponsor must maintain accurate contact and HR details with UKVI, monitor sponsored workers’ attendance, and report non-compliance such as unauthorised absence, criminality, or material changes in employment.

• New employers who become sponsors must ensure they have robust HR systems to track sponsorship obligations and assign key people (authorising officer, key contact, and level 1 user).

• Continue to report changes: company ownership, staff restructures, and TUPE transfers if they affect your licence or sponsored migrants.

• Failure to report or to perform duties can lead to downgrading, suspension, or revocation of your sponsor licence.

Train staff in sponsorship compliance and keep a checklist for reporting timescales and record retention.

Certificates of Sponsorship and Skilled Worker Visas

Manage CoS issuance carefully to avoid visa refusals and compliance breaches.

• A CoS links a specific sponsored role to a named worker. You must issue an appropriate CoS type (worker CoS for Skilled Worker route) and record the assignment in the sponsor management system.

• Check job codes, salary thresholds and the worker’s eligibility under UK immigration rules before assigning a CoS.

• If a worker needs to switch employer, they usually require a new CoS from their new employer and must apply for a Skilled Worker visa assignment in time.

• Cancel unused or incorrect CoS promptly and notify UKVI of any change that affects the terms of sponsorship.

Keep CoS records, evidence of recruitment checks, and salary documentation to demonstrate compliance during audits.

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