How to continue the time for applying for permanent residency after the employer of a UK work visa goes bankrupt?

A case that reached the UK Supreme Court was stuck during the application process: the original employer's sponsor licence was revoked, and the existing CoS immediately became invalid. Home Office did not inform in a timely manner, and rejected the application three months later. In [2020] UKSC 41, the court confirmed that failure to inform promptly constituted procedural unfairness; however, the majority of judges also held that the law does not therefore impose an additional period of time to allow the applicant to find another sponsor.

This is exactly where employers are most likely to make a mistake after an incident: receiving the message early does not mean the statutory period will automatically be extended.

This case is stuck due to the guarantee being revoked.

Under the current rules, the consequences differ if an employer goes bankrupt, fails to renew its license, is acquired without processing new guarantee qualifications within the specified time, or if the licence is formally revoked. During the suspension period, existing employees usually can continue working, and pending visa or Settlement (permanent residency) applications will be put on hold; after formal revocation, CoS will be canceled, and existing permits are usually shortened to 60 days, with those originally shorter than 60 days retaining their original shorter duration. If the individual is involved in the reason for revocation, the permit may also be canceled immediately.

The boundary of the two processing paths comes from Appendix Skilled Worker SW 21.1: whether the five-year qualifying period has already been met.

Keep the valid license within five years first

If less than five years have passed, the task is to obtain a new employer's CoS and submit the change of employment application (change of employer application) before the expiration date of the current permit. The new position will be re-evaluated based on the occupation code, skill level, and salary rules on the day of submission; the fact that the previous position was qualified does not mean the new position is automatically qualified. After submitting on time, the Immigration Act 1971 section 3C usually extends the original permit, and the period during which the decision is pending can also count towards continuous residence. The applicant should not start the new position or leave the common travel area before approval, otherwise the onshore application may be considered withdrawn.

The preparation sequence can be compressed into four steps: verify eVisa and cancellation notice, confirm the new position is guaranteed, obtain new CoS, and complete domestic visa replacement.

From which day does the 60-day period of the UK visa start?

The statement "the company is closed and there are still 60 days left" is inaccurate. The applicable deadline should be based on Home Office, the new expiry date specified in the cancellation decision; if the original permit has only 30 days remaining, it will not be extended to 60 days. The May 2026 version of "Cancellation and Curtailment of Permission" also states that a cancellation decision cannot extend the permit beyond its original expiration date. If a company ceases operations for more than 60 days without replacing the guarantor, the case may directly result in the cancellation of the permit, so it is not advisable to wait for notification before starting to look for a job.

Save the notice of business closure, termination documents, unpaid salary records, CoS, and all UKVI emails, as they will be needed for the subsequent explanation of the timeline.

Already five years, but cannot directly rush.

Applicants who have already met the five-year requirement still need to show the sponsor's status at the time of application submission and decision. SW 24.1 requires that the sponsor corresponding to the most recent permit is still approved at the decision date; SW 24.2 also requires that this party confirms the position will continue to exist and meet the permanent residency salary level. The August 2026 version of Sponsor Guidance, section S9.23, states clearly: if the licence is withdrawn before the Settlement decision is made, the application will be refused. When the company has ceased operations, it is difficult to genuinely confirm continued employment even if the licence page has not been updated yet.

My judgment is: if the previous employer has closed down or officially lost its license, it should not use ILR to apply for a gambling update time difference.

ILR Remedial Order After Submission

Until a decision is made, it is advisable to seek professional advice as soon as possible to assess the arrangement of using the new CoS to replace the visa application and change the pending application; do not wait for a refusal letter, as the new valid application will affect the original application and section 3C status. After the new Skilled Worker permission is approved, the usual five years on the original eligible route can usually continue, and changing employers itself will not reset the clock. Insiders will wait for an additional evidence: the Home Office August 2026 version of Skilled Worker caseworker guidance requires checking PAYE and indicates to submit payslips and bank statements for the last month, with dates no earlier than 31 days before the submission. Applying for ILR immediately after the new position is approved may miss this step.

Don't consider 60 days as the complete window for job searching; upon confirming the day of losing your license, you should work backward from the shortest available period CoS, visa transfer, and salary evidence.

[Data Source] GOV.UK "Employees: if your visa sponsor loses their licence"; Immigration Rules Appendix Skilled Worker; Home Office "Skilled Worker caseworker guidance" (August 2026 edition)

This article is for reference only. For specific issues, please consult a licensed attorney.

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