What if the HSM employer goes bankrupt or loses recognised-sponsor status?
Separate three issues immediately: whether employment legally continues, whether wages are protected by UWV, and whether the IND still accepts the employer as a recognised sponsor.
Employer cannot pay wages
UWV may provide an insolvency benefit after a court-recognised bankruptcy, payment extension or debt restructuring. UWV states that the benefit can cover unpaid wages for up to thirteen weeks, notice pay for up to six weeks and defined final-pay items. The insolvency practitioner controls whether work continues until the contract ends.
When does the HSM search period start?
Financial distress alone is not necessarily the contract end date. Use the curator or employer letter and UWV documentation to establish when employment legally terminates. The ordinary HSM search period then starts on that date, subject to the permit-expiry cap.
Recognition suspended
During suspension, the organisation is removed from the public register and cannot use recognised-sponsor status for new applications. Existing employee cases require close monitoring because the IND is investigating whether the organisation still meets the recognition conditions.
Recognition withdrawn
The IND can assess withdrawal of employee permits. Where the foreign national did not know the reason and was not involved, the IND says it will not withdraw immediately and gives three months to find another recognised sponsor. If the foreign national knew or was involved, immediate withdrawal can be possible.
Do not assume the newer six-month HSM search rule automatically replaces the IND's stated three-month protection in a recognition-withdrawal case.
Emergency action list
- Check the employer's status in the IND public register.
- Get the court, curator or employer document confirming the employment status and end date.
- Contact UWV promptly about unpaid wages or insolvency benefit.
- Save payslips, pension records, holiday balances and the HSM application file.
- Start recognised-sponsor outreach immediately.
- Review family permits, health insurance and travel plans.
- Obtain immigration advice if the IND issues a withdrawal intention or decision.