Management

More changes due to UK immigration system

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Management
Written by Scott M. James, Faegre & Benson LLP, London   
Tuesday, 12 January 2010

The points-based system for hiring skilled overseas labour continues to evolve.

 

The points-based system for hiring skilled workers from outside the European Economic Area is just over one year old—a year that has been marked by seemingly constant changes. 

Procedures have been modified, evidentiary requirements have been altered, and rules have been amended.
 
Most of the changes introduced so far have been reactive amendments, i.e., changes made to tinker with procedures and requirements in reaction to various pressures and concerns. A series of upcoming changes, however, has had a longer and more public gestation period than others.

The process began last February when the government, in light of the more difficult economic environment, asked the Migration Advisory Committee (MAC) to investigate and address the desirability of changing the criteria of the Tier 1 (Highly Skilled Workers) category and abolishing or amending the requirements of the Tier 2 (Skilled Worker) category of the points-based system. 

Tier 2 Changes


MAC published its Tier 2 recommendations first, and the government quickly accepted MAC’s 16 recommendations on September 7. The two most important of these recommendations were that the Tier 2 (General) and Tier 2 (Intra Company Transfer) categories be retained. The government has recently announced its timetable for implementing the other recommendations.

Effective December 14, the minimum duration for a job advertisement to satisfy the Resident Labour Market Test for Tier 2 (General) status increased from 1 to 2 weeks to 4 weeks.  Employers who began advertising a position before this date do not need to advertise for this longer period.

The following major changes will be implemented in early 2010.


•    Each of the “proposed earnings” points bands will be raised. For example, qualifications for the minimum five points will be raised from £17,000 to £20,000 and for the maximum 20 points from £24,000 to £32,000.

•    Employees transferring intra-group to work in the UK will have to have been employed within the group for 12 months, up from the current six months, in order to qualify for Tier 2 (ICT) status.

•    An exception to this 12 months’ prior employment requirement will be for graduates, who will need only three months’ prior employment to qualify but who can work in the UK for a maximum of 12 months.

•    The government may introduce a third-party certification scheme to ensure that “employers of high risk” have completed the Resident Labour Market test fully and fairly before they can issue a Tier 2 (General) Certificate of Sponsorship.

•    The government may commit greater resources to enforcement of the Tier 2 (ICT) rules, i.e., more audits, and that enforcement may be more transparent.

Tier 1 Recommendations


MAC published its Tier 1 recommendations and report on December 4.  The following major changes to the Tier 1 (General) category were recommended.

•    Reversal of a policy introduced abruptly in March requiring Tier 1 candidates to have achieved a minimum education level of a master’s degree. MAC recommends applicants be permitted to apply with only a bachelor’s degree.

•    Applicants with “previous earnings” of over £150,000 would not be required to score points for educational achievement.

•    Professional qualifications in law and accountancy would be deemed equivalent to a master’s degree.

•    Thresholds for “previous earnings” points would be substantially increased with, for example, the starting level increasing from £20,000 to £24,000.

•    The maximum age for which an applicant would be awarded points would increase from 28 to 39.

The government will announce in early 2010 whether it accepts MAC’s Tier 1 recommendations. 

As with all changes the government has implemented during the short life of the points-based immigration system, employers licensed as Tier 2 sponsors must stay informed about changing Tier 2 criteria. Employers who do not stay informed cannot ensure they are issuing certificates of sponsorship properly, i.e., only when the applicable Tier 2 criteria are satisfied.

Employers should also maintain awareness of changes to the Tier 1 routes to immigration. These are important alternatives to Tier 2 routes if the employer is not registered as a sponsor or does not want to sponsor an employee. 

 
 

 

 
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