Government announces cap on non-EU migrant workers

Many businesses are now global employers. As a result, HR professionals often find that their roles encompass advising on immigration law.

Background

The UK immigration system underwent a radical overhaul in 2008. Over 80 different immigration categories were streamlined into the following five main areas:

Tier 1 - Highly Skilled Migrants
Tier 2 - Skilled Workers
Tier 3 - Low Skilled Workers
Tier 4 - Students
Tier 5 - Temporary Workers

The most significant of these changes was the introduction of the concept of sponsorship and the associated administrative, reporting and cost implications for employers.

However, at the time this added burden on businesses was largely masked by the media fanfare heralding the new model as transparent, robust and designed to attract those migrants that the UK required.

So has the system delivered what it promised? Many critics say no, citing that the self certification nature of sponsorship is not properly policed and that the restrictive categories do not allow certain skilled migrants to qualify.

However, the recent statistics published by the UK Border and Immigration Agency suggest that the system is working and that applications for immigration and asylum have dropped significantly.

The Future

The new Government has committed to tightening immigration control and imposing a cap on the number of workers entering Britain from outside the EU.

The cap on migrants is due to take effect on 1 April 2011 and will be announced following a 12 week consultation with businesses which is due to close at the end of September 2010.

As part of the proposed restrictions, the Government has indicated that the number of points required under Tier 1 (Highly Skilled Migrant category) will be increased from 95 to 100 and that the number of applications per month will be limited. Additionally Tier 2 Sponsors will be limited in the numbers of Certificate of Sponsorship that can be issued through the sponsorship management programme.

In order to avoid a flood of migrants applying for permits before next April, an interim cap is in force from today, 19 July 2010. This interim limit includes capping the number of Tier 1 applications at the equivalent monthly level for 2009/10. Once the limit is reached applications will be held until the next month’s allocation is opened. The limit will not apply to those who are already in the UK, dependants of Tier 1 applicants or the investor, entrepreneur and post study work categories of Tier 1.

There is also an interim limit on the ability of Tier 2 Sponsors to issue Certificates of Sponsorship applications until 31 March 2011. Overall there will be a reduction of 1,300 Certificates of Sponsorship. Importantly for businesses, the Tier 2 limit will not apply to intra company transfers. Dependants of Tier 2 workers, sportspersons and ministers of religion are also not affected.

If you are a Tier 2 Sponsor you will shortly be notified of your Certificate of Sponsorship allocation, which will be based on your usage from 19 July 2009 to 31 March 2009 following the application of a reduction for Sponsors who issued two or more certificates during this period. Some Sponsors, including those who have been downgraded to a B rating and new Sponsors, will be given a zero allocation for this period and will be unable to assign new Certificates of Sponsorship.

Sponsors who require further certificates can apply for more but these will only be granted in exceptional circumstances.

What does this mean in practice?

In the long term it will inevitably be harder for migrants to enter the UK and as a result harder for HR professionals who are tasked with recruiting or transferring employees from abroad to achieve their objectives within the time frame required or, in some cases, at all. In certain cases it may be possible to use a different non restricted route such as post study work and this should be considered.

In the interim, if you are supporting Tier 1 applications you should encourage the migrant to make the application as soon as possible before the monthly limit is reached to ensure there is a good chance of success.

For Tier 2 Sponsors, it is now more important than ever that you ensure that you comply with your reporting obligations and retain your “A” status. Failure to do so could result in being unable to issue Certificates of Sponsorship. If you do not feel that you have been allocated enough Certificates of Sponsorship you should complete a “Request for Initial or Additional Allocation of Certificates of Sponsorship” form, available from the UK Border Agency website, as soon as possible.

If you need advice, an overview or simply a conversation about this update or any other business immigration issue please contact our Business Immigration team on 0118 952 7284.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

Back to news