Immigration lawyers expect Government restrictions on foreign workers to cause further hardship to UK businesses

26/02/2009
The Government's new proposals to restrict the number of skilled workers entering the country may severely hamper UK employers at a time when they need to be focused – according to leading immigration lawyer Nichola Carter, a partner in the immigration team at London and South East law firm Penningtons Solicitors LLP.

In an announcement covered by national television and press on Sunday 22 February 2009, the Home Secretary Jaqui Smith confirmed that she has asked the Migration Advisory Committee (MAC) to consider where there is an 'economic case' for further restrictions relating to skilled workers under tier 2 of the new points based system. Following discussions with the Home Office, Nichola Carter has discovered that this request covers all categories of skilled workers, including those moving as a result of intra-company transfers (ICTs). Nichola has therefore requested a copy of the specific proposal which has been put to the MAC and also clarity from the UK Border Agency as to the exact measures which the Home Secretary has already agreed will take effect on 31 March 2009.

Coming only three months into the brand new sponsorship system and seemingly in reaction to current media coverage about the wider economic downturn, this action is concerning. Around 10,000 employers, many of whom are struggling to find the skilled labour their businesses need, have applied for a sponsorship licence in the expectation that, providing they comply with the scheme, tier 2 will provide them with the ability to employ skilled migrant workers quickly if their efforts to find a skilled resident worker fail. Nichola Carter says: "It is becoming increasingly obvious that, for many, this may have been a wasted process and there is widespread concern that employers will not be able to quickly recruit the skilled workers they need (resident or migrant) to increase output as and when business opportunities arise during the downturn. Many do not mind helping to train and up-skill resident workers, but at the moment they must concentrate on business and need people with the skills in place who can hit the ground running."

The Home Secretary has announced that with effect from 31 March, Certificates of Sponsorship issued in relation to tier 2 (skilled workers) will only be valid and legal if the employer has firstly advertised the position through Jobcentre Plus. Nichola Carter says: "This seems to be an unfair and disproportionate reaction to the current economic climate which may severely distract UK employers. They are worried that they will lose hours of valuable management time sifting through spurious applications from hundreds of individuals who do not posses the relevant skills but who need to be seen to be applying for jobs posted on Jobcentre Plus. It is difficult to see how an advert seeking a worker with specific skills is going to produce a better result if placed in Jobcentre Plus (which is not exclusive to the resident work force) than if it is placed in a sector specific forum, where suitably skilled people are far more likely to look."

Tier 1
The Home Secretary has also confirmed that from 31 March further changes will 'tighten new criteria against which highly skilled migrants seeking entry to the UK are judged, by raising the qualifications and salary required for tier 1 of the points based system to a Master's degree and a minimum salary of £20,000'. The UK Border Agency has confirmed to Penningtons that at the moment this only relates to those people who are new entrants into tier 1 (General).

Philip Barth, who heads the immigration team at Penningtons Solicitors LLP's City office, says: "If potential applicants – and these could be work permit holders who have skills which UK companies desperately need and who are concerned about redundancy - have only a Bachelor's degree, they must make their tier 1 application urgently before this door is slammed shut. Penningtons is in the process of trying to negotiate transitional arrangements with the UK Border Agency which could help those who do not have three months worth of maintenance as yet."

Continued uncertainty for business visitors
In view of the current uncertainty, Nichola Carter has also had further communication with the UK Border Agency in relation to business visitors. Nichola says: "I was asked by a client to try and get to the bottom of what exactly a business visitor can do because the ongoing uncertainty is starting to cause real paralysis. Many of their colleagues in the US need to come to the UK for various business related activities and the UK HR team cannot confirm if they can come as visitors or if they need work visas. I contacted the team in charge of the policy on this at the UK Border Agency and the feedback indicates that many individuals who are entering the UK as business visitors thinking they comply with the rules are in fact breaching the conditions of stay, particularly professionals who are coming here to provide clients with advice. These individuals will be liable to the mandatory ban regime and associated employers who hold a sponsorship licence may face connected sanctions." 

Contacts: Nichola Carter >>, Philip Barth >>
Areas of expertise: Immigration - business services >>,
                                   immigration - private individuals >>