press release
Businesses set to pay price for overseas labour points system
18 February 2008
As the Government introduces major changes to the UK’s
immigration and overseas recruitment system businesses that employ
workers from abroad could end up paying a heavy price according to
employment experts at Midlands law firm Browne Jacobson.
A new points based migration system, similar to one operating in
Australia, will be phased in from 29 February 2008. In some cases
the fees will more than double. For example, the visa fees for
skilled workers is set to increase by 50% to £600. Fees for further
leave to remain as a highly skilled migrant are expected to rise
from the current £350 to £750.
Currently there are more than 80 routes by which non – EU
nationals can come to work in the UK. In the majority of cases an
employer has to apply for a work permit. If approved the employee
has to make an application for entry clearance overseas which could
be refused. If it does the employer has to start again with a new
worker.
The new system consolidates the existing system into five
tiers ranging from highly skilled migrants such as doctors and
entrepreneurs to temporary workers and students:
Tier 1 - caters for highly skilled migrants such as scientists
and entrepreneurs. This is the first tier to be rolled out - any
highly skilled foreign nationals currently working in the UK who
want to extend their stay will have to apply under this tier of the
new system.
Tier 2 - targeting skilled workers with a job offer to fill gaps
in the UK labour market (e.g. nurses, teachers, engineers) is
expected to be introduced in the third quarter of 2008.
Tier 3 - for low skilled workers filling specific temporary
labour shortages (e.g. construction workers for a particular
project); numbers will be limited in this tier.
Tier 4 – for students. This is expected to be introduced at the
beginning of 2009.
Tier 5 - for youth mobility and temporary workers (e.g. working
holiday makers or musicians coming to play a concert) and is also
expected to be introduced in the third quarter of 2008.
Points will be awarded to reflect aptitude, experience, age and
the level of need in a particular sector. Employers act as sponsors
and issue a certificate of sponsorship to their prospective
employee. This will enable the employee to make an application for
entry clearance overseas. Sponsors under Tiers 2 to 5 will be
required to register in advance of the Tiers becoming operational.
Fees of £1,000 will be payable by employers with 50 or more
employees (£400 for charities and small employers).
Dawn Lobley, Employment Solicitor at Browne Jacobson said:
“Many employers are concerned as to how the new points based
system will affect them, and small and medium sized businesses in
particular are worried how the administration of the new points
based system and new fee structures and sponsorship schemes will
affect their business.”
Dawn Lobley also warns employers of their obligations to ensure
that they are not employing foreign workers illegally. A new
statutory regime for preventing illegal working also comes into
effect on 29 February 2008.
She adds:
"From 29 February employers have new obligations to
undertake all necessary checks to ensure any prospective new
employees have a legal right to work in the UK. Failure to do so
could lead to a civil penalty of up to £10,000 for each employee
found to be employed illegally."
The level of penalty for employers can be increased or reduced
according to different criteria, including the number occasions the
employer has received a previous penalty or warning and whether
they have co-operated with the Border and Immigration Agency.
Employers who knowingly employ an illegal immigrant could face
unlimited fines and two years imprisonment.
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