IMPACT – HIGH
What is the change? The annual statement of changes to the Immigration Rules has been published.
What does the change mean? The statement of changes confirms anticipated structural changes for Tier 2 visas and increased costs for employers via the Immigration Skills Charge and Immigration Health Surcharge beginning in April.
Key changes: The changes represent the second phase of planned reforms first announced March 24, 2016, arising from the Migration Advisory Committee report of that year. Summary of key changes for employers:
Significant changes outside the Tier 2 scheme include but are not limited to:
BAL Analysis: The majority of these changes have been on employers’ radar for some time, but it is helpful to now have confirmation that there are no major last-minute changes. The business community had hoped that the “high value business” provision would allow greater exemption from the RLMT, but the provision clearly does not benefit existing high value multinationals who have been registered for three years or more in the U.K., nor smaller start-ups that cannot match the investment level or prove job creation with sufficient certainty. The major impact will be felt by imposition of the Immigration Skills Charge, both to overall business costs and short-term administrative burdens.
BAL is holding a webinar March 23 on “Making Sense of Brexit and Tier 2 Skilled Worker Reforms for U.K. Employers.” Registration and details are available here. We will also be sharing a Backgrounder on the changes which looks at wider reforms in detail.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact email@example.com.
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