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IMPACT – HIGH
What is the change? The allocated quota for Tier 2 Restricted Certificates of Sponsorship (RCoS) has been exhausted for the month of March, the fourth consecutive month the quotas have been exhausted.
What does the change mean? Employers should anticipate that requests for Tier 2 (General) Certificates of Sponsorship with points below the minimum 50 and a salary of less than £55,000 per year have been refused and will need to be resubmitted in April.
Background: The annual quota for Tier 2 (General) visas is 20,700, allocated into monthly quotas. In 2016, the monthly distribution was changed to provide higher quotas during the high-demand months of April through September and lower quotas in other months, thereby shifting pressure on months at the end of the fiscal year (December through March). When the monthly quota is reached, applications are ranked by points obtained, with more points earned for shortage occupations, higher salaries, and certain Ph.D.-level roles.
BAL Analysis: BAL anticipates pressure on quotas through May or June and recommends that employers plan accordingly. While the government considers whether to make changes to its shortage occupation list to alleviate pressure on the quotas, employers should consider salary as the deciding factor in the approval of an RCoS request. Companies that recruit higher earners will continue to be more likely to have their applications approved.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.
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