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IMPACT – HIGH
The U.K. government has updated their guidance to help employers prepare for the U.K.’s new points-based immigration system, which is scheduled to be introduced on Jan. 1, 2021.
From Jan. 1, 2021, free movement for EU citizens will end and the U.K. will introduce a new points-based immigration system. Under the new system, EU citizens and non-EU citizens will be treated equally from an immigration perspective and will need to apply for permission to work in the U.K. before travelling to work. EU citizens living in the U.K. by Dec. 31 are not affected by the new system and they and their family members should apply to the EU Settlement Scheme in advance of June 30, 2021.
Irish citizens are exempt from these new rules and may travel to live and work in the U.K. without any restrictions from Jan. 1, 2021.
Under the new system, any EU and non-EU citizens coming to the U.K. to work will need to demonstrate that:
In addition to the above, the job offer must satisfy the government’s minimum salary threshold. This is the higher of either:
Employers wishing to recruit EU and non-EU citizens will need to have an existing Sponsorship license or apply for one in advance of recruiting EU and non-EU citizens. This will enable the employer to sponsor the migrant to work at their organization.
The Intra-company Transfer (ICT) route allows multinational organizations to move key business personnel employed overseas into the U.K. on a temporary basis, on the condition that ICT sponsorship requirements are met. The route will require applicants to be in roles skilled to RQF 6 (graduate level equivalent), and subject to a different minimum salary threshold from the main skilled-worker route.
Immigration Skills Charge
From Jan. 1, 2021, any employer sponsoring an EU and/or non-EU citizen will be required to pay the Immigration Skills Charge (ISC). Employers must pay £1,000 per skilled worker for the first 12 months, with an additional £500 charge for each subsequent six-month period. Discounted rates will apply to charities and small business.
Global Talent route
Under the new system, the existing Global Talent route will open to EU citizens as it currently applies to non-EU citizens. The purpose of the Global Talent route is to enable the most highly skilled applicants, to achieve the required level of points, to enter the U.K. without a job offer, on the condition that they are endorsed by a recognized U.K. body, who are approved by the Home Office.
An employer will not need to be a Home Office licensed visa sponsor to employ a migrant under the Global Talent route.
Under the new system a Graduate Visa will be available to international students who have completed a degree in the U.K. from summer 2021. The Graduate route will allow international students to remain in the U.K. and work at any skill level for two years after the completion of their course.
An employer will not need to be a Home Office licensed visa sponsor to employ a migrant under the Graduate route.
International students completing a PhD from the summer of 2021 will be permitted to stay in the U.K. for three years after the completion of their studies to live and work.
Analysis & Comments: The new system represents a significant change for employers recruiting from outside the U.K. labor market. Employers should be aware of the new points-based immigration system in advance of its launch and ensure that they put in place sufficient processes and controls so that they are prepared for the new system. The government’s new guidance in full may be found here.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
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