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IMPACT – HIGH
What is the change? The U.K. government has agreed to expand the Shortage Occupation List (SOL) and adopt all of the Migration Advisory Committee’s recommendations to add new occupations from numerous fields, particularly health, information technology and STEM.
What does the change mean? U.K. employers should see a significant expansion in the range of jobs on the SOL from 1% of all jobs to 9% of total jobs, covering approximately 2.5 million workers. The SOL provides a list of jobs deemed to have local labor shortages, allowing companies to hire non-EEA workers to fill them without labor market testing.
Background: The MAC was commissioned by the Home Office to conduct a full review of the Shortage Occupation List in June 2018. The MAC held a public Call for Evidence in late 2018 and released its report in May 2019.
On July 23, the Home Secretary at the time, Sajid Javid, announced in a statement to Parliament that the government would accept all of the MAC’s recommendations.
The recommendations include adding all jobs in the following occupational categories to the U.K.-wide SOL:
The complete list of jobs recommended for the SOL is available in the MAC’s full report.
The MAC also recommended that the SOL be studied further to determine its relevancy under the future (post-Brexit) U.K. immigration system.
Analysis & Comments: The expansion of the SOL is welcome news, and it is hoped that it will ease labor shortages currently experienced by U.K. employers. Other benefits of an expanded SOL are that jobs on the list are not subject to the numerical cap on Tier 2 (General) visas if the category is oversubscribed, the government visa fees are lower for SOL jobs, and workers filling SOL roles are not required to meet the salary threshold of £35,800 for purposes of permanent residency eligibility after five years of living in the U.K.
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 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. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
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