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IMPACT – MEDIUM
Under the upcoming Statement of Immigration Changes that takes effect April 6, the United Kingdom will not raise the salary minimum for purposes of indefinite leave to remain. The statement also clarifies important aspects of the EU settlement scheme.
Key Changes:
Analysis & Comments: The Statement of Changes provide some positive developments and clarifications for settlement applicants. Tier 2 (General) applicants applying for permanent residency based on five years of U.K. residency will not need to meet a higher salary threshold to be eligible, which means they could apply later this year. The clarifications on the EU Settlement Scheme will benefit EEA nationals and their family members, including extended family members.
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. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? An immigration bill has been submitted to parliament that will officially end free movement with the European Union, paving the way for the new U.K. points-based system in 2021.
What does the change mean? The Immigration and Social Security (EU Withdrawal) Bill would repeal provisions relating to EU free movement that are currently contained in U.K. law while codifying longstanding free movement rights of Irish nationals to visit, work and reside in the U.K. without immigration processing even after the end of the transition period.
Background: The bill will formalize the end of free movement following the end of the transition period on Dec. 31, 2020. EU citizens will not be required to have a visa to enter the U.K. for visits lasting up to six months. However, the use of EEA national identity cards for purposes of entering the U.K. will be phased out this year. The Home Office is expected to release details in due course.
Analysis & Comments: The bill is expected to pass parliament shortly and companies should prepare for the new points-based system starting from Jan. 1 that will regulate all non-Irish international workers. Companies are reminded that EEA citizens and their family members who are living in the U.K. by the end of the transition period may apply for permanent residency through the EU Settlement Scheme until June 30, 2021.
IMPACT – HIGH
What is the change? The United Kingdom will increase the immigration health surcharge (IHS) from £400 to £624 per year.
What does the change mean? Starting in October, applicants applying for visas for longer than six months must pay the increased surcharge. Children will be subject to a new discounted rate of £470. The IHS for students and Youth Mobility Scheme applicants will also increase from £300 to £470.
Background: The U.K. introduced the immigration health surcharge in April 2015 to help cover costs of non-EEA expatriates’ use of the National Health Service. In January of last year, the surcharge was doubled from £200 to £400. The upcoming increase represents a 56% hike.
Analysis & Comments: The fee increase will mean a single applicant could be paying £3,120 for the IHS. Companies that cover the IHS on behalf of employees and their dependents should budget for the increases, which must be paid up front for each individual for the full duration of the visa at the time of application. This will also apply to EEA nationals upon the introduction of the new immigration system in January 2021.
The U.K. Home Office has issued guidance for foreign nationals currently in the U.K. who cannot return to China because of the coronavirus outbreak. The guidance covers extensions for expiring visas, status letters, government helplines, as well as absences for sponsored students/employees and British nationals in China.
Key Points:
Analysis & Comments: The guidance indicates the U.K. government’s flexibility regarding Chinese and other foreign nationals whose ability to return to China is affected by coronavirus-related delays and restrictions. Employers and sponsors are urged to review guidance updates from Public Health England and must be prepared to be flexible with employee schedules and start dates for employees who are affected by travel restrictions and quarantines. Please contact your Deloitte professional if you would like to discuss any specific cases that may be impacted by coronavirus.
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. © 2020.
What is the change? The Home Office has unveiled its plans for a new points-based immigration system that will take effect Jan. 1, 2021. This will coincide with the end of free movement from the European Union.
What does the change mean? The single system will apply to non-EU and EU nationals (with the exception of Irish passport holders who may continue to live, study and work in the U.K. without the requirement of obtaining a visa) and require that those coming to work in the U.K. have a job offer and meet income thresholds as well as a points threshold under the points system. There will no longer be a route for low-skilled foreign workers.
Key features:
Analysis & Comments: The plan adopts many of the Migration Advisory Committee’s recommendations and provides a blueprint for U.K. companies to begin planning for recruitment and talent acquisition and retention when free movement ends on Dec. 31. Employers are reminded that under the transition period, EU citizens who are living in the U.K. as of the end of 2020 may apply under the EU Settlement Scheme until June 30, 2021.
What is the change? The United Kingdom has declared coronavirus a “serious and imminent threat to public health,” giving officials in England authority to detain, screen and isolate individuals who may have been exposed to the virus. Currently, passengers from flights that returned from Wuhan, China are under quarantine for a 14-day period.
Background: The U.K. designated coronavirus a “serious and imminent threat” on Monday. So far, the measures the government has taken will only apply in England, not Scotland, Wales or Northern Ireland. The Secretary of State has designated two locations, Arrowe Park Hospital and Kents Hill Park, as “isolation” facilities; the secretary has also declared Wuhan and Hubei Province as “an infected area,” meaning travelers from this area may be subject to screening or quarantine. The U.K. has temporarily closed visa application centers in China.
Analysis & Comments: While the action the U.K. has taken is not as drastic as what some other countries have implemented, it nevertheless represents a significant escalation of the country’s response to the coronavirus. Travelers who have been to Wuhan or other parts of Hubei Province should expect delays and the possibility of quarantine. The response to coronavirus continues to evolve rapidly. Deloitte will alert clients to any important developments as additional information becomes available.
What is the change? The U.K. is launching the new fast-track visa scheme for top international scientists, researchers and mathematicians.
What does the change mean? Those who qualify will be eligible for faster visa processing and an accelerated path to settlement.
Additional information: The Global Talent route will replace the Tier 1 Exceptional Talent on Feb. 20. U.K. Research and Innovation (UKRI) will manage the fast-track scheme. Under the program:
While the Tier 1 Exceptional Talent route was capped at 2,000 applicants per year, there will be no cap on the Global Talent route.
Analysis & Comments: The new visa program aims to help companies recruit foreign labor in the science and research sectors and is part of a broader effort to bring top foreign talent in scientific fields to the U.K. Additional information may become available closer to the Feb. 20 launch date, and Deloitte will update clients as needed.
What is the news? The Migration Advisory Committee released its report containing recommendations for the U.K.’s immigration system following its exit from the European Union and the conclusion of the transitional period on Dec. 31, 2020. The report covers the points-based system and salary thresholds.
Key Recommendations:
Points-Based System
The MAC recommends retaining the Tier 2 (General) route for skilled workers with a job offer, introducing a route for skilled workers without a job, and a review of the settlement criteria before raising settlement salary thresholds. Each of the three recommendations are summarized below.
Skilled workers with a job offer
Skilled workers without a job offer
Settlement
Salary Thresholds
Background: The MAC published its report in response to the U.K. government’s request for its recommendations on salary thresholds and examination of points-based systems. It is hoped that the recommendations will assist in the creation of the U.K.’s national immigration system, which is scheduled to come into force on Jan. 1, 2021.
Analysis & Comments: The MAC’s recommendations provide some predictability in retaining the Tier 2 (General) route and the existing framework for salary thresholds. While the government is not legally bound by the MAC report, it will take the recommendations into consideration, which will likely influence its policymaking.
What is the change? The U.K. has made its priority service available for Tier 2 (General)-based applicants applying for permanent residence (“indefinite leave to remain”).
What does the change mean? For an additional fee of 500 pounds, applicants who are already in the U.K. applying for permanent residence based on the Tier 2 (General) route may request the priority service which provides for a decision within five business days. The Priority service was not previously available to Tier 2 (General)-based applicants applying for permanent residence.
Analysis & Comments: The priority service is an additional option for companies sponsoring Tier 2 (General) employees for permanent residence. The priority service fee is in addition to the standard government fees required to file the permanent residence application.
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.
What is the change? The U.K. government has updated guidance for EEA and Swiss nationals traveling to the U.K. for business or visits without a visa in the event of a no-deal Brexit.
What does the change mean? The guidance confirms that under a no-deal Brexit, EEA and Swiss nationals may continue to travel without a visa to the U.K. for short-term visits and business trips, and clarifies the types of identification documents required. Irish nationals are not affected because the Common Travel Area provisions will remain in effect after Brexit.
Background: The guidance, updated Oct. 25, confirms the following rules for EEA and Swiss nationals traveling to the U.K. after a no-deal Brexit:
Analysis & Comments: The risk of a no-deal Brexit has been temporarily averted, with the Brexit deadline pushed back to Jan. 31, 2020 and the British Parliament’s vote to hold a General Election on Dec. 12. Companies with European employees traveling to the U.K. should understand the travel rules and restrictions if a no-deal Brexit occurs.
Source: 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.