IMPACT – MEDIUM

What is the change? EU citizens who have obtained U.K. settled status under the EU Settlement Scheme are now able to prove their status by sharing a secure online code.

What does the change mean? The electronic share code is new, but remains optional. EU citizens may continue to use a passport or national identity document to prove their right to reside in the U.K. until at least the end of 2020.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: EU settled status.
  • Business impact: The electronic share code system gives EU, EEA and Swiss nationals a convenient option if they need to prove their settled status to businesses and agencies.
  • Next steps: Instructions for entering an individual’s share code are available at https://www.gov.uk/check-settled-status.

Background: Since January, employers have been able to use the online service to view right-to-work status of an applicant who shares his or her status digitally. The service has now been expanded to banks and other agencies seeking confirmation of an EU, EEA, or Swiss citizen’s settled status.

Analysis & Comments: EU citizens who wish to use the digital platform to confirm their settlement status may generate a share code to be entered into the system by a bank, the Department of Work and Pensions, or other entities seeking confirmation of their rights 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.

The United Kingdom has published a Statement of Changes to immigration rules, outlining clarifications and amendments to the EU Settlement Scheme and the Tier 2 route for skilled workers, among other programs.

Some of the key changes are as follows:

  • EU Settlement Scheme. In line with an April 4 announcement, the changes amend provisions on the EU Settlement Scheme for family members of U.K. nationals returning to the U.K. from an EEA member state or Switzerland.
    • In cases where the relationship with the U.K. national exists at the time of Brexit, family members will have access to the EU Settlement Scheme until March 29, 2022. This provision will apply whether there is a “deal” or “no-deal” Brexit.
    • In cases where the relationship with the U.K. national does not exist at the time of Brexit, family members will have access to the EU Settlement Scheme until Dec. 31, 2020. This provision will also apply whether there is a “deal” or “no-deal” Brexit.
  • Tier 2 (General) category – Ph.D.-level occupations. Effective Oct. 1, Ph.D.-level occupations will be removed from the Tier 2 cap of 20,700 visas per year. This change is part of the U.K.’s effort to show that it welcomes researchers and other highly skilled workers. The change will make it easier for employees to hire non-EU nationals in Ph.D.-level jobs and will free up cap space for other skilled workers.
  • Tier 2 (General) category – Shortage Occupation List. Effective Oct. 6, the Shortage Occupation List (SOL) will be expanded in line with recommendations from the Migration Advisory Committee (MAC) earlier this year. The expansion includes the addition to the list of a number of jobs in health, information technology and STEM fields. Employers may hire non-EEA nationals in jobs that are on the list without completing a labor market test and without being subject to the numerical cap on Tier 2 (General) visas. The full list is available here.
  • Tier 2 (General) category – English test for medical professionals. The changes will exempt doctors, dentists, nurses and midwives from having to sit for an English language test if they have already passed such a test administered by the relevant professional body. A corresponding change provides that doctors, dentists, nurses and midwives who have already passed an English language test will be deemed to have sufficient English skills for settlement.
  • Tier 2 (General) category – absences from employment. The changes make it clear that Tier 2 employees will not be penalized for certain absences from employment, including absences due to sickness, statutory parental leave, or engaging in legal strike action. This means, for example, that Tier 2 migrants would not be denied indefinite leave to remain if such absences caused their pay to drop below the required salary level for foreign workers in this category.
  • Tier 1 (Entrepreneur) category – closed. This category has closed for most initial applications. It remains open to existing Tier 1 (Graduate Entrepreneur) and Tier 1 (Entrepreneur) migrants.
  • Tier 1 (Investor) category – U.K. Government bonds. Under changes made earlier this year, U.K. Government bonds can no longer be used for qualifying investments. The recent changes, however, will allow investors who made qualifying offers before those changes took effect to make extension or settlement applications, as long as they move their qualifying investments out of U.K. Government bonds before April 6, 2023 for extension applications, and April 6, 2025 for settlement applications. The changes also allow for investors who miss these deadlines to apply for extensions or settlement if they meet other conditions, including investing at least £2 million in qualifying investments before they apply for additional extensions and maintaining the full £2 million investment for the qualifying period required for settlement.

The full Statement of Changes is available here. An explanatory memorandum on the changes is available here.

Analysis & Comment: The clarification on the EU Settlement Scheme will provide some certainty for non-EU family members of U.K. nationals, especially given that the changes cover both the “deal” and “no deal” Brexit scenarios. The removal of Ph.D.-level jobs from the Tier 2 category and the expansion of the Shortage Occupation List could help some employers deal with labor shortages U.K. companies are currently experiencing. The change to English testing requirements for medical professionals will reduce administrative burdens for some foreign workers.

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/aboutto 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.

IMPACT – MEDIUM

What is the change? The Home Office is advising U.K. and EU nationals with passports that expire between now and May 2020 to renew their passports ahead of Brexit.

What does the change mean? U.K. and EU nationals who are planning travel between the U.K. and EU and who have passports that will expire in the coming months should submit a renewal application as soon as possible. Once the renewal application is submitted, it may take up to three weeks to receive the new passport.

  • Effective date: Immediate and ongoing.
  • Who is affected: U.K. and EU passport holders.
  • Business impact: Companies should urge their U.K. and EU employees traveling in and out of the U.K. to renew their passport if it is set to expire between now and May 2020. After Brexit, it may take considerably longer to renew passports, and U.K. and EU nationals should ensure they have a passport that is valid for the upcoming months ahead of Oct. 31.

Analysis & Comments: U.K and EU nationals traveling in and out of the U.K. after Brexit with a passport set to expire between now and May 2020 should renew their passports now as they may not be able to travel with their current passport after Brexit. Companies should urge affected employees to submit renewal applications immediately to avoid difficulties traveling after Oct. 31.

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.

IMPACT – MEDIUM

What is the change? The United Kingdom has issued guidance that requires Tier 2 and Tier 5 sponsors to check the date on which migrant employees enter the U.K. Sponsors are then required to create and retain a document recording the date of entry.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: Tier 2 and Tier 5 visas.
  • Who is affected: Tier 2 and Tier 5 sponsors.

Additional information: In most cases, the date of entry can be checked by examining the entry stamp in the employee’s passport. In some cases, however, the employee will not have an entry stamp (e.g., if the employee holds a valid visa and entered the U.K. through Ireland or if the employee entered the U.K. using eGates at the airport). In these cases, sponsors must ask to see additional evidence such as a ticket or boarding pass. Sponsors must make a record of the date of entry but are not required to retain other evidence.

Sponsors should make sure employees entered the U.K. when their visa was valid. In cases where employees entered the U.K. before their visa was valid, they should leave the Common Travel Area and re-enter the U.K. when their visa is valid. Employees who entered the country before their visa was valid are not eligible to work.

Analysis & Comments: The new rules create additional administrative requirements for sponsors and may, in some cases, lead to delayed start dates if employees entered the country before their visa was valid. Sponsors should note that the new rules do not replace or change sponsor responsibilities to ensure that non-EEA/Swiss nationals are eligible to work 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.

IMPACT – MEDIUM

What is the change? The Migration Advisory Committee has opened a Call for Evidence seeking comments from businesses and other immigration stakeholders regarding salary thresholds and a points-based style immigration system post-Brexit.

What does the change mean? The deadline for submitting comments is Nov. 5. The MAC is expected to issue a report by early next year and the government is expected to introduce a new immigration system on Jan. 1, 2021.

  • Implementation time frame: The Call for Evidence closes on Nov. 5. A MAC report is expected by January 2020. A new immigration system will be introduced Jan. 1, 2021.
  • Visas/permits affected: All points-based categories, including Tier 2 visas for high-skilled workers.
  • Business impact: The design of the new immigration system will have a significant impact on the ability of U.K. companies to attract, hire and retain foreign workers, both European and non-European.
  • Next steps: As the MAC is on a tight deadline to complete its work, businesses and individuals that wish to respond to the Call for Evidence should do so by the deadline of 9 a.m. on Nov. 5.

Background: In 2018, the MAC issued a report on EEA migration and the future U.K. immigration system and recommended that existing salary thresholds should be maintained in the Tier 2 (General) route that currently covers high-skilled non-EEA workers. The government only partially adopted the recommendations on salary thresholds and, on June 24, commissioned the MAC to further study salary thresholds and the future thresholds that should be set under the U.K.’s post-Brexit immigration system.

On Sept. 6, the government then commissioned the MAC to study various models of points-based immigration systems, in particular Australia’s system, and propose recommendations on how the U.K. can strengthen its labor force and attract global talent through its immigration system.

The MAC is made up of independent economic experts and is commissioned by the U.K. government to provide data and recommendations on migration. The committee’s findings and recommendations are not binding, but are highly influential on government policy.

Analysis & Comments: U.K. businesses that rely on non-resident labor are strongly encouraged to participate in the Call for Evidence. The future immigration system and the minimum salary levels that will be set for foreign workers in various sectors will have a direct impact on the ability of companies to access to global talent.

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.

IMPACT – HIGH

What is the change? The United Kingdom has announced plans for a new visa category for international students who have completed their studies in the U.K.

What does the change mean? International students who have valid U.K. student immigration status and have successfully completed a course of study in any subject at the undergraduate level or above at a government-approved college or university will be eligible to apply for a visa to work, or seek work, in any position within the U.K., for two years after completing their studies. The Graduate Route will apply to the 2020-21 university intake of students and those coming to study in the U.K. thereafter. The Graduate Route is similar to the two-year Post Study Work Visa the U.K. government discontinued in 2012.

  • Implementation time frame: The new Graduate Route will launch for the 2020-21 intake of students to university.
  • Who is affected: Eligible international students graduating from U.K. universities.
  • Business impact: The new visa category will allow businesses to employ international graduates from U.K. universities for two years after they have completed their studies, without the requirement to sponsor them on a skilled work visa. This means that businesses will no longer be required to adhere to migrant-specific minimum salary thresholds, which may fall outside of their existing salary bands. There is no requirement for businesses to offer migrants in the Graduate Route permanent contracts in order to employ them.

Additional information: The Graduate Route will offer two-year visas to eligible international graduates to live, work and seek work in the U.K. for a period of two years after graduating from a U.K. university, which is significantly longer than the current four months they are allowed. It will also allow them two years to seek a job that meets the skill requirement for them to switch to a skilled work visa.

The announcement goes further than the proposals included in the government white paper, published in December 2018, which stated that international undergraduate and master degree students would be permitted to work in the U.K. for six months (12 months for Ph.D. students) after completion of their studies. Under the Graduate Route, they could to switch to a skilled work visa, currently called a Tier 2 General visa, if they find a job that meets the skill requirement of that route.

Under current U.K. immigration rules, the Tier 2 General visa allows eligible migrants the opportunity to apply for Indefinite Leave to Remain in the U.K. after working in the U.K. for a period of five years.

Analysis & Comments: This announcement indicates that the current U.K. government wishes to make it easier for international students graduating from university to live and work in the U.K. after completing their studies and provides business with greater flexibility in employing recently graduated international students. It is important for students and businesses to be aware that the Graduate Route will not apply to those currently studying in the U.K., but only to those students who are part of the 2020-21 intake.

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/aboutto 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.

IMPACT – HIGH

The United Kingdom has announced immigration arrangements for EU citizens in the event of a no-deal exit from the European Union.

Key Points:

  • EU/EEA citizens resident in the U.K. before 11 p.m. on Oct. 31, 2019 will retain their rights to settlement and access to services that they currently have. These individuals will need to apply under the EU settlement scheme by Dec. 31, 2020.
  • EU/EEA citizens moving to the U.K. after 11 p.m. on Oct. 31, 2019 will be able to enter the U.K. as they currently do, with no need for any permission prior to travel. If these individuals plan to stay in the U.K. beyond Dec. 31, 2020, they will either need to:
    • Register for European Temporary Leave to Remain (Euro LTR) when this route opens after Brexit. (Guidance on how to apply is available here). There is no obligation to register if leaving the U.K. before Dec. 31, 2020, but the application will be a simple online process with ID, security and criminal checks. Successful applicants will be granted 36 months leave from the day of grant. This will provide EU citizens who move to the U.K. after Brexit, and their employers, greater confidence and certainty during the transition period, and ensure that they have a secure legal status in the U.K. before the new immigration system is introduced in January 2021; or
    • Submit an application for leave under the new immigration system before Dec. 31, 2020.

If applicants are granted Euro LTR, an application under the new immigration system will only need to be made when Euro LTR is expiring. EU/EEA citizens moving to the U.K. after Oct. 31, 2019 will be subject to tougher rules on criminality and conduct. They will also be able to accrue time spent in the U.K. towards ILR under new immigration rules after Jan. 1, 2021.

  • EU/EEA citizens traveling to the U.K. after Brexit will see no immediate changes to border-crossing procedures. These individuals will be able to use passports or ID cards, though the use of ID cards will be phased out in 2020. They will also be able to use e-gates if they have a biometric passport.
  • Non EU/EEA family members of EU/EEA citizens will be able to join EU/EEA citizens in the U.K. Spouses, civil partners, unmarried partners and dependent children under 18 will be able to join EU/EEA citizens in the U.K. and stay until Dec. 31, 2020.
  • Irish nationals will continue to enjoy the same immigration rights in the U.K. Under the Common Travel Area arrangements, Irish nationals can continue to enter, live and work in the U.K. without permission. Close family members joining them after Brexit will be able to apply for Euro LTR. If no application is made by Dec. 31, 2020, they will need to apply under the new immigration system if they wish to remain in the U.K. beyond this date.
  • U.K. nationals will be issued with blue U.K. passports from end of 2019. If they moved to the EU before Brexit, they will be able to use EU law to bring close family members with them to the U.K. (Surinder Singh rights) until March 29, 2022. If they move to the EU after Brexit, they will no longer acquire Surinder Singh rights and close family members returning with them to the U.K. will need to meet U.K. immigration rules.
  • Right to work checks (RTWC).
    • Employers can continue to accept EU/EEA passports or ID cards until Oct. 31, 2020.
    • EU/EEA citizens can chose to provide digital evidence of Euro LTR.
    • Employers will not need to distinguish between EU/EEA citizens who moved to the U.K. before or after Brexit and will not need to do RTWC retrospectively after Jan. 1, 2021.
    • Beginning Jan. 1, 2021, EU/EEA nationals will no longer be able to rely on their passport or ID card and will need to provide employers with their U.K. immigration status.

Analysis & Comments: Following significant uncertainty in the past few weeks, the immigration arrangements are welcome news for EU/EEA citizens and U.K. employers. Although frontier workers have not been mentioned, they will be able to continue traveling and working as they do now, as no immediate permission is required.

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.

IMPACT – MEDIUM

What is the change? The Home Office has announced a plan to introduce a new fast-track visa for select professionals with skills in science, technology, engineering and mathematics (STEM).

What does the change mean? The new scheme will be part of the Tier 1 Exceptional Talent visa route and will offer three-year visas to eligible individuals in the STEM fields. Once their visa has expired, they will be eligible to apply for permanent residence in the U.K.

  • Implementation time frame: To be announced.
  • Visas/permits affected: Tier 1 Exceptional Talent visas.
  • Who is eligible: Foreign nationals in STEM related professions. Applicants will not need to meet a minimum salary threshold to be eligible or have a job in the U.K. to apply.
  • Business impact: The new visa category aims to help companies recruit foreign labor in the science and research sectors.

Additional information: In addition to introducing a new fast-track visa for STEM professionals, the Home Office has announced additional proposed changes to the Tier 1 Exceptional Talent visa including: removing the requirement that those endorsed as Exceptional Promise must have been awarded a prestigious research fellowship, opening up the route to those who have received European research funding, and removing the cap of individuals able to obtain the visa.

The new fast-track visa will allow holders to obtain dependent visas for spouses/partners and children under 18.

Analysis & Comments: The expansion of the Tier 1 Exceptional Talent route is good news for companies looking to hire foreign talent in STEM fields as it will help them attract experienced foreign nationals. More information regarding the application process will be announced later this year.

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.

IMPACT – MEDIUM

What is the Brexit update? In the last couple of days, news outlets have reported on the immediate end of free movement on Oct. 31 in the event of a no-deal Brexit.

What does the news mean? At the moment it is not clear whether the comments made by the Home Secretary represent a change in the underlying government policy; we note that no official legal changes have been announced.

Analysis & Comments:  While awaiting further news, companies may want to prepare for changes to the legal position on short notice. Should work visas be required for business travel between the U.K. and the EU (in both directions) beginning Nov. 1, 2019, companies should make it a priority to assess which employees will be moving for work between the U.K. and the EU immediately after Oct. 31.

Beyond this, businesses may want to collect more details regarding employees’ roles, salaries and period of assignment/move, as these will be factors that will potentially impact the ability to secure a work permit in time for planned moves. If individuals are planning to relocate in the near future, employers should consider whether it is possible to bring dates forward before Oct. 31 to enable individuals to relocate under the free movement rules currently in place.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom. 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.

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.

  • Implementation time frame: Autumn 2019.
  • Visas/permits affected: Tier 2 (General) visas.
  • Business impact: The expansion should help ease labor shortages in certain job roles.
  • Next steps: The expanded SOL will be implemented in the Autumn Immigration Rule statement of changes, which is usually published in the fall. The Home Office also plans to adopt the MAC’s recommendation to launch a pilot program to encourage immigration to remote areas, but details will be released later on.

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:

  • Programmers and software developers
  • IT business analysts, architects and systems designers
  • Web design and development professionals
  • Civil, mechanical, electrical or electronical engineers
  • Design and development engineers
  • Production and process engineers
  • Medical practitioners
  • Veterinarians
  • Quality control and planning engineers
  • Architects

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.