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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.
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.
What is the change? The U.K.’s Home Secretary has asked the Migration Advisory Committee to review salary thresholds for foreign workers.
What does the change mean? The MAC will review current salary thresholds and related questions, including the best way to calculate thresholds, whether thresholds should vary by region and the circumstances under which exceptions should be granted.
Background: In December of 2018, the Government published a white paper proposing a new immigration system. The White Paper set the minimum salary for workers in the skilled-workers route at £30,000 per year, but officials said they would continue to consult stakeholders to determine whether that was the best threshold. In a letter last month, Home Secretary Sajid Javid asked the MAC to review (1) the best mechanism for calculating future salary thresholds, (2) the proper levels of salary thresholds, (3) whether the U.K. should introduce regional salary thresholds, and (4) whether some workers should be exempted from salary thresholds.
Analysis & Comments: Business groups have warned that a £30,000 salary threshold could lead to a skills shortage, especially in sectors with comparatively low wages, including social services and healthcare. A flat £30,000 threshold could also have an impact on regions of the U.K. with comparatively low wage rates. And while the MAC has previously recommended that existing salary thresholds should be retained, the Government’s request to review its impact in a post-Brexit environment indicates that the Home Office is willing to consider the concerns U.K. businesses have expressed regarding its earlier immigration White Paper.
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.
What is the change? Ireland and the U.K. have confirmed that the U.K.-Ireland Common Travel Area will remain, regardless of the outcome of the U.K. Parliament’s Brexit negotiations.
What does the change mean? The CTA will continue to allow Irish and British nationals to travel, live and work in the U.K. and Ireland in the case of a no-deal Brexit.
Background: The CTA provides reciprocal rights to Irish citizens and U.K. citizens to travel, study, work and reside in each other’s country on the basis of their passport and without further immigration processing, such as work or residence permit procedures. The memorandum of understanding signed last week noted that the “CTA and associated reciprocal rights and privileges existed long before either Ireland or the UK were members of the European Union” and that “the privileges which Irish and British citizens enjoy (under the CTA) are separate from, and therefore not dependent on, EU citizenship or EU membership.”
Analysis & Comments: The memorandum affirms that Irish and U.K. nationals will continue to enjoy the privileges they have under the CTA, regardless of the Brexit outcome, and ensures that companies will be able to continue employing the affected nationals as before Brexit.
The Migration Advisory Committee (MAC) has released its report and recommendations on the Shortage Occupation List.
The report recommends a substantial expansion of the SOL to include a broader range of jobs in health, information technology and STEM fields. The recommendations would expand the SOL from 1% of total jobs (180,000 workers) which it currently covers, to about 9% of all jobs (around 2.5 million workers).
The SOL is the list of skilled jobs for which local workers are deemed to be in shortage and for which employers may hire non-EEA workers without labor market testing and without being subject to the numerical cap on Tier 2 (General) visas if the category is oversubscribed. Non-EEA workers filling jobs on the SOL also pay lower visa fees and are not required to meet the salary threshold of £35,800 for permanent residency (settlement) after five years.
The MAC makes the following recommendations:
The complete list of recommended SOL jobs is available in the MAC’s full report.
Background: On June 14, 2018, the government commissioned the MAC to undertake a full review of the SOL and issue a report with recommendations by spring 2019. The MAC launched a Call for Evidence on Nov. 9, 2018 and accepted comments for nine weeks, as well as conducting stakeholder events. The committee received approximately 600 responses.
The MAC is an independent group of economists that conducts analysis and makes recommendations to the U.K. government on immigration policy. Its policy recommendations are not binding on the government, but are highly influential and often adopted.
Analysis & Comments: The MAC’s recommended expansion of the Shortage Occupation List would be a welcome development to ease the labor shortages currently felt by U.K. companies. In particular, the MAC found that the jobs most in shortage are programmers and software development professionals, and the shortage of these workers affects not only the digital sector but businesses in sectors across the board.
What is the change? The United Kingdom has expanded access to eGates to nationals of Australia, Canada, Japan, New Zealand, Singapore, South Korea and the United States.
What does the change mean? Nationals of these seven countries will be able to use automated self-service gates at 15 international airports in the U.K. and two Eurostar terminals in Brussels and Paris. They will also not be required to fill out a landing card when entering the U.K.
Analysis & Comments: Monday’s expansion of access to eGates marks the first time the self-serve terminals will be available to non-EU/EEA nationals. Nationals of Australia, Canada, Japan, New Zealand, Singapore, South Korea and the United States will enjoy easier entry procedures when traveling to the U.K.
Biometric enrollment services are currently suspended for U.K. visa applicants at USCIS Application Support Centers.
Key points:
Analysis & Comment: Little information is available about what caused the suspension, but the statement on VFS Global’s site says said officials are working “to restore service as soon as possible.” Depending on the urgency of travel plans, applicants may wish to complete biometrics enrollment for an additional charge at one of the VFS application centers. Those affected are encouraged to contact their immigration provider to discuss their best options.
What is the Brexit news? The Swiss Federal Council has approved a bilateral Swiss-U.K. agreement that will administer the status of U.K. nationals in Switzerland and Swiss nationals in the U.K.
What does the news mean? The effective date of the agreement depends on the outcome of negotiations between the EU and the U.K.
Key points of the Swiss-U.K. agreement:
Background: While many EU member states are currently establishing unilateral measures to protect U.K. citizens’ rights under a no-deal Brexit, Switzerland must take a bilateral approach to its Brexit planning, as the country’s immigration regime does not fully fall under EU mobility regulations. Switzerland is not part of the EU but is a member of Schengen, a peculiarity which distinguishes Switzerland’s immigration regime from that of its European neighbors.
Switzerland has established various bilateral agreements that support free movement to and from the country. Currently, relations between the U.K. and Switzerland are governed by FMOPA. After Brexit, the U.K. will no longer be an EU member and the agreement will not cover U.K. citizens.
Analysis & Comments: The agreement, if ratified by both countries, will provide some certainty to employers as well as to U.K. and Swiss nationals residing in each other’s country. While some post-Brexit and post-transition procedures remain unclear, it is likely that employees will be able to continue working and residing in their respective host country based on their current status. Employers should ensure that sufficient preparation is afforded to those nationals who will require work and residence permit in a post-Brexit scenario.
The U.K. government has now confirmed that in the event of a “no deal” Brexit:
In the alternative, in the event that the Withdrawal Agreement (“the deal”) is ratified:
It is important to note that in any scenario, Irish nationals will continue to have the right to enter and live in the U.K. under the Common Travel Area arrangements which pre-date the European Union, and will not need to apply under either the EU Settlement Scheme or for European Temporary Leave to Remain. Moreover, the rules for EU nationals will be applied equally to nationals of EEA countries (Norway, Iceland and Liechtenstein) and to Switzerland.
Analysis & Comments: Employers have known for weeks that, whether or not there is a deal, the EU Settlement Scheme will protect EEA nationals living in the U.K. prior to March 30, 2019. However, the position for new assignees arriving in the U.K. post-Brexit has been unclear until now. Employers are only now in a position to conduct thorough no-deal planning that takes into account the position for both current and future employees from the EU, EEA and Switzerland. This latest announcement confirms that new migrants, while allowed entry to the U.K. on the same terms and at no cost, will have to obtain a temporary visa with a fee in order to stay beyond three months. If they are staying more than three years, they would then need to follow with an application under the U.K.’s new single immigration system once it is launched. Employers must therefore factor in increased costs and process requirements for EU, EEA and Swiss nationals in the short term should “no deal” prevail, and amend recruitment strategies accordingly.
In the event of no deal, employers will for the first time have two sets of Europeans in their workforce: those with residency rights (which may or may not be registered under EU Settlement Scheme) and those with temporary permission to live and work in the U.K., the ETLR permit holders. However, the fact that right-to-work checks will continue to be based on passports, ID cards, and biometric residence cards alone means that employers should not have to adapt right-to-work checks at short notice.
What is the change? The U.K. government has announced plans to scrap all fees for EU nationals and their family members applying to register their residence in the U.K. under the EU Settlement Scheme. Registration under the scheme will now be free.
As a reminder, under the EU Settlement Scheme:
Analysis & Comments: Today’s announcement that the government will scrap fees for registration under the EU Settlement Scheme—£65 for adults and £32.50 for children—should be welcomed by employers and employees. Employers looking to support employees with EU Settlement Scheme applications should be ready for further questions about the scheme, especially regarding payments and refunds, and to amend any Brexit communications in light of this change once it is formally incorporated into the immigration rules.