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