Search
Contact
Login
Share this article
IMPACT – HIGH
The U.K. Government published its 164-page white paper Wednesday on the proposed future immigration system, which would replace the current points-based system with a skills-based system. The provisions below would be effective starting January 2021 with further operational details intended to be announced in early 2020.
The headline principles
The details
A skilled-workers route
The skilled-worker route would be a sponsored route but the intention is to make this route simpler and easier to use. As a result of these changes, processing times are intended to be shorter and the system would aim to reduce the burden on employers. The end-to-end processing time for the skilled-worker route would be two to three weeks compared with current Tier 2 processing times of three to six months.
The skills charge and National Health Service charge would continue to apply.
A temporary short-term workers route
Youth Mobility Scheme (YMS)
Students
Visitors – “a secure and smooth border”
Access to the UK benefits system
In line with the suggested changes to the immigration system, the white paper specifies that the Government is proposing that in the future individuals who are subject to immigration control would not routinely be able to access the U.K. benefits system. In practice they are suggesting that individuals moving to the U.K. from the EU would need to make significant contributions to the U.K. economy before they would be able to access certain state benefits. The expectation is that full access to the U.K. benefits system would only be available after settled status is granted, which is usually after five years. This would be a significant change from the current position of rapid access and would look to align the rights of EU migrants to access U.K. state benefits with those of non-EU nationals.
What if there is no deal?
The Government is intending to clarify its position on EU nationals entering the U.K.after March 29, 2019 if there is no Brexit deal, which is expected to be released shortly. Regardless, the Settled Status scheme which is anticipated to go live in early 2019 would apply.
Analysis & Comments: We welcome the proposed pro-business immigration system outlined in the white paper, which has taken into consideration the needs of U.K. and international businesses. The white paper looks to make clear that the U.K. remains open for business, aiming to attract the brightest and the best talent, while allowing for temporary low-skilled workers and youth-mobility workers to contribute to the U.K. economy. In our view, this white paper is a very positive first step toward the U.K.’s new immigration system starting in 2021.
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? The Home Office has published a Statement of Changes to the Immigration Rules across most categories in the points-based system and announced plans to implement a new seasonal worker scheme pilot. The Home Office has also announced its intention to further reform the Tier 1 categories for non-employer-sponsored, high-skilled business migration to the U.K. in the spring.
Key changes: The following changes to the Immigration Rules are due to take effect Jan. 1:
While full details are not yet available, the Home Office has also announced that the following changes can be expected shortly and to take effect by spring:
Analysis & Comments: The current changes for Tier 2 skilled workers requiring work permits and other points-based categories are mostly technical and minor. However, planned reforms to the Tier 1 categories are part of the Home Office’s significant reconsideration of all non-employer-sponsored, high-skilled migration routes, and build on the introduction of a new Tier 1 (start-up) visa route announced in June. In addition, the implementation of the seasonal worker scheme pilot for selected agricultural employers is a significant step toward testing the effectiveness of proposed U.K. immigration reforms at alleviating seasonal labor shortages.
High Priority
What is the immigration news? In response to widespread media reports last week that the Home Office has suspended Tier 1 Investor visas, the agency issued a new press statement via email Tuesday that “The Tier 1 (Investor) visa is not currently suspended, however we remain committed to reforming the route. A further announcement will be made in due course.”
Foreign nationals intending to apply under this route should be able to continue to lodge applications under current rules.
Additional information: Last Thursday, multiple news organizations including the BBC, the Guardian and the London Times reported on the basis of a press statement from the Home Office that the Tier 1 (Investor) visa category would be suspended with immediate effect owing to concerns about abuse and money laundering in the program. Minister of State for Immigration Caroline Nokes issued a written statement to parliament the same day indicating the Home Office’s intent to introduce reforms to the Tier 1 (Investor) program in spring 2019.
The Tier 1 (Investor) category provides visas and a path to permanent residency to foreign nationals who demonstrate a minimum investment of £2 million. Currently, applicants may meet the investment thresholds through holdings in a regulated financial institution in the U.K. or overseas for 90 days before the application, or if the funds were already invested in the U.K., through holdings in U.K. government bonds, share capital or loan capital in active and trading companies registered in the U.K.
BAL Analysis: Foreign nationals seeking to apply under the Tier 1 (Investor) route should be aware that changes are forthcoming and are likely to tighten the eligibility criteria, which could include removing holdings in U.K. government bonds as a qualifying investment and the possibility of applicants needing to demonstrate that their business investments have been audited.
This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the news? The U.K. government has issued a policy paper confirming the treatment of EU and EEA nationals in the U.K., and U.K. nationals in the EU/EEA, in the event of a “no deal” Brexit.
What does this mean? The negotiated Brexit Withdrawal Agreement provides important protections for EU nationals in the U.K., and U.K. nationals in the EU. It gives all EU nationals already in the U.K. a route to stay permanently via the EU Settlement Scheme and creates an implementation window until Dec. 31, 2020 in which free movement would continue. This agreement has been approved by the U.K. cabinet and by the EU at a recent summit, but must still pass through the U.K. Parliament.
The U.K. government has clarified citizens’ rights and what will change if the Withdrawal Agreement is not passed. EU nationals and family members living in the U.K. before March 29, 2019:
Notably, the policy paper does not deal with EU nationals entering the U.K. after March 29, 2019 but before the new immigration system is implemented on Jan. 1, 2021.
The policy paper also sets out that:
U.K. nationals in the EU:
Analysis & Comments: This policy statement confirms that there will be crucial differences for citizens’ rights in a “no deal” scenario. It should reassure the many EU nationals in the U.K. and their employers that they have a right to stay, and can continue to plan for the EU Settlement Scheme rollout in early 2019 (albeit with a reduced deadline to make their applications by Dec. 31, 2020). The greatest uncertainty is for new arrivals from the EU after Brexit on March 29, 2019, since very little detail has been disclosed as to how they will be treated in a “no deal” scenario.
IMPACT – MEDIUM
What is the change? Effective immediately, the U.K. government has suspended the Tier 1 (Investor) Visa category for new applications due to concerns about corruption. The visa allows foreign nationals to apply for visas and is a path to permanent residency in the U.K. if they are able to meet investment thresholds and criteria. The route will remain open for extension applications.
What does the change mean? The visas will be suspended until 2019, when stricter rules will be introduced to prevent fraud, including audits of applicants’ business investments and evidence that they have controlled a minimum of £2 million in funds for at least two years. Additionally, their investment under the Tier 1 Visa must be in an active U.K. company; investment in government bonds will no longer be considered.
Background: The Tier 1 (Investor) program was introduced in 2008. In 2014, following a Migration Advisory Committee report which found that the route provided little economic benefit to the U.K. labor force, the investment minimum was doubled from £1 million to £2 million. Until now, applicants could meet the investment thresholds through holdings in a regulated financial institution in the U.K. or overseas for 90 days before the application, or if the funds were already invested in the UK, through holdings in U.K. government bonds or share capital or loan capital in active and trading companies registered in the U.K.
Analysis & Comments: Foreign nationals will not be able to apply under the Tier 1 (Investor) Visa route until further notice from the Home Office. Applicants intending to apply when the program reopens should anticipate greater scrutiny, stricter investment criteria, and an audit of their businesses and investments.
What is the change? China has instituted a new biometrics requirement for visa applicants in the United Kingdom.
What does the change mean? Applicants ages 14 through 70 who are applying for Chinese visas in the U.K. will be required to provide fingerprints and a digital photograph as part of the application process.
Background: The biometrics requirement took effect this month. Similar requirements have been implemented recently in other parts of Europe, as summarized below:
Analysis & Comments: Visa applicants should factor in additional time to fulfil the biometrics appointment and the possibility of long queues during the first few weeks of this requirement.
What is the change? The Migration Advisory Committee has issued a call for evidence seeking comments from employers and other stakeholders to help determine which roles to include on a revised shortage occupation list.
What does the change mean? The feedback from employers will be used as evidence for the committee to make policy recommendations to the U.K. government about which occupations are accepted as being in national shortage and therefore may be filled by foreign nationals.
Key points:
Background: The shortage occupation list supports the U.K.’s current Tier 2 work permit regime. It is a fixed list of occupations and job titles that are deemed to be in national shortage, thus permitting employers to recruit workers to fill them from outside the U.K. Employers with vacancies on the list are not required to conduct a resident labor market test—i.e., prove the role has been advertised and no suitable resident worker is available—before issuing a Tier 2 certificate of sponsorship to support a visa.
As the U.K. is due to leave the European Union on March 29, 2019, and the rights of free movement for EEA nationals and their family members are set to end, the U.K. immigration system must be reconfigured to accommodate these nationals who did not previously require visas. The potential loss of access to this visa-free European labor force is of concern to many employers, and labor shortages could be acute in certain sectors that rely on lower-skilled migration, such as agriculture, retail, distribution and hospitality.
When the MAC was previously asked to look at the U.K.’s system post-Brexit, its June report on EEA migration recommended lowering the qualification level for Tier 2 visas to middle-level skill workers (RQF level 3 and above), to cover a greater number of roles, and therefore a greater number of people, including EEA nationals. While the shortage occupation list has previously included only highly skilled roles with a minimum (RQF level 6 and above), this call for evidence considers lower skilled roles as well (RQF level 1 and above) to try to achieve a full picture of the U.K.’s labor needs.
After the call for evidence closes on Jan. 6, the MAC may decide to meet with industry professionals to gather evidence in more detail. The MAC will use the evidence from national labor statistics in concert with evidence from the call for evidence in making its final report and recommendation on the shortage occupation list.
Analysis & Comment: Ensuring that the list is a true reflection of U.K. business needs is one of the ways that employers, particularly those anticipating shortages, can aim to safeguard their business. This consultation gives U.K. employers an opportunity to influence government policy by providing an evidence base for a widened shortage occupation list which recognizes more roles that are subject to shortages. Employers are strongly encouraged to provide feedback to the MAC by completing the online survey, and responses should be evidence-based and supported by data where possible. Employers have the option to provide additional information apart from the online survey. The deadline for submitting comments and evidence is Jan. 6.
What is the Brexit news?
After a five-hour emergency Cabinet meeting Wednesday, Prime Minister Theresa May secured Cabinet approval of her Brexit plan and Thursday recommended the draft text to Parliament. Negotiators for the European Union have already agreed to the draft plan. Several U.K. Cabinet ministers have since resigned, suggesting ministerial support is not unqualified and the deal is by no means secure.
What’s in the draft Withdrawal Agreement?
The draft U.K.-EU Withdrawal Agreement was released shortly after the Cabinet approved it. The 585-page agreement covers all aspects of the U.K.’s withdrawal from the European Union, including a transition period, mobility and EU/U.K. citizens’ rights, trade and a customs union, EU Court jurisdiction, and the land border between the U.K. (Northern Ireland) and Ireland. The key immigration-related provisions are summarized in detail below.
Transition period
A 21-month transition period during which free movement would remain in place will run until the end of 2020. EU citizens and U.K. citizens would retain the same rights to free movement, to work, study and access public benefits and to residency eligibility as they currently enjoy under EU law until the end of the transition period. The U.K. may at any time before July 1, 2020 request extension of the transition period.
Irish citizens
The U.K. will ensure that the Common Travel Area continues to apply. The CTA gives Irish and U.K. citizens the right to travel, live and work in each other’s countries without further processing.
Citizens’ Rights
EU citizens in the U.K. (and U.K. citizens in the EU) and their family members legally residing in the host country before the end of the transition period are eligible for permanent residency after accumulating five years of continuous residency and may count the time after 2020, if needed, to accrue the five years. EU citizens residing in the U.K. before the end of the transition period will need to register for a residency document within six months of the end of the transition period, i.e., no later than June 30, 2021. Close family members joining an EU national after 2020 will have three months from their arrival (or until June 30, 2021 if they arrive before April 1, 2021) to apply for settled status. Procedures are to be “smooth, transparent and simple” and avoid any unnecessary administrative burdens.
EEA and Swiss nationals
The citizens’ rights provisions are expected to apply to nationals of Iceland, Liechtenstein, Norway (European Economic Area nationals) and Switzerland pending reciprocity agreements between the U.K. and the four countries.
Professional qualifications
Professional qualifications will continue to be recognized in accordance with the EU Directive until the end of the transition period for all qualifications submitted before 2021. The U.K. will continue to retain access to internal market information systems for nine months following the end of the transition period.
EU Court jurisdiction
The U.K. will apply EU case law until the end of the transition, and U.K. administrative and judicial authorities will give due regard to EU case law decided after the transition period.
Northern Ireland
Until a superseding agreement is reached, a single customs union between the U.K. and the EU will be established to ensure the continued movement of goods and avoid a hard land border between Northern Ireland and Ireland and to protect the Good Friday Agreement. The U.K. and the EU will work to reach a superseding agreement before the transition period ends on Dec. 31, 2020.
Analysis & Comments
The mobility citizens’ rights provisions have not changed significantly since an earlier draft version, and the U.K. has already completed two pilot phases of the scheme for EU citizens to apply for settled status, which provides a fairly clear roadmap for U.K. and EU nationals regarding their mobility rights in the future. Other terms of the Withdrawal Agreement remain contentious with both hard-line Brexiters and opponents of Brexit, but the Cabinet’s endorsement of the Withdrawal Agreement marks a significant step in Brexit proceedings and will hasten negotiations with only five months before the U.K. leaves the EU. The European Council now plans to convene EU leaders at a special Brexit summit Nov. 25 to formally accept the Withdrawal Agreement.
What is the change? The Home Office has published its statement of immigration changes to take effect next month.
What does the change mean? The most significant change will be the implementation of the second testing phase of the EU Settlement Scheme for EU citizens and their family members living in the U.K. and needing to register post-Brexit.
Other changes:
Background: The EU Settlement Scheme was announced on June 21 to offer status in U.K. law for the estimated 3 million European citizens currently living in the U.K. under the European free movement law and on the basis of their European passports alone. The Scheme promises straightforward online registration with a light touch regarding documentation. Those with five years of residence in the U.K. would be granted “settled status” (i.e., permanent residence) and those without would be given limited leave (“pre-settled status”) to allow them to get to the five-year mark. Applications would be made any time until June 2021.
Appendix EU to the Immigration Rules came into force on Aug. 28 to allow the live testing of system functionality on a limited group of public-sector employees. Feedback has been positive on speed and ease of use. The next phase of testing is now due to start in November, with a goal of looking at the system end to end and how it affects more vulnerable groups, such as the elderly. Further changes are expected in December (for implementation in January 2019), and in early March 2019, so that the scheme will be operating fully by March 30, 2019—the day after Brexit.
Analysis & Comments: The changes announced this week are relevant to employers and European employees living in the U.K. to the extent that they provide evidence of the successful rollout of the EU Settlement Scheme despite the fact that the U.K. government is yet to secure an overall deal for Brexit (the Withdrawal Agreement remains provisional). The technology has proven successful in trial and applicants should be reassured that the user experience will be straightforward. Although the scheme is not yet operating, employers should work with their immigration professional now to fully consider how they intend to support their employees through this process and ensure that their right to work in the U.K. is documented.
What is the change? Prime Minister Theresa May has confirmed that people from Europe and the rest of the world will face the same immigration rules if they want to come to live or work in the U.K. after Brexit, heralding “an end to free movement for once and for all.”
What does the change mean? Employers can now expect the U.K. to have a single, unified immigration system for migrants from Europe and the rest of the world in which low-skilled migration is substantially cut and high-skilled migration prioritized, beginning in 2021. There will be no “preferential treatment” of EEA nationals under existing or renegotiated EU free-movement principles.
Below are the key provisions in the immigration plan.
Background: Following the Migration Advisory Committee’s influential report on regulating European migrants in the U.K., the Cabinet had agreed to the principle that EEA nationals and non-EEA nationals should follow a single set of immigration rules once European “free movement” ends post-Brexit. Tuesday’s announcements detail government thinking on the U.K.’s post-Brexit immigration plan.
Analysis & Comments: Tuesday’s announcements are relevant to employers and individuals interested in the long-term plans for migration in the U.K. The government has already confirmed that the rights of EU citizens already living and working in the U.K. will be protected after Brexit and this announcement does not alter that position. The EU Settlement Scheme is already undergoing a pilot pending rollout prior to March 29, 2019, allowing these EU citizens and their family members to register with settled or pre-settled status and continue to live and work in the U.K. Employers must still await the conclusion of EU negotiations, expected in November, when a white paper should be published with comprehensive detail of the U.K.’s revised immigration system.