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IMPACT – MEDIUM
What is the change? Under changes to Immigration Rules, the annual quota for Tier 2 (General) visas will remain at 20,700, but the monthly quota distributions will change.
What does the change mean? The redistribution allows for higher quotas from April through September, with the aim of accommodating the peak graduate summer hiring season. Any unused slots will be eligible to carry over into the following month. However, projected hiring rates indicate that they are more likely to be used when they are allocated rather than carried over.
Background: Currently, the annual allocation of Tier 2 Restricted Certificates of Sponsorship is divided equally each month. When one month’s allocation is fully used, applications are carried over to the next month. Under the new rules, the following Tier 2 (General) allocations will apply:
BAL Analysis: The change in Tier 2 allocations will better accommodate the surge of applications in the summer, when employers onboard large numbers of new graduates, but it will also mean that the quota numbers are front-loaded and fewer will be available toward the end of the fiscal year. Given that allocation is prioritized according to salary, sectors that recruit higher earners will continue to be protected more than those that provide lower salaries.
Please note that further revisions to the Tier 2 routes are expected in upcoming Immigration Rule changes in response to recent recommendations by the Migration Advisory Committee. BAL will advise clients of these changes as soon as they are published.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.
Copyright © 2016 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.
U.K. voters will decide in a June 23 referendum whether Britain will remain in the European Union or exit (“Brexit”) the 28-nation bloc. Voters will cast their ballots on whether the U.K. should “remain” in or “leave” the EU, and a simple majority will decide the outcome.
Depending on the outcome of the referendum, U.K. immigration policy allowing “free movement” (and therefore the right to work and access benefits in the U.K.) for EEA nationals and their family members could change. Even if voters do approve a British exit, EU procedures require a transition period of up to two years in which a withdrawal agreement must be negotiated and approved by the European Commission and Parliament before the U.K. could terminate its obligations under EU treaties, including free movement rules.
Political background
In 2013, facing pressure from Eurosceptics within and outside his party, Prime Minister David Cameron promised a Brexit referendum if his Conservative Party won 2015 elections. Having announced the referendum last month, Cameron is campaigning against a Brexit, saying that while reform is required, Britain will be economically stronger and politically safer by remaining within the EU. On Feb. 19, Cameron negotiated an agreement with heads of EU member states providing a mechanism to amend the U.K.’s obligations under EU free movement and social security law. Given that EEA migrants’ access to U.K. benefits has been a major political issue, these potential reforms may be enough to secure a “remain” vote. Those who support a Brexit, including London Mayor Boris Johnson, argue that EU reform is not enough and Britain would do better to be free of the EU regulatory framework (which insists on free movement of goods, services and people, as well as numerous legal commitments including common agricultural and fisheries policy and rules on competition, monetary union and sovereignty).
Brexit and Migration
Immigration and free movement of migrants within the EU is a key issue in the Brexit debate. Free movement is a fundamental tenet of EU membership. Currently, the U.K. must admit any EEA national or accompanying non-EEA family member (including spouses, unmarried partners, children, parents and other designated family members) for work, study or as self-sufficient without visa restrictions and allow automatic permanent residence after five years in the U.K. EEA nationals and their family members therefore form a significant proportion of the migrant labor population in the U.K. Bids to significantly reduce migration to the U.K. are arguably impossible to meet without restrictions on EEA migration, but nothing short of a full removal from the EEA could deliver reduced migration.
Consequences of a Brexit
While the consequences of a Brexit are difficult to predict, the following scenarios are the likely possibilities, each carrying its own impact on the status of EU nationals in the U.K.:
Similarly, in the event of a Brexit, the immigration status of British citizens living in another EU member state would change, most likely with reciprocal arrangements put in place.
A Brexit would also make travel within the EU slower and more cumbersome. It is unclear if all EU nationals would remain exempt from visa requirements. They would no longer be able to use EU fast lanes at U.K. airports and would be required to fill in landing cards. Reciprocal arrangements would similarly impact British citizens traveling in the EU.
BAL Analysis: Withdrawal from the EU is unprecedented, making it difficult to predict the consequences of a Brexit. In the worst-case scenario, it would result in the elimination of visa-free migration for EEA nationals and EEA family members, who would need to fulfill Tier 2 or other points-based system visa requirements. The status of EEA nationals and EEA family members already working in the U.K. would most likely be maintained without disruption. BAL is closely following the referendum and will update clients on any significant developments in the months leading up the June 23 vote.
What is the change? As of April 6, applicants for points-based visas will no longer be able to use the Points Based Calculator self-assessment tool to determine if they meet the English language requirements. UK Visas and Immigration Service is eliminating the calculator as of April 10.
What does the change mean? Applicants who have not achieved a degree from a deemed English-speaking country will need to obtain an assessment of their qualifications from the National Recognition Information Centre (NARIC), an agency that provides advice on international qualifications.
Background: UK Visas and Immigration announced that it is phasing out the self-assessment tool due to cost. NARIC will take over the assessment of academic qualifications for immigration purposes beginning April 6.
At present it can take up to 10-15 working days to receive an English Language Assessment. A fast-track option (at additional cost) can expedite processing to 24-48 hours.
BAL Analysis: Employers should expect longer timelines for Tier 2 applications and all points-based applications, as they will need to go through an extra step of obtaining certification through NARIC and also an English language test, if necessary.
IMPACT – HIGH
What is the change? The U.K. Home Office will raise immigration fees on March 18 across the board for applicants within the U.K. and applying overseas.
What does the change mean? The largest increases will be felt by settlement applicants and those applying for indefinite leave to remain. Tier 2 visa application filing fees will rise minimally. Points-based sponsors will not see any increases to their sponsorship fees.
Background: The Home Office announced the new fees today. The most notable increases are settlement applications, which will rise to £1,195 (an increase of £239) for the main applicant and £2,676 (an increase of £535) for dependent family members, and applications for indefinite leave to remain, which will rise to £1,875 (an increase of £375).
Some optional premium services will also jump: Super Priority visa service will rise to £750 (an increase of £150) and Super Premium Service from within the U.K. will surge to £8,750 (an increase of £1,750). Tier 2 routes will see modest increases from £10-26, depending on the sub-route.
A full schedule of the government fees is available here.
BAL Analysis: The increases were expected, as the government continues to look to price controls as a means to limit immigration. Annual fee hikes have become the norm over recent years, with the Home Office continuing to charge beyond mere cost recovery, depending on the perceived benefit of the category. As such, government fees for settlement applications from outside the U.K. and indefinite leave to remain applications from within the U.K. – both of which confer the right to remain in the U.K. permanently – will rise more steeply.
What is the change? The U.K.’s Immigration Minister has announced a package of service-level reforms to improve visa turnaround times for U.K. visa applicants in India.
What does the change mean? Super Priority Service will be expanded to include first-time visitors and Tier 2 work visa applicants, and Priority Service will be expanded to visit, student and work visa routes. In addition, a shorter online visa application form will be introduced for all visa applicants.
Background: U.K. Immigration Minister James Brokenshire announced the expanded and improved visa services during a visit to India last week.
Super Priority Service provides 24-hour turnaround on visa decisions for a government fee of £600 in addition to the normal visa-application fees. It was introduced in India in May 2013. Priority Service provides a decision in three to five days for an additional government fee of £120. Currently, the services are limited to visitors who previously traveled to the U.K. or other designated countries within the previous five years, and to employees of companies that are members of the Business Express Programme.
The new online application form will be shorter than the current form, will be accessible from mobile devices, will auto-complete a Schengen visa application form for applicants who want to apply for a Schengen visa to visit mainland Europe in addition to their visa to the U.K., and will allow applicants to book their appointment at a U.K. visa application center seamlessly.
Additionally, a new visa application center will open in Lucknow, the first VAC in India’s most populous state, Uttar Pradesh. This follows the recent opening of a joint UK-Ireland VAC in Hyderabad. The number of visitors from India to the U.K. rose 17 percent in the past year.
BAL Analysis: The expansion of Super Priority and Priority visa services to first-time visitors, Tier 2 visa applicants and Tier 4 student applicants will provide more flexible options for visa applicants in India who require faster service, and is a welcome addition to the range of services offered.
What is the change? The United Kingdom has launched an electronic visa waiver for Kuwaiti business travelers and tourists.
What does the change mean? Kuwaiti nationals may apply online for a visa waiver without needing to appear at a visa application center. The waiver allows a visit to the U.K. of up to six months.
Background: The EVW was piloted for Kuwaiti nationals last year and has now been fully introduced. Applicants must submit an online application at the EVW service website and supply their passport information, a U.K. address where they will be staying, and departure and arrival details. They will not need to make a full visa application, nor give biometrics at a visa application center. An additional government processing fee of £15 will be introduced later in the year. According to the U.K. Immigration Minister, visitors from Kuwait topped 100,000 last year.
BAL Analysis: The online application and visa waiver eliminates the need to appear in person to apply for a visa and give biometrics, greatly easing business travel for Kuwaiti nationals.
What is the change? The Home Office announced Thursday that the United Kingdom’s Immigration Health Surcharge will be extended to Australian and New Zealand nationals beginning April 6.
What does the change mean? Beginning April 6, Australian and New Zealand nationals applying to stay in the U.K. for more than six months will be subject to the same £200 per year surcharge as other non-EEA nationals. A discounted rate of £150 per year will be applied to those applying to come to the U.K. on student visas or through the Youth Mobility Scheme.
Background: The U.K. introduced mandatory health surcharges for most non-EEA visa applicants in April of 2015. Australian and New Zealand nationals were granted an exemption that will expire on April 6.
The Home Office says the fees are designed to ensure that the National Health Service “receives a fair contribution to the cost of healthcare from temporary migrants.” To date, the surcharges have contributed more than £100 million to the NHS. Migrants who pay the surcharge generally have access to free health care, but may be charged for some services, including dental care and prescriptions.
EEA nationals do not have to pay the surcharge. Non-EEA nationals who stay in the U.K. for less than six months are not required to pay the surcharge either, but must pay out of pocket for medical services they do receive. Under reciprocal agreements, Australian and New Zealand nationals who stay in the U.K. for less than six months will not be charged if they require health services that must be provided before they can return home.
BAL Analysis: Australian and New Zealand visa applicants should plan for the levies and be sure that the health surcharge is paid at the time of their application and covers their entire length of stay. The U.K.’s recent Migration Advisory Committee (MAC) report recommended an expansion of the Immigration Health Surcharge scheme in 2016, including extending it to intra-company transferees. BAL will report further expansions of the scheme as soon as they are made public.
What is the change? The U.K. government’s new policy that requires landlords to check tenants’ right to rent is now in effect across England.
What does the change mean? All private landlords who are renting, subletting or taking in lodgers must check the papers of new adult tenants to make sure they have the right to live in the U.K.
Background: The U.K. government has published a user guide that details and depicts the various forms of acceptable evidence of right to rent. Foreign nationals holding temporary documents, such as travel vignettes, will be rechecked once the biometric residence permit is issued. Landlords are advised to make and keep copies of the documents, as they will have a statutory safe harbor if it is later found that they rented to someone who didn’t have the right to rent. Landlords face fines of up to £3,000 per tenant for failing to perform the checks.
BAL Analysis: The policy adds an administrative burden on property owners to understand the various immigration statuses and documents and to recognize fraudulent documents. Foreign nationals who have a pending application with the Home Office or whose identity documents are being held by the Home Office during processing may have to wait for the landlord to request a right to rent check by the Home Office and allow two days for a response.
What is the change? The United Kingdom has expanded its Registered Traveller program to travelers from Hong Kong (SAR), Singapore, South Korea and Taiwan.
What does the change mean? Eligible travelers do not need to fill out a landing card and may use fast lanes at U.K. airports. Individuals holding biometric passports may use ePassport gates.
Background: Applicants must be at least 18 years old and have a visa to the U.K. or have visited the U.K. at least four times in the last two years.
Registered Travellers may use U.K. and EU entry lanes and ePassport gates at Birmingham, East Midlands, Edinburgh, Gatwick, Glasgow, Heathrow, London City, Luton, Manchester and Stansted airports, as well as Eurostar train terminals at Paris, Brussels and Lille.
Other countries already in the program are Australia, Canada, Japan, New Zealand and the United States.
BAL Analysis: The U.K. continues to expand the Registered Traveller program – a convenient option for frequent travelers that also reduces queues at airports overall by diverting low-risk travelers to automated entry clearance gates.
What is the change? The Migration Advisory Committee has released a much-awaited report, recommending significant changes to Tier 2 visa categories for migrant workers.
What does the change mean? Among the changes, the committee recommended that the government raise minimum salary thresholds for Tier 2 (General) and Tier 2 (ICT), extend the Immigration Health Surcharge scheme to all intra-company transfers (ICTs), impose a new “Immigration Skills Charge” on employers across nearly all Tier 2 categories, and set up a separate route for third-party contracting of Tier 2 ICTs. The changes would make employing migrants, including assignees, significantly more difficult and expensive.
Background: The government commissioned the committee to make recommendations on changes with an eye toward limiting net migration into the U.K. The committee is an independent group of five senior economists charged by the government to advise the Home Office on migration policy issues in light of independent socioeconomic data.
The key recommendations in the nearly 400-page report are:
BAL Analysis: The Migration Advisory Committee took the approach that the best way to stem skilled migration is through price. If the committee recommendations are adopted, employers will face higher costs in the form of increased Tier 2 salaries and a new Immigration Skills Charge for most Tier 2 workers as incentives to reduce the reliance on migrant labor. Tier 2 ICTs servicing third-party contractors will have to meet higher salary thresholds in order to limit this route to senior managers and specialists, although the committee recommended further research on skills shortages specifically within the information technology (IT) sector. On the positive side, the committee did not recommend absolute time limits on jobs listed as shortage occupations or eliminating the automatic right to work for spouses of skilled migrants.