IMPACT – MEDIUM

What is the change? An implementation schedule for “right to rent” checks – the requirement that all private landlords check tenants’ immigration status – has been announced in Parliament.

What does the change mean? The “right to rent” checks will be piloted and then introduced in phases based on location beginning Dec. 1, 2014 in the Birmingham and West Midlands area.

  • Implementation timeframe: Dec. 1 in Birmingham and West Midlands and thereafter in the rest of the U.K.
  • Visas/permits affected: All visas.
  • Who is affected: Landlords, relocation companies, foreign nationals.
  • Business impact: The provision will add a significant administrative burden to landowners and agents renting property, and costs are likely to be passed on to employers who provide corporate accommodations.
  • Next steps: UK Visas and Immigration (UKVI) is convening a consulting panel of landlords, rental agents, housing and homeless advocates and other stakeholders to monitor implementation prior to the national rollout.

Background: The Immigration Act 2014 introduced the requirement that private landlords conduct document checks to identify all potential tenants’ legal immigration status in the U.K. and therefore their “right to rent.” Landlords found to be noncompliant face fines of £80 to £3000. The “right to rent” checks are part of a raft of changes to make life in the U.K. harder for undocumented migrants. The requirement is controversial amongst migrants’ rights groups, and UKVI has provided very little detail, other than to reassure landlords and companies renting property that UKVI would pilot the scheme in a limited geographical area and seek feedback prior to the national rollout.

Yesterday, James Brokenshire, Minister of Security and Immigration, announced in the House of Commons that the initial rollout area is Birmingham, Wolverhampton, Dudley, Walsall and Sandwell. The Home Office has also published a “Code of Practice on Illegal Immigrants and Private Rented Accommodations,” confirming the civil penalties for landlords and their agents and introducing an online “right to rent” tool that should assist landlords in checking immigration status documents.

BAL Analysis: The “right to rent” check requirement will impact relocation companies, HR companies, landlords and rental agents. It will require significant time, effort and expense to understand the requirements, put in place compliance procedures and conduct initial and follow-up document checks to verify tenants’ immigration status. UKVI is actively seeking feedback on the “right to rent” tool. Please discuss this with BAL if you are operating in the Birmingham and West Midlands area – sharing and lobbying on corporate experiences at this stage could have a significant impact on the rollout of the scheme nationwide.

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.

IMPACT – MEDIUM

What is the change? The U.K. is rolling out a new biometrics requirement for visa applicants under 5 years old.

What does the change mean? Children under 5 must attend a biometrics appointment to have digital photos taken as part of the entry clearance application.

  • Implementation timeframe: The U.K. will implement the rule for U.S. applicants later this year. It was implemented July 7, 2014 for applicants in Canada and several countries in Asia andthe Middle East.
  • Visas/permits affected: All K. visas.
  • Who is affected:Children under 5 applying for entry clearance to the U.K.
  • Impact on processing times: This adds another step for those applying for children under 5 years old, but the time required will be minimal because the procedure is to occur during adult appointments.

Background: In the past, children under 5 years old were exempt from the requirement to provide biometrics (a digital photograph and fingerprints) at the visa application centre prior to making an entry clearance application–for example as a PBS (points-based system) dependent. Under the new requirement, all applicants for entry clearance, including adults and children regardless of their age, must make an appointment at a visa application centre to provide biometrics. Children under 5 years old will sit for a photo only but will not be required to give their fingerprints. The Consulate General of the U.K. in New York has confirmed that the rule will be introduced later this year in the U.S. when the biometrics equipment is in place.

BAL Analysis: Parents applying for U.K. visas should be aware of this change and ensure that they make appointments to bring their children, regardless of age, to provide biometrics.

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.

IMPACT – LOW

What is the change? The United Kingdom will begin offering 24-hour “super priority” visas to Chinese nationals.

What does the change mean? For a payment of £600, Chinese nationals may receive British travel visas in less than 24 hours.

  • Implementation timeframe: August and ongoing.
  • Visas/permits affected: Business visit and tourist visas.
  • Who is affected: Chinese nationals seeking to acquire same-day British visas.
  • Impact on processing times:24-hour processing.
  • Business impact: Chinese business travelers will have a faster option to obtain U.K. visas.

Background: The U.K. launched a same-day “super priority” visa service for Indian travelers in 2013 and will extend this service to Chinese travelers beginning in August. The number of Chinese nationals visiting the U.K. has risen sharply – last year, the U.K. issued 40 percent more visitor visas to Chinese nationals than in 2012.

The U.K. is also weighing a single application procedure that would allow Chinese visitors to apply for a Schengen visa at the same time. In addition, a new joint British/Irish visa scheme to begin this year will allow Chinese visitors to travel to both countries on either an Irish or British visa.

The £600 government fee for the “super priority” visa (about US $1,000) will be in addition to the standard application fee of £83 but does not assure a visa. Visitors must still meet all U.K. immigration rules.

BAL Analysis: Though expensive, same-day visa processing provides an option to Chinese business visitors who need to travel to the U.K. on short notice.

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.

IMPACT – LOW

What is the change? The U.K. is tightening its rules on Tier 1 (Entrepreneur) visas to crack down on abuse.

What does the change mean? Tier 4 (Student) and Tier 1 (Post Study Work) visa holders will now be restricted from switching in-country into Tier 1 (Entrepreneur).

  • Implementation timeframe:July 11.
  • Visas/permits affected: Tier 1 (Entrepreneur).
  • Who is affected: Those looking to switch into Tier 1 (Entrepreneur) status in the U.K.
  • Impact on processing times: None.
  • Business impact: The new rules will have a minor business impact, as Tier 1 (Entrepreneur) is not used by employees but by those looking to set up or run their own business. In addition, contractors may also be impacted by this change.

Background: The new restriction was published today in a statement of changes in immigration rules after an initial investigation found that tax records of those granted leave as entrepreneurs did not evidence genuine entrepreneurial activity and showed that a significant number took up employment in violation of the conditions of their status.

Despite the new restriction and ongoing fraud investigation, the Tier 1 (Entrepreneur) category remains open. Those who already have leave in the category will continue to be able to extend their stay. The new restrictions will not apply to those qualifying on the basis of seed funding or funding provided by another government department. In the case of those switching from the Tier 1 (Post Study Work) route, the restriction will not apply to those who have already established genuine businesses. Those who graduate in the U.K. will continue to be able to apply to extend their stay under the Tier 1 (Graduate Entrepreneur) category, which is significantly undersubscribed. Entrepreneurs with genuine intentions of establishing businesses in the U.K. will also continue to be able to apply from overseas.

BAL Analysis: There has been an increase in the use of the Tier 1 (Entrepreneur) route, in some cases to avoid some of the strictures of other points-based system categories. These changes amount to a tightening of the scheme and are in the best interests of genuine business by preventing abuses.

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.

IMPACT – MEDIUM

What is the change? The Home Office has removed discredited language-testing firm Educational Testing Service (ETS) from its list of approved testing centers.

What does the change mean? As of July 1, ETS will no longer be an approved provider. Treatments of various applications with ETS test results are detailed below.

  • Implementation timeframe: July 1.
  • Visas/permits affected: Tier 2, Tier 4, Indefinite Leave to Remain and citizenship applicants.
  • Who is affected: Migrants who have submitted a TOEIC or TOEFL result as part of their immigration application.
  • Impact on processing times: 

Background: Since February, ETS has been suspended as a language-testing provider following a BBC investigation that uncovered fraud in English tests administered by ETS. The Home Office then put on hold all pending immigration applications relying on ETS test results.

On June 10, the Home Office published a new statement of changes in immigration rules HC 198, officially removing ETS from Appendix O (the list of approved providers) as of July 1. Existing ETS test results, however, will be accepted for the following:

  • Applications for leave to remain submitted before July 1, 2014.
  • Applications for entry clearance submitted before July 22, 2014.
  • Certain applications for entry clearance submitted before Oct. 1, 2014, whose criteria are detailed in the new statement of changes.

BAL Analysis: Applicants who tested with ETS should determine which immigration rules apply to them according to the transitional provisions published by the Home Office and submit applications as soon as possible before the relevant date – July 1, July 22, or Oct. 1. BAL has never recommended use of ETS where there is an English testing requirement; therefore, we do not perceive a significant risk to our clients. Nevertheless, BAL attorneys are available to answer any questions. .

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.

IMPACT – HIGH

What is the change? Today, the U.K.’s Immigration Bill received Royal Assent – the Immigration Act 2014 is now in force.

What does the change mean? The law will make life more difficult for undocumented migrants in the U.K. by restricting access to housing, banking, healthcare and other services. However, the depth and breadth of the provisions will impact all British citizens and foreign nationals in the U.K. and create significant administrative burdens.

  • Implementation timeframe: May 14,
  • Visas/permits affected: All U.K. visa and permit categories.
  • Who is affected: All British citizens, EEA nationals, foreign nationals and all U.K. employers.
  • Impact on processing times: None – the Immigration Act does not look at individual visa categories or processes, but introduces measures designed to discourage illegal migrants from living and working in the U.K.
  • Business impact: The law will have a significant impact on employers in terms of cost and time spent on compliance measures.

Background: The bill was heavily debated as it moved through Parliament, mostly focusing on legal arguments, such as enforcement, appeals and human rights. However, the Immigration Act’s potential impact on corporate employers and employees (whether British citizens or foreign nationals) is significant.

Some key provisions impacting employers include:

  • Health services levy. The law establishes a framework for a new healthcare levy to be added to all entry clearance applications for more than six months’ duration. The levy will contribute to National Health Service (NHS) services. The law also gives the government the ability to charge for GP (general practitioner) and A&E (accident and emergency) services. This will add to the cost of any relocation to the U.K. (a figure of GBP 200 is proposed). Access to NHS will be limited to British citizens and settled workers, which means foreign workers entering for six months or less must be supported by private health insurance. Details of the scheme will be announced shortly by the Department of Health and published in secondary legislation.
  • Right-to-rent landlord checks. Landlords will be required to conduct document checks of potential tenants to identify who has a “right to rent” before issuing residential tenancies (or face fines of GBP 1 – 3000). Landlords and lawyers have criticized these provisions as unworkable, commercially naive and administratively burdensome. As a result, a pilot program in a limited geographical area will first test whether the document checks can be put into practice, before a wider national rollout. A Home Office hotline will field queries, and a consultative group including the British Property Federation, Crisis, and the Residential Landlords Association will be formed to advise on this area.
  • Enhanced penalties on employers. The law also creates a framework for enhanced penalties for employers of illegal workers and revisions to the right-to-work regime.
  • More fees. There are also provisions allowing the Home Office an unlimited right to levy fees far beyond those necessary to recover costs; employers will have no choice but to accept such fees.

BAL Analysis: While the new law discourages illegal migration, it imposes new costs associated with administering and regulating a “tighter” system. Employers are likely to feel the impact of the Immigration Act in their pockets, due to several additional direct costs and administrative processes.

Notably, the residential tenancy provisions will likely impact any relocation company or HR team that assists with home searches for employees, as the rules apply equally to domestic and international tenants. Given the difficulties companies experience conducting right-to-work checks in the employment arena, BAL anticipates considerable confusion amongst landlords and agents, and ultimately the development of a right-to-work service, whose cost will be borne by the employer or tenant.

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.

IMPACT – LOW

What is the change? The U.K. Home Office has launched a pilot program in which Tier 2 (General) foreign workers will automatically have their passports and/or biometric residence permits (BRPs) returned to them seven to 10 days after applying for permanent residence.

What does the change mean? Tier 2 (General) foreign workers who have five continuous years of residence in the U.K. will be able to use their passports for travel and other purposes while their applications for Indefinite Leave to Remain (permanent residency) are processed.

  • Implementation timeframe: A pilot program was launched May 6, 2014.
  • Visas/permits affected: Indefinite Leave to Remain (ILR).
  • Who is affected: Tier 2 (General) foreign workers applying for ILR.
  • Impact on processing times: None.

Background: Currently, those applying for ILR under Tier 2 (General) of the Points-Based System in the U.K. must submit their original passports and biometric residence permits (BRP) to the Home Office. If applying by post, their documents are not returned until the completion of the processes, which can take up to six months. Beginning May 6, 2014, applicants will automatically receive these documents back within seven to 10 days of filing their applications and before a decision has been made on their applications.

The passport-return service launched as a pilot in July of last year for applicants in the Tier 2 Intra Company Transfer (ICT) visa route. Feedback was positive and encouraged the U.K. Home office to expand it to other visa categories. Passports and BRPs will be returned automatically to all postal applicants – it is no longer necessary to specifically request their return.

Crucially, having both passport and BRP will allow applicants to travel while their ILR applications are pending. If the Tier 2 (General) visa has expired, a Tier 2 migrant should be able to rely on the fact that the ILR application is outstanding with the U.K. Home Office when seeking entry to the U.K.

BAL Analysis: The passport-return service is a customer-focused solution intended to minimize the impact of lengthy U.K. Home Office processing times for postal ILR applications. The expansion of the service to include Tier 2 (General) applicants, as well as Tier 2 (ICT) applicants, is a positive development. However, from a practical perspective, BAL continues to recommend that ILR applications be submitted on the priority service to ensure the fastest processing times and minimal disruption to work and ability to travel.

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.

IMPACT – HIGH

What is the change? The U.K. Home Office has released a “draft code of practice on preventing illegal working” that updates rules regarding civil penalties on employers who employ undocumented workers.

What does the change mean? The draft code contains some sweeping changes to right-to-work checks required by employers and dramatically raises the maximum financial penalties for noncompliance.

  • Implementation timeframe: May 16.
  • Visas/permits affected: All visas and work permits.
  • Who is affected: All employers.
  • Impact on processing times: None.
  • Business impact: While many of the changes clarify and reduce the burden of document checks on employers, the increase to the maximum fines raises the stakes for employing workers illegally.
  • Next steps: Businesses should familiarize themselves with the draft code and new procedures for document checks.

Background: The draft code of practice for preventing illegal working details the Home Office’s civil-penalty scheme for employers and updates the code from February 2008. The draft code has been approved by the secretary of state and presented to Parliament.

These are the major changes:

  1. New methods of calculating fines. Under the draft code, the maximum starting penalties are £15,000 per worker for a first breach and £20,000 per worker for a second or repeat breach (up from a previous maximum of £10,000 per worker for repeat breaches). The new framework for civil penalties includes consideration of mitigating factors, such as cooperation with the Home Office and effective internal procedures.
  2. Fewer documents. The draft code reduces the list of acceptable documents an employer may check when inspecting employees’ right to work. Employers can establish a statutory excuse by checking these documents.
  3. Less frequent follow-up checks. Employers will not have to conduct follow-up checks as frequently for employees with temporary permission to be in the U.K. Under the new rules, they will generally only need to follow up when an employee’s work authorization expires (based on the validity period that appears on an employee’s documents during the employer’s initial check). Currently, employers must follow up every year.
  4. Longer grace period in TUPE situation. A longer grace period of 60 days will be allowed for employers conducting a right-to-work check of employees as a result of the Transfer of Undertakings (Protection of Employment) Regulations after acquisition of a company or business unit.

BAL Analysis: The changes in the draft code generally reduce the burden on employers in conducting right-to-work checks. In particular, the elimination of annual follow-up checks of employees on temporary stay visas will reduce administrative headaches for employers. However, the substantial hike in maximum penalties for employing workers illegally makes it critical for employers to correctly perform the checks and get their internal procedures in place.

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.

IMPACT – MEDIUM

What is the change? The U.K. Home Office has introduced automatic renewal of Certificate of Sponsorship (CoS) allocations, and eliminated the annual renewal process licensed sponsor employers had to undergo.

What does the change mean? Employers will no longer need to make an annual application to renew their CoS allocation, and unrestricted CoS allocations of Tier 2 employees will no longer be delayed by the renewal process. The number of CoS automatically renewed by the Home Office will be based on usage over the previous allocation year. If an employer needs an unexpected allocation of unrestricted CoS in excess of the amount granted by the Home Office, it can make an ad hoc request via the Sponsorship Management System (SMS) at any time during the year.

  • Implementation timeframe: Allocation renewals will become automatic from Aug. 6, 2014.
  • Visas/permits affected: Employers issuing unrestricted CoS for Tier 2 skilled workers and Tier 5 temporary workers.
  • Who is affected: Licensed sponsor employer
  • Impact on processing times: The automatic renewals will have a positive effect on processing times by removing delays caused by the annual allocation renewal process.
  • Next steps: Employers do not need to take affirmative steps. They will be contacted by the Home Office once their SMS has been updated with the auto renewal function. 

Background: The automatic renewal for unrestricted CoS in Tiers 2 and 5 is intended to make the Sponsorship Management System more user-friendly. Beginning in August, sponsor license accounts will be adjusted so that at the end of each allocation year, employers will automatically be granted a new allocation equal to the number of CoS assigned to migrants in that category during the previous allocation year. In the past, employers had to renew their CoS allocations every year and give business reasons for the requested number of CoS. The automatic renewal process will prevent cases where sponsors urgently need to assign CoS, but are unable to do so because their allocation has expired.

Only allocations that are due to expire from Aug. 6, 2014 onwards will be affected by this change. Employers can find their expiry date on the “License Summary” screen in SMS. For employers who have already submitted an allocation renewal application, the automation process will not take effect until next year. Under the automated system, three months before an employer’s allocation expires, the “Request Renewal of Annual Allocations” screen in SMS will display “Automatic Renewal” against the appropriate categories.

Renewal of allocations of CoS, which occurs annually, is not connected to the renewal of sponsor licenses, which occurs every four years.

Updated versions of the SMS user guides, including details of the automation rules and processes, are available on the GOV.UK website here.

BAL Analysis: Employers should welcome this change as eliminating the administrative burden of annual renewals. However, as the automated process assumes sponsors will require the same number of allocations from year to year, employers should still be prepared to request allocation increases in the event of spikes in the number of migrant employees they require, whether due to expansion, economic growth or project work.

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.

IMPACT – HIGH

The United Kingdom has now implemented several changes to its immigration rules, including the following:

Tier 1

  • Tech City U.K. has been added as a new designated competent body appointed by the Home Office to assess applications of migrants wishing to enter the country under the Tier 1 (Exceptional Talent) route. The category was expanded to include the digital-technology sector, effective April 6.
  • Applications for Tier 1 (General) visa extensions can only be lodged until April 6, 2015. After that date, no more Tier 1 (General) visa extensions will be processed.
  • Applications for permanent residence by Tier 1 (General) visa holders must be lodged by April 6, 2018.

Tier 2

  • Beginning July 1, Tier 2 (Intra-Company Transfers) (ICTs) and Tier 2 (General) applicants can apply for a five-year term, an increase from the current three-year maximum. Employers must pay a higher fee for the longer duration visa. However, employers that know from the outset that they require a full five-year term will not need to apply for an extension after three years.
  • Annual salaries for five-year Certificates of Sponsorship must meet whichever is the higher of:
    • the experienced salary rate set by the SOC (Standard Occupational Classification) code for the particular role (not the new entrant salary rate); or
    • the minimum threshold set by the Tier 2 category (see below).
  • Tier 2 minimum salary rates as set out in the SOC codes have generally been increased by 0.9 percent in line with inflation. However, some SOC codes have gone up more significantly and some, including the IT occupation, have gone down.
  • The government has increased the minimum thresholds for each Tier 2 category, in addition to the salary rates for individual occupations:
    • £20,500 for Tier 2 (General)
    • £24,500 for Tier 2 (ICT) Short Term Staff
    • £41,000 for Tier 2 (ICT) Long Term Staff

In addition, the maintenance-fund thresholds for Points-Based System migrants and their dependents will increase for applications submitted July 1 and later.

Visit visas

Starting on May 5, the U.K. will require visit visas for all Venezuelan nationals traveling to the U.K. Existing visa requirements for work, study, and family migration will remain the same.

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.