Corporate Immigration 2023

Last Updated June 27, 2023

UK

Law and Practice

Authors



Deloitte has considerable experience in assisting clients with their immigration needs. The UK immigration team can assist in all areas of business immigration and assist all clients from large multi-national companies to private individuals. Its dedicated team of over 150 fee earners includes 22 qualified solicitors ranging from 0 to 25 years post qualified experience.

Immigration policy in the UK is adapting to both social and economic needs. Over the last few years, we have seen the immigration system shaped by a need to restrict the rising numbers of net migration. This led to the implementation of measures such as rising skill levels and salary thresholds and making it more expensive for UK employers to sponsor foreign nationals in the UK.

However, the system has also had to adapt to help bridge the skills gap following Brexit and ensuring the UK is still an attractive country for retaining the best talent. Over the last two years, the government has pledged to increase investment into the UK by creating new visa routes enabling fast-growing and innovative start-ups to attract and retain highly-skilled talent in the UK (Scale-up Worker visa). Routes such as the High Potential Individual visa, for recent graduates, has also helped bolster the government’s manifesto.

In the wake of the humanitarian crisis in Ukraine, the UK rapidly introduced new visa routes to ensure that Ukrainians could safely and legally enter the UK. This also led to the passing of the Nationality and Borders Act 2022, which provides the UK authorities with the power to impose visa penalties on countries deemed to pose a risk to international peace and security. This has yet to be put into practice and it remains to be seen how this will be implemented, including any reciprocity of these measures by other countries.

We are seeing an increased focus on illegal migration into the UK and there is a particular attention on creating an immigration system that is compassionate but also fair. As a direct consequence, the Illegal Migration Bill has been introduced, which is currently being debated in Parliament.

The UK has seen a substantial change in its immigration system following Brexit. Since 1 January 2021, EU, EEA and Swiss nationals moving to the UK require immigration permission, ending the free movement of labour. There have also been significant changes to Skilled Worker visa requirements:

  • The certificate of sponsorship (CoS) cap has been suspended, meaning there is no cap on the number of eligible skilled workers that can enter the UK.
  • The required skill level has been reduced from RQF 6 (graduate-level role) to RQF 3 (A level or equivalent).
  • Salary thresholds have been reduced.
  • The resident labour market test has been abolished.

However, with a general election expected in 2024, there remains a continuous focus on immigration into the UK. In an attempt to reduce net migration figures, it remains to be seen whether the government will re-introduce measures such as the resident labour market test, higher skills thresholds and increased government fees in an attempt to limit economic migration.

UK immigration has also invested heavily in digitisation. An increasing number of UK immigration applicants are now issued with digital immigration status, meaning no physical documents are issued. Access is granted to an online portal allowing the applicant to generate “share codes” to demonstrate their right to work to employers, right to rent to landlords and access to other services in the UK. The digital status also allows travel through e-gates at the UK border.

The advantages of the digital status are clear: biometrics can be submitted using a mobile app as opposed to attending a physical appointment, speeding up processing times; digital statuses cannot be lost or stolen; and they are accessible remotely. With remote and hybrid working becoming increasingly common, digitisation of the immigration process is a welcome change to support a more fluid workforce.

The digital status process scope has now broadened to include non-EU nationals applying for a Skilled Worker visa from within the UK who already hold a valid Biometric residence permit (BRP) and are aged 18 and over. Applicants from the rest of the world are still required to attend in-person biometrics appointments and are issued with a physical BRP card as the immigration document for their time in the UK.

UK Visas and Immigration (UKVI) is currently planning to phase out BRP cards by December 2024, after which digital status is expected to be the norm for all UK visa holders.

By the end of 2024, “non-visa nationals”, including EU and US citizens, will need to have an electronic travel authorisation (ETA), before they visit. These non-visa nationals can currently travel to the UK without a visa if visiting for less than six months. The new ETA system will require visitors to apply and pay for the ETA before travel. As a result either an ETA or a visa will be mandatory for all travellers to the UK, except British and Irish citizens.

The main sponsor-based employment categories in the UK are the Skilled Worker or Senior or Specialist Worker (Global Business Mobility) visas.

The Skilled Worker visa is for migrant workers with a job offer in the UK. Under the points-based system, applicants require a minimum of 70 points. The job must be at an appropriate skill level, meet the minimum salary requirements, and the applicant must speak and understand English to at least level B1. An initial visa can be issued for up to five years and can be extended. After five years in the UK, the applicant may be eligible to apply for “settlement” (permanent residence) in the UK.

The Senior or Specialist Worker (Global Business Mobility) visa is typically for employees who currently work for an overseas “linked entity” of the UK company. Similar to the Skilled Worker visa, it requires meeting a minimum points criterion based on salary and skill level, which are generally higher than for a Skilled Worker visa. However, there is no English language requirement. A Senior or Specialist Worker (Global Business Mobility) visa does not lead to Settlement in the UK. The visa can only be held for maximum of five years in any six-year period, or nine years in any ten-year period for high earners (salary of GBP73,900 or above).

The UK offers a range of unsponsored work and investment immigration routes, depending on the circumstances of the applicant.

Unsponsored work routes include:

  • Youth Mobility Scheme: two-year visa for those aged 18-30 from certain countries such as Australia, Canada and New Zealand;
  • British National (Overseas): five-year visa for applicants and their family members from Hong Kong with British (overseas) nationality;
  • Ancestry: five-year visa for Commonwealth citizens with a UK born grandparent;
  • Global Talent: for leaders/potential leaders in academia, arts/culture, digital technology (requires a recognised endorsing body);
  • Start Up/Innovator Visa: for those wishing to set up and run an innovative business in the UK (requires a recognised endorsing body); and
  • High Potential Individual Visa: for those who have graduated from an eligible university in the last five years.

The Immigration Rules set out a list of permitted activities that visitors can undertake in the UK. Typical permitted activities include:

  • tourism and leisure;
  • general business activities;
  • work-related training;
  • medical treatment;
  • permitted paid engagements;
  • visits for marriage or civil partnership; and
  • transit.

The maximum permitted period of a visit to the UK is six months in any 12-month period. A visitor should not intend to live in the UK through frequent or successive visits, remain in the UK for extended periods or make the UK their main home.

Business visitors must not intend to work in the UK, which includes taking employment, establishing or running a business as a self-employed person, doing a work placement or internship, filling a role or providing short-term cover for a role within a UK-based organisation.

Working in the UK is tied to having the right to do so from an immigration perspective. Provided this exists, an individual can work remotely in the UK from their home/place of residence.

It is recognised that visitors to the UK can carry out activities related to their home country role (ie, checking emails or answering phone calls); however, these activities must be incidental to their main purpose of visiting the UK. No productive work should be carried out whilst visiting the UK. Where visitors intend on spending a large proportion of their time in the UK and will be doing some remote work activities, as above, they need to ensure that they remain genuinely employed overseas and do not intend to live or work in the UK through frequent or successive visits.

The requirement to meet a minimum level of English exists for a number of visa routes including study, work, family and settlement/citizenship applications. Evidence of meeting the requirement will need to be submitted with the UK visa application.

Applicants from non-majority English speaking countries can normally meet this requirement through one of two ways:

  • taking a UKVI-approved English language test at a secure test centre. Most UK work and study visas will require a comprehensive English test covering reading, writing, speaking and listening proficiency; and
  • verification of an academic qualification taught outside the UK and taught entirely in English, through a body called UK ENIC; UK ENIC will confirm whether the degree is equivalent to a UK bachelor’s degree or above and whether it was taught at the appropriate level of English required for the specific UK visa type.

Exemptions may apply in certain situations. For instance, an exemption might apply if the applicant has previously demonstrated meeting this requirement in a previous successful UK application or if the applicant is a national of a majority English-speaking country, such as the US, Australia, or Canada.

Individuals who are coming to the UK for more than six months and are currently living in or have lived in a number of specified countries in the past six months, will be required to undergo a mandatory tuberculosis (TB) test at a UKVI secure test centre. This includes children aged 11 and over.

The test includes a chest x-ray to test for TB. If the test shows no active TB is present, a certificate will be provided which must be submitted with the UK visa application. The certificate will be valid for six months.

For a Skilled Worker visa, applicants would usually need to be paid GBP26,200 per year (or GBP10.75 per hour) or meet the “going rate” of the occupation code assigned to the job role, whichever is higher. For example, if an annual salary is GBP£27,000 per annum, but the “going rate” for the role is GBP30,000, the salary requirements would not be met.

There are different salary rules for those working in some healthcare or education jobs where the going rate is based on national pay scales.

In some cases, it is also possible to apply for a Skilled Worker visa in an eligible job with a salary of at least GBP20,960 or the going rate, and at least GBP10.75 per hour.

Applicants can be paid between 70% and 90% of the usual going rate, if the salary is at least GBP20,960 per year and the role is one of the following:

  • a job in a shortage occupation;
  • the applicant is under 26, studying or a recent graduate, or in professional training;
  • the applicant has a science, technology, engineering, or maths (STEM) PhD level qualification relevant to the job (a relevant PhD qualification in any other subject requires the salary to be at least GBP23,580); and
  • the applicant has a postdoctoral position in science or higher education.

If applying for a Senior or Specialist Worker visa the salary thresholds are at least GBP45,800 per annum, and GBP24,220 per annum for a Graduate Trainee visa. The minimum salary of the relevant occupation code would also need to be met, whichever is higher.

All Skilled Worker and Senior or Specialist Worker roles would need to be for a job that is on the list of eligible occupations, as set out in the “Appendix Skilled Occupations” of the Immigration Rules.

Whilst there are no minimum qualifications required to apply for a sponsored work visa, the application does require a minimum number of points, some of which are obtained by the sponsor issuing the applicant a CoS. In so doing, the sponsor is certifying that the role in question meets a minimum skill level of Level 3 per the National Qualifications Framework, and the applicant has the necessary skills and qualifications required for the role.

A sponsored visa under the Skilled Worker category or the Senior or Specialist Worker route, requires a sponsor to issue a CoS to an individual. The CoS is exclusive to the individual and is limited to the issuing sponsor. Should the individual wish to change employer in the UK, they will need to be issued with a new CoS from their new employer and be issued with a new UK visa.

Processing times for UK visas vary depending on the visa type and submission location.

Most “non settlement” immigration applications filed outside the UK are decided within 10-15 working days of biometric information being submitted. Standard settlement applications can take up to six months to be decided.

Applications filed from within the UK in non-settlement categories are typically decided within 8-12 weeks. Settlement applications can take up to six months to be decided.

It is generally advised that after submitting an application for a UK visa, entry to the UK should be limited or avoided until the application decision is reached. Similarly, once a visa application has been submitted from within the UK and biometric data has been provided, leaving the Common Travel Area may result in the application being considered as withdrawn. In such cases, a fresh application will need to be submitted.

Priority processing services are available for the majority of immigration applications,  although their availability may depend on the specific country of application.

In general, if applying from overseas, some countries may offer priority processing of around five working days, and this is available in a large number of overseas locations. Some locations also offer a “super priority” service, which aims to process most applications by the next working day. These services can be purchased online at the time of submitting the visa application online or, in limited locations, purchased in person at the time of the visa appointment.

If applying overseas for a partner/family visa of a British/settled person, priority services can reduce the standard processing time of four to six months to around 30 working days.

For those applying within the UK, priority services are available that aim to process applications within five working days, as well as the “super priority” service, which aims for a next working day turnaround. Family/partner visas submitted within the UK can be processed using the super priority service.

It is worth noting that priority processing of immigration applications can sometimes be temporarily suspended by the UKVI without notice.

Individuals coming to the UK for more than six months will be issued with an entry vignette in their passport, which will allow them to enter the UK within 90 days of its issuance. Upon arrival in the UK, a BRP will need to be collected from a specified location, which can be a Post Office. Failure to collect this BRP can result in compliance action from the UKVI, including a fine of GBP1,000. 

All individuals with a UK visa or BRP have an ongoing obligation to report certain changes to the UKVI.

If a visa holder changes their home address in the UK, they should report this to the UKVI via an online service. Similarly, changes such as a criminal conviction or separation from a partner will also need to be reported to the UKVI.

More significant changes such as a change of gender, name, or nationality will require a new visa to be applied for.

Once a new visa is applied for, the old BRP will need to be returned to the UKVI. Failure to do this can also result in compliance action, including a fine of GBP1,000.

The Skilled Worker visa is the UK’s main work visa route. A typical Skilled Worker visa typically includes the following government fees:

  • Certificate of Sponsorship fee of GBP199. This is an online work permit issued by the sponsor. This document can then be used in support of a Skilled Worker application.
  • Immigration Skills Charge of GBP1000 per year for a medium to large sponsor, or GBP364 per year for a small or charitable sponsor. This charge is essentially a tax imposed on businesses for employing workers outside of the local labour market. 
  • Visa application fee of at least GBP479 for a shortage occupation role or GBP625 for all other eligible roles, where the CoS is issued for up to three years. The fee increases to GBP943 and GBP1,235 respectively, for a CoS issued for over three years. These fees are in relation to applications made from outside the UK. Where the application is made from inside the UK, the fee will vary.
  • Immigration Health Surcharge of GBP624 per year per duration of the visa. This is an additional tax imposed on foreign workers to enable them to use the National Health Service (NHS) in the UK. Note this fee is reduced to GBP470 per year if the applicant is under the age of 18 when they apply.
  • Optional service add-ons include expedited processing under the priority or super priority services and then additional perks during the biometric appointments such as a courier service, SMS service or “keep my passport” service allowing the applicant to hold onto their passport during the processing period. 

All visa costs, except for the Immigration Skills Charge, can be borne by the individual rather than the employer.

All sponsors in the UK and visa holders are subject to conditions attached to their status in the UK. The UKVI would typically take action where a sponsor, or an individual, is in breach of those visa conditions; ie, not meeting their specified compliance obligations, or overstaying a visa term. In broader terms, the Secretary of State can also take action where he/she believes the sponsor/individual may fall foul of one of the suitability, validity or eligibility requirements that apply to all visa routes in the UK. This can include, for example, where it is believed immigration permission can be conducive to the public good.

A UK employer must hold a Sponsor Licence to be able to sponsor migrant workers in the UK. As a result, the employer must adhere to various reporting duties and compliance obligations in respect of its migrant population, including:

  • ensuring migrant workers have the necessary skills, qualifications, or professional accreditations to do their job, and ensuring genuine vacancies exist and only suitable roles are sponsored;
  • ensuring the company has robust systems in place to monitor and track migrant workers and report any changes in circumstance; and
  • reporting any changes to the sponsoring company’s business, for example, if the company stops trading, or is involved in a merger or takeover.

As a part of the application process for a Sponsor Licence, the UKVI will verify that the employer can meet these various obligations. Where the UKVI identifies non-compliance with these duties and responsibilities, it can take the following actions:

  • downgrading, suspension or revocation of the current sponsor licence;
  • civil penalties of up to GBP20,000 per worker where there is found to be employment of an illegal worker; and
  • criminal sanctions of imprisonment and/or unlimited fines in respect of “knowingly” employing an illegal worker in the UK.

UK legislation requires all UK employers to undertake a Right to Work (RTW) check on all new hires on or before the first day of employment, to ensure they have the correct permission to work and undertake the role in question. This will ensure the employer retains a “statutory excuse” against any penalties should a migrant be found to be working illegally.

Previously, this entailed an in-person check, and handling of the individuals’ original documents including their visa and passport. Since the COVID-19 pandemic, as well as the implementation of the new digital visa status, the UKVI has introduced an online right to work check for eligible persons holding digital status or BRPs. Employers can also use a digital identity service provider (IDSP) to verify the identity and documentation of British and Irish nationals with valid passports.

The employer must retain a clear copy of the RTW check in a format that cannot be altered.

Some RTW checks will provide a “continuous statutory excuse”, meaning no future checks are required. This would be the case for an employee holding British nationality or someone holding settlement. Other RTW checks may present a “time-limited statutory excuse”, for instance a Skilled Worker visa valid for three years. Where there is a time-limited statutory excuse, a follow up check must be carried out.

The UKVI classes dependants as:

  • a dependant partner (husband, wife, civil partner, or unmarried partner);
  • children under 18; or
  • children over 18 if they are already in the UK as a dependant.

Partners must be in a marriage or civil partnership that is recognised in the UK. Unmarried partners must have been living together in a relationship akin to marriage for at least two years prior to making an application.

Children over 16 must live with their parents (unless in full-time education at boarding school or university) and must not be deemed to be leading an independent life.

Other dependent relationships such as elderly parents or de facto adoption may be recognised on a discretionary basis.

A Dependant visa would typically allow the visa holder to work in the UK on an unrestricted basis. This includes self-employment and voluntary work. There is a restriction on employment as a professional sportsperson (including as a sports coach), which is not permitted.

Deloitte LLP

2 New Street Square
London
EC4A 3BZ
UK

+44 20 7007 7668

jmccluskey@deloitte.co.uk www2.deloitte.com
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Trends and Developments


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Laura Devine Immigration provides tailored assistance across all areas of UK immigration to both organisations and individuals. Business services include: sponsor licence and UK immigration applications in the Skilled Worker, Intra-Company Transfer (ICT), Student and Temporary Work routes; sponsor licence management, compliance training and audit services; EU Settlement Scheme advice and applications. For individuals and family members, the firm provides guidance across the full immigration journey from visa applications and extensions to settlement, British citizenship and UK passports. The firm also has a dedicated Human Rights team that supports clients with human rights claims, appeals and other complex UK immigration issues.

Introduction

Sponsorship and sponsored employment routes have changed significantly in the UK since 2019. The end of free movement within the European Union has led to a shift towards more flexible and specialised sponsorship routes and an increase in the number of employers engaging with the system. The UK Home Office has both encouraged and expressed concerns about these developments. It is, therefore, important to examine associated immigration trends and assess their implications for employers and migrants. This article will explore recent developments in sponsorship, sponsored employment routes, global mobility, and emerging trends in the UK immigration law sector.

Developments in the UK Sponsorship System and Sponsored Employment Routes

The UK immigration sponsorship system

As a result of the end of free movement and changes to labour demands, the UK exit from the European Union has brought about substantial alterations to the UK visa sponsorship system and sponsored employment routes. The two converging events of the COVID-19 pandemic and Brexit provided the impetus for the Home Office to take steps towards liberalisation of business-related immigration. Since 2019, the number of organisations on the register of sponsors has risen, as shown below:

  • 2019 – 30,730;
  • 2020 – 32,264;
  • 2021 – 31,617; and
  • 2022 – 56,129.

Most sponsoring organisations hold a licence to employ long-term economic migrants – this aligns with general labour and immigration trends following the UK withdrawal from the EU and post-COVID-19 global mobility developments. The Home Office has acknowledged the increased demand for sponsor licences and migrant workers but, at the same time, has expressed concerns that employers may be using these routes to avoid hiring UK workers. Nevertheless, the latest UK unemployment rate stands at a relatively low figure of 3.8%, and thus such concerns have not yet had a significant impact at a policy level.

Following calls to simplify the sponsorship system in the post-Brexit era, the Home Office published a sponsorship roadmap in August 2021 outlining its plans to reform the existing process for employing foreign nationals. This plan aims to simplify and streamline the system through a series of IT, customer service, compliance changes and stakeholder engagement strategies. The reforms are designed to create a system that is easier to navigate and reduces the time it takes to sponsor a migrant worker. The IT transformation component will be implemented in three phases, and the Home Office expects the new system to be operational by Q1 2024, with all sponsors to be transferred by this date.

Long-term sponsored employment routes

According to the latest migration statistics released by the Home Office, there has been a 95% increase in work visas issued to main applicants compared to 2019. Within long-term sponsored worker routes, there were 66,324 Skilled Worker visas granted and 79,938 Health and Care Worker visas granted. The five largest sectors for which long-term Certificates of Sponsorship (CoS) were issued in 2022 comprise the following:

  • human health and social work activities (45%);
  • information and communications (13%);
  • professional, scientific and technical activities (11%);
  • financial and insurance activities (7%); and
  • manufacturing (5%).

In particular, the data points on human health and social work roles show the emphasis on staffing key health and care vacancies at a time when the National Health Service (NHS) faces significant challenges. According to the House of Commons Library, approximately 220,000 out of 1.4 million NHS staff report a non-British nationality as of November 2022. The introduction of the Health and Care Worker visa in August 2020 marked a welcome change for the healthcare sector as eligible migrants are not required to pay Immigration Health Surcharge (IHS) fees of GBP624 per year to access NHS care. This contrasts with Skilled Worker visa migrants and migrants in the UK under other economic migration categories who must pay the IHS. Additionally, the nationalities of long-term sponsored work visa migrants provide further detail as to the demographics of UK migration, with the following figures for the Skilled Worker and Health and Care Worker routes.

Top three nationalities in 2022

Skilled Worker route       

  • India – 33% (21,640)
  • United States of America – 6% (3,822)
  • Philippines – 4% (2,763)       

Health and Care Worker route

  • India – 32% (24,976)
  • Zimbabwe – 16% (12,159)
  • Nigeria – 15% (11,823)

As Indian nationals make up the majority of Skilled Worker and Health and Care Worker migrants over the past year, the UK government is taking steps to improve UK-India migration collaboration, with the introduction of the long-awaited India Young Professionals Scheme visa in February 2023.

Overall, these sectors represent those professions deemed amongst the most critical within the UK economy and those for which domestic recruitment has proved challenging since the end of free movement.

Short-term sponsored employment routes

Many employers hold a licence to employ temporary workers, with 70,357 visas granted to main applicants in 2022 (a 72% increase from 2019).

In April 2022, the Home Office opened five temporary sponsored visas through the Global Business Mobility (GBM) route. These visas aim to close economic gaps in the immigration system previously filled by EU workers and allow non-EU nationals to work in the UK on a short-term basis. The Home Office issued the following main applicant visas as shown in Q4 2022:

  • Senior or Specialist Worker visa – 4,667;
  • Service Supplier visa – 3;
  • Graduate Trainee visa – 86;
  • UK Expansion Worker visa – 28;
  • Secondment Worker visa – 3.

Except for the Senior or Specialist Worker visa, which replaced provisions of the previous Intra-company Transfer visa, there has been little uptake of GBM visas amongst UK sponsors. In particular, the UK Expansion Worker visa, though beneficial in specific instances such as where an international company seeks to expand into the UK but cannot apply under the Skilled Worker route as they do not yet have an active UK bank account, is much more limited in its applicability than the Representative of an Overseas Business visa (known as the Sole Representative visa) it replaced. Notably, the Sole Representative route provided a pathway to settlement (previously referred to as Indefinite Leave to Remain). In contrast, the UK Expansion Worker category does not offer this benefit to economic migrants.

These routes offer valuable options for sponsors that have unique circumstances where the Skilled Worker route is not an option. However, an increase in sponsorship applications for long-term work visas and low numbers of GBM visas issued demonstrate the GBM route has not amounted to demonstrable changes in the Points Based System.

Hybrid and unsponsored employment routes

Launched in August 2022, the Scale-up Worker visa allows migrants to come to the UK to work in an eligible job with a fast-growing UK business, sometimes known as a “scale-up business”. These organisations require agile personnel capable of wearing a number of hats or possessing highly specialised skills to grow the business quickly. Scale-up migrants are given a pathway to settlement and the flexibility to leave a sponsored job after six months. This route has benefits and drawbacks, as sponsored workers leaving a company after six months could prove unattractive for firms but benefit opportunity-seeking employees. Conversely, the ability for employers to shift migrants on the Scale-up route to alternative roles within a company after six months could suit the changing needs of such businesses. Though the Scale-up Worker route was recently launched, it has seen few applications, potentially due to the niche focus for scale-up companies and minimal stakeholder feedback from immigration practitioners. Nevertheless, this hybrid route between sponsored and unsponsored models of UK visas, though limited in its applicability, marks a new mid-way approach.

Differences between sponsored and unsponsored routes demonstrate the government’s current priorities, such as fast economic growth and support for start-up businesses around the country and a willingness to provide flexibility to migrants deemed valuable in the long term.

Introduction of the Electronic Travel Authorisation scheme

Relevant to firms engaging in business travel, the UK government announced the Electronic Travel Authorisation (ETA) scheme in March 2023, which is set to come into effect initially for nationals of Gulf countries in late 2023 and early 2024. This scheme will require travellers from countries that do not currently require a visa to enter the UK to apply for an ETA before travel. The ETA scheme aims to enhance UK border security and provide a more streamlined and efficient process for travellers. However, the scheme could potentially impact the number of business visitors coming to the UK. As details of the ETA scheme are yet to be finalised, global firms engaging in frequent business travel should monitor developments and prepare for its implementation.

Overall, developments in UK visa sponsorship and corporate immigration have been positive and well-received by employers, foreign workers and immigration practitioners. Present economic challenges and labour pressures will impact policy trends in the coming months and years.

Trends in UK Immigration Law and Policy

Judicious immigration practitioners are aware of the importance of not only keeping up to date on changes to immigration law but equally the ability to anticipate the impact of medium- and long-term policy trends.

The dominance of the Skilled Worker visa

Replacing the Tier 2 (General) visa in late 2020, the Skilled Worker visa is now the predominant corporate immigration route whereby migrants can obtain settlement after five years in the UK. Recently introduced routes, including Global Business Mobility, High Potential Individual and Graduate, do not provide a pathway to settlement without later switching to a settlement-qualifying visa such as Skilled Worker. As a result, lawyers frequently recommend utilising the Skilled Worker route if possible due to the benefits it provides applicants versus those under temporary routes. The Home Office’s policy shift away from routes with a pathway to settlement can be seen as dissuading migrants against long-term migration to the UK and encouraging such individuals to rely upon the Skilled Worker route if settlement is a future goal. One notable exception to this trend is the Senior or Specialist Worker visa under the GBM route, which replaced the Intra-Company Transfer (ICT) visa, with both routes allowing migrant workers employed by multinational firms to transfer to a UK branch of that same business. Grants of Senior or Specialist Worker permission were significantly higher than those for other GBM sub-categories.

Changes to the shortage occupation list

Personnel shortages in critical sectors, including medicine, transport and agriculture, have been widespread since the convergence of pandemic pressures and Brexit. The Shortage Occupation List (SOL) is produced by the Home Office, which records occupations with a shortage of skilled domestic labour and which the government agrees to fill needs with migrant workers via the immigration system. The SOL has been used to attract critical workers to the UK by decreasing the minimum annual salary to 80% of the going rate required. This policy is intended to boost the economy and improve recruitment.

The Migration Advisory Committee (MAC), an “independent, non-statutory, non-time limited, non-departmental public body that advises the government on migration issues” can recommend changes to the SOL. In its most recent annual report, the MAC recommended that the government avoid utilising additions to the SOL and ad-hoc policy concessions to address labour shortages. The government formally commissioned the MAC to review the occupations included in the SOL in August 2022. This review is currently on hold due to ongoing Home Office debates regarding the correct approach to skilled economic migration. In the meantime, the MAC commenced an employer stakeholder call for evidence in February 2023 to close on 26 May 2023 to best bolster future government commissions. Nevertheless, the government may utilise the SOL changes to fill critical sectoral personnel shortages against recommendations by the MAC as the current economic climate progresses.

The new normal of visa sponsorship

The post-Brexit immigration landscape has furthered employers’ need to engage in visa sponsorship. At the time of writing, there were 76,892 active sponsor licences for both Worker and Temporary Worker routes, and there are few indications of a slowdown in the uptake of sponsorship licences. Multinational and domestic firms must now seriously weigh the costs and benefits of obtaining a sponsor licence to employ foreign national employees lest they risk limiting hiring options in the race for talent.

However, the initial financial barriers towards and responsibilities of holding a sponsor licence are significant, with ongoing sponsor duties including record keeping and reporting duties within the required deadlines. Large firms with robust HR and compliance teams may be well-equipped to handle such tasks, but small and medium enterprises (SMEs) have traditionally struggled to engage with the sponsorship system. As of January 2023, the Federation of Small Businesses estimated that only 2% of small businesses had sponsored a non-UK national in the past 12 months. Changes under the sponsorship roadmap should ease administrative burdens on SMEs and large firms alike, which is a welcome change for many sponsors.

Unsponsored visa routes

Finally, the introduction of a number of unsponsored and hybrid visa routes, including the Scale-up Worker, Global Talent, High Potential Individual and Graduate visas, marks a shift towards offering greater flexibility to niche groups of migrants. Such routes that require specific backgrounds and expertise, particularly for early career applicants, mark a departure from Home Office approaches ten years ago. Immigration practitioners have called on the government to introduce more unsponsored visa routes to attract exceptional talent to the UK, which the Home Office is considering. Hybrid routes similar to the Scale-up Worker visa could offer a mid-way alternative to appease applicants and government ministers.

Conclusion

Current trends and developments in UK immigration law and policy have been shaped by the end of EU free movement and the increasing demand for skilled workers in various sectors. There have been concerns in the past about the potential abuse of visa sponsorship as a means of not employing domestic workers. However, the overall impact has been positive, resulting in greater flexibility for employees and a wider pool of candidates for employers. The dominance of the Skilled Worker category, changes to minimum salary requirements and expansion of the SOL demonstrate emerging trends that reflect the needs of employers and migrants and the current government’s priorities. The sponsorship process improvements roadmap offers hope for making the sponsorship procedure and subsequent management of a licence more straightforward and reducing the administrative burden on employers. With no signs of a slowdown in the use of sponsorship routes, the government will need to continue to adapt the system to meet the shifting demands of the labour market whilst simultaneously heeding caution against over-reactivity in the face of change.

Laura Devine Immigration

100 Cannon Street
London
EC4N 6EU
UK

+44 (0)20 7469 6460

enquiries@lauradevine.com www.lauradevine.com
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Law and Practice

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Deloitte has considerable experience in assisting clients with their immigration needs. The UK immigration team can assist in all areas of business immigration and assist all clients from large multi-national companies to private individuals. Its dedicated team of over 150 fee earners includes 22 qualified solicitors ranging from 0 to 25 years post qualified experience.

Trends and Developments

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Laura Devine Immigration provides tailored assistance across all areas of UK immigration to both organisations and individuals. Business services include: sponsor licence and UK immigration applications in the Skilled Worker, Intra-Company Transfer (ICT), Student and Temporary Work routes; sponsor licence management, compliance training and audit services; EU Settlement Scheme advice and applications. For individuals and family members, the firm provides guidance across the full immigration journey from visa applications and extensions to settlement, British citizenship and UK passports. The firm also has a dedicated Human Rights team that supports clients with human rights claims, appeals and other complex UK immigration issues.

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