On 1st January 2021, the UK introduced a points based immigration system.
This guide will include some of the changes that employers need to be aware of and more importantly, what we need to do now.
We encourage you to stay up to date with the guidance on the gov.uk website. This guide aims to provide you with some practical guidance to support you for recruiting after Brexit.
What has changed?
To put it into the simplest of terms, a new points based immigration system was introduced on 1st January 2021. Free movement ended for EU nationals travelling to the UK and for all UK nationals travelling to a European Economic Area (“EEA”).
So, this will mean that all EU nationals and non-EU nationals will be treated equally for the purposes of entering the UK and will be subject to the same immigration rules. For example, applying (and paying) for a visa well in advance of their travels.
Furthermore, only skilled workers will be granted a visa. As a result, this will mean that there is no route of access for lower-skilled workers.
What are the new routes of entry for skilled workers?
As part of the new points based immigration system, the government are proposing two main routes for entry into the UK:
- Route 1: A Skilled Worker Visa for an individual with a job offer.
- Route 2: A Highly Skilled Worker Visa for an individual without a job offer. This option is being consulted on and it is not anticipated to be in force until at least 2022.
Route 1: Skilled Worker Visa
What do we know about Route 1? Well, under the new rules, EU nationals and non-EU nationals wishing to live and work in the UK will need to earn a minimum of 70 points to be eligible for a Skilled Worker Visa. There will be a 2-stage test to earn these points:
- Test 1: An applicant must meet all criteria for this test, which will earn them a maximum of 50 points towards their Skilled Worker Visa.
- Test 2: An applicant must then earn a minimum of 20 points in Test 2 to make them eligible to apply for a skilled worker visa.
Importantly, the criteria in Test 1 is mandatory for the individual to have prior to applying. Whereas, the criteria in Test 2 can be interchanged or ‘traded’ for another.
What are the testing criteria?
Test 1
In Test 1 the applicant will need to demonstrate that:
- They have a job offer from a Home Office approved sponsor (20 points).
- The job offer is at the required skill level of RQF 3 or above, equivalent to an A-Levels (20 points).
- They can speak English at the required level (10 points).
These three criteria are mandatory and will earn the applicant a maximum of 50 points.
Test 2
Test 2 allows the applicant to gain a further 20 points, which will bring the applicant to the minimum threshold of 70 points to be eligible for a Skilled Worker Visa. Test 2 is based on the salary for the role or the educational qualifications that the applicant holds and makes use of a new “tradeable” points system, as represented below.
The following criteria can be interchanged. However, individuals must score at least 20 points to be eligible to apply for a skilled worker visa.
| Characteristics | Maximum Points | Tradable? |
|---|---|---|
| Salary of £20,480 (minimum) – £23,039 | 0 | Yes |
| Salary of £23,040 – £25,599 | 10 | Yes |
| Salary of £25,600 or above | 20 | Yes |
| Job in a shortage occupation (as designated by the MAC). | 20 | Yes |
| PhD in a subject relevant to the job | 10 | Yes |
| PhD in a science, technology, engineering, and mathematics (STEM) subject relevant to the job | 20 | Yes |
Source: gov.uk
Standard Occupational Classification (“SOC”)
If you wish to hire skilled workers from outside the UK, you must ensure that the role you are seeking to fill meets the prescribed conditions and matches the relevant SOC code.
SOC codes categorise the skill level and provide an appropriate salary guide for the role. More information can be found on the government website.
It is up to you, as the employer, to select which SOC code most accurately reflects the job role they are advertising for.
But, be warned, if the SOC code selected is incorrect or ineligible for sponsorship, it could result in delays in the application process and may ultimately result in the individual’s visa application being refused.
What might it cost me?
As of 1st January 2021, you need to pay an Immigration Skills Charge (“ISC”) when sponsoring both EU and non-EU migrant workers. Medium or large sized employers must pay £1,000 per skilled worker for the first 12 months, with an additional £500 charge for each subsequent six-month period. Discounted rates will continue to apply to charities and small business, as they do now.
The longest you can sponsor a worker for is 5 years. Therefore the most you will pay will be £5,000 (5 x £1,000) if you are a medium or large sponsor.
Becoming a licenced sponsor
So, if you think that you want to employ migrant workers, you will need to apply to become a sponsor. We recommend you do this now, or as soon as possible as the process can take approximately 8 weeks to complete.
Existing sponsors will automatically be granted a new skilled worker licence, with an expiry date consistent with their current licence, and receive an appropriate allocation of certificates of sponsorship.
More information can be found on the government website.
Other routes
In addition to the new points based immigration system for skilled workers, there are other routes that may suit your organisation. For example, the current Global Talent Route will extend to EU citizens in the same way it currently applies to non-EU citizens. In addition, a Graduate Visa will be available to international students who completed a degree in the UK from Summer 2021. And, the intra-company transfer route will enable multi-national organisations to temporarily transfer key employees, subject to ICT sponsor requirements being met. You can find out more about these routes on the gov.uk website.
What can I do now to prepare for this new system?
There are a number of practical steps that you can make now to comply with the new framework.
Review your workforce data
You should ensure you hold good data on your existing workforce in relation to their Right to Work documentation.
Apply for a Sponsor Licence
If you wish to sponsor skilled migrant workers and you do not currently hold a Sponsor Licence, you should apply for one now.
Discuss the EU Settlement Scheme with your employees
You should encourage existing employees who are EU nationals, and their qualifying family members, to register under the EU Settlement Scheme as soon as possible if they wish to do so. More details can be found on the Government website and in our article:
The EU Settlement Scheme: what can employers communicate?
Consider alternatives
If you don’t want to recruit from outside of the UK, you should weigh up your alternative options, such as internal development, apprenticeships or focussed local recruitment. This is particularly important for seasonal work or where you may have previously relied upon migrant workers to fill the role.
Consider how Brexit impacts your practices
You should consider your internal communications relating to the Brexit transition. Think broad in terms of its impact on your own policies, home working (if you have employees outside of the UK or staying with family outside of the UK during the current pandemic) and immigration changes.
If you have any questions on this topic or require any help with your recruitment process, please contact our team.
