2008 brings the start of major changes to the UK immigration system

Over the next year, sweeping changes will be made to the UK immigration system. We look at how the new system will be structured and what it will mean for employers.

The new system

2008 will see the existing 73 routes under which migrants can apply to come to the UK to work (or study) be streamlined into five overarching categories know as ‘tiers’. These are:

  • Tier 1 - Highly skilled individuals to contribute to growth and productivity;
  • Tier 2 - Skilled workers with a job offer to fill gaps in the UK labour force;
  • Tier 3 - Low skilled workers to fill specific temporary labour shortages;
  • Tier 4 - Students; and
  • Tier 5 - Youth mobility and temporary workers: people coming to the UK to satisfy primarily non-economic objectives.

The new system will be an Australian-style points system and anyone wanting to come to the UK under the points-based system (PBS) will have to show that he or she has enough points to qualify. Points can be earned in different ways, for example, for qualifications, competence in English language and earnings.

The new immigration system will be phased in gradually. Tier 2 which effectively replaces the work permit system and is therefore the tier that member companies will encounter most often will apply from the third quarter of 2008.

Employers to become ‘licenced sponsors’

Even if the individual has enough points to qualify he or she will most likely need a sponsor in the UK, which will generally be the potential employer, if the individual is coming to work here. The sponsor could also be a college if the individual is coming to the UK as a student.

To become a sponsor, you will need to be licenced and approved in advance by the Border and Immigration Agency (BIA). Sponsors will have to comply with certain duties, including keeping proper records of the workers they have sponsored. Once licenced, you will be able to apply for a certificate of sponsorship for those migrants you want to employ.

The requirement to have a sponsor will not apply to nationals of the European Economic Area or to migrants in the highly skilled tier of the PBS.

Tier 2 certificates of sponsorship

Tier 2 is the PBS category that covers skilled workers for which work permits would have previously been issued. As a sponsor, you need to apply for a certificate of sponsorship for each migrant you want to employ. A certificate of sponsorship will only be issued if the worker intends to do a job of at least NVQ level 3 and one of the following applies:

  • The sponsor (the employer) has carried out the resident labour market test, which, like the work permit system, requires the sponsor to have advertised the job in certain specified media and to confirm that there were no suitable EEA candidates;
  • The job is one in short supply and appears on the list of shortage occupations issued by the BIA;
  • The salary for the job is at least £40,000; or
  • The migrant is coming to the UK via an intra-company transfer.

Fees

The fees for sponsorship have not yet been announced but they are expected to be similar to the current work permit fees.

Timetable

The sponsor registration arrangements are likely to be introduced in the first quarter of 2008. The licence application form and accompanying guidance will be available on the BIA website in the coming months. We will keep you informed of developments in this area. Remember, too, that you need to check that all your staff are entitled to work for you – see our guidance article ‘Are your employees entitled to work in the UK?


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