Business Immigration Under The New Labour Government
Our Immigration Solicitors always recommend that UK companies look ahead and plan for business immigration changes. That advice is even more important now we have a new Labour government in power. The new cabinet is keen to make its mark in areas important to the British public. Recent events have taught us that immigration is high on the political and public agenda.
In this article, our Business Immigration Solicitors look at the potential business immigration changes under the Labour government and consider what UK business owners can do to prepare for change.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For immigration advice call OTS Solicitors on 0203 959 9123 or contact us online.
Get ready for Autumn 2024 and Spring 2025
Our Sponsorship Licence Lawyers don’t anticipate major announcements on business immigration or changes to the immigration rules until late 2024 and thereafter in Spring 2025.
Why is business immigration not facing rapid review? Perhaps the answer lies partially in the previous government's changes to the immigration rules producing a marked reduction in net migration. The key driving forces behind the reduction in net migration figure are:
- Carers and senior carers on the Health and Care Worker Visa are no longer able to bring family members with them on Dependant Visas
- International students can only be accompanied by family on Dependant Visas if the international student is in the UK on a Student Visa and studying for a PhD or postgraduate qualification
- The minimum salary threshold for the Skilled Worker Visa has increased to £38,700 or the going rate for the job, whichever is the higher figure
- The financial requirement for the Family Visa and Spouse Visa increased from £18,600 to £29,000. The planned rise to £38,700 has been put on hold by the new government pending a further report by the Migration Advisory Committee
All these measures may be buying both the government and UK business owners time to reflect on what happens next. One thing is certain from a business immigration perspective; there is a longstanding UK skills shortage. The skills shortage won't be solved overnight as it takes time and commitment to educate the next generation in the skills needed to fill the jobs that historically went to overseas job applicants because of their skills and experience and ability to get the job done.
The points-based immigration system and the business immigration roadmap
The signs are that Labour will retain the points-based immigration system but make tweaks to legal migration policies and immigration processes.
Business Immigration Solicitors and business owners got to see the direction the government is heading in when the Home Secretary made a statement to Parliament on 30 July 2024.
From a business immigration perspective, the key points in the statement are:
- The work and role of the Migration Advisory Committee will be beefed up. This may mean that Migration Advisory Committee reports will carry more weight with the emphasis on the recommendations being implemented rather than ignored or significantly changed
- The Migration Advisory Committee is tasked with looking at the UK's reliance on international recruitment of overseas workers with the initial focus being on the IT and engineering sectors
- The creation of a quango called Skills England. The new quango will work with the Migration Advisory Committee to help address and reduce the UK’s reliance on overseas workers. Companies will be encouraged to employ British talent or to get the best out of those already in the UK with settled status. For example, those with Indefinite Leave to Remain or settled status under the EU Settlement Scheme. To achieve this goal there needs to be a focus on jobs perceived to be hard to fill and to understand the reasons why some jobs have remained on the shortage occupation list for years
- Increase in sponsor licence compliance audits. Home Office officials will continue to up their game with Home Office audits and compliance visits. The focus will be on high-risk sectors or businesses that come to the attention of the Home Office because of errors made on the sponsor management system or non-compliance discovered by the Home Office or by third parties, such as HMRC
- Education and immigration are going to work together with the introduction of workforce and training plans to focus on UK workers acquiring the skills needed to work in key sectors such as healthcare and construction
Potential changes to business immigration
Whilst it is dangerous for Sponsorship Licence Lawyers to speculate on what business immigration changes may be made there is speculation that:
- The government may reintroduce the resident labour market test or a version of it so HR staff must demonstrate that they tried to advertise the job to British and settled workers before being allowed to recruit overseas on Health and Care Worker Visas or Skilled Worker Visas. Whilst business owners used to find these tests onerous because of the paperwork trail needed to recruit from overseas the politics of returning to some type of resident labour market test may prove irresistible
- An increase in the immigration skills charge from the current level. This is attractive in two ways - it can provide extra money for education as well as act as a deterrent to UK business owners weighing up the cost of the increased immigration skills charge against the benefits to be gained from employing a highly skilled overseas worker or a UK worker who may have been put through a skills course. In Sponsorship Licence Lawyers’ experience, most business owners value experience over an untested skills course
Action points for UK business owners
What can business owners do to prepare for immigration rule changes in late 2024 and 2025? Here are a few practical points:
- Expect an increase in Home Office sponsor licence compliance monitoring. Recent cases in the healthcare sector have shown that where audits flag up compliance issues Home Office officials will suspend or revoke sponsor licences. Courts have tended to back the Home Office approach when faced with applications by business owners for a judicial review of the Home Office decision to revoke a sponsor licence. You can prepare for increased monitoring of your sponsor licence activities and international recruitment with a three-prong strategy; (1)commit to a schedule of Immigration Law Training to keep HR staff and key personnel up to date, (2) use of a Sponsor Licence Management Service to efficiently manage your sponsor licence and minimise the risk of non-compliance and be pro-active in managing your licence and (3) by getting your Sponsorship Licence Lawyers to carry out annual mock audits
- Plan so you recruit in areas where you can foresee change on the horizon with no effective business solution. For example, if you know you need a niche IT expert then recruit them now or look at how you can support invaluable Health and Care Worker Visa holders who cannot bring their family to the UK to maintain contact using your available IT or extra holidays or by providing extra support and welcome packages
- Get ready for further focus on proving all employees have the right to work in the UK. There are further changes to right-to-work policies with e-visas due to replace Biometric Residence Permits in January 2025. Companies should encourage and support overseas workers to switch from a BRP card to an e-visa
At OTS Solicitors our Sponsorship Licence Lawyers can work with your business to ensure that you are prepared for immigration rule changes in 2024 and beyond.
UK Online and London-Based Immigration Solicitors and Sponsorship Licence Lawyers
For immigration advice call OTS Solicitors on 0203 959 9123 or contact us online.
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