The UK Expansion Worker Visa – is it working?
Our immigration solicitors take a look at the UK expansion worker visa – the replacement for the sole representative visa for overseas parent companies looking to set up a branch or subsidiary in the UK
On 11 April 2022, the UK government introduced the UK expansion worker route as part of the global business mobility visa. The business immigration lawyers at OTS Solicitors assess the impact of the rule changes from the old sole representative visa to the UK expansion worker route.
UK Online and London Based Immigration Solicitors and Sponsorship Licence Lawyers
For advice on the UK expansion worker visa and immigration law call the London immigration lawyers at OTS Solicitors on 0203 959 9123 or contact us online.
The UK expansion worker
A UK expansion worker visa enables an established overseas company to transfer an existing employee to the UK to enable the senior member of staff to set up a branch office or subsidiary of the overseas company in the UK. So far so good, as it sounds identical to the sole representative visa but there is a major distinction.
The sole representative visa was an unsponsored route, meaning the sole representative did not need a UK sponsoring employer to get their visa and UK entry clearance. To many companies, and Sponsorship Licence lawyers, that made sense as there was no existing company in the UK to apply for the sponsor licence for the company to then sponsor the sole representative.
The UK expansion worker visa is a sponsored route. That means the company must have a Home Office issued sponsor licence before their UK expansion worker can secure a certificate of sponsorship and UK entry clearance. The sponsor licence requirement is off-putting to some overseas companies who are debating about whether to expand into the UK or into another country, especially where the other country has less red tape and paperwork to make expansion plans turn into reality and profit.
Sponsorship Licence lawyers say that whilst applying for a sponsor licence may appear a challenge, the reality is that if you are organised and if you have the best sponsor licence support, the sponsor licence application process can be relatively straight forward. You can get a decision from the Home Office on your licence application with weeks.
The sponsor licence application process to sponsor UK expansion workers
Prior to the chosen UK expansion worker being able to apply for their work visa, the company first needs to secure a sponsor licence.
The UK expansion worker visa is designed to allow the designated overseas employee to set up a UK branch or subsidiary of the overseas based company but the immigration rules say that the UK entity cannot have been actively trading in the UK before the sponsor licence application or UK expansion worker applications are made.
To secure a sponsor licence to sponsor UK expansion workers, the overseas parent company must be able to demonstrate that they have:
- A UK company footprint
- A trading presence overseas
- Business plans to expand into the UK market and to establish a trading presence within 2 years
Sponsoring a UK expansion worker
To sponsor a UK expansion worker the company needs a sponsor licence so it can allocate a certificate of sponsorship to the chosen UK expansion worker candidate (or certificates as up to 5 applicants can apply for the UK expansion worker visa).
Prior to employment commencing in the UK, each visa applicant will need to participate in a right to work check to ensure that the company is complying with illegal working legislation.
Paperwork needed by a UK expansion worker applicant
A UK expansion worker applicant needs to be able to demonstrate that:
- They have been employed outside the UK by the overseas parent company for at least 12 months unless the company is paying them a salary of at least £73,900 gross. If their salary meets this criteria the 12 month rule doesn’t apply. There is also an exception to the 12 month rule if the applicant is a Japanese applicant working for a Japanese company expanding into the UK
- The job they are being employed to do is on the list of occupations that qualifies for the expansion worker work visa
- The job they have been allocated meets the minimum salary threshold for a UK expansion worker visa, namely a salary of at least £42,400 per year or the ‘going rate’ for the job, whichever is the higher
The positive bits about the UK expansion worker eligibility criteria, in comparison to the sole representative visa, are that:
- Up to 5 workers can apply for a UK expansion worker visa
- Visa applicants do not need to meet the English language requirement
Sponsorship Licence lawyers acknowledge that the paperwork needed to secure a sponsor licence is a hassle that many companies would prefer to avoid but the significant advantage of the UK expansion worker visa over the sole representative visa is that up to 5 overseas workers can come to the UK to help launch the UK branch or UK subsidiary company.
The length of the UK expansion worker visa
The length of the UK expansion worker visa is 1 year. An applicant can apply to extend the visa for up to 1 more year, giving a maximum time of 2 years on the UK expansion worker visa. The route does not lead to settlement in the UK so an applicant can't use it as a route to an indefinite leave to remain application.
The length of the UK expansion worker visa is a bit of a disappointment to companies because the sole representative visa lasted for 3 years and an employee could ask the Home Office to extend the visa for a further 2 years. That felt like a more reasonable timeframe for a senior employee to set up a UK base but at least with the UK expansion worker visa up to 5 workers can share the load to set the UK company up.
If the company successfully starts trading, the company can apply for a sponsor licence to sponsor skilled worker visa applicants. An employee in the UK on the UK expansion worker visa may be able to apply to switch visa to the new skilled worker visa if they meet the relevant eligibility criteria. The advantage of the skilled worker visa is that it can lead to an application for indefinite leave to remain once the employee has met a 5 year residence requirement for their indefinite leave to remain application.
How can OTS Solicitors help?
When your company is based overseas, the first steps in applying for a sponsor licence to sponsor UK expansion workers can seem daunting. Our Sponsorship Licence lawyers can help with:
- Pre-sponsor licence advice on setting up a company in the UK
- Sponsor licence audit preparation
- Applying for your sponsor licence
- Training staff on sponsor licence reporting and recording duties
- Managing your sponsor licence
- Helping with sponsor licence renewal or issues resulting in sponsor licence suspension or revocation
UK Online and London Based Immigration Solicitors and Sponsorship Licence Lawyers
For advice on sponsor licences and immigration law call the expert London immigration lawyers at OTS Solicitors on 0203 959 9123 or contact us online.