The New UK Points Based Immigration System – An Introduction For Employers
Date: 03 Jul 2024
The UK government have created a new Points Based Immigration System and it comes into effect on January 1st, 2021; whether your business currently employs overseas staff, or has aspirations to do so, it’s time to be proactive and familiarise yourself with this new system. As predicted, Brexit is going to impact on how UK business hire workers from the EU and they must safeguard their legal position through accurate training, audit, and compliance.
In this article our business immigration experts highlight the key considerations within the new immigration system for UK employers and their employees.
What’s different about the new Points Based Immigration System?
The UK Points Based System was introduced in 2008, principally to replace the old “Work Permit” scheme and applied to UK employers and their prospective overseas employees from outside the UK and EEA (European Economic Area). However, from 1 January 2021, every new hire from outside the UK, including EEA nationals, needs to have permission to work in the UK through the Points Based Immigration System. The new system will effectively treat EU and non-EU citizens equally.
In short, this means that a UK employer will require a Sponsor License to hire any overseas worker and the prospective foreign employee will require a Certificate of Sponsorship (from the prospective employer) to enable them to apply for a visa to work in the UK. In addition, for employers, the new points-based immigration system will introduce revised job, salary and language requirements that will change the way you hire from the EU.
When does the new system start?
Free movement for EU nationals will end at 11pm on 31 December 2020 and the new Points-Based Immigration System takes effect from 1 January 2021; from this date employers need to have a Sponsor Licence to hire most workers from outside the UK. This does not apply to Irish citizens.
Changes for existing Tier 2 Sponsors
The Tier 2 (General) Sponsor Licence route will be replaced by the Skilled Worker route, however, if you are an existing Tier 2 Sponsor you will automatically be granted a Skilled Worker Licence. The Skilled Worker route opens up new possibilities for employers as some previously excluded roles are now available for sponsorship. For example, the required skills level has been lowered from degree level (RQF 6) to A-level equivalent (RQF 3).
The Tier 2 Intra-Company Transfer route will remain in place with some adjustments and existing holders will also keep that licence.
The Skilled Worker route
Under the new Points-Based Immigration System the general route to come and work in the UK is via the Skilled Worker route. People coming to work in the UK from anywhere in the world, excluding Irish Citizens, need to demonstrate that:
- they have a job offer (CoS – Certificate of Sponsorship) from a Home Office licensed sponsor
- the job offer is at the required skill level – RQF 3 or above (A Level and equivalent)
- the job offer is at the required minimum salary threshold of £25,600 or the “going rate” for that job
- they speak the required level of English for the job
- they can accumulate at least 70 points
In addition to the above attributes, there are more that applicants can trade to ensure they accumulate at least 70 points for their attributes (E.g. qualifications) and become eligible to work in the UK; it’s recommended to consult with an immigration expert about your individual immigration circumstances and requirements. At The Yellow Halo we offer a free 30-minute consultation to answer any questions you may have – please get in touch to book yours.
How to become a licensed Sponsor
If your business doesn’t currently hold a Tier 2 Sponsor Licence but you may need to recruit from outside of the UK beyond 1 January 2021, we recommend you start the application process for a Sponsor License now. To apply, you will need to:
- Check that your business is eligible i.e. no unspent criminal convictions
- Choose the type of Skilled Worker Licence you wish to apply for ie for long-term or temporary workers.
- Put appropriate systems in place to act as a sponsor i.e. appoint a person who will manage sponsorship within your business
It is possible to apply for your own Sponsor License and the fee you pay is dependent upon the size of your company. However, the recruitment and management of overseas staff is a complex issue requiring expert guidance to ensure individuals not only become valuable long-term business assets but, that your business remains compliant and safeguards its legal position long-term too.
At The Yellow Halo, we empower UK businesses to employ professional overseas staff ethically and legally with proactive immigration advice and we can guide you through the entire Sponsor Licence application process. Please contact our immigration experts to discuss your business immigration needs.
How long does the application process take?
It usually takes eight weeks from when the Home Office receive an application for it to be processed and a decision obtained. This timeline may be subject to delays during early 2021 as the new Points Based Immigration System comes into play so we recommend you get started as soon as possible. Once you have your Sponsor Licence you can hire skilled workers globally for an initial period of 4 years.
Who can you hire as a Sponsor?
Once you have a Sponsor Licence you can hire eligible skilled workers from anywhere in the world providing that the job you are advertising meets the minimum skill and salary thresholds in the new Points Based Immigration system. These requirements are:
- the minimum skill level will be set at RQF3 (A level and equivalent)
- the minimum salary threshold will be the higher of £25,600 or the ‘going rate’ for that job – some employees will be paid less than £25,600, for example if their job is in a shortage occupation
All applicants will be able to trade attributes, such as their qualifications, against a lower salary to get the required 70 points to be eligible to work in the UK. For example, migrant employees could be paid a salary less than the minimum threshold, but no less than £20,480, if they have a PhD relevant to the job. Your immigration consultant can provide guidance on the points-based system.
What happens to existing EU employees?
The new Points Based Immigration System will not affect any EU employees already working in the UK by 31 December 2020 and they can continue their employment with you with no extra paperwork. They and their families can also apply to the EU Citizen Settlement Scheme and have until 30 June 2021 to make an application.
The next step for employers
Although the Home Office have flagged-up the new system as “simple, effective and flexible”, it is likely to be anything but so if you have plans to hire skilled workers from outside the UK, get prepared and start a conversation with an immigration specialist now. We can manage your entire Sponsor License application, from selecting your most appropriate category to providing expert guidance on future audits and compliance; we can also advise your prospective employees on their individual application process. To discuss your unique business immigration needs in more detail, please do get in touch to schedule a complimentary immigration audit with our expert team.
