The UK's future immigration system is unveiled

After the drip-feed of details during this year, the government has now confirmed the final features of the UK's "new" points-based immigration system. This lays down rules for all overseas arrivals, other than Irish nationals. The new rules will generally apply to all applications made from 1 December 2020, including for EEA nationals who are not already living, working or studying in the UK before the end of 2020 (and cannot therefore use the settlement/pre-settlement rules to continue to reside in the UK). 

The points-based system is not the only route available for workers to work legally in the UK going forward and the most suitable immigration route will depend on the role being carried out, its duration and who the employing entity will be. For example, the new Frontier Worker Permit will allow those who currently commute to work in the UK to continue to do so (provided they meet the eligibility criteria) and the Business Visitor route will still allow limited activities to be carried out by a non-UK resident including attending board meetings, signing contracts or undertaking a site visit.

However, summarised below are the key points which will be of most relevance to employers looking to recruit non-UK resident staff from 1 January 2021 onwards under the new points-based rules.

Skilled workers (previously Tier 2 General)

The Tier 2 (General) route has been rebranded as the skilled worker route. The principles underlying this immigration route remain largely the same but with some simplification. Individuals coming to the UK to work, including EEA nationals from 1 January 2021, will need to demonstrate that they meet a specific set of criteria for which they will be awarded points. Assuming they pass the criminality checks, a total of 70 points will be required. There are three mandatory requirements which together will earn the applicant 50 points. These are:

• the applicant must have a job offer from an approved sponsor;
• the job must be at or above the minimum skill level (now reduced to A level or equivalent); and
• the applicant must meet the English language requirements.

In a new feature for Tier 2, the other 20 points required can be earned in a more flexible way known as "tradeable points". If a role attracts a salary of £25,600 - or the "going rate" if higher - then the applicant is awarded the full 20 points. This is a lower general salary threshold than under the current rules, which require a minimum of £30,000. Applicants who earn less than £25,600 but at least £20,480 can make up the points needed if they have a job offer in a designated shortage occupation (i.e. those roles deemed to be in short supply and set out on the shortage occupation list) or a PhD qualification relevant to the role. There will continue to be a discount to the "going rate" for "new entrants" at the start of their careers but they must still earn at least £20,480. The government will be able to widen the number of attributes that earn tradeable points. However, the mandatory requirements will not be tradeable.

For employers who sponsor skilled workers, the Resident Labour Market Test will be abolished. This means that sponsors will not have to advertise the job for 28 days to ensure that there are no suitable workers already living in the UK. This should speed up the visa process and will therefore be welcomed by employers.

The 12-month “cooling off period” and six-year maximum length of stay which operated under Tier 2 (General) will not apply. This is good news for employers who will be able to employ someone indefinitely via this route without having to worry about trying to obtain permanent residence after five years (or that person having to leave the UK for 12 months before being able to return under Tier 2).

Intra-company transfer (previously Tier 2 Intra-company transfer)

The existing intra-group route remains largely unaffected by the new rules and multi-national companies will continue to be able to transfer personnel to the UK under this route where they can evidence common ownership with a UK entity. Applicants do not need to meet any English language requirements but must satisfy the following criteria:

• they must meet a minimum skills requirement (note this is higher than the skilled worker route and remains at degree level);
• they must meet a minimum salary requirement (either £41,500 or the "going rate", whichever is the higher); and
• they must have been employed in the overseas linked business for at least 12 months prior to the date of transfer, unless they earn over £73,900. 

"Cooling off" rules will continue to apply but these will be simplified. Applicants will be allowed to hold Intra-Company Transfer leave for up to five years in any six-year rolling period or up to nine years in any 10-year period for high earners. Notably someone using this route will be permitted (subject to some eligibility requirements) to switch into the skilled worker route from within the UK, something which is not currently possible.

Global Talent route

A new Global Talent visa was introduced in February 2020 for non-EEA citizens. This replaced the Tier 1 visa and will continue to operate under the new immigration system when it will also apply to EEA nationals. This route allows those who are exceptionally talented or exceptionally promising in the fields of science, engineering, humanities, medicine, technology, arts and culture to work in the UK if endorsed by a relevant designated body. Applicants may be either employed or self-employed and there is no cap on numbers. A points assessment is being introduced in line with the introduction of the points-based system. 

Switching between immigration routes

As mentioned above, most workers will be able to apply to switch from one immigration route to another without having to leave the UK, which is a notable change for the new system. When applying to switch, the worker will still need to meet the necessary requirements for the route that they are switching into but will avoid the cost and time delay of having to return to their native country to make their application.

Further information

There are a number of other changes being made to try to streamline and simplify the system which will be welcomed by businesses and applicants alike. Please contact us if you would like further information on any of the issues raised.