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Brexit: Implications for Immigration

The uncertainty surrounding Brexit continues to be a source of concern for EU nationals and their family members.

The UK's New Post-Brexit Immigration System: New Routes for Skilled Workers

Freedom of movement between the UK and the EU has now endedand a new Points Based Immigration System applies to EU citizens and non-EU citizens
alike. EU nationals residing in the UK by 31 December 2020, plus certain qualifying family members, will still be able to apply under the existing EU Settlement Scheme until 30 June 2021.

New rules for workers

The existing Tier 2 categories closedon 1 December 2020. The Tier 2 (General) category for skilled workers with a job offer in the UK has transitioned into the ‘Skilled Worker’ route, and the Tier 2 (Intra-Company Transfer) categories for existing employees of linked overseas entities are now known simply as the ‘Intra-Company routes’.

The requirement for employers to hold a sponsorship licence, with its associated compliance duties, remains an integral part of the new system.

EU nationals became eligible for the new routes from 1 January 2021 following the end of freedom of movement.

Skilled worker route

  • The annual cap on skilled workers entering the UK has been
    suspended. This means that, for the time being, there will no longer be a limit on the number of migrant workers who can come to the UK under this category each year. This may be subject to review by the
    government at a later date
  • The skills threshold for roles eligible for sponsorship has been reduced
    from RQF 6 (degree level or equivalent) to RQF 3 (A Level or equivalent). In practice, this opens up a large number of new roles that
    will now qualify for sponsorship
  • The Resident Labour Market Test has been abolished, but Sponsors still
    need to demonstrate a genuine need for the role in question and that the migrant they wish to sponsor has the necessary skills, qualifications and experience
  • The overall minimum salary threshold has been reduced, although the
    role will still need to meet the ‘going rate’ for the relevant job, if higher
  • There is scope to earn extra ‘tradable’ points for those earning below the minimum salary threshold/going rate for their role, where an applicant is offered a job in a specific shortage occupation, they hold a PHD relevant to their role, or they are deemed to be a ‘new entrant’
  • The cooling off period no longer applies and it is easier to switch into this route from within the UK
  • ‘Defined’ Certificate of Sponsorship (CoS) replace ‘Restricted’ CoS for overseas applications – but the process is quicker with requests typically being processed daily rather than monthly as before

Intra-company routes

  • The Intra-Company sub-categories remain largely the same with routes
    for Intra-Company Transfers and Intra-Company Graduate Trainees.
    Existing ICT visa holders will be able to switch into the Skilled Worker
    route from within the UK, providing a route to settlement (also known as ‘Indefinite Leave to Remain/ILR’)
  • The cooling off period has been relaxed to allow a migrant to hold IntraCompany Transfer status for up to five years in any six year period. There is now a single high earner threshold of £73,900 that provides an exemption from the requirement for 12 months previous overseas employment, and which allows a migrant to hold Intra-Company Transfer status for up to nine years in any ten year period

Existing Sponsors and Tier 2 Migrants

Existing Tier 2 sponsors will not have to apply for a new licence and have instead had their sponsor licences automatically transferred over to the new system and allocated an appropriate level of new CoS. Existing Tier 2 visa holders are not required to take any action, although they will need to meet the requirements of the new routes at extension and ILR stage.

Employers without a sponsor licence who may need to sponsor EU and non-EU workers from now onwards should apply now.

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