The MAC has released its long-awaited report on EEA migration, including recommendations for a post-Brexit immigration system. The recommendations focus on medium- and highly-skilled migration, via amendments to Tier 2 General. At the same time, the MAC is heavily discouraging employer-led, sector-based routes for low-skilled migration (with the exception of seasonal agricultural workers) and any regional variations for Northern Ireland, Scotland and Wales.

We can expect the UK government to use the MAC recommendations as the basis for designing a post-Brexit immigration system. With that in mind, here are our initial comments on the report:

Good news

  • Abolish the cap on Tier 2 General.
  • Substantially change or abolish the resident labour market test for Tier 2 General, and allow employers to appoint the best available candidate, rather than employers only being able to offer a role to a non-resident worker when no resident worker is available.
  • Reduce the skills threshold from RQF 6 (graduate level) to RQF 3, to bring medium-skilled workers within Tier 2 General (as they were pre-2011).
  • Make it easier for a Tier 2 migrant to change employer in the UK.

Mixed news

  • Retain the £30,000 experienced worker salary threshold for Tier 2 General (and the lower threshold for new entrants). While a reduction in the threshold would have been preferable, especially when considering the medium-skilled roles at RQF 3 that will now fall within Tier 2 General, retaining the threshold at the current level is preferable to an increase.
  • As we saw in the Chequers plan, the MAC is also recommending the expansion of the Tier 5 Youth Mobility Scheme. However, this is in lieu of schemes for low-skilled workers which would have been preferable for many sectors, including hospitality, construction and retail. 
  • There will be no preferential treatment of EU nationals over non-EU nationals. The positive we can take from the ending of preferential treatment of EU nationals via free movement is that it should be easier for non-EU nationals to move to the UK under Tier 2 General.
  • Review the sponsor licensing system as it relates to small and medium-sized employers. While changes to limit the burden on smaller employers would be welcome, detailed recommendations were not made as part of this report.

Bad news

  • Extend the Immigration Skills Charge (ISC) to EU nationals applying under Tier 2. The ISC is currently £1,000 per year of visa validity, so extending to EU nationals will significantly increase the cost of recruitment where a resident worker is not available. 
  • As mentioned above, the MAC is discouraging any sector-based scheme for low-skilled workers, with the exception of seasonal agricultural workers. 
  • The MAC is also discouraging any regional variations and schemes, especially with respect to salary thresholds under Tier 2. Employers outside London and the South East have long been pushing for a lower salary threshold. However, the MAC has said that the only change it would recommend would be to increase the salary threshold for London and the South East, and retain it at the current level for other regions.

Stay tuned for more detailed analysis as we work our way through the report.

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.