ARTICLE
9 May 2008

Points Based System; Statement Of Intent For Tier 2 And Tier 5

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CMS Cameron McKenna Nabarro Olswang

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The Government has yesterday published a Statement of Intent for both of Tier 2 and Tier 5 of the new Points Based System for immigration (“PBS”).
United Kingdom Immigration

The Government has yesterday published a Statement of Intent for both of Tier 2 and Tier 5 of the new Points Based System for immigration ("PBS"). Although the Government reserves the right to change the detail, these anxiously awaited Statements of Intent set out the road map for how UK employers will be able to bring skilled workers and temporary workers to the UK under the PBS. The Government has announced these Statements as "strict new criteria" that will allow for "much tighter skilled and temporary worker migration" - indeed they estimate that a total of 20,000 fewer migrants will be allowed into the UK next year by applying this criteria. Whether the impact is significant for larger employers remains to be seen, as much replicates the existing work permit system albeit with the new burden of "sponsorship" being placed on the employer.

CMS Cameron McKenna will provide an in-depth analysis of both tiers, to enable employers to prepare for the launch of Tier 2 and Tier 5 in November 2008. In the interim, please see below for the headline details of each Tier:

Tier 2

  • Tier 2 relates specifically to skilled workers, and will replace the existing work permit and TWES work permit arrangements.

  • Tier 2 introduces a concept of a three year visa plus two year extension, as opposed to the existing work permit scheme allowing a full five years from entry.

  • Points are available for qualifications (although threshold can be met without any qualifications), salary and for being either a) in a shortage occupation (as specified by Migration Advisory Committee), b) intra-company transferees, and c) where the role is advertised to resident labour force - very similar to existing work permit scheme, albeit the role will not need to be "graduate level" and the Employer has to be licensed as a sponsor and follow the compliance obligations imposed on sponsors.

  • Key change for those on post-study, as can switch to tier 2 after 6 months employment without meeting resident labour market test (RLMT). Also, key change for those changing employment (role or employer) as will need to meet RLMT at this stage. RLMT means advertising on JobCentre Plus or in a medium identified in a "sector specific Code of Practice" (to be published).

  • A mandatory English language requirement has been introduced, which does not exist in the work permit scheme. This is at Council of Europe level A1 - the lowest assessable level. For intra company transferees, there will be no language test on entry to the UK - the test will occur only if an extension is required after 3 years. Employers will therefore have the opportunity to provide language training in-country.

  • A mandatory maintenance requirement has been introduced, where migrants must provide documentary evidence of funds sufficient to cover at least their first month in the UK (£800) at the time of visa application - thus advances to certain employees may be necessary.

  • The Government estimates that 12% fewer skilled migrants (work permit holders) will be allowed into Britain under these new rules (20,000 fewer migrants per year in conjunction with Tier 5).

Tier 5

  • Tier 5 relates to temporary workers and youth mobility schemes, and will replace the existing categories of working holidaymakers, amongst others.

  • This tier covers those travelling to work temporarily to the UK e.g. individuals in a creative and sporting sector entering the country for up to 12 months, charity workers, those coming under Government authorised exchange scheme, religious workers and overseas Government employees.

  • Entertainers coming for permit free gigs or festivals such as the Edinburgh Fringe will be assessed outside the PBS under visitor visa rules.

  • Cultural exchange category (based on principles of risk, return and reciprocity), to enable young people to experience life in the UK for up to two years as long as young UK nationals enjoyed similar opportunities in participating countries. This will mean that some countries, which have typically provided high volumes of working holidaymakers will be excluded, most notably South Africa, and any country, which is on the visa national list due to, perceived immigration risk.

  • The Government estimates that 8% fewer temporary workers will be allowed into Britain under these new rules.

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 07/05/2008.

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