Further to our Law-Now of 20 August 2009, the Government has today announced that it will accept all the recommendations contained in the Migration Advisory Committee (MAC) report published on 19 August 2009. We are advised that the recommendations will be implemented from January 2010 onwards. Please see our Law-Now of 20 August 2009 for a summary of the recommended changes.

Employers need to prepare now for the changes to ensure that transfers and moves are not impacted, for example, by:

  • Identifying any overseas employees due to transfer to UK at the end of 2009/ early 2010, and assessing whether they will have sufficient in-house service to qualify under Tier 2 (ICT). (Once the changes to Tier 2 (ICT) are implemented, the qualifying period with the company overseas will be increased from six to twelve months).
  • Communicating changes to the recruitment search requirements for Tier 2 migrants, given that all vacancies will need be advertised for four weeks, instead of the current one or two weeks.
  • Reviewing the salary and remuneration packages of prospective Tier 2 migrants, given that the minimum thresholds for 5, 10, 15 and 20 points under Tier 2 will be increased to £20,000, £24,000, £28,000 and £32,000 respectively. (The current minimum thresholds for the above points are £17,000, £20,000, £22,000 and £24,000).
  • Reviewing the proportions that allowances represent within remuneration packages, as allowances will be scaled down when calculating points for prospective earnings under Tier 2.
  • Considering an alternative to Tier 2 (ICT), where the ability to apply for permanent residence or British citizenship will be a factor in the individual's move. (The Tier 2 (ICT) route will no longer lead to a right to permanent residence).

Further announcements are expected in the coming weeks and months detailing exactly how the recommended changes will be implemented.

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 07/09/2009.