The UK's First Annual Immigration Limit Now in Force

By George Koureas of Lewis Silkin

The UK Border Agency’s permanent immigration cap came into force on 6 April 2011. Under the annual limit, UK employers will only be able to hire 20,700 non EEA nationals based outside the UK to work in skilled professions under Tier 2 (General) of the UK's Points Based System. A further 1,000 visas will also be made available to people of 'exceptional talent' whom experts believe will make the biggest contribution to science and the arts in the UK.

New hires under Tier 2 (General) coming to the UK will also need to have a graduate level job, speak an intermediate level of English and meet specific salary and employment requirements. Those earning a salary of £150,000 or more will not be subject to the limit.

In implementing the cap the UK government has acknowledged the needs of UK business insofar as the immigration cap will not apply in the following cases:

  • The Intra Company Transfer route (ICT)*
  • Tier 2 extensions with the original employer
  • Tier 2 switching to a new employer - i.e. lateral hires from within the UK
  • Switching within the UK from another permitted immigration category
  • Where the salary offered is £150,000 or more p.a. (no Resident Labour Market Test

*The Intra Company Transfer route (ICT), although not part of the annual limit, has been changed in three ways:

  • The job will have to be in an occupation on the newly updated graduate occupation SOC Code list
  • Only those paid £40,000 or more will be able to stay for more than 12 months. They will be granted permission for an initial three year period with the possibility of extending for a further two
  • Those paid between £24,000 and £40,000 will be allowed to come to the UK for no longer than 12 months, at which point they must leave and will not be able to re-apply for 12 months

Also, Tier 1 of the Points Based System will be restricted to all but entrepreneurs, investors and people of exceptional talent. The old Tier 1 (General) category has now been completely abolished.

Photo credit: David Franklin

Bill Would Grant Two-Year Visa to Entrepreneurs with U.S. Investor Backing

Senators John Kerry (D-MA) and Richard Lugar (R-IN) have introduced the StartUp Visa Act of 2010 (S. 3029), which would create a new visa category (EB-6) for foreign entrepreneurs. Foreign entrepreneurs would qualify for a two-year visa upon demonstrating that a qualified U.S. investor will dedicate at least $250,000 to his or her startup venture. Moreover, permanent resident status would be available to EB-6 visa holders after two years upon demonstration that the startup has:

  • created five full-time jobs in the United States (excluding employment of the entrepreneur’s spouse or children); and
  • secured $1 million in additional investment capital; or
  • generated $1 million in revenue.

The bill has been referred to the Senate Judiciary Committee.