United Kingdom: Critics Question IT Firms' Apparent Overuse of Tier 2 Intra-Company Transfers

The Daily Telegraph reports a significant increase in the number of foreign workers employed in the UK via intra company transfers under Tier 2 of the country’s points-based immigration system. In 2008, more than 48,000 intra-company transfer applications were filed; approximately 30,000 concerned foreign IT workers. In total, over 35,000 foreign IT workers entered the UK that year – three times the amount that entered during the height of the dot com boom in 2000.

The intra-company transfer scheme allows an employer to transfer to the UK its foreign-based staff who have at least six months’ knowledge-specific company experience. Unlike the points-based system’s other schemes, the employer is not required to first advertise the position to British workers. Transferred workers are permitted to work full-time in the UK for up to three years and may work up to 20 hours in supplementary employment in the same profession. After three years, these employees may apply for a two-year extension and, after five years in the UK, they may apply for permanent residency.

Critics warn that these intra-company transfers damage the UK’s economy and worsen the plight of British workers. Some contend that IT companies pay their foreign workers less than market wages.

Responding to these criticisms, the UK Border Agency stated that:

  • contrary to the allegations, employees must be paid the position’s going rate;
  • in early 2010, the requirements will be amended to require employees to have 12 months’ experience (instead of six months as at present) with their employer before they can be transferred to the UK; and
  • it is closing the category as a route to permanent settlement.

United Kingdom: Important Changes Regarding Biometric Travel Documents and Advertising Requirements for Tier 2 Job Openings

Starting November 30, 2009, the UK Border Agency will fingerprint all foreign nationals entering the country with biometric UK visas, entry clearances and identity cards. This initiative is aimed at improving security and securing UK ports-of-entry and borders. On arrival in the UK, border control will perform regular immigration checks on all foreign nationals seeking admission to the UK and then capture their fingerprints to verify that they match the fingerprints given when the foreign national started the process abroad. This added security measure by UK authorities will stop individuals from cheating the system by having someone else complete biometrics abroad so that possible bars to admission, such as a criminal conviction, are not picked up during the biometrics process.

Employers should also be aware of another UK immigration law development. As reported earlier on this blog, starting December 14, 2009, the resident labor market test for Tier 2 of the points-based system will be extended to four weeks for all jobs. This will replace the current requirement to advertise jobs for two weeks, or one week for jobs where the salary is £40,000 or more. Employers should understand that the increased recruitment period will delay Tier 2 applications by at least 2-3 weeks, and that any transfers to the UK under this program should be adjusted accordingly.

This entry was written by Ian Macdonald.

United Kingdom: Advertising Requirement for Points-Based System (Tier 2) Extended to Four Weeks

Responding to proposals by the Migration Advisory Committee, the UK Border Agency (UKBA) has announced that before employers may hire migrant workers for a job under Tier 2 of the points-based system, they must advertise the position for four weeks. Previously, the test required two weeks of advertising, or one week’s advertising for jobs with salaries of £40,000 or more. The change is intended to better support British nationals looking for skilled jobs as the country comes out of the economic downturn.

The change will take effect December 14, 2009. To provide flexibility to employers, the four weeks of advertising will not need to run continuously. Employers that have already advertised positions need not re-advertise to meet the requirement.

Updated guidance for Tier 2 sponsors will be provided on UKBA’s website on December 14.

UK: Job Posting Requirements Eased for Senior-Level Positions

Financial Times reports that lobbying efforts by lawyers and businesses led to a relaxation of the UK’s points-based immigration system posting requirement. British companies seeking to fill senior-level positions with salaries over £130,000 no longer are required to advertise the positions in local Jobcentres. However, companies must continue to advertise via other UK media.

In addition, the Migration Advisory Committee (MAC), which oversees the points-based system, declined to ban intra-company transfers in which businesses bring in overseas staff. Unions had pushed for a ban, but officials believed that preventing foreign companies from relocating staff to the UK would negatively impact investment in Britain.

Rules for the points-based system are being tightened in other respects. The MAC recently recommended that the required posting period for jobs with salaries above £40,000 be increased fourfold, from one week to four weeks. Also, starting salaries of skilled non-EU workers without formal qualifications must be at least £32,000, up from £24,000; for qualified workers the starting salary increased from £17,000 to £20,000. Although the number of skilled non-EU workers coming to the UK has decreased recently, the new changes are expected to produce a further 10% cut.

United Kingdom: Overseas Advertising Restrictions

Driven by a high unemployment rate, The Times is reporting that British Home Secretary Jacqui Smith has altered the rules regarding overseas job advertisements. Under existing rules, employers are required to advertise a job vacancy for up to two weeks in the UK before advertising overseas. Now, however, employers will also be required to advertise openings for skilled workers in the JobCentre Plus network. The new rules are intended to help fulfill Prime Minister Gordon Brown's controversial promise in 2007 to keep 

British jobs for British workers.