Update | Monday 24th August 2009
Employers take note! The UKBA has published new Tier 2 migrant worker guidance.
Whilst Smith Stone Walters shall ensure your company’s sponsorship based applications adhere to the new Tier 2 guidance, it is worth pointing out the headline changes:
1. Changes to the Resident Labour Market Test for senior employees
Employers are no longer required to advertise the role in the JobCentrePlus, where:
- The prospective earnings for the role in question amounts to £130,000 or above AND the nature of the role falls under the SOC code 1112 (Directors and Chief Executives) and SOC code 2411 (Legal Partners); or
- There may be stock-exchange disclosure issues.
Where there has been a clear change of employment (rather than perhaps a small increase in pay and responsibility) the UK Border Agency will expect a fresh application under the points-based system to be filed.
For further guidance in respect of this issue, contact your Smith Stone Walters Advisor.
2. Tier 2 (General) migrants will no longer be required to be on UK payroll
In line with Tier 2 intra-company transferee arrangements, it is no longer essential for the UK employer to pay migrant workers who are sponsored under Tier 2 (General) from within the UK. This development will allow international organisations to reintroduce bespoke payroll arrangements suitable to meet their own purposes (rather than one which is ‘governed’ by the UK Border Agency).
3. Milkrounds
For those organisations who recruit individuals a number of years in For those organisations (such as law firms) who recruit individuals a number of years in advance and then will sponsor their studies until the individual begins work, provisions were formalised to accommodate this valid recruitment method.
It has therefore been agreed to:
- Remove the JobCentrePlus requirement completely and replace this with advertising on a graduate recruitment website and one other medium; and
- Allow a four year period for milkrounds to be considered towards the Tier 2 Resident Labour Market Test requirements.
4. Allowances
The UK Border Agency now recognises that short-term assignees may have higher accommodation costs. Hence, the UKBA will now take in to account an accommodation allowance up to a proportion of 40% of the gross salary, where a migrant:
a) is applying from outside the United Kingdom; and
b) has a certificate of sponsorship that is for 12 months or less
Your Smith Stone Walters Consultant shall be able to provide you with specific advice as to whether the proposed package offered to your UK bound assignees meets the Tier 2 minimum salary requirements.
Smith Stone Walters routinely supports all clients in ensuring they satisfy the strict and ever-changing requirements of the scheme. For all UK employers seeking to employ migrant staff it is more important than ever to ensure they are able to adhere to the regulations. For further advice on how Smith Stone Walters can provide specific support in this area, contact a member of our team today.
Kind regards
Smith Stone Walters

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