Update | Thursday 17th February 2011
UK Immigration Announcement: Statement of Intent – Tier 2
The Government yesterday (16 February 2011) published a Statement of Intent outlining changes to the Tier 2 system which will come into effect on 6 April 2011. Whilst a number of alterations have been announced, this summary centres on the key changes that will impact most employers when seeking to engage migrant workers.
The Limit - who does it apply to?
In the year 6 April 2011 – 5 April 2012, a limit of 20,700 places will apply for those seeking admission to the UK under the Tier 2 General category to fill a vacancy attracting a salary of less than £150,000 per annum (known as the ‘Restricted Category’).
The limit will not apply to the following applicants – known as the ‘Unrestricted Category’:
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Tier 2 Intra-company Transfers
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Tier 2 Extensions
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Those seeking to fill a vacancy attracting a salary of £150,000 or more
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Tier 2 migrants wanting to make a new visa application to switch employment to another company within the UK
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Those currently in the UK in a different visa category and wanting to switch into Tier 2 General (e.g. Student/Tier 4, Tier 1 General, Tier 1 Post Study Work).
Note: It will still not be possible to switch from Tier 5, Dependant or Visitor Status to Tier 2 within the UK – they will always need to return to their country of residence to make an application.
How will the new system operate?
Restricted Category
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The 20,700 limit will be subdivided into 12 monthly allocations. In April, 4,200 places will be allocated and for each subsequent month the limit will be set at 1,500 places. There may be slight movement on these numbers depending on whether each month is under or oversubscribed.
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The UKBA aim to start receiving applications for Restricted CoS from 16 March 2011.
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The UKBA will set a published deadline each month (date to be confirmed) to receive applications.
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If the monthly quota is reached, applications will be considered against a ranking criteria. The minimum salary requirement under this category will be £20,000. Additional points will be awarded incrementally up to £149,999. Those with the highest salaries are more likely to receive a CoS allocation.
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Sponsors who have applied for, but not been allocated a CoS will have to re-apply; the application will not be automatically rolled forward to the next month.
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If a CoS is allocated, it must be assigned to the applicant within 3 months. Once the CoS is assigned, the applicant must apply for Entry Clearance within a further 3 months.
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Processing times will vary based on when the application is submitted for consideration. We will therefore need to advise on a case by case basis following the introduction of the system.
Unrestricted Category
Within the coming weeks, Sponsors will be contacted by the UKBA to confirm allocations. Sponsors will still be able to apply for additional unrestricted CoS during the financial year as per the current process.
The ICT category will be changed to distinguish between Shorter Term and Longer Term assignments.
Shorter Term:
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Must be paid over £24,000 per annum.
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No more than 40% of the salary package can be comprised of accommodation allowances.
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Will be granted leave up to 12 months only.
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Cannot be extended, must wait 12 months before applying under this category again.
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Cannot switch to Tier 2 General.
Longer Term:
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Must be paid over £40,000 per annum.
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No more than 30% of the salary package can be comprised of accommodation allowances.
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Will be granted leave up to 3 years initially and may extend for a further 2 years.
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After 5 years they cannot extend and must leave the UK.
Note: Tier 2 ICT Established Staff migrants who were granted Entry Clearance prior to 6 April 2011 will be able to extend beyond 5 years.
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Cannot return as an ICT within 12 months of ICT visa expiry.
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Cannot switch to Tier 2 General.
Tier 2 ICT Skills Transfer & Graduate Trainee categories will continue under the new system.
Other Changes - All Categories
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The job must be on the published Graduate Occupation List for Tier 2 applications (see Appendix A HERE).
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The salary must meet the minimum requirement stipulated in the relevant Code of Practice (see document HERE):
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The English Language requirement will be raised from Basic to Intermediate (B1) for Tier 2 General applications. Tier 2 ICT applications will only be required to meet A1 level when extending their stay past 3 years.
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The Maintenance Requirement will remain unchanged.
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The Resident Labour Market Test will not apply for Tier 2 General applications where the salary is £150,000 or above (raised from £130,000). As per the current rules, the RLMT will also not apply for Tier 1 Post Study Work migrants switching to Tier 2 General who have been employed by you for at least 6 months immediately prior to application.
Indefinite Leave to Remain
There will be some preliminary tightening of the ILR rules from 6 April 2011. Further reforms are expected later in the year. From 6 April, a new income requirement for Tier 1 General, Tier 2 General and Work Permit holders will be introduced. Their income must be at least the level stipulated when they were last granted leave. Tier 2 General and Work Permit migrants will need to be paid the appropriate salary for the occupation as set out in the relevant Code of Practice for sponsored skilled workers.
Smith Stone Walters
For further advice in respect of any UK immigration matter, please contact Smith Stone Walters today.
Kind Regards,
Smith Stone Walters
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