Employment Law: New Immigration Law | October 2020
After the 31st December 2020, free movement will come to an end requiring employers wanting to recruit from outside the UK’s resident labour market to become a Home Office licensed sponsor. This status will enable employers to recruit workers from anywhere in the world. This month’s Employment Law Update is a brief summary of the Government's new points-based system for anyone coming to work into the United Kingdom to work and highlights a number of key actions that employers need to consider and prepare for now.
Who does the new scheme apply to?
From the 1st January 2021, the United Kingdom will introduce a points-based immigration system that will apply to anyone coming into the UK to work either from within the EU or outside the EU with the exception of Irish citizens. In addition, it will not apply to EU citizens currently living in the UK by 31st December 2020 however they will still be required to apply to the EU Settlement Scheme no later than 30th June 2021.
What is the new scheme?
It is called the Skilled Worker system where anyone coming into the UK will need to evidence several qualifying criteria:
- They have a job offer from a Home Office licensed sponsor
- The job offer is at the required skill level
- They speak English to the required standard
In relation to the job offer itself, there is also some minimum requirements including:
- The general salary meets the threshold set by the government at £25,600, or
- The specific salary requirement for their occupation
The scheme offers some flexibility to the potential employer/employee to ‘trade’ higher skills for lower salaries but with a minimum threshold salary of £20,480 so long as:
- The job offer is in a specific shortage occupation
- A PhD relevant to the job
- A PhD in a STEM subject relevant to the job
Based on the above, points are then allocated and a total of 70 points is required to be able to apply to work in the UK. The table below sets out how the points are allocated in this new system:
Characteristics |
Mandatory/Tradeable |
Points |
| Offer of job by approved sponsor | Mandatory | 20 |
| Job at appropriate skill level | Mandatory | 20 |
| Speaks English at required level | Mandatory | 10 |
|
Salary of £20,480 to £23,039 or at least 80% of the going rate for the profession (whichever is higher) |
Tradeable | 0 |
| Salary of £23,040 to £25,599 or at least 90% of the going rate for the profession (whichever is higher) | Tradeable | 10 |
|
Salary of £25,600 or above or at least the going rate for the profession (whichever is higher) |
Tradeable | 20 |
|
Job in a shortage occupation as designated by the Migration Advisory Committee |
Tradeable | 20 |
|
Education qualification: PhD in a subject relevant to the job |
Tradeable | 10 |
|
Education qualification: PhD in a STEM subject relevant to the job |
Tradeable | 20 |
What do employers need to do?
If you are not already a Home Office licensed sponsor, then employers need to apply now (the application takes around 8 weeks) if they wish to recruit through the Skilled Worker system and it is important that employers check their ability to become a Home Office licensed sponsor in the first instance.
We would urge employers to seek further detailed information and advice without delay and the starting point would be the Government's website.
Finally, the team here at cHRysos HR wish you and your team a safe and successful autumn. If you have any HR issues and would like to talk them through with our team, please contact us.
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