WELCOMED WITH OPEN ARMS?

The global nature of business today has wider implications than those relating to legal structures and trading regulations. Frequently the complexities of international staffing must be managed also. In respect of US companies operating in the UK this will involve understanding and negotiating UK immigration policy in order to relocate head-office staff or hire other international personnel.

As in any country immigration is a political issue and at present the UK government has made a policy decision to restrict the number of non-European Union (EU) nationals who can work in the UK. A permanent cap has been introduced and the previous loophole whereby highly-skilled employees did not need to be sponsored has been closed. 

Employers who want to employ non-EU nationals must be licensed. This enables them to provide migrants with a certificate of sponsorship which guarantees entry clearance. However, currently the number of certificates available for employers is restricted to 20,700 annually for new tier 2 visas, i.e. all non-EU new hires in the general category, and these are available through a ballot/lottery system at the rate of 1,500 certificates per month.

Certificates can only be applied for on a needs-only basis. To be eligible employers must provide evidence that they have tried and failed to recruit from within the EU by conducting the Resident Labour Market Test which means advertising in job centres and specified websites and print media.

On the positive side, intra-company transfers are less affected so existing employees can be transferred freely from the US as long as they will be earning over £24,000 for short term (up to 12 months) transfers  and over £40,000 for long term transfers (up to three years with the possibility of extending for two more). Such employees must have an intermediate level of spoken English and the job must be of graduate level (although the transferee does not have to be a graduate themselves). Those earning over £150,000 are not subject to the cap.  

Spouses and children under 18 are allowed to accompany successful Tier 2 migrants, are eligible to work (though not as a doctor in training) and must not be a burden on public funds. Partners are eligible if there is an enduring relationship akin to marriage i.e. living together, for at least two years.

As with many business challenges, success often comes to those who plan early, are clear about their objectives, and seek specialist advice.

For further information please contact Helena Ross

Article published in:

Network - the journal of the British American Business Association, Vol II, 2011