New immigration rules have come into force today (27 November), bringing into effect Tier 2 of the Points Based System (PBS) to replace the previous work permit scheme.
Under the new system an employer must be licensed as a Sponsor before it can issue Certificates of Sponsorship to sponsor migrant workers in the UK who meet the points criteria.
A key feature of the PBS has been the requirement that migrants must be able to support themselves when they first arrive in the UK. This has led to rigid maintenance requirements being introduced by the UK Border Agency (UKBA) for Tier 1 applicants. Tier 1 came into effect as of 30 June 2008. Caron Pope, Head of the Immigration practice at CMS Cameron McKenna, comments, “This has been of particular impact to migrants from developing countries, where wages are significantly lower than the UK. Many highly skilled migrants from these areas are simply unable to meet the maintenance threshold.”
However, following intensive lobbying, this requirement has been removed for Tier 2 migrants and all dependants of Tier 2 migrants, sponsored by an A-rated sponsor. The sponsor must certify that it will support the migrant worker and family members if they fall on hard times during their first month in the UK.
Another change to the new system agreed in the last few weeks before the roll out of Tier 2 is that the per diem payments to intra company transferees, which are not made via the payroll, will now be accepted. However, accommodation allowances paid to intra company transferees can only be taken into account to a level of up to 30% of the overall package.
Caron Pope comments on the adjustments to the PBS, “These key policy changes will make the new system work far better for businesses seeking to sponsor migrants under the new system. However, the difficulties experienced by Tier 1 applicants in obtaining letters from banks in the prescribed form, particularly in the US, does not appear to have been taken into account. We are continuing to lobby UKBA policymakers on this point.
“With roll out occurring today we still have a number of policy questions outstanding and a number of client sponsorship applications which were filed by the 1 October deadline are outstanding. While we welcome the concessions and changes made by the decision makers in the last few weeks, preparing for the new system has been an arduous task for most employers with clarification being provided at the very last minute.”
CMS Cameron McKenna has a very highly-rated Immigration practice that was ranked in the top tier in both the latest Legal 500 UK and Chambers UK legal directories. Legal 500 UK 2008 describes the firm’s Immigration team as “experienced, knowledgeable and reputable” and having an “impressive portfolio of clients”.
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