How different is a Labour business immigration system likely to be?
ross@vanessaganguin.com +44 (0) 20 4551 4897 +44 (0) 7894 790890 |
ross@vanessaganguin.com +44 (0) 20 4551 4897 +44 (0) 7894 790890 |
19 July 2024
When are changes to work visas likely to happen?
Major immigration changes tend to be implemented in the Spring (or sometimes October). With Labour promising major reviews of the current system, it is unlikely that much will happen before next spring.
In the meantime we would advise HR teams coping with recent salary increases to sponsor staff on Skilled Worker visas to explore categories such as Scale-up visas and New Entrant and PhD discounts to sponsor migrants on lower salaries. They should also look into visas that do not require sponsorship or salary thresholds, such as Global Talent visas, Youth Mobility Schemes and Graduate visas.
Will immigration policy be devolved?
Regional demographic pressures and wage disparities present employers with challenges. The current national salary thresholds for sponsoring skilled migrants are much easier on companies paying London wages. While fully separate immigration systems for Scotland, Wales and Northern Ireland are improbable, the Shortage Occupation List and the Immigration Salary List that replaced it allowed discounts specific to particular nations, and a government-commissioned review of the points-based system may explore local solutions for addressing skills shortages.
Youth mobility
The Youth Mobility Scheme and India Young Professionals Scheme are reciprocal visa agreements for people aged 18-30 (or in some cases 35) to live and work for two (sometimes three) years in each other’s countries. While the previous government expanded these agreements and wanted to negotiate more with individual European countries, it refused the EU’s offer of limited youth mobility agreement between the UK and the entire EU.
This would be a pragmatic solution to the hiring challenges many sectors such as the hospitality industry face. It would also open doors for both British and European young people and reverse a post-Brexit immigration trend for much higher levels of non-EU immigration. However, the new Labour leadership which has ruled out any return to pre-Brexit free movement with Europe, has given no indication if it would countenance a Europe-wide youth mobility expansion. While this would be an easy win for stated ambitions to grow the economy, it might be politically difficult for a government determined not to appear to be reversing any elements of Brexit.
Enforcement and compliance
In the run up to the general election, Labour targeted “bad bosses” who they said abuse the visa system or breach employment laws, promising stricter enforcement. Employers who “abuse the visa system” or breach employment law will be barred from hiring workers from abroad, the Labour manifesto adds. However, we do not envisage any major massive changes to sponsor compliance obligations as they already include requirements to ensure that the immigration system is not abused, compliance with wider UK law (including employment and equality law) and not behaving in a manner not conducive to the public good.
Recent increases in civil penalties and compliance visits indicate a trend that the new Labour government may continue. In the first quarter of this year the Home Office suspended 309 Skilled Worker sponsor licences and revoked 210: a much higher level than at any point since Brexit. Employers should ensure robust compliance systems and stay informed of any upcoming changes to Home Office guidance, seeking legal advice and conducting regular audits to maintain their sponsor licences, whatever changes are on the horizon.