Tim Hayes
- Partner
- Immigration
Ten years before settlement: what the Government’s plans mean for Skilled Workers and employers
The Government has just announced a major change to the Immigration Rules which will mean that the standard qualifying period for settlement for many migrants will be ten years, rather than five.
The new ‘earned settlement’ system represents a significant change for Skilled Workers and the employers that sponsor them. The current system allows Skilled Workers to apply for indefinite leave to remain (“ILR” – the point at which overseas workers become free of immigration restrictions) after five years. The Government’s new approach starts from a ten-year baseline, although some migrants will qualify sooner depending upon factors including their earnings and occupation. The Government had previously consulted on a ten-year baseline as part of its earned settlement proposals.
Not everyone will have to wait ten years
The proposals announced include:
- ‘baseline’ ten-year ILR qualification period;
- additional criteria including in relation to criminality and receipt of benefits;
- shorter qualifying periods for migrants earning over £125,000; and
- 5-year qualifying period for those earning over £50,271 and certain public-sector workers
For employers, however, the important point is that Skilled Workers who do not qualify for an accelerated route could potentially spend twice as long in the UK’s temporary immigration system before becoming eligible for permanent residence, which will have a cost impact.
The detailed Immigration Rules implementing the reforms will be crucial. Employers should not assume that the announcement itself has changed an existing worker’s settlement date.
A substantial additional cost
A longer route to settlement could have significant financial consequences.
The Immigration Health Surcharge (‘IHS’) is currently set at £1,035 per year for most adult Skilled Workers and their family members. An additional five years before settlement could therefore mean another £5,175 in IHS charges for one worker alone, at current rates.
For a worker accompanied by an adult partner paying the same rate, that could mean an additional £10,350, before application fees are considered. The actual additional cost will depend upon how often an individual needs to extend their permission and what future fees are set at.
What does this mean for employers?
Many employers pay their employees’ personal visa and IHS costs on their behalf, often as part of recruitment and retention packages.
A longer period before settlement could therefore mean employers funding additional extension applications and IHS payments, as well as continuing to bear sponsorship costs and compliance responsibilities for longer.
Businesses should consequently review their immigration policies, particularly provisions dealing with:
- payment of visa application fees and the IHS;
- support for dependants;
- immigration budgets for international recruits; and
- repayment provisions where the employer funds substantial immigration costs.
What about Skilled Workers already here?
This is likely to be one of the most important issues and the plans announced appear to apply retrospectively.
Many existing Skilled Workers came to the UK expecting to qualify for settlement after five years. The treatment of those already progressing towards ILR has therefore been a particularly controversial aspect of the reforms. Parliament’s Home Affairs Committee specifically considered transitional protection when examining the Government’s proposals earlier this year.
The precise transitional arrangements and implementing Immigration Rules will need careful examination. Employers should therefore avoid telling existing Skilled Workers that their settlement date has definitely changed until their individual position under the new rules is clear.
What should employers do now?
Employers should identify sponsored workers approaching settlement, review who bears visa and IHS costs under their existing policies and consider the potential longer-term cost of sponsorship when budgeting for international recruitment.
More fundamentally, immigration support may increasingly become part of the competition for overseas talent.
This article is for general information purposes only and does not constitute legal advice or a comprehensive statement of the law. Specific legal advice should always be sought in relation to individual circumstances.
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Ashif Ali
- Immigration Adviser
- Immigration