Immigration updates for employers | March 2024
Immigration rules – plenty of change ahead
Further to the December 2023 announcements, on 14 March 2024, the Statement of Changes to the Immigration Rules HC590 was finally published. This has allowed practitioners and sponsors a couple of weeks to review and implement the changes which will take effect between 4 April 2024 and 16 May 2024; however, most changes are due on 4 April 2024.
It is important to flag that to implement the changes referred to in this article, the Sponsor Management System (SMS) will be unavailable from 19:00 (7pm) on 2 April 2024 until 09:00 (9am) on 4 April 2024. Sponsors will therefore need to act before 7pm on 2 April 2024, if they wish to assign any Certificate of Sponsorship (CoS) before these changes take effect.
The main changes for sponsors are as follows:
- For existing skilled workers, transitional arrangements will apply until 3 April 2030 for applications to extend their visa, switch to another sponsor etc.
- For existing skilled workers assigned a new CoS on or after 4 April 2024, their salary must be the higher of the general salary threshold of £29,000 (previously £26,200) or the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version).
- The general salary threshold and ‘going rates’ both represent an increase to the latest 25th percentile of UK earnings (not the median, as with new skilled worker applications).
- For existing ‘new entrant’ skilled workers, their salary must be the higher of the general salary threshold of £23,200 (previously £20,960) or 70% of the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version).
George is a South African national and has been sponsored as an Office Manager under SOC 4161 (2010 version) being paid a salary of £26,200 for the last 2 years. He works a standard 37.5 hour working week. His skilled worker visa is due to expire on 8 September 2024. His sponsor wants him to continue in that job for another 3 years. Under the transitional arrangements, George’s job role now falls under SOC 4141 (2020 version) with a ‘going rate’ of £28,100.
His sponsor will therefore need to offer him a gross salary of £29,000 for him to be eligible for a visa extension.
- For new skilled workers assigned a CoS on or after 4 April 2024, their salary must be the higher of the general salary threshold of £38,700 (previously £26,200) or the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version).
- The general salary threshold and ‘going rate’ both represent an increase to the median UK earnings (previously they were at the 25th percentile of UK earnings).
- It appears that most of the SOC 2020 codes are organised slightly differently to the SOC 2010 version and there are some occupations which have been removed entirely for new applicants.
- The new ‘going rates’ amount to significant rises in many cases, particularly as regards jobs outside London and the Southeast and for early career positions.
Charlie is in Germany, and he has been offered an IT business analyst role with a UK sponsor. His sponsor identifies that this vacancy falls within the new SOC 2133 (2020 version) which provides a ‘going rate’ of £51,700. There are no tradeable points applicable to his circumstances. His CoS is assigned on or after 4 April 2024. He must therefore be paid a minimum salary of £51,700 based on a 37.5 hour working week.
Under the old salary rules, pre-4 April 2024, Charlie’s minimum salary would have been £37,600, based on a 37.5 hour working week.
- New Entrants – For new entrants under the skilled worker route, who are assigned a CoS on or after 4 April 2024, their salary must be the higher of the general salary threshold of £30,960 (previously £20,960) or 70% of the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version).
- Immigration Salary List “ISL” (previously Shortage Occupation List) – For new applicants under the ISL, who are assigned CoS on or after 4 April 2024, their salary must be the higher of the general salary threshold of £30,960 (previously £20,960) or the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version). Previously, the ‘going rate’ had benefited from a 20% reduction but the Government have abolished this reduction under the new rules. The new ISL will be in effect from 4 April 2024 and has a greatly reduced number of occupations. The Government considers it sensible to offer a discounted salary threshold, rather than being a list of all occupations experiencing labour shortages.
- PhD – For new applicants with a PhD in a subject relevant to their job, who are assigned a CoS on or after 4 April 2024, their salary must be the higher of the general salary threshold of £34,830 (previously £23,580) or 90% of the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version). For new applicants with a PhD in a STEM subject relevant to their job, who are assigned a CoS on or after 4 April 2024, their salary must be the higher of the general salary threshold of £30,960 (previously £20,960) or 80% of the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version).
Victoria is in the UK under a Student visa; she has completed her course and has been offered a job as a Recruitment Consultant with a UK sponsor. Her weekly working hours will be 37.5 and her sponsor identifies that this vacancy falls within the new SOC 3571 (2020 version) which provides a ‘going rate’ of £30,960. Although Victoria can be a ‘new entrant’ qualifying for 70% of the ‘going rate’ – the general salary threshold for new entrants of £30,960 is higher, so must apply. Her CoS is assigned on or after 4 April 2024. She must therefore be paid a minimum salary of £30,960 based on a 37.5 hour working week.
Under the old salary rules, pre-4 April 2024, Victoria’s minimum salary would have been £20,960, based on a 37.5 hour working week.
For new Health & Care visas or going rates using the national pay scales, migrants assigned a Certificate of Sponsorship (“CoS”) on or after 4 April 2024, must have a salary which is the higher of the general salary threshold of £23,200 (previously £20,960) or the jobs ‘going rate’ in line with the national pay scales (based on the latest 25th percentile of UK earnings).
Susan is a Spanish national and wants to apply for a job with a UK sponsor as a Band 6 podiatrist. Her sponsor identifies that this vacancy falls within the new SOC 2256 (2020 version) which provides a ‘going rate’ based on national pay scale of at least £35,392 in England. Her CoS is assigned on or after 4 April 2024. She must therefore be paid a minimum salary of £35,392 based on a 37.5 hour working week.
Under the old salary rules, pre-4 April 2024, Susan’s minimum salary would have been £33,706, based on a Band 6 podiatrist, for a 37.5 hour working week in England.
- For Senior or Specialist Workers in the Global Business Mobility routes, any CoS assigned on or after 4 April 2024 requires their salary to be the higher of the general salary threshold of £48,500 (previously £45,800) or the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version). The ‘going rate’ is based on the latest 25th percentile of UK earnings.
- For Graduate Trainees in the Global Business Mobility routes, any CoS assigned on or after 4 April 2024 requires their salary to be the higher of the general salary threshold of £25,410 (previously £24,220) or 70% of the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version). The ‘going rate’ is based on the latest 25th percentile of UK earnings.
- For the Scale-Up route, any CoS assigned on or after 4 April 2024 requires their salary to be the higher of the general salary threshold of £36,300 (previously £34,600) or the jobs ‘going rate’ under the Standard Occupational Classification (SOC) 2020 version (previously SOC 2010 version). The ‘going rate’ is based on the latest 25th percentile of UK earnings.
Final key points
Supplementary employment – scope expanded: Skilled Workers are already permitted to undertake supplementary employment, that is, employment in addition to the main job they are sponsored to undertake, if work is in the same occupation and at the same level, or is in a shortage occupation, and is for a maximum of 20 hours per week. The new Skilled Worker provisions widen the range of supplementary employment that Skilled Workers can undertake to include any eligible role under the Standard Occupational Classification (SOC) 2020 version.
English language: International GCSEs will be accepted as evidence under the English language requirement.
Temporary Workers, Creative Worker: For applications made on or after 16 May 2024, Creative Workers will need to provide details of any transport, living allowances and other expenses paid by the sponsor and references to the resident labour market test will be removed. This will mean where there is no code of practice, workers coming in this route must make a unique contribution to the UK's cultural life.
Graduate visa - review: The Migration Advisory Committee have been commissioned to carry out a rapid review of the Graduate route, by 14 May 2024, to understand how its operating in practice and the extent to which it is meeting its objectives. There will be no call for evidence from the public.
Given the above developments, we are seeing an increasing number of CoS being assigned before 2 April 2024 and the Home Office are appearing to be working hard to process applications before the 7pm cut off on 2 April 2024. If you are considering overseas recruitment, sponsors are advised to plan accordingly based on these changes and understand the transitional arrangements in place for existing skilled workers.
If you have any queries or require advice on these changes. Please contact Gemma Robinson on the contact details below.