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New points basis for employing foreigners

Autumn Newsletter 2009If you are employing anyone from outside the European Economic Area (EEA), they must hold a British passport or a visa in order to work in the UK. UK work visas are granted under a points-based system consisting of five different tiers.

However, only four are currently available because Tier 3 (low-skilled workers required to cover a temporary labour shortage) is suspended indefinitely.

A foreign worker is entitled to apply for a work visa under a specific tier depending on their skills or their sponsoring employer's type of business.

Each tier has different entry checks, entitlements and requirements and is organised into categories. For example, Tier 2 consists of four categories: general (ie sponsored workers in skilled roles), inter-company transfers, ministers of religion, and elite professional sports people.

In April 2009 the qualifications under Tier 1 were raised to a master's degree and a minimum salary requirement of £20,000.

The Home Office's Border Agency provides useful information for employers who want to recruit workers from outside the EEA or retain foreign workers they already employ (www.ukba.homeoffice.gov.uk/employers/points). The information includes how to go about obtaining a sponsor licence, which you will need if you want to sponsor foreign workers. It is not specific to any individual employee.

At the moment, the Home Office's published commitment is to decide 95% of sponsorship licence applications within four weeks. To obtain a licence, you will need to provide supporting documentation and comply with certain requirements. For example, Tier 2 skilled jobs must now be advertised through Jobcentre Plus for a total of at least four weeks.

Employers can face civil penalty of up to £10,000 for every foreign worker they employ illegally, and so it pays to check the Home Office and Border Agency's guidance on preventing illegal working. Support is available to help you avoid this pitfall: Business Link (www.businesslink.gov.uk) will help you check an individual's eligibility.

It is worth ensuring that, in preventing illegal working, your actions are not perceived as contravening human rights and racial discrimination laws. Again, there is official guidance available if you are unsure.

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