The new and revised business immigration routes being launched from Spring 2022
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The Home Office published its latest Statement of Changes to the Immigration Rules on 15 March 2022, which provide further details of several new immigration routes, including the High Potential Individual (HPI) route, the Scale-up route and the new Global Business Mobility routes. The main aim for the Government is to simplify UK work visas and provide UK businesses with access to a more flexible pool of highly skilled workers. The changes are being phased in over the next six months, starting from 6 April 2022, as detailed further below.
The key changes for employers are as follows:
The Global Business Mobility routes are a new category of sponsored routes for overseas businesses seeking to establish a presence in, or transfer staff to, the UK for specific business purposes. The Global Business Mobility routes will open to new applicants on 11 April 2022 and a sponsorship licence is required for all five routes. The aim of the GBM route is to make business mobility as seamless as possible.
The GBM route replaces, reforms and/or expands four existing routes and introduces a new visa category:
The requirements are largely the same as the Intra-Company Transfer route, although the minimum salary threshold will be increased from £41,500 to £42,400 per year, or the going rate for the relevant occupation code, whichever is higher. Supplementary employment will also no longer be permitted.
The UK sponsor will need to register the high-value contract with the Home Office and the secondee must have worked outside the UK for the overseas business for a cumulative period of at least 12 months. The role will need to be an eligible job at or above the minimum skill level (i.e. A level or equivalent). Although there will be no requirement to satisfy a minimum salary amount, the Certificate of Sponsorship must confirm that the applicant is paid at least the national minimum wage. If granted permission, their stay will initially be up to one year, with the ability to extend to a maximum of two years.
This route allows businesses located in the UK and overseas, which vitally aren't connected by common ownership or control but instead through high value business dealings, to temporarily bring across overseas nationals to fill eligible jobs in the UK.
The requirements are notably different to the Sole Representative of an Overseas Business route, with the main difference being that this route will require sponsorship. The overseas business must not already be trading in the UK; however, they will need a sponsorship licence before they are able to hire their first non-settled worker. It is difficult to see how this will work in practice. We understand that the licence will be granted with a 'provisional rating' to take into account the fact that the company in question will not already be an established UK company. It is likely that the expansion worker themselves will take on the key personnel roles, including Authorising Officer. This new approach of needing sponsorship is likely to be burdensome and time consuming for overseas business compared to the previous rules.
In good news, this route will allow a team of workers (rather than just one worker) to come to the UK and the English language requirement has been removed. However, there will be a minimum service requirement to ensure that workers have worked outside the UK for the linked business or organisation for a cumulative period of at least 12 months unless they earn more than £73,900 or are a Japanese national. In addition, the minimum salary threshold will be set at £42,400 per year (rather than not being specified). If granted permission, workers can stay for up to one year, with the ability to extend to a maximum of two years. Again, comparatively restrictive when the Sole Representative route provided for the option of settlement.
The requirements are again largely the same as the Intra-Company Graduate Trainee route, although the minimum salary threshold will be slightly increased from £23,000 to £23,100 per year and supplementary employment will no longer be permitted.
Despite recommendations from the Migration Advisory Committee, none of the Global Business Mobility visa routes will lead directly to settlement in the UK. All five categories are envisaged for temporary stays in the UK and therefore will not be subject to an English language requirement. Applicants will be able to bring family dependants with them to the UK and switch into other immigration categories leading to settlement, subject to satisfying the relevant eligibility criteria. We shall closely monitor the uptake statistics under the new GBM routes and provide updates in due course.
The High Potential Individual visa is a new immigration route which will go live to international graduates from 30 May 2022. The intention of this visa route is to encourage and simplify the process for "the brightest and best" individuals to come and live and work in the UK. This is an unsponsored route so will allow individuals who simply wish to look for work (of any type) in the UK.
Although the individuals will not need a pre-existing job offer from a UK employer, they must have a degree from a "top global university" outside of the UK, awarded within the last five years, which meets or exceeds the recognised standard of a bachelor's or UK postgraduate degree. A list of qualifying universities will be published by the Home Office on the Global Universities List and reviewed annually. At the time of writing, the number of "top" universities that will be permitted is not clear, but we envisage this list to be very limited! Individuals will need to show the English language requirement (at least to Level B1, the same as the Skilled Worker route) and meet a financial maintenance requirement (funds of at least £1,270 must be held for 28 days unless their A-rated sponsor has certified maintenance).
Applicants will be granted permission for a two-year period (or three-year period for PhD or other doctoral level qualifications). In some cases, employers may choose to utilise this route and employ overseas graduates in the UK, without having to meet the skill or salary requirements. However, the High Potential Individual route cannot be extended and will not lead directly to settlement in the UK. Though individuals may switch into other immigration categories leading to settlement, subject to satisfying the relevant eligibility criteria.
The Scale-up visa is another new immigration route which will be introduced on 22 August 2022. This visa is intended for talented individuals recruited by a UK Scale-up sponsor, who have the skills needed to enable the Scale-up business to continue growing.
The Home Office have not yet published full information for employers on applying for sponsorship licences under the Scale-up route. However, we understand that businesses will need to apply for a sponsor licence in advance by evidencing that they have an annualised growth of at least 20% for the previous 3-year period (in terms of turnover or staffing) and that they had a minimum of ten employees at the start of the period. We shall patiently await further details on what information and justifications can be used to justify being granted a Scale-up licence. We also understand that the Government will consider further ways in which scale-up companies may be able to register for this route in due course.
Importantly, the Scale-up visa involves two stages. The first stage is sponsorship, based on the points-based system and the second stage allows existing Scale-up individuals to score points without sponsorship, predominately based on previous UK PAYE earnings.
In relation to the first stage, applicants will need a valid Certificate of Sponsorship from an A-rated Scale-up sponsor. The sponsor must confirm that the applicant is expected to work for them for at least the first six months of their permission. Unusually, after that time their immigration status will no longer be tied to that employer. This means that employers could incur the costs and effort of sponsoring someone who may then leave their organisation after 6 months. Employers may wish to consider how to incentivise recruits to stay with them as a result.
The job will require a minimum skill level of RQF Level 6 (i.e. degree level or equivalent) and the minimum salary must be at least £33,000 per year (limited to basic gross pay) or the going rate for the job, whichever is higher. In the same way as the Skilled Worker route, applicants must also satisfy the English language and finance requirements (funds of at least £1,270 must be held for 28 days unless their A-rated sponsor has certified maintenance). Applicants will be granted permission for an initial two-year period.
The Scale-up route essentially sits in the middle between the Skilled Worker visa and the Global Mobility routes and does not attract the Immigration Skills Charge.
Scale-up migrants must spend the first six months in the sponsored role, after which time, they can undertake any work for any UK employer (including self-employment and voluntary work) except for work as a professional sportsperson or coach. The Scale-up migrant can extend their stay in the UK and become unsponsored, provided certain criteria are met. The main criteria will be demonstrating that they have had monthly PAYE earnings in the UK equivalent to at least £33,000 per year during at least 50% of their permission as a Scale-up migrant. Any time spent on statutory maternity, paternity, parental or shared parental leave, statutory adoption, or sick leave during the relevant period, will be treated as meeting the £33,000 threshold. Scale-up migrants will be granted an extension for three years, after which time they may be eligible to apply for settlement.
Many of these immigration categories will be welcomed by employers, however, we still don't believe they go far enough. We will monitor any further updates and provide practical guidance for employers as the changes take effect. If you have any questions on the new visa routes, it is important that advice is sought at the earliest opportunity, so please do get in contact with Gemma Robinson.
