Home Office ruling could turn Commonwealth temps off the UK

Research conducted by Morgan McKinley reveals that changes in government regulations could seriously affect the flow of Commonwealth workers to the UK, including the estimated 8000 Commonwealth temporary workers employed by financial institutions in the City of London each year. From 8th February 2005, individuals visiting Britain from Commonwealth countries on a Working Holiday Visas (WHV) are only permitted to work for 12 months out of their two-year visa term. Prior to that date, restrictions had been lifted on the time that Commonwealth employees were allowed to work, so many worked for the full two years.

It is estimated that in the City, temporary staff on WHVs currently number around 8,000 or 2% of the overall City workforce.

Andrew Evans, Operational Director of Morgan McKinley explains: ìCommonwealth workers are a vital part of the City workforce, providing a much needed source of readily available skilled labour. They tend to be well qualified and experienced individuals who can hit the ground running. They are renowned for having an exceptional work ethic and consequently they make an important contribution to their employer and in turn, Londonís financial services industry.î

In 2004 alone, the British High Commission issued 47,000 WHVs, with 47% distributed to South African nationals, 43% to Australians, 11% to New Zealanders and small numbers to people from other countries within the Commonwealth.

A survey conducted by Morgan McKinley suggests that the changes to the Working Holidaymaker Visa Scheme could seriously deter Commonwealth citizens from coming to the UK. Of the 253 Commonwealth temporary workers surveyed, 64% of respondents said that it would definitely have affected their decision to apply for a UK visa, whilst 27% of those said they would not have applied for a visa at all.

All New Zealanders questioned said the changes would have affected their decision to apply for a UK visa, while 55% of Australians and 33% of South Africans were similarly concerned. 36% of Australians, 25% of New Zealanders and 17% of South Africans said they would not have applied for a visa at all.

One current WHV employee comments: ìThe majority of Commonwealth visa applicants around my demographics are highly skilled and incredibly diligent. I think that reverting back to the old regime, will probably make people think a lot more carefully about whether to come to the UK.î

Andrew Evans continues: ìThis research suggests that changes made to the Working Holidaymaker Visa Scheme are making Commonwealth nationals think twice about coming to work in Britain. This comes at a time of skills shortages in a number of areas. Although we will have to wait and see whether these changes in regulation do in fact reduce the size of a valuable labour source for City firms by discouraging good workers from coming to the UK. He adds: ìMany of these people have specialist skills that are very much in demand, such as accountancy and compliance. In an increasingly regulated environment, they will be difficult to replace.î

The regulatory changes also impose a ëpolicingí responsibility on employers, which is likely to increase the administrative burden of hiring individuals on WHVs, as they will be responsible for ensuring candidates do not exceed the 12 month cap on working in the UK.

Results from the survey confirm that WHV workers believe that the Governmentís changes are likely to restrict a workerís ability to work in the UK in their chosen field. 73% of respondents said that, had the latest changes applied to them, it would have been harder to find work in their chosen field.

Andrew Evans continues: ìCommonwealth temporary workers are obviously concerned about the effects that the changes will have on their employability in the City. Itís no surprise that a massive 86% of our respondents opposed the regulatory changes.î

He concludes: ìCommonwealth employees not only provide City firms with vital skills and experience, but they also offer firms an important international perspective. It would be a great loss to the City if these new regulatory changes undermine what has up to now, been an effective and mutually beneficial working relationship.î