MAC's proposed cap on non-EU workers will harm UK businesses

"The Home Office has already shut down numerous routes for non-EU migrants entering or remaining in the UK for work. In 2011 it closed the Highly Skilled Migrant route and the Post Study Work route which allowed employment and self-employment, and dramatically changed who qualifies as a ‘sponsored worker.'

"These latest set of MAC proposals to be considered by the Government before being enforced on 6 April, will leave many companies, already facing a growing skills crisis, struggling to afford the rise in labour and administration costs and resorting to using lower skilled workers.

"Significantly, proposals include raising minimum salaries for Tier 2 Intra-company transfers (ICT's) and Tier 2 General employees; to impose an Immigration Skills Charge (ISC) of an extra £1,000 per Tier 2 migrant per year; and to introduce an NHS Surcharge for ICT’s.

"MAC is also suggesting that Tier 2 ICT’s have at least two years of company experience overseas before qualifying for a transfer, up from one year currently, and further administration burden with a proposal for more detailed job descriptions for Tier 2 ICT applications including skill requirements.

"A new Tier 2 ICT route for third-party contracting which includes raising the minimum earnings threshold to £41,500, will especially hit those hard that rely on overseas contracts, particularly the IT industry. Further, MAC is calling for a more in-depth review of skills shortages within the IT industry. They may recommend the use of the Resident Labour Market Test (RLMT) to third-party contacting route and limit the proportion of Tier 2 migrants to each organisation, which will significantly damage to the future talent available to UK tech organisations unless managed carefully. 

"It seems short-sighted to limit one of the only groups that can be controlled yet is so greatly relied upon especially as latest ONS figures for the year ending June 2015 show that the amount of non-EU citizens entering the UK actually accounts for less of the overall net migration.

"Unlike EU workers, who can move freely between EU countries under European law, unless intra-company transfers; jobs have to be advertised to settled workers first before offering them to non-EU professionals and sponsored workers have to be in the UK for five consecutive years and have Indefinite Leave to Remain (ILR) before they can settle or claim public funds or benefits. The number of sponsored workers who can qualify for ILR has been cut dramatically since 2010.

"I would advise companies that rely  on non-EU workers, that they should advertise jobs locally and submit sponsorship applications soon before changes are enforced on 6th April. Licence renewals are expected to be more complex so forecasting vacancies and planning financially can help for applications, should skills not be found within the UK.  Finally, compliance checks will likely increase so I would also advise companies to review their record-keeping to ensure it complies with the Prevention of Illegal Working checks and Sponsor Duties for licence holders."