Category: Business

With a general election expected this year, immigration is bound to be a theme that all political parties use to signal to key voter demographics.

Where are voters on ‘immigration’?

Currently, according to YouGov, the Conservatives are only the most popularly party among the over-70s. The majority of Britons under-50 say will vote for Labour.

The UK’s last election was in 2019. At that time, YouGov polls suggested that 22% of voters considered immigration as the most important factor facing the country. This has now risen to 39% with only healthcare and the economy ranking higher. Immigration is currently considered a more important issue facing the UK than education, housing, the environment and family life and childcare.

38% of those polled by YouGov consider the level of immigration in the UK to have been mostly bad for the country. Only 21% of respondents expressed a positive opinion towards immigration during the last ten years of a Conservative government. 65% of respondents believe that immigration has been too high in the last ten years.

Given the above numbers, it isn’t surprising that 82% of the UK consider the current government to be badly handling the issue of immigration in the UK. 20% of the country now believe that Labour would be the best political party to handle asylum and immigration. This is only 3% up from before the 2019 election, but critically the number of people with faith in the Conservatives on immigration has halved from 32% to 16%.

It appears that immigration is a very significant issue for voters in the UK, who believe that immigration levels have been too high in the past ten years and that the Conservatives have failed to impact it. In terms of what factors in particular Britons consider important for immigration, the latest YouGov trackers suggest that:

• The current levels of people with low levels of education and skills looking for low paid work in the UK are at the right level.
• The current levels of wealthy people looking to live in the UK based on investing in the UK are at the right level.
• We should allow more people to come to the UK to work in the British health service.
• The current levels of people coming to the UK to study are at the right level.
• The current levels of skilled workers coming to the UK to look for skilled jobs are at the right level.

In fact, in most areas of immigration, respondents to various YouGov polls suggest that immigration is a significant national issue whilst simultaneously being at the right level for each of its component parts.

Immigration in general is seen as too high, but each separate area of work or study related immigration is at the right level.

The Channel wall

It’s probably no surprise then that Labour and Conservatives are focusing their messaging on Channel crossings. Border integrity has proven a highly emotive subject for voters globally, whether it be building a wall, ending “free” movement or preventing islands being reached by boat. Crossing the Channel to reach the UK is symbolic of unrestricted immigration and triggers those who want to feel safe that the identity of Great Britain is secure.

Since only 1.3% of those arriving by small boats were removed from the UK between 2018 and 2023, it would appear that most people arriving by boat to the UK make a valid claim to remain in the UK as refugees. They have a case for remaining, but they are illegally entering. Since there is no way to legally enter the UK to make a claim for asylum and airlines are bound by law to check for a right to enter the UK, it would appear that the Channel crossers are extremely short of options.

It is positive that neither party demonises the individuals making the journey and the language is changing to focus on the criminal gangs making a trade from the trafficking of people. The Labour party are proposing a deal whereby the EU provides support with preventing Channel crossings in exchange for accepting a share of refugees arriving to the EU. The Conservatives have just agreed a deal with the EU to co-operate closer on information to prevent Channel crossings.

The impact of the many other elections taking place this year may also impact on anti-migration in the UK election too, since most recent elections in Europe have seen rises in more nationalist parties. The fact that the UK has already had Brexit might impact any such influence, however. The UK has already “taken back control of its borders” in that respect.

 Making work immigration work

Little is known on either the Conservatives or Labour Party’s policies on work-related immigration. James Cleverly looks to be taking actions to reduce visas that allow an unlimited work right, such as care worker and student dependants, UK spouses and Graduate visa holders. The focus appears to be in restricting low-skilled workers from overseas into the domestic labour market, despite YouGov respondents voting that the current levels are at the right level.

Shadow Home Secretary Yvette Cooper is already reminding the Conservatives of the trebling of net migration and looks to be focusing on less reliance for overseas workers for shortage occupations and an increase in training and upskilling the domestic labour market. The current government imposes charges of £1000 per year to sponsor a worker from overseas as an incentive to invest more in training, and so perhaps a Labour government will replace the Immigration Skills Charge with a requirement for sponsors to provide evidence of a sufficient level of internal training programmes.

Out of the shadow cabinet

With a likely Labour election victory and Yvette Cooper as Home Secretary, what would we expect in terms of immigration policy?

Cooper was chair of Labour’s refugee taskforce and has been Chair of the Home Affairs Select Committee since 2016, interviewing dozens of professionals on immigration during that time. She has always voted against stronger laws and enforcement of immigration rules and generally voted against a stricter asylum system. Cooper generally voted for continuing close ties with Europe during Brexit. We could expect a very different Home Secretary to the pro-Rwanda plan, pro-Brexit Cleverly.

This article was written by Oliver O’Sullivan, Head of Immigration at Wellers Law Group. You get get in touch with Oliver by email for enquiries relating to the contents of this article.

The partner of a person who is “settled” in the United Kingdom requires financial sponsorship from their settled partner. A person is considered to be “settled” in the United Kingdom if they are British, Irish or have Indefinite Leave to Remain status. A partner is a person to whom the settled person is married, in a civil partnership with, or with whom they have cohabited for at least two years.

To sponsor a partner, the settled person needs to provide evidence of meeting a financial requirement. This is a requirement that evidences that the couple will have sufficient income to cover the length of the visa. Unless the settled worker’s partner is already in the UK and allowed to work, is it only the income of the settled worker that can be counted for the application.

From 4^th April, the minimum income amount to sponsor a partner increases by 56% from £18,600 to £29,000. The financial requirement can be met in a number of ways as we explore below.

Employment

A settled person can be in salaried employment, earning at least £29,000 per annum. They can be outside the UK earning at least that amount and have a job offer in the UK for a position earning at least that amount, or they can be in the UK and working in a job earning at least that amount. Depending on how long they have been in this employment they may need to also evidence prior earnings of at least £29,000 too.

Self-employment

Similar to employment, a settled person can be self-employed as a sole trader or partner of a business or as a director of a limited company and provide evidence of had a taxable income of at least £29,000 in their last tax year.

Cash savings

To calculate the amount needed to cover each 2.5-year visa, either the settled person and/or their partner can evidence holding £88,500 in cash savings at the date of application. This amount covers 2.5 years of £29,000 per year in addition to £16,000. The savings can be held as investments previously but must be liquidised for the date of application. This cash or investment portfolio needs to have been held for at least 6 months to be counted.

Other regular income

A settled person can also include regular income from rent, a pension, maintenance payments from a former partner, dividends from shares, interest from savings, allowances, maintenance grants or stipends, as long as they will be in receipts of these payments for the duration of their partner’s visa.

Combinations of the above

The above sources of income can all be combined to reach the minimum amount of £29,000, whether it be a salary that is supplemented by savings or a pension combined with income from rent, there are various ways of combining income to reach the minimum salary level.

The immigration rules are very strict about how this income is evidenced, so it is advisable to seek advice before submitting an application as immigration fees are non-refundable.

1. What is the new minimum salary level for sponsoring workers as Skilled Workers?

It depends on the job role. The minimum salary for a standard Skilled Worker application is rising from £26,200 to £38,700 per annum as a gross base salary. However, each job role also has its own minimum salary level that also needs to be met. For example, the ‘Business Development Manager’ role that is currently under SOC code 3545 currently has a minimum salary of £35,100. This will increase by 50% to £52,500 from 4 April under SOC code 3556.

2. When will this increase commence?

The increase will apply to any new Certificates of Sponsorship (CoS) assigned after 4 April 2024. Once a CoS has been assigned (i.e. paid for), it has to be “used” in an application within 3 months. The start date for the job cannot be more than 3 months from the date of application. The current salary level could be used for anyone starting a new position up to the end of September 2024 if managed correctly by assigning a CoS before 4 April 2024.

The Sponsor Management System will be out off service on 3 April 2024, so all CoS will need to be assigned by 7pm on 2 April 2024.

3. Can the salary include any allowances?

The minimum salary level only includes basic gross pay before income tax and including employee pension and national insurance contributions.

4. Can the salary be pro-rated?

The minimum salary is based upon a 37.5-hour week. Where the weekly hours are higher than 37.5, the salary will be pro-rated. For example, a salary of £38,700 based on a 37.5-hour week would need to be £40,248 if based on a 39-hour week.

Part-time positions would need to earn the minimum salary based on a 37.5-hour week. A 22.5-hour week, for example, would need to earn at least the SOC code minimum or the minimum salary of £38,700, whichever is higher.

5. Does this salary change apply to anyone who is already on a Skilled Worker visa?

The salary change applies to anyone being sponsored using a CoS assigned after 4 April 2024. No changes need to be made to the salaries of anyone currently being sponsored on a CoS issued before this date.

An extension application will require a new CoS, however. If an extension application is happening after 4 April 2024, then the higher minimum salary levels will then apply. If this presents an issue in terms of being able to increase the salary level at that point, it might be worth considering making the extension application before 4 April 2024, even if the employee currently has a visa with an expiry date after then.

Get in touch with Oliver O’Sullivan for any enquiries relating to skilled worker salary increases.

• Oliver.OSullivan@wellerslawgroup.com

Late Applications

The EU settlement scheme, which ran from 28 August 2018 to 30 June 2021, enabled EU nationals and their family members to remain in the UK following the Brexit vote. To date, almost 8 million applications have been made.

Nearly 600,000 applications have been made after the deadline. For scale, this is more than double the number of applications made in the Skilled Worker visa category over the same time.

How can applications be accepted so long after the deadline, and how can employers manage this scenario?

Reasonable delay

There are many reasons why there have been so many delays in applications. Many EU nationals who have been living in the UK were unaware of the need to make an application. The application being accessible via a mobile app made life easier for many people but was also an issue for those who were less comfortable with technology. Others made applications that were refused and delayed in submitting new applications and others were refused without knowing.

The Home Office advises that there remains scope ‘indefinitely’ for a person eligible for status under the EU Settlement Scheme to make an application where ‘in light of all the circumstances and reasons, there are reasonable grounds for their delay in making their application’. This means that if a person qualifies for the scheme by virtue of their residence in the UK before 31 December 2020, an application can still be made if that delay can be reasonable explained.

Where a lot of time has passed since the deadline for applications, the reasonable test becomes more difficult to provide for. Applicants need to provide objective evidence for the reason for delay for the entire period of delay. For example, if a person missed the deadline owing to illness, the evidence of illness needs to cover the entire intervening period, not only part of that period.

Right to work issues

There was no requirement for employers to check their current employees had applied under the EU Settlement Scheme, only to check those joining the company after the scheme had closed. Therefore, many companies could be employing workers who either never made an application, had an application refused, or who did make an application for pre-settled status that then lapsed. In these three scenarios these companies are employing workers who do not have permission to work in the UK.

In the case of workers who were already employed, the company is secure with having a statutory excuse against civil penalties. However, in the case of those employed post 30 June 2021, there could be EU employees in the company who do not have the right to work. Penalties for employing illegal workers are now £45k per illegal worker, so what actions can be taken?

Audit the right to work of the whole workforce. It is always a good idea to recheck that you have the right documents for every employee, and it is important not to discriminate in terms of which nationalities are audited. For any EU nationals employed after the scheme deadline, check that no applications are unresolved and check for expiry dates of pre-settled status.

Our team have audited companies small and large, and it is always seen as a positive for the Home Office to be proactively reviewing retrospectively. There is always something to remedy in every audit we have undertaken, so do reach out to us for an initial conversation about how we can support your company remaining compliant.

This article was prepared by Oliver O’Sullivan, our Head of Immigration, who you can contact by email at Oliver.OSullivan@wellerslawgroup.com or by phone at 020 7481 2422.

Huge fines for the food sector:

Between 1 July and 30 September 2023, the government issued £985,000 in illegal worker civil penalties to companies based in London and the South East of England. 47% of these civil penalties were issued to companies in the restaurant and take away sectors who were collectively fined £465,000.

With fines to individual companies as high as £90,000, the impact of employing someone illegally puts a lot of companies out of business. What is it about this sector that makes it so prone to illegal working and companies being penalised?

How civil penalties are issued:

Companies are fined for failing to take the proper steps to prevent hiring someone who does not have permission to work in the UK. Between July and September last year, companies would be issued a penalty of £15,000 per illegal worker for a first breach. This £15,000 penalty could then be reduced in increments if the company have good procedures in place to check a new employer’s right to work.

As of February this year, these first-time breach civil penalties have been increased to £45,000 per illegal worker. That same company that faced a fine of £90,000 would now be fined £270,000 for the same offence.

In some instances, either knowingly employing a person who does not have the right to work or having reasonable cause to believe a person does not have the right to work but hiring them regardless can be criminally prosecuted.

Why the food industry is vulnerable to civil penalties:

The food sector is one that is routinely scrutinised by the Home Office. It is not unusual for immigration officials to arrive at one end of a street lined with restaurants, bars and take-aways and work their way through every building, checking the right to work of all employees as they go. I once even had a client whose food factory was even visited by armed officers supporting an immigration visit.

Restaurants often have a high turnover of staff and branches where the right to work is checked by local managers who aren’t always trained. I’ve worked alongside a major global fast-food restaurant to develop training materials and policies across their branches and helped with double checking right to work for candidates and seen first hand the issues faced by human resources in managing restaurants.

Restaurants are often looking for the best talent for a specific cuisine. One restaurant I represented required a very niche set of skills in their chefs that was only commonplace in a particular region of India. Chefs can be sponsored under the Skilled Worker visa scheme, but the minimum salary threshold is set above the median of the market rate. Currently that minimum salary is £26,200 per annum based upon a 39-hour week but will imminently rise to £38,700 per annum. Hiring chefs will soon become a lot more expensive.

The risks with the restaurant sector centre on policies with regards who is hiring and who is then checking the right to work of new employees, which is where the disconnect often lies.

What can be done to mitigate the risk:

A company can mitigate the risk of civil penalty by having best practice procedures for checking the right to work and assuring that all relevant hiring managers are trained to the same level. The documents then need to be safely stored, either digitally or physically.

Companies should be familiar of what happens in a Home Office inspection and how to be prepared for one. It is always a good idea to take stock and audit your own documents and processes to understand where any remedial actions need to be taken.

Companies should understand who their employees are, which might mean clarifying the position of some members of the workforce.

Our team has great experience with working with restaurants, fast food chains, bars and public houses. We have undertaken mock inspections, reviewed and rewritten policies and procedures and most of all been on hand to provide advice as and when it is needed.

If you have any concerns about your workforce, we would love to hear from you.

This article was prepared by our Head of Immigration, Oliver O’Sullivan who you can reach via email at Oliver.OSulivan@wellerslawgroup.com or by phone 020 7481 2422.