Potential threat to Tier 2 of the Points Based System

 

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Potential threat to Tier 2 of the Points Based System

In February Home Secretary Jacqui Smith requested that the Migration Advisory Committee (MAC), the body which provides independent advice to the government on migration matters, report on three specific areas of the Points Based System (PBS), namely:

  1. What further changes to Tier 1 of the Points Based System should there be in 2010/11 given the changing economic circumstances;
  2. Is there an economic case for restricting Tier 2 to shortage occupations only?
  3. What is the MAC’s assessment of the economic contribution made by the dependants of Points Based System immigrants and their role in the labour market?

On 30th April a discussion document prepared by the MAC was published by the UK Border Agency. In it the MAC calls for evidence from interested parties to be submitted so that it can report on the 3 points listed above. The MAC is required to submit its evidence on Tier 1 by the end of October 2009 and on Tier 2 and on Dependants by the end of July 2009. It has asked for stakeholders to submit evidence on all 3 points to the MAC by 11 June 2009.

Wright Hassall will be submitting evidence to the MAC and will be pleased to assist any clients who wish to put forward evidence.

In its discussion document the MAC has considered the following:

  • Closing the Tier 2 General route
  • Introducing new requirements or amending the current requirements for the Tier 2 General route
  • Adjusting the points for Tier 2 General
  • Closing the ICT route
  • Introducing new requirements or amending the current requirements for the ICT route
  • Adjusting the points for the ICT route
  • Altering leave entitlements by route, occupation, qualifications and prospective earnings.

There are clearly huge implications for those of our clients who employ people under Tier 2. There is a serious possibility that the government will seek to limit Tier 2 to shortage occupations only. This comes only a few months after employers have had to invest large sums of money and make substantial changes to their HR systems in order to obtain their Sponsorship Licence.

Clients who employ foreign workers under Tier 1 General and Post Study Work may also wish to submit evidence as it is possible that changes will be made to these routes also.

We strongly advise all our clients who employ Tier 2 and Tier 1 migrants and their dependants to submit evidence, and to contact us to discuss the best way to do this.

For more information about Tier 2 of the Points Based System please contact Marian Dixon or Peter Dixon.

This article was first published in Business Immigration eBulletin May 2009