Uncertainty of employing overseas workers
A high degree of uncertainty around the issue of employing overseas workers has resulted due to the UK’s decision to leave the European Union . The recent piecemeal comments on the shape of the future policy on immigration and overseas workers’ rights have meant that employers and migrant workers alike are currently none the wiser as to the rules that may apply in the months and years to come.
There are currently different provisions for EU and non-EU citizens who wish to come to this country. The UK government cannot currently limit the rights of any EU citizen who wishes to come to the UK to live and/or work. The number of countries within the EU to whom this principle applies will number 27 after Brexit and has expanded over the years as follows:
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain and Sweden were all member nations in 2004 along with the UK (EU 15 Countries) when they were joined by the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, (A8 Countries ) plus Malta and Cyprus. The above 25 countries were then joined by Bulgaria and Romania (A2 Countries) in 2007 and by Croatia in 2013.
Interesting statistics regarding EU nationals
Some interesting facts from the well-respected Migration Observatory confirm the following statistics on the subject:
- The population of EU-born workers in the UK stood at just over 3 million in the first quarter of 2015.
- In the first quarter of 2015, approximately 1.9 million EU-born workers were employed in the UK.
- Inflows of EU nationals migrating to the UK in 2014 stood at 268,000, up from 201,000 in 2013.
- Net migration from the EU was estimated at 178,000 in 2014, up from 123,000 in 2013.
- EU citizens accounted for an estimated 48% of total non-British inflows in 2014.
- Half of all EU nationals coming to the UK for 12 months or more in 2014 were nationals of countries that joined the EU in 2004 or later.
- About two in three EU nationals migrating to the UK come for work related reasons. The next most common reason was formal study.
- The number of National Insurance Number (NINO) registrations to EU nationals in the first quarter of 2015 was 216,609 in total.
- Of those, 31% were EU15 nationals, 21% A8 nationals, and 24% were A2 and other accession nationals.
Points system for non EU migrants to evaluate merits of overseas workers
Since 2008, the UK has operated a points based system for non EU migrants to evaluate the relative merits of overseas workers wanting to come to work in the UK. The system has five tiers of classification of persons as follows:
- 1 - Highly-skilled individuals, entrepreneurs and high net-worth individuals
- 2 - Skilled workers who already have the offer of a job to fulfil
- 3 - Low skilled workers who are required to offset temporary shortages of labour in certain sectors of the economy
- 4 - Students
- 5 - Youth mobility and temporary workers
More information regarding the tiers of classification can be found here. Migrant workers are required to score a certain number of points (the levels of which have changed over the years since inception) in order to obtain permission to enter or remain in the UK. The points criteria are different for each of the tiers.
Sponsorship by an employer is not required for employees in Tier 1 of the classification but such arrangements are essential for employees in tiers 2,3,4 and 5.
Employers must be registered with and be licensed by the Home Office before they are permitted to issue a Certificate of Sponsorship to a specific individual. The registration process also requires the employer to undertake a strict verification exercise in order to be able to issue sponsorship certificates. Once a certificate is issued to the relevant individual, he/she must then apply for permission to enter the UK.
Provisions to prevent exploiting overseas workers
In an effort to punish employers who employ overseas workers and deliberately ignore the law by paying rock bottom wage rates and exploiting employees who are vulnerable, the law has been changed.
The following main provisions are currently in place:
- It is a criminal offence to knowingly employ a person who requires immigration permission but who has not obtained it.
- There is a potential maximum prison sentence of five years and an unlimited fine for employers who breach this law.
- All employers are required to carry out pre-employment checks and to take copies of specific original documents.
- Re-checking of these details is also required for any employees whose immigration status is time-limited.
- All job applicants regardless of their country of origin should be treated in the same non-discriminatory manner by prospective employers.
Quest HR can advise on all aspects of your particular queries on this issue. If you have any current situations involving existing or prospective EU/ non-EU workers or require information on any HR matter please contact our team of experts now. The Quest HR guides contain more information on a variety of subjects - why not take a look.
