In one of the biggest shake-ups to the UK’s immigration regime since the introduction of the post-Brexit immigration system, significant amendments to the immigration rules came into effect on 4 April 2024. The new rules incorporate a wide range of changes affecting several key immigration routes.
In this article, we summarise key changes and set out some of the practical considerations for employers.
On 14 March 2024, The Home Office published a near 300 page Statement of Changes, setting out some of the most significant updates to the UK’s immigration rules since the introduction of the post Brexit immigration system in January 2021. Amongst other things, the Statement of Changes details new salary thresholds, transitional measures that apply in certain circumstances, as well as updated job codes and a new Immigration Salary List.
Full details of all changes are beyond the scope of this article, but we have expanded on what we expect will be the keynote changes to have the biggest impact on organisations.
1. Increase to the general salary threshold
The general salary threshold for several immigration routes has increased from 4 April 2024. The most significant increase has been made to the Skilled Worker route where the majority of those applying on or after 4 April 2024 will need to be paid at least £38,700 (up from £26,200) per year, unless they can rely on a discounted rate or the transitional thresholds. Different general salary thresholds will apply to those on national pay scales or those applying for Health and Care visas.
The general threshold for the Global Business Mobility (Senior or Specialist Worker) route has also increased to £48,500 (up from £45,800) per year, unless relying on transitional thresholds.
2. Increase to the ‘going rates’
Jobs eligible for sponsorship are typically associated with a minimum ‘going rate’. Where there is a difference between the general salary threshold and the going rate for a particular job, the higher of the two must be paid to the migrant worker. These going rates have also increased to the 50th percentile from 4 April 2024.
For example, the ‘going rate’ for a Skilled Worker applicant being sponsored to work 37.5 hours per week under the SOC code associated with software engineer professionals, would be £49,400 (previously £34,000) per year, unless a discounted rate can be used or if transitional thresholds apply.
3. Updates to SOC codes
The list of SOC codes eligible for sponsorship has been updated, meaning sponsors will need to ensure that they are using the correct SOC code when assigning Certificates of Sponsorship, and check that the job is still eligible for sponsorship. Some jobs that were previously eligible will no longer qualify for sponsorship unless an individual is extending their permission to continue working for the same employer.
4. Introduction of the new Immigration Salary List
A smaller Immigration Salary List (ISL) has now replaced the Shortage Occupation List (SOL). The ISL sets out jobs that face significant skills shortages in the UK and therefore a discount to the general salary threshold will apply - this is normally £30,960 unless transitional measures or other discounted rates apply. However, applicants will no longer benefit from a 20% discount on the ‘going rate’ for their individual occupations.
The Migration Advisory Committee (MAC) is due to undertake a full review of the list later in 2024.
5. Transitional Arrangements for the Skilled Worker route
Those already sponsored under the Skilled Worker route before the 4 April rule changes are exempt from the leap up to the 50th percentile rate (in relation to both the general salary threshold and the going rate). However, their future applications under the Skilled Worker route will be subject to a new general salary threshold of £29,000 per year or the ‘going rate’ based on the 25th percentile using the latest pay data, whichever is higher. In most cases, this will mean a modest increase in the relevant salary threshold compared to the previous rates.
These transitional arrangements will remain in place until 3 April 2030, provided that an individual seeking to rely on them continues to maintain continuous status under the Skilled Worker route. Applicants should ensure that they submit applications to extend, change employment or settle in the UK before 4 April 2030. Applications submitted after this date will be subject to the new salary requirements.
Businesses can take various proactive measures to effectively navigate these changes, not only ensuring compliance with immigration regulations but also safeguarding the company's reputation, mitigating risk and maintaining productivity.
Assessment of Key Roles
Conduct a review of previous year(s) HR data to identify your reliance on recruiting overseas talent for key roles. Assess these roles against the new criteria to determine how your current salary structures stacks up against the new salary thresholds.
Evaluate Impact on Current Employees
Identify current employees whose visas are nearing expiration. Assess their roles against the new immigration criteria to anticipate potential challenges with visa renewals.
Discrimination Claims
If you decide to pay a sponsored worker more in order to meet the new salary thresholds, or if you need to consider terminating employment in the future because you can no longer afford to pay the new rates applicable at extension stage, consider taking employment law advice first as this may give rise to potential discrimination claims.
Provide Training on Immigration Updates
Conduct training sessions for relevant stakeholders to educate them about the new immigration regulations, policies, procedures, and their compliance obligations.
Communicate Changes Internally
Develop a communication plan to inform employees about the immigration rule changes, particularly those affected directly or indirectly, to help alleviate any concerns amongst staff members.
Review Retention Strategies
Implement retention strategies for key employees affected by the changes, including offering support for visa applications, providing resources for obtaining necessary qualifications, or offering other incentives to encourage retention.
Review Recruitment Approach
Investigate alternative methods of attracting talent, such as investing in training and development programs to upskill existing staff, hiring talent more locally (including those already on the Skilled Worker route who benefit from transitional provisions) or exploring alternative personal visa options for employees who cannot meet the sponsored salary thresholds.
The immigration rule changes effective from 4 April 2024 represent a significant transformation in the UK's immigration system. Proactive measures are essential for organisations to ensure compliance and navigate the evolving regulatory landscape effectively.
For personalised guidance on navigating these changes or further information about how we can assist, please get in touch with our immigration team here.
The information on this site about legal matters is provided as a general guide only. Although we try to ensure that all of the information on this site is accurate and up to date, this cannot be guaranteed. The information on this site should not be relied upon or construed as constituting legal advice and Howes Percival LLP disclaims liability in relation to its use. You should seek appropriate legal advice before taking or refraining from taking any action.
To contact us, please fill out this form and we will get back in touch as soon as possible. Your personal data will be processed in accordance with our privacy policy which can be found here.
Thank you for your enquiry. We will respond as soon as possible.
