There’s considerable value to organisations in employing workers from overseas. Key reasons include:

• Performing jobs requiring specialist skills (for example, technical or language skills) that are not available in the UK.
• Filling vacancies for highly-skilled jobs which the government agrees are in designated ‘shortage occupations’.
• Facilitating secondments or transfers from an overseas division, for example for developmental assignments that will also introduce new ideas into the UK organisation. There are three main routes that facilitate this type of leave, they are contained under the Global Business Mobility category (which replaces the previous Intra Company Transfer route).  
• Filling temporary vacancies requiring a pre-existing skill set
• Filling unskilled or low-skilled vacancies due to labour shortages.

People professionals have an important role to play in this process: it’s crucial they ensure the organisation complies with the relevant law and carries out the required checks.

Following the UK’s departure from the European Union on 31 January 2020, the transitional period during which free movement of labour continued ended on 31 December 2020.

Early in 2021, the government introduced a new UK points-based immigration system. Citizens from the Republic of Ireland were, and continue to be, exempt from the new immigration rules.

Under this system, all applicants, both EU and non-EU, need a job offer from an approved sponsor at the required skill level and to demonstrate that they can speak English.

Applicants will also need to have 70 points from the following list to be eligible to apply. Some of these characteristics are tradeable.

The following salary thresholds will apply to new ‘skilled worker’ visa applications as of 4 April 2024:

• Offer of job by approved sponsor – 20 points.
• Job at appropriate skill level – 20 points.
• Speaks English at required level – 10 points.
• Salary of £30,960 (minimum) to £34,829 – 0 points (unless applicant is a new entrant, has a PhD in STEM subject/relevant to the job or job is on the Immigration Salary List).
• Salary of £38,700 or more – 20 points.
• Job included on the Immigration Salary List (£30,960 or the going rate, whichever is higher) – 20 points.
• Education qualification: PhD in a subject relevant to the job and a salary of £34,830 or 90% of the going rate (whichever is higher) – 20 points.
• Education qualification: PhD in a STEM subject relevant to the job and a salary of £30,960 or 80% of the going rate (whichever is higher) – 20 points.
• Applicant is a new entrant to the labour market and a salary of £30,960 or 70% of the going rate (whichever is higher) – 20 points.

Note that the relevant salary is either the category threshold or the going rate for the specific role being performed, whichever is higher.

Transitional provisions shall apply for ‘skilled workers’ where all the following points are met:

• The date of their initial ‘skilled worker’ visa application was before 4 April 2024.
• They received their ‘skilled worker’ visa under the rules in place before 4 April 2024.
• They have had continuous permission as a ‘skilled worker’ since.
• The date of new application is before 30 April 2030.

Whilst such individuals will be subject to increased salary requirements, the going rate will be calculated based on the 25th percentile Annual Survey of Hours and Earnings (ASHE) data (as opposed to the new median level thresholds in place from 4 April 2024). 

The ‘skilled worker’ route is typically the main route through which employers recruit overseas workers. The main elements of the route include:

• A minimum skill threshold, dependent on the occupation, of RQF Level 3 (SCQF 6 in Scotland), which is equivalent to A-levels. Employers will therefore be prevented from recruiting for roles that only require skills at GCSE level or below, such as hospital porters, care workers, bar staff and customer occupations.
• A minimum salary threshold of £38,700; although lower thresholds will apply to some public service occupations and occupations included on the Immigration Salary List (no less than £30,960). New entrants will be subject to a threshold that is 30% below that of experienced workers alongside occupations included on the Immigration Salary List (£30,960) and workers with PhDs relevant to the job (£34,830).
• A range of costs including visas, a sponsorship licence and an immigration skills surcharge.
• Quickening the recruitment process for recruiting overseas nationals to 8 weeks.
• Removing the migration cap.

Under the UK system, employers are subject to a range of costs in recruiting all non-UK citizens from overseas. These include a sponsorship licence, visas (which could extend to dependants of the skilled migrant) and the Immigration Skills Charge for each worker. All non-UK citizens will also be subject to an Immigration Health Surcharge of £1,035 per year, which some employers may also feel compelled to pay, with the exception of health and care staff who will be exempt from the charge.

In July 2020, the government announced a health and care visa which offers a visa route for eligible health and care professionals with a lower visa application fee. Workers applying for this visa are subject to a lower salary threshold of £29,000.

There’s more practical guidance on navigating the new points-based system in our Employers’ legal guide to post-Brexit immigration.

The Global Business Mobility category provides further ways to recruit overseas workers to fill skills gaps in the existing workforce. This category replaced the four previous business mobility provisions and created a new provision for secondments. Detailed below are the three categories that facilitate transfers and secondments from an overseas division to the UK.

1. Senior or Specialist Worker. This route is a rebranding of the Intra Company Transfer visa and is intended for senior managers or specialist employees who are assigned to a UK business linked to their employer overseas. The role must meet the minimum general salary threshold of £48,500. Applicants must have worked for the overseas entity for at least 12 months, unless they are a high earner, earning over £73,900. They are normally limited to holding no more than five years’ stay in any six-year period (or nine years in any ten-year period for those earning above £73,900) under the Global Business Mobility Routes and Intra-Company routes.
2. Graduate Trainee. This route is a rebranding of the Intra-Company Graduate Trainee route. It is intended for workers on a graduate training course leading to a senior management or specialist position and who are required to do a work placement in the UK. The role must meet the minimum general salary threshold of £25,410 per year. They are normally limited to maximum 12 months stay in the UK.
3. Secondment Worker. This route allows individuals to undertake temporary work assignments, where they are being seconded to the UK as part of a high value contract or investment by their employer overseas. The applicant needs to be sponsored by a company in the UK who they are undertaking the secondment with, which already has a Sponsor Licence. The applicant must also have 12 months prior service with their overseas employer. There is no minimum salary requirement for this route, however, the salary arrangements must comply with UK National Minimum Wage requirements. The contract between the UK company and the overseas business must be registered with the Home Office. They are normally limited to holding no more than five years’ stay in any six-year period under the Global Business Mobility Routes and Intra-Company routes.

It's a criminal offence to knowingly employ a person who requires but lacks immigration permission, to be in that role. There's a maximum prison sentence of five years and high fines for employers caught in breach (£45,000 for a first breach (within the last 3 years) and £60,000 for repeat breaches (within 3 years), per worker). In practice, this is aimed at employers who deliberately flout the law to exploit vulnerable employees and undercut legal competitors. The merely careless or negligent will generally be dealt with through a civil penalty.

Employers have to check and copy specific original documentation for any new employees. The government's guidance for employers on preventing illegal working sets out when checks must be made, what employers need to do including tips on how to check authenticity and what to photocopy and retain. Checks must be completed before employment begins, but re-checking is also required for employees with time-limited immigration status.

Any checks made should be done in a non-discriminatory manner following government guidance on avoiding unlawful discrimination while seeking to prevent illegal working, which recommends that all job applicants should be treated in the same way.

Read our pre-employment checks guidance for employers.

Organisations with operations overseas should find that their HR teams will be able to help with recruitment. Otherwise, it may be advisable to use a reputable law firm which has experience of recruiting overseas workers.

Employers should consider using the internet in recruitment, particularly in the early stages, as it is an inexpensive way of reaching overseas workers and can save a lot of time.

After an initial sift, face-to-face interviews will probably be needed, either in the home country or the UK. When interviewing, care must be taken to avoid discrimination. Government guidance gives advice.

Information comparing qualifications in different countries can be obtained from the ECCTIS.

The contract

Contracts will vary depending on whether the assignment is temporary or permanent. For short secondments, it's often easier for the employee to retain home country pay and benefits, topped up by an allowance. Items to consider are:

• Expected duration of assignment.
• Termination during an assignment and the period of notice at the end of an assignment.
• Details of pay, including (for secondments) who pays and in what currency.
• Other financial benefits such as relocation costs and pension contributions.
• Taxes and social security payments.
• Applicable law during assignment; for example foreign nationals employed in the UK have the same statutory employment rights as their British counterparts but may also be subject to the mandatory employment laws of the home country.
• Having a dual contract for employees who divide their working time between the UK and another country.

Relocation

The benefits package must include a fair relocation deal. This should include payments for:

• Travel costs for the employee and family.
• Temporary accommodation at the start of the assignment.
• Cost of shipping possessions.
• Return trips to the home country (as agreed in the contract).

Sometimes the rest of the dependant family may choose to remain in the home country which means that the overseas worker is likely to want to make more trips home.

Apart from financial help with relocation, employers should give practical help such as finding accommodation and obtaining a driving licence and credit cards.

Induction

A new overseas worker should follow the same induction programme as any other employee.

However, it may be necessary to have additional orientation sessions offering a basic understanding not only of UK employment but also of UK society in general.

Organisations which regularly employ overseas workers from a particular country (for example a Japanese company in the UK seconding employees from Japan), are likely to have an informal network of expatriate staff who can make a new family feel welcome and provide advice from personal experience.

Where such a network does not exist, the use of a co-worker as a ‘buddy’ may be helpful. Preferably this co-worker should have a similar domestic situation to the new employee and so be able to give practical advice on the day-to-day issues facing the entire family.

Multi-cultural organisations

Managers should be trained to communicate effectively with people from other cultures and be sensitive to different communication styles and attitudes to work. It's particularly important to recognise that ideas vary from one culture to another. For example, some place greater emphasis on consensus and collaboration whereas others value clear direction from strong leadership in a strict hierarchy; some encourage honesty, even open criticism, whereas others would prefer more diplomacy and conciliation with no show of strong feelings.

It's possible to build effective teams by having a clear framework that does not ignore cultural differences but encourages communication and ensures that everyone understands the common goals.

Language

An English language requirement has been introduced for public sector workers in public-facing roles. However, employers should be aware that insisting all staff speak English all the time could amount to indirect race discrimination. In some circumstances a requirement to speak English might be a proportionate means of achieving a legitimate aim which would mean that it's not a discriminatory policy. An example might be where staff are dealing with customers, such as on a reception desk. 

Contacts

Sponsorship and Employers' Helpline Tel: +44 (0) 300 123 4699 (provides guidance and advice on the prevention of illegal working)

GOV.UK - New immigration system: what you need to know

GOV.UK – UK visa sponsorship for employers

GOV.UK – Right to work checks: an employer’s guide

GOV.UK - Check if someone can work in the UK - online tool

GOV.UK -  Employers: illegal working penalties

Books and reports

Department for Business, Innovation and Skills. (2015) The impacts of migrant workers on UK businesses. London: BIS.

Journal articles

Churchill, F. (2020) Majority of UK migrant workers now non-EU citizens, figures show. People Management (online). 19 June.

Davies, G. (2020) Survey points to painful adjustment to new immigration system. CIPD Voice. Issue 24, 6 July.

Owen, J. (2020) UK faces skills crisis as inflow of EU workers plummets. People Management (online). 27 November.

Vandal, F. (2020) Are you ready for the immigration shake-up? People Management (online). 26 November

CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR.

Members and People Management subscribers can see articles on the People Management website.