Legal Working

Employment under the Points Based System (PBS)

12th May 2011

Chris Lobjoit

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Tier Structure

The PBS is spilt into 5 Tiers:

Tier 1: Highly skilled individuals to contribute to growth and productivity Tier 2: Skilled workers with a job offer to fill gaps in the UK labour force Tier 3: Limited numbers of low skilled workers needed to fill temporary

labour shortages Tier 4: Students Tier 5: Youth mobility and temporary workers. People allowed to work in the

UK for a limited period of time to satisfy primarily non-economic objectives

Tiers 2-5 are underpinned by the concept of sponsorship.

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Sponsor Licence - Principles

The UK Border Agency needs to be satisfied that:

• the potential sponsor is a bona fide organisation, operating legally in the UK; and

• there are no reasons to believe that the potential sponsor represents a threat to immigration control; and

• the organisation is committed to, and capable of, complying with it’s sponsorship duties.

• licence is valid for 4 years

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Sponsoring Migrants – COS and CAS

Migrants applying under Tiers 2-5 must have their application supported by a COS/CAS from a registered sponsor.

For students

»A Conformation of Acceptance for Study (CAS) must be issued

»The CAS is only valid for the sponsor

For workers

»A Certificate Of Sponsorship (COS) must be issued

»The COS is only valid for the sponsor and the role stated

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Employing migrant workers under Tier 2

Categories of Tier 2

•General

•Intra-Company Transfer (ICT)

•Minister of Religion

•Sports Person

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Tier 2 – General

An employer must:

•Conduct a Resident Labour Market Test* (RLMT) to ensure the post cannot be filled by a resident UK worker

•Pay migrant staff into a UK or overseas bank account

•Ensure that appropriate planning permission or Local Planning Authority consent is in place to operate their type/class of business at their trading address

*Unless post is on the Shortage Occupation List

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Tier 2 – ICT

ICTs are for migrants who have been working for multinational organisations and who are being transferred by an overseas employer to a related UK entity.

Jobs must be at graduate level and paid at the minimum rate or as stated in the codes of practice, whichever is higher. Minimum would be £24,000 for skills transfer, short term and graduate trainee, or £40,000 for long term.

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Tier 4 - Students

Student work entitlement

•During term – 10 hours per week for study below degree level, 20 hours per week for study above

•During vacation periods – full-time

•Work placements if part of the course to a limit of 50%

Students must not take a full-time permanent position and must not work as: an entertainer, professional sportsperson, doctor or dentist in training or be self-employed.

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Tier 5

Split into the following categories:

•Youth Mobility Scheme

•Temporary Worker

Creative and Sporting

Charity Workers

Religious Workers

Government Authorised Exchange

International Agreement

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Tier 1: Exceptional Talent

This route is for those who are internationally recognised as world leaders or potential world-leading talent in the fields of science and the arts and who wish to work in the UK.

Limited to 1000 endorsements for this financial year; 700 endorsements for the field of science and 300 in the field of arts.

Any application must be endorsed by a Designated Competent Body.

The Migrant will have no recourse to public funds, must register with the police, must not work as a sportsperson and cannot work as a doctor or dentist in training.

Leave will be granted for 2 years.

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Tier 1: Highly Skilled

This route is for highly skilled migrants who wish to work, or become self-employed, to extend their stay in the UK.

The migrant will have to score 80 points to qualify which can be gained through qualifications, previous earnings and age. If previous earnings were in excess of £150,000 then the migrant will automatically qualify.

The Migrant will have no recourse to public funds, must register with the police, must not work as a sportsperson and cannot work as a doctor or dentist in training*

Leave will be granted for 2 years.

*Unless the migrant’s degree is in medicine and has been awarded by a UK recognised institution.

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Tier 1: Investor

This route is for high net worth individuals making a substantial financial investment to the UK.

In order to gain entry the applicant must demonstrate that they have in excess of £1 million of their own money; or have personal assets worth over £2 million with a further £1 million by way of a loan from a UK financially regulated institution.

In order to extend their leave the applicant would have to show that they have invested not less than £750,000 within 3 months of entry into the UK.

Leave will be granted for 3 years with no recourse to public funds. The migrant must register with police and must not work as a doctor or dentist in training*

*Unless the migrant’s degree is in medicine and has been awarded by a UK recognised institution.

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Tier 1: Entrepreneur

This route is for migrants who wish to establish, join or take over one or more businesses in the UK.

In order to qualify the applicant must have not less than £200,000; or £50,000 invested from a venture capitalist, endorsed Entrepreneurial Seed Fund or from government funding. Funds must be held within a regulated financial institution and be disposable in the UK.

Leave will be granted for 3 years with no recourse to public funds and no work other than working with the business started or taken over. Migrants must register with the police.

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Tier 1: Post Study Worker

This route will be closed next April but is currently open international graduates who have studied in the UK to stay on and do skilled or highly skilled work.

In order to apply graduates must have completed their studies within 12 months of application with a recognised education provider or Tier 4 sponsor.

Leave will be granted for 3 years with no recourse to public funds. The migrant must register with police and must not work as a doctor or dentist in training*

From April 2012 graduates will be able to switch into the Tier 2 (general) category without being subject to the Resident Labour Market Test.

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Contact details and further information

Midlands and East Sponsor Management UnitMidlands.Account.Management@Homeoffice.gsi.gov.uk

Tier 2 & 5 Guidance http://www.ukba.homeoffice.gov.uk/sitecontent/documents/employersandsponsors/pbsguidance/guidancefrom31mar09/guidance-t25-from-060411.pdf?view=Binary

Immigration rules for PBShttp://www.ukba.homeoffice.gov.uk/policyandlaw/immigrationlaw/immigrationrules/part6a/

Tier 2 Occupation Codes of Practice (graduate level)http://www.ukba.homeoffice.gov.uk/sitecontent/documents/employersandsponsors/pointsbasedsystem/graduate-cop/

Tier 2 Occupation Codes of Practice (NVQ 3)http://www.ukba.homeoffice.gov.uk/sitecontent/documents/employersandsponsors/pointsbasedsystem/nvq3-cop/