New Immigration Rules for sponsored Skilled Workers in the UK

In December 2023, the Home Secretary announced the Government’s intention to cut net migration. Since this date, several measures have been put into place in an attempt to put the Government’s intentions into practice. On 13 February 2024, the maximum civil penalty for companies found to have illegal workers rose to £60,000 (from £20,000) for repeat offenders and £45,000 (from £15,000) for first time offenders. More recently, on 14 March 2024, a new Statement of Changes in Immigration Rules was presented to parliament; this will result in a number of updates to various categories of the Immigration Rules, and significant updates will be made to the Skilled Worker sponsored employment route. A summary of these changes – the majority of which will apply to Certificates of Sponsorship assigned from 4 April 2024 – is below.

There will be significant changes to the minimum salary levels applicable to Skilled Workers 

To sponsor a Skilled Worker, the worker must be paid a specified salary. This must meet the general salary threshold and the going rate for the role. This is nothing new - these requirements have always existed. However, from 4 April 2024, the general salary threshold will be increasing from £26,200 to £38,700. 

The individual going rates will also be increasing in line with the median pay for resident workers, as per the latest Office for National Statistics (ONS) pay data. Obviously, these increases are individual to the role being sponsored, but by way of example, if no reductions apply:

• SOC 1136 Human resource managers and directors will need to be paid a going rate of £49,400 for 37.5 hours of work from 4 April 2024, whereas they currently need to be paid £36,500 (current occupation code 1135)
• SOC 2121 Civil engineers will need to be paid a going rate of £45,500 for 37.5 hours of work, and they currently need to be paid a going rate of £34,700

Can the salary levels continue to be reduced if certain characteristics are met?

At present, depending on an applicant's individual characteristics, the general salary threshold and going rate can be reduced. These reductions will continue to apply, subject to the following amendments:

• PhD held in a subject relevant to the job: general salary threshold increasing from £23,580 to £34,830. 90% of the going rate must also be paid
• PhD in a STEM subject relevant to the job: general salary threshold increasing from £20,960 to £30,960. 80% of the going rate must also be paid
• Sponsoring a worker to undertake a job on the Immigration Salary List (currently known as the Shortage Occupation List): general salary threshold increasing from £20,960 to £30,960. Contrary to current Rules which offers a 20% reduction to the going rate, from 4 April 2024, 100% of the going rate must be paid
• New entrants to the labour market (graduates): general salary threshold increasing from £20,960 to £30,960. 70% of the going rate must also be paid
• Those who are being sponsored for a Health and Care visa must be paid a general salary threshold of £23,200, increasing from £20,960, and 100% of the going rate must also be paid

The above general salary thresholds will not apply to Skilled Workers who were sponsored prior to 4 April 2024 under current Immigration Rules. For any CoS assigned to these workers after 4 April 2024, they will be subject to a general salary threshold of £29,000 (with a potential to reduce this to £23,200), with updated going rates also applying to the role.

No more Shortage Occupation List 

The Shortage Occupation List will be replaced with a new Immigration Salary List (ISL). Rather than being a list of all occupations experiencing labour shortages, the ISL is a list of roles the Government accepts should receive a discounted salary threshold. As summarised above, just like the Shortage Occupation List, roles on the ISL will be able to benefit from a 20% discount to the general salary threshold, although no further reductions to the going rate will apply.

The ISL has been reduced, with just 23 roles appearing on it; of significance, engineering and IT roles have been removed from the ISL.

Supplementary employment

A welcome change in the Skilled Worker route is a change to the definition of supplementary employment (the work a Skilled Worker can undertake outside of their sponsored employment). In accordance with the proposed change, a Skilled Worker will be able to undertake any role that is suitable for Skilled Worker sponsorship, as opposed to only being able to work in the same position as the job they are being sponsored to undertake.

Anything else?

The Statement of Changes also incorporates a number of other changes, including an increase to the salary payable to Senior or Specialist Workers under the Global Business Mobility routes (increasing from £45,800 to £48,500), and an increase to the minimum salary required to sponsor the partner of a British or settlement person (increasing from £18,600 to £29,000).

A requirement has also been included in the long residence provisions that an applicant must have had permission on their current immigration route for at least 12 months by the time long residence is applied for (or have been exempt from immigration control for at least 12 months) - this will apply to all permission granted from 11 April 2024.

Why now? 

As explained above, the Government is hoping that these changes will encourage businesses to recruit from the local labour market rather than 'over-relying' on migration. Only time will tell if the plans reduce net migration, but in my experience, the whole point of sponsoring an international worker under the Skilled Worker route is generally because there aren't any suitable settled workers available to take the role. If a company can't recruit from the local labour market, they'll need to consider whether to continue to operate without the position being filled or pay a worker the higher salary thresholds to sponsor them as a Skilled Worker.

In light of the complexity of the Immigration Rules surrounding the sponsorship of Skilled Workers and the risks involved with making an error in the sponsorship process, it is very important that employers and employees take advice about the new Immigration Rules in preparation of any future entry clearance, extension or settlement application to avoid a refusal and potentially a break in continuous residence (and employment).