Skilled worker visas: could there be an easier option for employers?

In April 2024, changes to immigration rules in the UK meant that the Skilled Worker category underwent a significant overhaul, with the salary threshold necessary to acquire a visa raised to unprecedented levels.

The general salary threshold jumped from £26,200 to £38,700 per year. As sponsors are also required to pay the higher of the general threshold or the specific going rate for each role, many jobs now have going rates exceeding £50,000 per year, making it difficult for sponsors to employ overseas talent in the UK.

Around the same time, the Home Office adopted a new approach to processing requests for Defined Certificates of Sponsorship (DCoS) for overseas-based workers to apply for a Skilled Worker visa.

Previously processed within one working day, some requests now take over three months, with additional information often requested.

This means it is much more difficult to secure a Skilled Worker visa, not only due to higher salary requirements but also because of growing uncertainty surrounding application timelines.

Historic arrangements

Before December 2020, the UK’s primary work visa categories were Tier 2 General and Tier 2 Intra-company Transfer Long-Term (ICT).

Both required jobs to meet the minimum skill level of the Regulated Qualifications Framework (RQF)6, typically graduate-level roles.

Tier 2 General was a pathway to settlement but required local job advertising first and had an annual cap of 20,700 places, often exceeded before Brexit. Applicants also needed to meet an English language requirement.

Conversely, the ICT category was uncapped and did not require English proficiency or local advertising.

While it did not lead to settlement, it allowed migrants to work in the UK for up to five years (or nine years for high earners).

Eligibility required 12 months of pre-employment with an overseas linked entity, unless the applicant was a high earner. Salary requirements were often comparable to those of Tier 2 General.

2020 changes

In December 2020, however, the UK overhauled these elements of the immigration system.

The main work visa categories were renamed Skilled Worker (formerly Tier 2 General) and Global Business Mobility Senior or Specialist Worker (formerly ICT).

Significant changes included lowering the skill level for the Skilled Worker category from RQF Level 6 to RQF Level 3, scrapping the annual cap, and reducing the minimum salary requirements.

These changes aimed to address worker shortages post-Brexit by making the Skilled Worker category accessible for a broader range of roles.

However, the changes to the Skilled Worker visa rendered the new Senior or Specialist Worker route almost redundant. The Skilled Worker category now covered a broader array of jobs, had a lower salary requirement, and led to settlement after five years.

The English language requirement (Level B1, intermediate) posed little challenge, making the Skilled Worker visa the preferred choice. This status quo continued until April 2024.

What’s the alternative?

In light of the most recent changes introduced in April, businesses may find themselves returning to the Senior or Specialist Worker category (formerly ICT).

This route benefits companies with linked entities outside the UK, as it has lower going rates for high-skilled jobs compared to the Skilled Worker route, does not require Defined Certificates of Sponsorship (resulting in quicker timelines), has no English language requirement, and allows for switching to a Skilled Worker visa once in the UK.

Requirements for this category are:

• Sponsorship is only available for workers employed by a connected entity outside the UK
• UK sponsors must be licensed for this route and have a link with the overseas employer
• The salary must exceed £48,500 a year or the going rate for the job (lower than for the Skilled Worker visa)
• Individuals must have been employed for at least 12 months by an overseas linked entity (unless earning £73,900 or more)
• The role must be skilled to at least RQF Level 6
• Maximum stay is five years for those earning below £73,900 a year and up to nine years for those earning above this level.

If your company has a linked entity overseas and you need to bring a worker to the UK, the Skilled Worker visa has been the default option in recent years. However, the new salary levels introduced in April may make this option unfeasible for many roles.

Roles not meeting the Skilled Worker route’s salary threshold may nevertheless be eligible for the Senior or Specialist Worker route, which has lower going rates.

For example, a Marketing Director requires £83,000 per year under the Skilled Worker route but only £55,600 per year under the Senior or Specialist Worker category.

Furthermore, an EU national employed by an EU-based employer and sponsored for no more than 36 months on a Senior or Specialist Worker route qualifies for an Immigration Skills Charge exemption, potentially saving the sponsor up to £3,000. There are no such exemptions for the Skilled Worker visa.

Looking forward

The changes introduced earlier this year, combined with the Home Office’s trend of making Skilled Worker sponsorship more difficult, have redefined how employers can make the most of the Senior or Specialist Worker category.

Given the increased salary thresholds and processing delays associated with Skilled Worker sponsorship, the Senior or Specialist Worker route is poised to regain relevance and emerge as a strategic option for businesses with global operations.

For more information about any of the issues covered in this update, or if you need advice relating to Skilled Worker sponsorship licences then get in touch with one of business immigration solicitors today.

This article was first published on Personnel Today’s website.