This is in respect of both costs related to visa applications as well as fines relating to illegal working.
As officially confirmed and introduced from 4 October 2023, there has been a rise of at least 15 per cent – 20 per cent on all costs associated with UK work visa applications – this is in respect of the fees to be paid by the individual and the costs to be paid by the employer (for example the cost of assigning a certificate of sponsorship has increased from £199 to £239). This is in addition to the increase to the Immigration Health Surcharge which the government has confirmed and which is set to almost double from £624 per year to £1,035 a year from 16 January 2024. In addition, employers should also be aware that the civil penalty for illegal working is set to increase from £15,000 to up to £45,000 per illegal worker and from £20,000 up to £60,000 per illegal worker for repeat breaches.
Recent Home Office data obtained by law firm Eversheds Sutherland International has shown that the number of overseas skilled workers moving into engineering roles is on the rise post-Brexit and it appears that, especially in the engineering sector, there is an increased reliance on sponsorship of non-settled talent through work related visa applications.
Anecdotally we have seen an increase in the number of requests employers are receiving to cover the costs of visa applications, not only in respect of the individual worker but also in relation to any dependants that are accompanying them to the UK.
This is putting an increasing amount of pressure on employers and their budgets, and in circumstances where there is a business need to recruit non-settled workers into key strategic roles within the business such requests (and the financial implications of such) potentially constitute a genuine impediment to strategic growth of affected businesses.
Despite the increasing reliance on non-settled talent, due to the rising costs more employers are likely to face obstacles in recruiting overseas talent due to budgetary constraints.
However, employers should also be aware when making internal recruitment decisions of the potential risks of refusing a candidate needing a work visa solely on the basis of the costs. Reliance upon costs as the sole criterion for refusing to recruit a non-settled worker creates a potential discrimination risk under UK law with any such policy or practice likely constituting indirect discrimination (if not direct).
If employers cannot afford to recruit someone who needs a visa to work in the UK, they must show their reasons go beyond just cost with a well-thought-out non-cost justification for their decision. This is called a “cost plus” reason, such as an inability to comply with sponsorship and visa requirements, for example, due to a lack of dedicated compliance resource. Implementing a policy of making and documenting recruitment decisions using a “cost plus” basis should act to mitigate the risk of discrimination claims in the circumstances. Businesses may also find it necessary to consider the financing of visa costs which may ultimately result in a greater financial burden being borne by non-settled workers.
It remains to be seen whether UKVI will issue guidance which provides clarity or comfort to employers that decisions to prioritise settled workers in the climate of increased costs will not result in a risk of discrimination claims. It would be hoped that in light of the broader government policy for reducing net migration, UKVI will give employers greater certainty on the point as has been done historically, for example, with the implementation of the ‘resident labour market test’ under the old Tier 2 scheme.
Such increases to fees and fines and the risk of potential claims should be taken into consideration before making the decision on whether to sponsor employees and also when a business is making decisions regarding its recruitment budget.
The cost increases and the associated risks relating to discrimination place employers in the engineering sector in the unenviable position of having to weigh up the costs and risks against the business necessity for recruiting non-settled workers.
Louise Lightfoot, partner, Eversheds Sutherland
Pia Carr, principal associate, Eversheds Sutherland
Oxa launches autonomous Ford E-Transit for van and minibus modes
I'd like to know where these are operating in the UK. The report is notably light on this. I wonder why?