Immigration in Scotland: How do the current rules help fill Scottish labour shortages? 

October, 2022 - Shoosmiths LLP

A summary of the key takeaways from a recent webinar on Immigration in Scotland: How do the current rules help fill Scottish labour shortages?

The event was hosted by Pavan Sumal and Samantha Mackie and a summary of key takeaways can be found below.

General Overview

Scotland is subject to the same immigration rules as the rest of the UK. Whilst this carries many benefits, it doesn’t recognise the fact that each of the home nations is unique and has different needs. Each nation relies on different sectors to support the economy from its neighbours. When it comes to filling skills shortages, this means that a ‘one size fits all’ approach to immigration has its drawbacks. The Shortage Occupation List for the Skilled Worker route does have separate lists for each nation, however, the lists are broadly the same and do not take into account the different labour shortages across the UK. The Skilled Worker route is not always the most attractive route for employers due to the financial and administrative burden that it brings with it, so what alternatives are there and how can businesses use these to fill long standing vacancies?

Graduate Route

  • This was launched in 2021, to allow international students the opportunity to stay in the UK to work or look for work post-graduation.
  • Unlike the Government Authorised Exchange (GAE) visa route, the graduate route does not require the applicant to show funds or demonstrate English language ability when applying.
  • This route is unsponsored so the applicant does not need a job offer to apply, cutting out a lot of the employer’s administrative burden. It also gives the graduate more flexibility and the employer less long-term commitment.
  • There are no minimum skill or salary thresholds so employers can recruit graduates into entry level or lower skilled roles without the need to pay them the general salary threshold of £25,600 like under the Skilled Worker route.
  • Potential problems include applicants needing to meet the eligibility criteria for a Skilled Worker visa as well as the costs involved which may be onerous, particularly as there is little certainty about benefits and remuneration.

High Potential Individual

  • This route opened in 2022 and gives recent graduates of top global universities the right to work in the UK for two or three years, depending on their level of qualification.
  • Applicants on this route must have obtained their qualification in the five years prior to the date of their HPI visa application and the university must have been on the UKVI list of top global universities for the year that they graduated.
  • There is no minimum salary threshold, other than national minimum wage, and as it is unsponsored employers do not need to pay the Immigration Skills Charge.
  • However, this is not in itself a route to settlement to stay in the UK long term, so individuals will need to apply for leave to remain in another route.

Frontier Worker

  • This route is useful to fill short term or temporary vacancies as it allows individuals to work in the UK but doesn’t require sponsorship.
  • It is only available to EEA citizens who were working in the UK by 31 December 2020 and remained living outside of the UK, and they must have worked in the UK at least once every 12 months since they started working here. The work carried out must have been ‘genuine and effective’ – i.e. not small, one off tasks.
  • Frontier Workers will have the right to work in the UK without sponsorship but must continue to live overseas. They can spend up to 180 days in the UK in any 12-month period.

Ukraine

  • Although organisations cannot currently sponsor Ukrainian citizens, they can offer them employment as they have the right to work in the UK for their visa period. As this is a non-sponsored role, there is no minimum salary requirement other than minimum wage and no restriction on the hours per week that they can work.

Seasonal Workers

  • Introduced in 2019 as a pilot programme to try and ease workforce shortages following claims from short-staffed farmers that they needed more migrant workers.
  • The scheme is subject to a quota of 40,000 visas for 2022.
  • Once a SWV has been secured, workers are able to come to the UK for a maximum of 6 months in a 12-month period.
  • Any overseas national who is not a settled worker or does not otherwise have permission to work in the UK will need sponsored on this route.
  • Potential drawbacks include the minimum hourly pay requirement (£10.10) which may impact the ability of businesses to hire as many labourers and increase inflationary pressures further while offering little difference to the labourer job profile.

Temporary Worker GAE Visa

  • Formerly known as the Tier 5 visa, the Government Authorised Exchange is a sponsored Temporary Worker route for work experience, training or research roles.
  • Successful applicants can stay in the country for up to 12 months, with the option to extend to a maximum stay of 24 months.
  • While in the UK, the intern cannot access public funds but can study or get a second job for up to 20 hours per week.
  • Potential drawbacks for employers could be that the value of having the intern is limited if they elect not to sponsor them further but likewise the route may allow employers to secure talent that may have been missed under usual hiring practices.
  • Case study
    • Ben is 22 years of age and is a Canadian national studying full-time at the University of Toronto. He has set his sights further afield and wishes to obtain some work experience. After he has completed his studies, he foresees his future in the UK. To kick start his career and build relationships, he wishes to apply for a summer internship that your company has recently advertised. He has come to you for advice. What should you do next?
    • Firstly, you will need to check your records to find out of Ben has already interned with the company before using the visa scheme, as he would not be able to apply.
    • You will also need to ensure you either run an approved exchange scheme, are a Higher Education Institution or are a government department/agency.
    • As this visa route cannot be used to fill job vacancies, a potential issue may be that the job role was recently advertised. The role either needs to be part of an eligible scheme, meet the skill level requirement or be supernumerary.
    • You will then need to check that Ben meets the eligibility criteria. He is over 18 so will not need parental consent. He needs a valid identity document, the required funds available for the 28-day period, and if English is not Ben’s first language, he may need to undertake an authorised English language test.

Skilled Worker Tradeable Points

  • If none of the other routes are suitable or you want to retain someone on a permanent basis after their HPI or Graduate visa, then you will most likely be back at the Skilled Worker route. It is always worth exploring the various tradeable points options to see if any apply to that job or to that individual candidate.
  • These options can be particularly helpful where the ‘going rate’ for the job as set by the Home Office is significantly higher than what you would pay for that position. This can quite often be the case in Scotland where salaries are commonly lower than in England.
  • Case Study:
    • Sophie is a 25-year-old Australian national who graduated from Cornell University in 2020. After graduating, she came to the UK on a Youth Mobility visa. During this time, she has been working for a marketing firm as a Marketing Executive. She has just been promoted to Business Development Manager. Her employer wants to sponsor her beyond the expiry of her current visa but are concerned that they will not be able to do so as the going rate to sponsor a BDM is £35,400 and they have only budgeted for a starting salary of £29,000 for this role. Sophie could qualify for an HPI visa if Cornell was on the list in 2020 in which case salary requirement is irrelevant. Sophie could rely on Tradeable Points option E as a new entrant to bring the minimum salary required down to £24,780.

Watch the webinar

 



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