By the end of June, the new CIES had already received over 3,700 enquiries and 339 applications, with 88 of those applications receiving approval-in-principle and 3 applications receiving formal approval. 

This article provides a summary of the new CIES and highlight what it means for employers. 

What is “CIES”? 

The CIES is an investment-migration programme and was first introduced as a stimulus measure in 2003 when Hong Kong’s economy was in a recession but it was suspended in January 2015.   

As part of the 2023-2024 Budget, the Government announced a series of measures, including a revamped CIES, to revitalise Hong Kong’s economy. 

Under the new CIES, high-net-worth individuals can obtain residency together with their dependants, including spouses and unmarried children under 18, by making a minimum investment of HK$30 million in permissible investment assets. 

Overview of the new CIES 

The new CIES accepts applications from eligible persons aged 18 or above, including foreign nationals, Chinese nationals with permanent resident status in a foreign country, residents of Macau and Chinese residents of Taiwan.

Applicants must demonstrate that they have net assets of at least HK$30 million (or equivalent in foreign currencies) to which they are the absolute beneficiaries throughout the 2 years preceding the application. 

Applicants must then invest at least HK$30 million in permissible investment assets. Of the HK$30 million minimum investment threshold, at least HK$27 million must be invested in permissible financial assets and non-residential real estate, and at least HK$3 million must be placed into a dedicated CIES Investment Portfolio.
 
Successful applicants and their dependants who have maintained continuous ordinary residence in Hong Kong of at least 7 years and meet other requirements may apply to become Hong Kong permanent residents. Applicants who are unable to fulfil the continuous ordinary residence requirement may still be eligible to apply for unconditional stay in Hong Kong after 7 years.  After successfully becoming a Hong Kong permanent resident or obtaining an unconditional stay, the applicant will be free to dispose of the Permissible investment assets under the new CIES subject to the terms and conditions of the underlying investments. 

The financial eligibility of applicants under the new CIES is assessed by Invest Hong Kong, while entry, visa and residence applications pursuant to the new CIES are handled by the Immigration Department.  

What the new CIES means for employers

Employers should take note of the new CIES as holders of a visa issued under the new CIES have the right to work in Hong Kong and do not need to apply for a separate employment visa sponsored by the employer.

Also, since the new CIES provides another pathway for residency, this should open up a wider and more diversified pool of top-quality candidates for employers to choose from. 

Employers who are looking to recruit or relocate talent from abroad to Hong Kong in very senior / high-income positions with remuneration packages that meet the financial thresholds of the new CIES may share details of the new CIES with candidates as this may increase the attractiveness of the job opportunity / relocating to Hong Kong given the potential for the individual and his/her family to obtain permanent residence in Hong Kong.  

Key takeaways

The new CIES is expected to attract more top-talent to Hong Kong. This will benefit employers with their recruitment and staffing needs, giving them a larger and more diversified pool of top talent to choose from, and could also serve to incentivise and retain existing employees who may be interested in secondment opportunities or settling in Hong Kong. 

For media enquiries, please contact vanessa.ip@lewissilkin.com

The Labour Market Needs Test – what has changed? 

The Labour Market Needs Test is one of several criteria to be satisfied before an application can be made for a General Employment Permit or a Contract for Services Employment Permit. The 2024 Act removes the requirement for employers to place adverts for vacancies in print media. Instead, in advance of applying for such permits, the employer must place the adverts with the Department of Social Protection/EURES Employment Network (i.e. JobsIreland.ie) and an additional online platform for a minimum of 28 continuous days. The online platform can be any website, software or electronic technology that provides online publication of information, with the principal purpose being to publish offers of employment.

The information required to be included in the adverts has not changed.

However, no transitional arrangements have been announced for those who may already be in the process of satisfying the previous iteration of the Labour Market Needs Test and so it remains unclear whether applications submitted from 2 September 2024 will be accepted if they complied with that test. We will watch this space and let you know as we find out more. 

While many may have preferred the abolition of the Labour Market Needs Test entirely, removing the requirement to advertise a job vacancy in a national newspaper (an unfamiliar exercise for a modern workforce) is certainly welcome and makes the overall recruitment process less burdensome for employers – it is quite a straightforward step to include in any recruitment process the advertisement of future vacancies with the Department of Social Protection/EURES Employment Network and another online platform in order to satisfy the new test in the event the preferred candidate requires an employment permit.

What is the impact on subcontractor and agency arrangements? 

The modern workplace provides for a wide array of contractual arrangements beyond the usual employer and employee relationship. The 2024 Act recognises this and has expanded access to the employment permit system to employment agencies and subcontractors. 

Employment Agencies

Previously, employment agencies were strictly prohibited from being able to obtain employment permits for their agency workers. The new system will now allow for employment permits to be issued in situations where the salary of an employment permit holder is being paid by an entity other that the employer. This allows employment agencies to be listed as the employer of the employment permit holder, even when the individual will be carrying out work for a client of that employment agency and potentially be paid by that client. 

Traditional employment agencies will welcome this change as will “employers of record” which are a relatively new mechanism in Ireland.

Subcontractors

The 2024 Act will now also allow for subcontracting entities to have access to the employment permits system in the same manner as a main contractor. 

This is a welcome development for businesses, particularly those operating in the construction, telecommunications and civil engineering industries where it is increasingly challenging to find the necessary labour and which are dependent on subcontractors to assist with completing projects and satisfying contracts. Enabling subcontractors to avail of such permits will certainly help this sector. 

Improvements in efficiency and administration of employment permit system 

The primary aim of the 2024 Act is to improve efficiency in the employment permit system and, to achieve this, a number of changes are being introduced to simplify its administration including: 

a. Changing Employer 

Employment permit holders will now be able to change their employer to another employer after a period of nine months. Previously, there was an expectation that an employment permit holder would first need to complete 12 months employment with their current employer on an employment permit before they could seek to move employer. 

If they sought to move employer within that 12-month period, there would be grounds to refuse their subsequent employment permit application. The application of this rule could be waived in certain circumstances (for example, if the employee was made redundant or if the previous employer made a request). As a matter of general practice, the operation of the 12-month rule was widely considered not to be in the best interests of employment permit holders, especially those who were subject to adverse treatment in their workplace and felt they could not move for fear of not being able to obtain a new employment permit. 

There will also be discretion to grant a new permit prior to the nine-month period in cases evidencing a change of circumstances or instances of exploitation.

In addition to the above changes and specific to General Employment Permit and Critical Skills Employment Permit holders, the requirement to apply for a new employment permit has also been removed but only if the employment permit holder is moving within the same occupational classification as their existing employment permit:

(a) For General Employment Permit Holders, this means they won’t need to apply for an employment permit if they are changing to an employer within the same type of employment for which their employment permit was granted e.g. a lineworker can move to another lineworker role. 

(b) For Critical Skills Employment Permit Holders, they will be able to change employer across a broader category of employments e.g. a civil engineer may move into a different type of engineering role

Employment permit holders will be restricted to a maximum of three change of employer applications and certain requirements will need to be satisfied with each application. However, unlike new employment permit applications, it will not be necessary to satisfy the Labour Market Needs Test prior to each change of employer application. That will be welcome news to some employers and employees, but it is perhaps a curious decision. It is possible this will result in some employers actively poaching employees who have been working on an employment permit for at least nine months with competitors and who they can then employ without needing to satisfy a Labour Market Needs Test. 

b. Progression and Promotion

While not always required, where there was a material change to an employment permit holder’s terms and conditions of employment, such as a promotion, uplift in salary, change in employment location or change in role, then the Department could require the permit holder to undergo an entirely new employment permit application process.

The 2024 Act aims to improve the status and employment opportunities of employment permit holders and reduce accidental non-compliance with employment permits legislation by removing this requirement if the employment permit holder is promoted, receives an uplift in salary or is subject to an internal transfer within the employing company provided the permit holder will be using the same skills and the employment remains eligible for an employment permit. 

c. Indexation

Provision has been made to ensure remuneration thresholds for employment permits remain in line with average wage growth and to prevent future stagnation in these thresholds. Under the 2024 Act, the Minister can carry out a yearly review of the remuneration thresholds for employment permits using average wage growth calculated by the CSO. The intention of indexation is to increase the attractiveness of Ireland as a work destination and to ensure employment permit holders will continue to be able to afford to live in Ireland. However, it may have the opposite effect on employers who might experience remuneration increases as prohibitive to accessing a wider labour market. 

Also, at the beginning of 2024, increases to minimum remuneration thresholds for employment permits were announced with further increases proposed to be introduced on an incremental basis over the next few years. It will be interesting to see if the proposed increases to the minimum remuneration thresholds for employment permits will be implemented in early 2025 in light of this new indexation provision. 

d. Automatic Cancellation of Employment Permits

The Department does not allow an individual to hold more than one employment permit at any one time. This frequently caused logistical headaches for those applying for employment permits as they would need to cancel an existing and valid employment permit to allow for the grant of a new employment permit; often leaving an employment permit holder in right to work limbo. 

To address this, upon grant of an employment permit, the Minister will automatically cancel any other employment permit which is valid for that employment permit holder and will notify the employer identified on the employment permit.

e. Amending Employment Permit Applications

In an effort to eliminate, or at least reduce, the need to re-submit entirely new employment permit applications, the new Act gives the Minister the power to make an amendment to an application in certain circumstances. 

f. New six-month rule 

The 2024 Act requires employment permit holders to commence employment within a period of six months from when the employment is granted or comes into force. Previously, there was no cutoff date. This is aimed at ensuring permits are utilised promptly and to reduce delays in filling labour shortages. 

Seasonal Employment Permits 

While it has been widely anticipated, we will have to wait until 2025 for the introduction of the new Seasonal Employment Permit. 

The Seasonal Employment Permit will be a short-term employment permit allowing non-EEA nationals to work for a maximum of seven months per calendar year in a seasonally recurrent employment. This is designed to support specific economic sectors such as horticulture and agriculture in addressing labour market shortages. 

To acquire a Seasonal Employment Permit, the employer will need to be pre-register as a seasonal employer and will be issued with a certificate to confirm its status. This certificate will need to be renewed every 12 months, but it will also be transferable. Appropriate arrangements for accommodation and health insurance will also need to be made by the pre-approved seasonable employer. 

A pilot scheme for this new permit will be launched in 2025 and we await further information on this once the detail of the new scheme is published. 

Conclusion

The 2024 Act introduces significant changes to the employment permits system, making it more flexible, user-friendly, and above all, responsive to changing labour market needs. Employers should familiarise themselves with the changes, not only to ensure compliance, but also to take full advantage of the new opportunities being introduced.
For further information or support in relation to the changes to the employment permits system, or immigration law generally, please contact Declan Groarke.

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The eVisa roll-out is part of the UK’s plan to develop an entirely digital immigration system.

Millions of individuals have an eVisa already, for example through the EU Settlement Scheme. During 2024, the roll-out of eVisas will expand to replace physical documents like Biometric Residence Permits (BRP).

What are the implications of this change for employers?

Although an individual’s immigration permission is not affected by the transition to eVisa status, they may encounter difficulties with proving their immigration and travelling to the UK if they do not obtain an eVisa by the end of this year.

To avoid business disruption, employers should start planning a communications strategy to notify affected staff that they need to apply for a UKVI account. They should also decide what level of assistance to provide for the application process itself.

What will affected individuals need to do?

On 6 August 2024, the Home Office announced that all biometric card holders, including BRP holders can apply for an eVisa online. Previously, only BRP holders who received a personal invitation or who received instructions in their visa application approval email were eligible to apply for an eVisa.

Affected individuals, identified in the table below, must create a UKVI account which involves verifying their identity using the ‘UK Immigration ID Check’ app. The Home Office will then link the eVisa to the UKVI account. This can take a few days. After that, the individual should receive an email notifying them that their eVisa is available to view online.

Who is affected?

The table summarises the position for holders of specific document types and the action the individual should take.

What should affected individuals ensure when travelling to the UK?

Affected individuals should continue to travel with their physical immigration documents throughout 2024. The Home Office plans for carriers (including transport operators such as airlines, ferry, and international train operators) to be able to access the immigration status of passengers travelling on their services automatically from Summer 2024. Passengers will present their passport which is linked to their UKVI account. This should automate the existing routine checks.

Individuals who have an eVisa should update their UKVI account with any passport on which they intend to travel, using the “update my details” service if it is not already linked to their account. They can do this using the ‘update my details’ service on their UKVI account.

From 2025, those who have not obtained a UKVI account will need to do so to avoid potential travel disruption.

What does this mean for individuals who already have a UKVI account?

For individuals who already have and use a UKVI account, for example who have been granted status through the EU Settlement Scheme or who used the ID checking app when applying for their visa, nothing will change. They should continue to present employers with a share code for right to work checks.

If you would like assistance with devising a communications strategy for your business, please contact a member of our Immigration Team.

A biometric card holder means anyone with a biometric chip in their immigration document, such as a  Biometric Residence Permits (BRPs), Biometric Residence Card (BRCs) or a Frontier Worker permit.

In this article, we look at how employers are impacted by the eVisa roll-out and when a repeat right to work check is needed. 

For biometric card holders, the method used for the initial check will determine the timing for a repeat check 

There are two main scenarios where repeat checks are needed on holders of biometric cards, including Biometric Residence Permits (BRPs), Biometric Residence Cards (BRCs) and Frontier Worker permits. 

1. If a manual right to work check was performed, a repeat online right to work check is needed to retain the statutory excuse beyond 31 December 2024

Before 6 April 2022, it was possible for BRP and BRC holders to prove their right to work using their physical document, rather than being required to use the Home Office’s online right to work check system. Where an individual opted to do this, the expiry of their BRP or BRC will have been listed as 31 December 2024, unless their immigration permission was due to expire before this date.

For an employer to retain the statutory excuse beyond 31 December 2024, they must complete an online right to work check before the expiry of the document they used to prove their right to work, rather than before the expiry of the person’s immigration permission. 

The Home Office started adding the 31 December 2024 date to biometric documents on 1 January 2020, so there is a potentially large cohort of employees who may need a repeat check. Employers may wish to perform repeat checks early, to avoid a bottleneck towards the end of the year. 

2. If a compliant online right to work check was performed, a repeat check is not needed if an employee’s immigration permission expires after 31 December 2024

On 6 April 2022, online right to work checks became mandatory for those with biometric cards. As part of the right to work check process an employer will retain the profile page, which confirms when the individual’s immigration permission expires. A repeat check is not needed if an employee’s immigration permission expires after 31 December 2024. 

No action is required for other types of right to work check that give an employer a continuous statutory excuse, but these individuals may be required to create a UKVI account in the future. 

Find out what employers can do to minimise the impact of the change on repeat right to work checks in our previous article, How to avoid a right to work check headache when BRPs are phased out.

For pre-settled status holders, no repeat right to work check is needed

The Home Office’s Employer’s guide to right to work checks confirms that repeat right to work checks are no longer required for pre-settled status holders. This means that an employer is only required to complete an initial right to work check before the first day of employment.

See our previous article on pre-settled status improvements for more detail.

More questions about eVisas?

Read our previous articles, eVisas are now available to all BRP holders and eVisa essentials for employers, to learn who is affected and what action is required. 

HR teams may wish to prepare internal communications to alert affected employees of the need to apply for an eVisa. This will help reassure employees that they are supported by their employer and may minimise business and/or personal disruption e.g. to international travel.

If you have any queries about the issues raised in this article or would like to find out about our eVisa training and tools, please contact a member of our immigration team.

Following a mass stabbing incident in Southport on 29 July 2024, there has been widespread rioting in towns and cities across England and in Belfast. Before the perpetrator’s identity was confirmed, false claims circulated online that he was a Muslim asylum seeker who had arrived in the UK by boat. Members of the far right, largely driven by social media, began gathering in anti-immigration protests. These have descended into Islamophobic and racist attacks, looting, and violent clashes with both opposing groups and the police.
 
Periods of social unrest have an impact on everyone, and so inevitably affect the workplace. We have previously written about employer responsibilities during Hong Kong’s summer of unrest. There will be similar considerations for UK employers who will need to focus on employee safety. 

How can the riots impact employees? 

There are various ways in which the current situation can affect employees, including the following:

• Employees may no longer feel safe to go into to work for fear of being targeted during any social unrest, especially if they work in certain sectors such as retail or hospitality.  It has been widely reported that many shops or businesses along high streets have been looted or vandalised.
• Some employees may feel particularly vulnerable in public-facing workplaces because of the possibility of racist abuse or attacks.  Employees who are identifiable as a Muslim are particularly at risk, as are those who might be perceived as Muslim or a recent immigrant.
   
• Employees may also fear encountering violent protests or being subjected to abuse when commuting to work, particularly if they are likely to be targeted by Islamophobic or racist behaviour.  For example, someone who wears a hijab may currently feel unsafe travelling in an area where a far-right gathering is planned.
   
• Employees may be upset, distracted or withdrawn at work and find it difficult to focus. 
• Discussions amongst employees about the protests and immigration may be divisive. Employees may be offended by the views of their colleagues expressed at work or on social media. This may give rise to increased tensions in the workplace and possibly an uptick in grievances.

• Any of these concerns may mean that some employees may ask to take time off, work from home or change their work hours. 

What are your obligations? 

Health and safety 

Employers have statutory duties to provide a safe place of work.  This duty to ensure the health, safety and the welfare of employees extends to the workplace, or wherever an employee is acting in the course of their employment. This would cover risks of being targeted by social unrest while at work but is unlikely to include risks employees may face while travelling to or from work.
 
There is also a general common law duty to take reasonable care for the health and safety of employees. The riots are an important context here.  It is certainly possible that employers could be found to have duties to protect employees from any abuse or exposure to these riots in their workplace, such as a shop on the high street – particularly if you are aware that a far-right gathering is planned for a particular location.  It is also possible that this could extend to the commute to work.  Although we are not currently aware of this duty being applied to an employee’s commute, it is certainly arguable that an employer who requires a vulnerable employee to travel to work through an area of social unrest is failing to take reasonable care for that individual’s health and safety.

A failure to comply with health and safety obligations can result in fines and, in some cases, imprisonment. A breach of the duty of care may also result in personal injury claims from any impacted employee.

Trust and confidence

We have written about this right previously in the context of the Covid-19 pandemic  but this right could also apply where an employee reasonably believes that their workplace is dangerous due to its proximity to riots. Employees in this situation would potentially be protected from disciplinary action if they leave work, or if they refuse to work in any dangerous part of their place of work (e.g. the shop floor).

This right is intended to protect employees from urgent dangers in their workplace, where there is no other reasonable option – so general concerns in the absence of a specific gathering near the workplace may not be enough.  However, Muslim or other vulnerable members of staff may more easily be able to show that they are likely to be targeted and so their beliefs of danger are reasonable.

Does this protection extend to an employee’s commute? As discussed in our previous article, while “place of work” is included in section 44, no references are made to travel to or from work.  In the context of the Covid-19 pandemic, the Court of Appeal said in Rodgers v Leeds Laser Cutting Ltd that the perceived danger must arise at the workplace, and so section 44 does not apply to the journey to work.  Although this finding wasn’t directly relevant to the decision in that case, it is a strong indication that the law is not be intended to cover perceived dangers during a commute to work.  

Discrimination claims

The racist and anti-immigration nature of the riots means that they may particularly affect those with a particular religion or race (which includes colour, nationality and ethnic or national origin). For example, if an employee who is a Muslim asked to work from home as they live in an area with rioting and feel unsafe to commute to work, and this is refused, this could give rise to a claim for indirect discrimination.  The employee could argue that the employer’s requirement to come to work in these circumstances disadvantages them personally and Muslims as a group.

An employer can justify indirect discrimination if the requirement is based on a legitimate aim and is proportionate.  However, it may be difficult for an employer to justify requiring a vulnerable employee to attend work if they are at genuine risk of abuse or attacks, either during the commute to work or at the workplace itself. This is particularly if the riots are short term.

What can you do to help? 

Our recommended approach is as follows: 

• Employers should regularly assess the risk in each workplace. Employers should keep up to date with the news reports, social media, government guidance and police advice in your area to ensure awareness of any particular instructions or processes to be followed. Depending on the level of risk, you should have a business contingency plan that can be implemented on short notice.
• If based in a location which is experiencing rioting, employers should consider adjustments that could be made.  If possible, this could include either allowing employees to temporarily work from home, or adjusting working hours so that they can avoid entering town and city centres in the evening during any planned demonstrations.  We have recently taken similar steps ourselves for staff in our city centre Belfast and Manchester offices. Other possible measures could include covering the cost of taxis or allocating travel buddies. 
• Consider whether it is possible to temporarily change the place of work.  For example, if you have multiple offices or sites, could an employee work from a place where no far-right gatherings are planned?
• If employees are client facing (e.g. working in shop, bar, hotel or a restaurant) and/or based within a city centre, ensure that any temporary measures or contingency plans have been clearly communicated, in the event that rioting breaks out in your area. 
• Media coverage has shown many businesses have decided to board up their windows and close early amid riot fears in their area. If you decide to temporarily shut a particular office or site, ensure that this is communicated as far in advance as possible to employees. If the employees are ready and willing to work, they should still be paid in the usual way, unless the employment contract specifies otherwise.
• Be sensitive towards employees from targeted groups who are feeling particularly vulnerable, and ensure you listen to their concerns.  It may be necessary to make additional adjustments for some groups.
• Handle any divisive expressions of views sensitively. The scope of “protected beliefs” under the Equality Act 2010 is wide, and employees may be protected in expressing their views on, say, immigration (even if they are inflammatory). Our recent podcast on navigating tensions in a diverse workplace offers practical strategies for employers to ensure a respectful and inclusive environment.
• Finally, don’t overlook the mental health implications for your employees.  This is a particularly difficult time for targeted groups, but all employees may be affected in different ways. Consider reaching out to employees and make them aware of any available support, such as mental health first aiders, HR contacts, diversity and inclusion representatives or any Employee Assistance Programmes.

The eVisa roll-out involves the replacement of physical immigration documents with digital immigration status. The initiative was launched under the previous Government with a target completion date of 31 December 2024.

The Home Office updated their eVisa guidance to reflect this change.

We are happy to answer any questions you may have about this development. We can also assist with any internal communications you may wish to send to your employees to explain what action is required before the deadline. Please get in touch with your usual Lewis Silkin immigration team contact.

Employers should review their right to work processes to make sure that they will retain the statutory excuse after 31 December 2024. Keep a look-out for our ‘quick guide’ to repeat right to work checks, which will be published on our Insights page shortly.

The Home Secretary, Yvette Cooper, made the announcement to Parliament on 30 July 2024.

Labour plans to retain the strict Immigration Rules introduced under the previous Government

Labour will continue to implement the majority of the Conservative’s ‘five-point plan’ to reduce net-migration. The five-point plan saw the roll-out of stricter Immigration Rules, which were introduced to curb immigration abuses and deliver the biggest ever reduction in net migration.

Employers had hoped that Labour would re-set some of the changes or at least adjust the minimum salary thresholds under work routes. Labour is in favour of the strict Immigration Rules and will continue to implement them. This includes:

• ‘Restricting most overseas students from bringing family members to the UK.
• Restricting the ability of care workers and senior care workers to bring dependants with them and requiring all care providers sponsoring migrants to register with the Care Quality Commission.
• Increasing the general salary threshold for those arriving on Skilled Worker visas by 48% from £26,200 to £38,700.
• Abolishing the 20% going rate discount so that employers can no longer pay migrants less than UK workers in shortage occupations.’

The Migration Advisory Committee (MAC) will be strengthened 

Labour had already said that it planned to enlist the MAC in informing immigration policy far more. They intend to do this by sending Home Office staff to the MAC to ensure ‘it is able to work more strategically to forecast future trends, alongside continuing to review and provide independent, evidence-based recommendations on key areas of the immigration system’.

Labour expects the MAC to work with new and pre-existing cross-governmental bodies like Skills England. This cooperative approach is the catalyst to join up immigration, skills and labour market policies. There is mention of a framework to facilitate this, but no detail at this stage on how this will work in practice.

The MAC will be commissioned to conduct a review of the reliance of key sectors on international recruitment

The MAC will focus on IT and engineering to start with. We anticipated that the Health & Care sector and construction sector would have been targeted too, but perhaps this will follow later.

The announcement does not confirm when it will commission the MAC, but we assume this will happen within the next few months. We presume it will involve a call for evidence and external stakeholder engagement, rather than a ‘rapid review’.

Labour will pause the minimum income requirement for 5-year partner visas at £29,000 while they commission the MAC to conduct a review

The minimum income threshold is currently set at £29,000 and was due to increase later this year to £34,500 and again in early 2025 to £38,700. Labour confirms the threshold will remain at £29,000 until the MAC’s review is complete. This is a welcomed development. 

The reasoning for the review and decision to pause the rate was centred on the previous Government’s assertion that there is ‘a need to balance a respect for family life whilst also ensuring the economic wellbeing of the UK is maintained’.

Again, we assume this will happen within the next few months and that it will include a call for evidence and external stakeholder engagement.

There is no change to the Conservative plan to crackdown on abuse in Student and Graduate routes

Labour announced that it plans to continue to implement measures introduced under the Conservative government, following the MAC’s rapid review of the Graduate route. The measures include regulation of the recruitment of international students, scrutinising evidence used to meet financial requirements and reviewing English language assessments.

Labour wants universities to cooperate with the Department of Education to ensure the measures are effective and that the system is protected from exploitation.

Keep in touch with Lewis Silkin for further updates and assistance

We will be monitoring immigration law developments throughout 2024. You can stay updated by following our Labour Policy Impact Hub and our Immigration Law Policy Dashboard. We will publish further information once it becomes available. You can sign up here to receive our updates.

If you have queries on any of the topics raised in this article, please get in touch with our Immigration Team.

Businesses worldwide are struggling to find suitable talent. A recent survey of over 40,000 employers revealed that 75% are finding it difficult to source the right talent in the right locations. Countries like Japan, Germany, Greece, Israel, Ireland, Portugal, India, the UK, France, and Canada are experiencing severe talent shortages.

This article explores some of the factors contributing to global skilled labour shortages and suggests some people-focused options to address them.

Geopolitical, environmental and demographic influences on labour supply

The reasons behind these shortages are complex, ranging from an aging workforce to changing industry perceptions. The shift in workplace preferences post-pandemic has further intensified the recruitment crisis.

The impact of Brexit on the UK workforce has been significant, with reduced migration from European countries and, more recently, stricter immigration policies. This has intensified skills shortages, particularly in the health and care sectors. Despite low unemployment, the UK faces over 900,000 job vacancies, leading to fierce competition for talent.

On a global level, the pandemic has driven significant talent migration. One example of this is the movement of people from Hong Kong to Singapore. Hong Kong’s stringent anti-covid restriction regimes led to many individuals emigrating to Singapore where several international companies moved their Asia headquarters.

An aging workforce is impacting employers, and this is particularly felt in Asia Pacific region. It is projected that by 2050, one in four people in this region will be over the age of 60. Consequently, Japan is now facing the most severe talent shortage in the world.

Geopolitical events, like the war in Ukraine, have further impacted talent mobility, with countries like Poland welcoming millions of Ukrainians, posing long-term labour market challenges.

People-based options for addressing skills shortages

Although investment in technology may increasingly form part of the solution to skills gaps, a well thought-through people strategy will be critical for employers around the world to successfully compete and serve the needs of the wider economy. This is likely to include being more flexible on how and where people work and focusing on staff training.

Immigration and global mobility

One of the ways countries are responding to these challenges are with new immigration policies.

The EU is currently improving laws to better attract skilled workers, and nations such as France, Greece, Slovakia, Ireland, and Sweden are simplifying immigration processes to attract skilled workers.

On a local level, many progressive businesses are allowing employees to make use of digital nomad visas when travelling to countries such as Spain, Italy and the UAE on a temporary basis. A digital nomad visa allows individuals to work remotely from a foreign country, for an employer based outside of that country, on a temporary basis. This type of visa is particularly attractive amongst remote workers and freelancers who do not need to be physically present in their company’s office, or even in the same country, to carry out their work. These visas do require careful consideration, however, to ensure compliance with local regulations as, whilst the digital nomad visa may solve the immigration issue, there are other global mobility considerations such as income tax withholding social security withholding, local employment law compliance, which will still need to be addressed.

From a more permanent perspective, some employers are adopting location-agnostic approaches to gain a competitive edge in recruiting and retaining talent. This type of approach can, however, present challenges. Employers should, therefore, take care when developing a global mobility strategy to:

• evaluate the risks, such as income tax and social security withholding obligations, permanent establishment risks and employment local laws, to name a few, against the potential benefits for employees and the business; and
• develop a process for dealing with requests in a commercial and cost-effective way which ensures consistency, transparency, and clarity in decision-making.

Upskilling, reskilling and flexible working

Upskilling and reskilling existing talent may also be an essential factor in addressing skill shortages. Employers should focus on creating tailored programmes to develop existing employees. For example, retaining and extending the skills of older, experienced workers, is advantageous.

To support employee retention, employers should also consider implementing flexible working arrangements, putting into place career progression plans and offering other benefits to employees to make roles more attractive.

Conclusion

The war on talent demands employers to innovate in talent acquisition and retention. Understanding the global mobility landscape, leveraging immigration policies, and embracing flexible working are crucial. Employers must also focus on retaining and continuously training existing employees to build a resilient workforce for the future.

If you have any queries about the matters raised in this article or would like to find out more about how our expertise in global mobility and immigration can help your business, please contact a member of our global mobility team.

The dashboard includes pledges referred to in the press, as well as more formally in the Change – Labour Party Manifesto 2024. 

For a summary of the Labour government policies for employment law reforms, see our separate dashboard here.

For more analysis of Labour’s plans and other articles in our talking points series, visit our Labour Policy Impact Hub.

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Sponsors should regularly review their compliance position and address any deficiencies to minimise the risk of enforcement action.

Recent statistics on sponsor licence suspensions and revocations

Between January and March 2024, the Home Office suspended 309 Skilled Worker sponsor licences and revoked 210. This represents a much higher level of activity than at any point since Brexit, as the below chart shows.

Although some of this increase is likely to be driven by a need to address immigration system abuse in the care sector, there are reasons why all sponsors should take care to ensure their house is in order ahead of a potential sponsor audit or other compliance trigger point. 

What might we expect to see from the next government on sponsor licence compliance?

With current opinion polls strongly suggesting a win for Labour in the General Election on 4 July 2024, it would seem likely that sponsor compliance will continue to be high on the agenda. For example, Labour intends to increase the timeframe that a sponsor will be banned obtain a sponsor licence where employment law has been breached. The party also states more generally that it ‘will not tolerate employers or recruitment agencies abusing the visa system’.

Examples of common compliance issues

We regularly carry out mock audit work for our clients and monitor trends and risk areas in sponsor licence compliance. Examples of common compliance issues that can arise in the Skilled Worker sponsorship context include:

• Misunderstanding the genuine employment requirement
• Misunderstanding what types of remuneration can (and cannot) be included to meet the salary requirements for sponsorship
• Changes to sponsored workers’ employment conditions that take them outside the scope of their sponsored role
• Reporting failures in relation to sponsored workers
• Reporting failures in relation to the sponsor, including (but not limited to) corporate restructuring
• Non-compliance with the illegal working regime

Where non-compliance has occurred, we are able to advise on options to address the issue and to minimise the risk of future breaches.

If you have any queries about the issues raised in this article or would like to find out about our Immigration Compliance Audit service and related training and tools, please contact a member of our immigration team.