Tier 2 General migrants must not have a shareholding of more than 10% in their limited company sponsor, however the Skilled Worker route does not include this restriction. So how can a Tier 2 General migrant take advantage of this change if they are offered a shareholding that would take them above the 10% threshold?

Text:

Unfortunately, the change in the Rules does not operate to remove the shareholding restriction from existing Tier 2 General migrants. This is because, if they do not continue to meet the requirements of the Rules their visa was granted under (including the maximum 10% shareholding requirement) their visa could be cancelled.

However, individuals in relevant Tier 2 categories (including Tier 2 Sportsperson and Tier 2 Minister of Religion as well as Tier 2 General) can apply for and be granted immigration permission as a Skilled Worker if they wish to increase their shareholding above 10%.

Perhaps more importantly, those who previously could not use the Tier 2 route because they were a significant shareholder can now apply under the Skilled Worker route. Some of those who could not use Tier 2 previously may have had to use the Tier 1 Entrepreneur route, which is an inflexible option for entrepreneurs due to its various restrictions. Alternatively, they may have had to re-arrange shareholdings or defer their move to the UK. The lifting of the maximum shareholding requirement for the Skilled Worker route should open doors to more businesses and business founders wishing to work in the UK.

If you have any queries about this topic, please get in touch with a member of our Immigration Team.

Related Item(s): Immigration & Global Mobility

Author(s)/Speaker(s): Andrew Osborne, Naomi Hanrahan-Soar,

As widely discussed, the pandemic has caused, or perhaps merely accelerated, a mass shift towards homeworking amongst office-based employees. A survey by Eurofound found that over a third of employees across the EU member states were working exclusively at home during the pandemic.

Text:

Early on, some employees who found themselves stuck in another country and unable to return home started to trial remote working from abroad. As time went by, other employees became attracted by the idea of moving temporarily to an overseas location while continuing to work from home. The government of Barbados seized the opportunity to offer a 12-month “Welcome Stamp”, permitting overseas individuals with an annual income of at least US $50,000 to work remotely from the island without the need for any visas or immigration permissions. Costa Rica also introduced a draft bill to attract remote workers from overseas by allowing them to benefit from a new migration status for one year, with the possibility of a six-month extension. Similarly, in the United Arab Emirates, Dubai introduced the Virtual Remote Working Programme, which allows employees of foreign employers to reside in the Emirate for a year, subject to them meeting certain criteria such as providing a valid employment contract and earning a minimum monthly wage.

Beyond these ground-breakers, however, requests by employees to work from home overseas became a source of considerable headaches for employers in 2020. There have been a myriad of income tax, corporation tax (permanent establishment), social security, immigration, employment law, benefits, health & safety and data privacy issues to work through before deciding whether such requests could be permitted for the short, medium or long term. Yet with the shift to remote working likely to be permanent, solutions will go on needing to be found – whether by way of a new international agreement, use of “Professional Employer Organisations” and similar vehicles, the establishment of new legal structures, or simply “taking a view”.

Meanwhile, some countries have been working on permanent changes to their rules on domestic remote working, especially in Europe.

Spain passed a new law on remote working, defined as working from home or remotely for at least 30% of the time within a three-month reference period (or whatever other percentage is specified in the applicable collective bargaining agreement). The new law came into force on 13 October 2020 but will not apply if remote working schemes are brought in purely as a health measure to reduce cases of Covid-19. The law imposes several new obligations on employers, including to sign a remote working agreement, pay all expenses related to remote working, provide all tools/equipment needed, and comply with health & safety regulations (including carrying out specific risk assessments related to remote working and occupational hazards in employees’ homes). It also empowers employers to adopt appropriate measures for surveillance and monitoring of remote workers.

Poland is proposing to replace its existing remote working laws. While its approach is likely to remain relatively rigid, more flexible arrangements can currently be enjoyed under Poland’s emergency Covid regulations. Slovakia also proposes to amend its Labour Code to clarify rights and obligations for remote working. The change would tighten the existing legal regime, for example in relation to work scheduling, provision of equipment, meal vouchers and reimbursement of costs. It would also provide a right to disconnect.

In Germany, a first proposal for a new Mobile Working Act has failed to win the government’s support. This would have provided employees with a legal entitlement to work remotely for at least 24 days each year unless the employer put forward compelling operational reasons why this was not possible. The Federal Labour Ministry is now, as part of a new draft Act on strengthening Works Council rights, planning to introduce a new co-determination right on mobile working into law. This would mean that an employer could not unilaterally implement decisions about remote working without seeking agreement with the Works Council.

The new coalition government in Belgium has indicated that it will develop a new framework around remote working with the social partners, in response to a strong demand from employers and employees to continue such arrangements.

Employees in the Netherlands already have the right to ask to work from another location, but the employer is only required to consider the request and can easily refuse it. A legislative proposal has been made to extend the law so that any refusal of remote working must be based on compelling business reasons. The UK is also proposing to make flexible working the default option, unless the employer has a good reason otherwise (although there is currently no timescale for this).

In France, an agreement about remote working was signed in November 2020 between employers’ associations and labour unions at national level. This agreement mostly formalises existing general principles and best practices on remote working and so has not brought about any significant changes to the existing legal framework. Employers are encouraged to negotiate or consult on remote work with a view to signing a company agreement or establishing a company policy that sets clear and objective rules regarding employees’ eligibility to work remotely, working time monitoring, provision of equipment to remote workers, payment of expenses, training, health & safety rules and other matters.

More radically, the Irish government recently announced plans to legislate to give employees the right to request remote working as part of its new National Remote Working Strategy. Employers will be required to justify refusing any request, with the employee being able to take their case to the Workplace Relations Commission if they do not accept the employer’s justification. The government has set a target of 20% of public-sector employees to work remotely under the plan, which includes commitments to provide the necessary infrastructure and a review of tax treatment. A new code of practice will address the right to disconnect.

Argentina also adopted new laws regulating all aspects of remote working, including working hours, the employer’s responsibility to provide equipment, the employee’s right to be reimbursed for expenses, and the right to disconnect.

 

Related Item(s): Employment

Author(s)/Speaker(s): Sean Dempsey, Colin Leckey, Kathryn Weaver,

As widely discussed, the pandemic has caused, or perhaps merely accelerated, a mass shift towards homeworking amongst office-based employees. A survey by Eurofound found that over a third of employees across the EU member states were working exclusively at home during the pandemic.

Text:

Early on, some employees who found themselves stuck in another country and unable to return home started to trial remote working from abroad. As time went by, other employees became attracted by the idea of moving temporarily to an overseas location while continuing to work from home. The government of Barbados seized the opportunity to offer a 12-month “Welcome Stamp”, permitting overseas individuals with an annual income of at least US $50,000 to work remotely from the island without the need for any visas or immigration permissions. Costa Rica also introduced a draft bill to attract remote workers from overseas by allowing them to benefit from a new migration status for one year, with the possibility of a six-month extension. Similarly, in the United Arab Emirates, Dubai introduced the Virtual Remote Working Programme, which allows employees of foreign employers to reside in the Emirate for a year, subject to them meeting certain criteria such as providing a valid employment contract and earning a minimum monthly wage.

Beyond these ground-breakers, however, requests by employees to work from home overseas became a source of considerable headaches for employers in 2020. There have been a myriad of income tax, corporation tax (permanent establishment), social security, immigration, employment law, benefits, health & safety and data privacy issues to work through before deciding whether such requests could be permitted for the short, medium or long term. Yet with the shift to remote working likely to be permanent, solutions will go on needing to be found – whether by way of a new international agreement, use of “Professional Employer Organisations” and similar vehicles, the establishment of new legal structures, or simply “taking a view”.

Meanwhile, some countries have been working on permanent changes to their rules on domestic remote working, especially in Europe.

Spain passed a new law on remote working, defined as working from home or remotely for at least 30% of the time within a three-month reference period (or whatever other percentage is specified in the applicable collective bargaining agreement). The new law came into force on 13 October 2020 but will not apply if remote working schemes are brought in purely as a health measure to reduce cases of Covid-19. The law imposes several new obligations on employers, including to sign a remote working agreement, pay all expenses related to remote working, provide all tools/equipment needed, and comply with health & safety regulations (including carrying out specific risk assessments related to remote working and occupational hazards in employees’ homes). It also empowers employers to adopt appropriate measures for surveillance and monitoring of remote workers.

Poland is proposing to replace its existing remote working laws. While its approach is likely to remain relatively rigid, more flexible arrangements can currently be enjoyed under Poland’s emergency Covid regulations. Slovakia also proposes to amend its Labour Code to clarify rights and obligations for remote working. The change would tighten the existing legal regime, for example in relation to work scheduling, provision of equipment, meal vouchers and reimbursement of costs. It would also provide a right to disconnect.

In Germany, a first proposal for a new Mobile Working Act has failed to win the government’s support. This would have provided employees with a legal entitlement to work remotely for at least 24 days each year unless the employer put forward compelling operational reasons why this was not possible. The Federal Labour Ministry is now, as part of a new draft Act on strengthening Works Council rights, planning to introduce a new co-determination right on mobile working into law. This would mean that an employer could not unilaterally implement decisions about remote working without seeking agreement with the Works Council.

The new coalition government in Belgium has indicated that it will develop a new framework around remote working with the social partners, in response to a strong demand from employers and employees to continue such arrangements.

Employees in the Netherlands already have the right to ask to work from another location, but the employer is only required to consider the request and can easily refuse it. A legislative proposal has been made to extend the law so that any refusal of remote working must be based on compelling business reasons. The UK is also proposing to make flexible working the default option, unless the employer has a good reason otherwise (although there is currently no timescale for this).

In France, an agreement about remote working was signed in November 2020 between employers’ associations and labour unions at national level. This agreement mostly formalises existing general principles and best practices on remote working and so has not brought about any significant changes to the existing legal framework. Employers are encouraged to negotiate or consult on remote work with a view to signing a company agreement or establishing a company policy that sets clear and objective rules regarding employees’ eligibility to work remotely, working time monitoring, provision of equipment to remote workers, payment of expenses, training, health & safety rules and other matters.

More radically, the Irish government recently announced plans to legislate to give employees the right to request remote working as part of its new National Remote Working Strategy. Employers will be required to justify refusing any request, with the employee being able to take their case to the Workplace Relations Commission if they do not accept the employer’s justification. The government has set a target of 20% of public-sector employees to work remotely under the plan, which includes commitments to provide the necessary infrastructure and a review of tax treatment. A new code of practice will address the right to disconnect.

Argentina also adopted new laws regulating all aspects of remote working, including working hours, the employer’s responsibility to provide equipment, the employee’s right to be reimbursed for expenses, and the right to disconnect.

 

 

Related Item(s): Employment

Author(s)/Speaker(s): Sean Dempsey, Colin Leckey, Kathryn Weaver,

How does the Irish government’s Immigrant Investor Programme work, what benefits does it have and how can high-net-worth individuals use it as a means of obtaining residency rights in Ireland?

Text:

The Immigrant Investor Programme (IIP) was launched in 2012 after the last recession, to encourage foreign investment into Ireland for the creation of business and to stimulate employment. It has been a relative success, with over 1,100 investors availing themselves of the scheme. Interest in the IIP is likely to increase post-Brexit, as professionals and international investors seek to maintain or establish a base in Europe.

The figures reflect the IIP’s success. Since its inception, figures from the Department of Justice (DOJ) show that it has attracted around €826.5 million’s worth of investment from non-European Economic Area (EEA) nationals. Each of those individuals has invested in Irish businesses or charities in return for the right to reside in the Republic of Ireland.

In its inaugural year, a total of €1.5 million was paid by investors. This steadily increased year on year up until 2017, when a high of €253.7 million was contributed by investors through the IIP. While there has been a small decline since then, the IIP led to €184.6 million being invested in the Irish economy in 2020, despite the Covid-19 pandemic.

What is the benefit to investors?

The IIP offers non-EEA nationals a route to residency in the Republic of Ireland by offering four investment options to investors who satisfy certain criteria – namely, that they are of good character and have a minimum net worth of €2 million. Residency may also be granted to the investor’s spouse, partner and/or children if certain criteria are met. In general, children under the age of 18 will be granted residency if the applicant or their spouse or partner has legal guardianship. In some cases, children between the age of 18 and 24 will be considered for residence where they are financially dependent on the applicant and unmarried.

One advantage of the IIP is that the period of investment does not determine the length of time the investor can maintain residence in Ireland. In contrast, in the UK, investors in a similar programme are required to maintain investment for as long as they reside in the country and must also satisfy minimum thresholds of investment in order to renew their residency permissions.

Under the IIP, once an investor has complied with its terms, they can potentially successively renew their residency permission for five-year periods at a time – effectively maintaining their Irish residency indefinitely. Moreover, investors are only required to maintain their investment for a minimum of three years over the course of their residency. After this period, the investment in Ireland is deemed completed for immigration purposes and investors do not have to make further investment in order to renew their residency. This is especially attractive to individuals seeking to maintain a foothold in Europe as a result of Brexit, where there may have previously been an intention to channel investment into the UK.

Who is eligible?

To qualify for the IIP, applicants must be high-net-worth individuals with a personal wealth of at least €2 million. An applicant must be independently wealthy and cannot rely on funds that are solely owned by another individual. No account can be taken of the applicant’s spouse’s assets save in cases where the assets are held jointly, in which case the spouse’s consent is required.

Additionally, the applicant must have the requisite amount available for investment (see below). This must be from the applicant’s own resources and cannot be financed through a loan or other such facility. The investor’s bank must provide confirmation that the investor has disposing power and that the money can be transferred without restriction to a bank in Ireland.

There is a good-character requirement for each investor and any nominated family member who is over 16 years of age. This can be satisfied by providing police clearance certificates for each jurisdiction in which the applicant lived during the requisite period. The applicant must also provide a due diligence report on the source of their wealth from a recognised risk agent.

What are the investment options?

There are four investment options for non-EEA nationals who wish to acquire residence in Ireland through the IIP:

• Enterprise Investment: a minimum investment of €1m in either a single Irish enterprise or spread over several enterprises, which must be left in place for at least three years. The enterprise may be a start-up established by the investor or an existing business registered in Ireland. It must be registered and headquartered in Ireland and the investment must support the creation or maintenance of employment.

• Investment Fund: a minimum investment of €1m in an approved investment fund, which must be left in place for at least three years. The funds and fund managers must be regulated by the Central Bank of Ireland to conduct business in Ireland. A list of approved investment funds can be obtained from the Immigration Service Delivery(ISD).

• Real Estate Investment Trust (REIT): a minimum investment of €2 million in any single Irish REIT or a multiple of Irish REITs listed on the Irish Stock Exchange, which must be left in place for at least three years. After three years, the investor may divest no more than 50% of the shares purchased for the IIP. Where an investor has divested shares during year three, they may, after four years from the date of purchase, divest no more than a further 25% of the shares purchased for the IIP. There is no requirement for investors to retain shares after five years from the date of purchase.

• Endowment: a minimum €500,000 philanthropic donation (or €400,000 if the applicant is one of five investors or more) to a project which is of public benefit to the arts, sports, health, culture or education in Ireland.

Where does this investment go?

The DOJ sets the IIP’s priorities to focus on investment in projects aimed at social housing, nursing homes, primary healthcare facilities and combatting climate change. The Irish Times reported last month that funding through the IIP had to date raised €245 million for social housing, €165 million for building nursing homes and €108 million for hospitality and tourism (with the remainder being accounted for through investments in various other projects and industries). The DOJ has subsequently confirmed these figures to us.

This level of investment is clearly welcome. A lack of social housing has been a feature of the accommodation crisis with which successive Irish governments have been wrestling since the last recession. Importantly, investment through the IIP offers cheaper finance than traditional funding options. Many projects would not have commenced or succeeded without the availability of capital entering the country through the IIP, as Irish lending practices can often be restrictive.

In future, investment through the IIP could also assist in aiding Ireland’s economic recovery from the Covid-19 crisis, particularly in the hospitality and tourism sector.

What is the application process?

Once an investor has chosen their investment option, they should make an application to the ISD by completing the prescribed application form. Certain documents are required to be submitted with the form. Generally, applicants must provide copies of their passport, birth certificate, marriage certificate and evidence of net worth. All documents must be certified, notarised and/or apostilled.

Depending on the type of investment option, further documentation may be required. For example, if an investor is applying on the basis of making an Enterprise Investment in an existing Irish business, a relocating business or a new business, they must submit a comprehensive business plan completed in the template provided by the ISD. The template is designed to:

• Identify the financial investment being made in support of the application for residency under the IIP.

• Indicate how the investment will benefit Ireland, is in the public interest and will help create or maintain employment.

• Identify the extent of the equity in the business that the investor is acquiring and how they will receive a return on the investment. (As with any investment, the investor may or may not see a return).

Applications are vetted before being passed on to the Evaluation Committee, which is composed of senior civil and public servants from relevant Irish government departments and agencies. On average, the Evaluation Committee will process applications within six to eight months, but it can take longer.

Once the Evaluation Committee is satisfied that the application meets the required criteria, it goes to Minister for Justice for provisional approval. If the Minister signs it off, a letter of provisional approval is issued. There is no requirement to make the investment before this, but once provisional approval has been granted, the investor must do so within 90 days. On completion of the investment, a final letter will be issued allowing the investor to register their residency permission with the ISD.

Following stakeholder feedback, application windows will no longer apply and applications for the IIP can be submitted at any time. This is a welcome new measure and will hopefully encourage further interest in the programme.

What permission is granted to successful applicants?

Successful applicants and their nominated family members will be granted continuous residence in Ireland under “Stamp 4” conditions, which permit foreign nationals to work, study or start their own business without an employment permit. (Investors can, of course, choose to do nothing and simply enjoy our great country!).

Residence is initially granted for two years, which can be renewed for up to five years and beyond. Renewal is, however, based on the investment being in place for the required three-year period and certain other conditions being met. Essentially, the investor cannot become a financial burden on the Irish state, otherwise it is very unlikely their permission will be renewed. Investment progress reports should therefore be prepared on renewal dates, although successful investment performance is not a condition for continued residence.

Under the IIP, applicants are not required to continuously reside in Ireland in order to maintain or renew their immigration permission, which makes it an attractive option for applicants who reside in multiple jurisdictions. The only requirement is that applicants must prove at renewal stage that they visited Ireland at least once per calendar year of their residency.

The position is different if applicants want to rely on their IIP permission as a means of obtaining citizenship by naturalisation in Ireland, in which case they must also satisfy the relevant conditions for a citizenship application. They must, for instance, be legally resident in Ireland for at least five years out of the last nine years including one year of continuous physical residence immediately before the date of application. Successful IIP applicants therefore have the opportunity to show they meet the requirements for Irish citizenship.

While successful applicants will receive a multi-entry visa under the IIP, which allows them to travel in and out of Ireland as they please, this does not permit them to work or live elsewhere in Europe or the UK. Individuals would be subject to the immigration requirements in the relevant jurisdiction if they wish to enter, reside or work there. The IIP does nonetheless afford them a base location within the EEA.

Conclusion

The IIP has evident advantages for investors seeking to establish or maintain a foothold in Europe:

• Following the UK’s withdrawal from the European Union, Ireland is uniquely placed in being the only predominantly English-speaking country remaining in the EEA.

• The investment amount is competitive in comparison to other cash-for-residency arrangements in other similar European jurisdictions that have a higher investment value threshold. Interest groups in Ireland have previously lobbied for the investment amount to be lowered, to compete with other jurisdictions and thereby attract more inward investment. The Irish government may come under renewed pressure to lower the threshold in order to aid Ireland’s post-Covid-19 economic recovery.

• The residency requirements under the IIP may not be as restrictive as in other such schemes, as applicants are not required to reside in Ireland continuously in order to maintain their permission to live and work here. Also, there is no requirement for the investor to commit further investment beyond the three-year period in order to maintain residency.

• Residency can be continuously renewed for successive five-year periods, so long as the investor complies with the terms of their chosen investment fund and meets the appropriate conditions.

If you have any enquiries regarding the IIP or require guidance with an application, please contact Declan Groarke or Audrey Whyte.

Related Item(s): Business immigration in Ireland, Employment, Immigration & Global Mobility

Author(s)/Speaker(s): Declan Groarke,

From 15 February 2021, international arrivals to England will be required to quarantine in a government-managed hotel if, within the ten days before arrival, they have been in or transited a country to which a travel ban applies (‘red list countries’). Additional post-arrival COVID-19 testing has been mandated from the same date. A raft of sanctions will also apply for non-compliance.

Text:

The additional measures have been put in place to further reduce the risk of new coronavirus variants arriving in the UK.

The Department of Health and Social Care published quarantine hotel guidance on 11 February 2021 outlining the new requirements for arrivals from travel ban countries. Separate guidance was updated for all other arrivals to England from outside the Common Travel Area. A booking portal that was due to launch at the same time was delayed, leaving little time for people with arrivals scheduled for 15 February and the following days to make their arrangements.

Managed isolation in hotels

Unless exempt as defined in the quarantine hotel guidance, individuals arriving in England who have been in or transited a red list country within ten days of their arrival must go into quarantine in a government-managed hotel for ten days from their arrival. The date of arrival is calculated as day zero.

Affected individuals must:

• Book a transport service that will arrive into Heathrow Airport, Gatwick Airport, London City Airport, Birmingham Airport or Farnborough Airport (other ports of arrival may be added in future) – people with existing bookings arriving on or after 15 February must re-book to arrive at an authorised port

• Take a COVID-19 test within the three days before the service they will travel to England on on departs, and receive a negative test result

• Book a quarantine package (which includes transport to and from the hotel, hotel stay including meals and day 2 and 8 COVID-19 testing) via the booking portal on GOV.UK

• Complete a passenger locator form within 48 hours of arrival in the UK, including the managed quarantine hotel details and quarantine package booking reference

The cost of the quarantine package is as follows:

One adult in one room for 10 days (11 nights)	£1,750
Additional adult or child over 12	£650
Additional child aged between 5 and 12	£325

These costs will be reviewed periodically, with the first review due before the end of March 2021. Individuals who receive income-related benefits may request to pay for the quarantine package via a deferred repayment plan of 12 monthly instalments.

It is not clear from the guidance what additional costs will be incurred if a person tests positive for COVID-19 while in quarantine (or is a close contact of a person who tests positive) and must remain at the hotel for an extended period. This is of concern as it is not currently possible to assess from publicly available information what the overall cost of quarantine may be.

Upon arrival, the passenger locator form must be presented to Border Force with each individual’s passport and negative COVID-19 test result. Arranged transport will then take groups of passengers to the quarantine hotel. The package includes transport back to the airport of arrival at the end of the quarantine period.

Post-arrival COVID-19 testing

For all arrivals aged five and over who must quarantine in a government-managed hotel, COVID-19 tests must be taken on or before day 2 and on or after day 8.

From 15 February 2021, all other arrivals to England from outside the Common Travel Area must take COVID-19 tests on or before day 2 and on or after day 8. In addition to the already established pre-departure negative COVID-19 test requirement, they must book a travel test package at a cost of £210. The booking portal was due to launch on 11 February 2021 but was delayed due to a technical error. The travel test package booking reference number when they complete their passenger locator form.

An additional free NHS test should be requested if a person in hotel or home quarantine develops a high temperature, new continuous cough or loss/altered sense of smell or taste.

Sanctions for non-compliance

Sanctions for non-compliance include:

Providing false or deliberately misleading information on a passenger locator form	Fine of up to £10,000 and/or jail for up to ten years
Failing to arrange a quarantine package before arrival	Penalty of up to £4,000 plus cost of quarantine package
Arriving at a port other than a designated port	Penalty of up to £10,000 plus cost of transportation to nearest designated port
Breaking quarantine rules	Penalty of up to £10,000
Refusal to take COVID-19 test	Penalty of up to £2,000

If you have any queries about the current or planned requirements and how to manage them, please get in touch with a member of our Immigration Team.

 

Related Item(s): Immigration & Global Mobility, Covid 19 – Coronavirus

Author(s)/Speaker(s): Andrew Osborne, Kathryn Denyer,

From 15 February 2021, international arrivals to England will be required to quarantine in a government-managed hotel if, within the ten days before arrival, they have been in or transited a country to which a travel ban applies (‘red list countries’). Additional post-arrival COVID-19 testing has been mandated from the same date. A raft of sanctions will also apply for non-compliance.

Text:

The additional measures have been put in place to further reduce the risk of new coronavirus variants arriving in the UK.

The Department of Health and Social Care published quarantine hotel guidance on 11 February 2021 outlining the new requirements for arrivals from travel ban countries. Separate guidance was updated for all other arrivals to England from outside the Common Travel Area. A booking portal that was due to launch at the same time was delayed, leaving little time for people with arrivals scheduled for 15 February and the following days to make their arrangements.

Managed isolation in hotels

Unless exempt as defined in the quarantine hotel guidance, individuals arriving in England who have been in or transited a red list country within ten days of their arrival must go into quarantine in a government-managed hotel for ten days from their arrival. The date of arrival is calculated as day zero.

Affected individuals must:

• Book a transport service that will arrive into Heathrow Airport, Gatwick Airport, London City Airport, Birmingham Airport or Farnborough Airport (other ports of arrival may be added in future) – people with existing bookings arriving on or after 15 February must re-book to arrive at an authorised port

• Take a COVID-19 test within the three days before the service they will travel to England on on departs, and receive a negative test result

• Book a quarantine package (which includes transport to and from the hotel, hotel stay including meals and day 2 and 8 COVID-19 testing) via the booking portal on GOV.UK

• Complete a passenger locator form within 48 hours of arrival in the UK, including the managed quarantine hotel details and quarantine package booking reference

The cost of the quarantine package is as follows:

One adult in one room for 10 days (11 nights)	£1,750
Additional adult or child over 12	£650
Additional child aged between 5 and 12	£325

These costs will be reviewed periodically, with the first review due before the end of March 2021. Individuals who receive income-related benefits may request to pay for the quarantine package via a deferred repayment plan of 12 monthly instalments.

It is not clear from the guidance what additional costs will be incurred if a person tests positive for COVID-19 while in quarantine (or is a close contact of a person who tests positive) and must remain at the hotel for an extended period. This is of concern as it is not currently possible to assess from publicly available information what the overall cost of quarantine may be.

Upon arrival, the passenger locator form must be presented to Border Force with each individual’s passport and negative COVID-19 test result. Arranged transport will then take groups of passengers to the quarantine hotel. The package includes transport back to the airport of arrival at the end of the quarantine period.

Post-arrival COVID-19 testing

For all arrivals aged five and over who must quarantine in a government-managed hotel, COVID-19 tests must be taken on or before day 2 and on or after day 8.

From 15 February 2021, all other arrivals to England from outside the Common Travel Area must take COVID-19 tests on or before day 2 and on or after day 8. In addition to the already established pre-departure negative COVID-19 test requirement, they must book a travel test package at a cost of £210. The booking portal was due to launch on 11 February 2021 but was delayed due to a technical error. The travel test package booking reference number when they complete their passenger locator form.

An additional free NHS test should be requested if a person in hotel or home quarantine develops a high temperature, new continuous cough or loss/altered sense of smell or taste.

Sanctions for non-compliance

Sanctions for non-compliance include:

Providing false or deliberately misleading information on a passenger locator form	Fine of up to £10,000 and/or jail for up to ten years
Failing to arrange a quarantine package before arrival	Penalty of up to £4,000 plus cost of quarantine package
Arriving at a port other than a designated port	Penalty of up to £10,000 plus cost of transportation to nearest designated port
Breaking quarantine rules	Penalty of up to £10,000
Refusal to take COVID-19 test	Penalty of up to £2,000

If you have any queries about the current or planned requirements and how to manage them, please get in touch with a member of our Immigration Team.

Related Item(s): Immigration & Global Mobility, Covid 19 – Coronavirus

Author(s)/Speaker(s): Andrew Osborne, Kathryn Denyer,

How does the Irish government’s Immigrant Investor Programme work, what benefits does it have and how can high-net-worth individuals use it as a means of obtaining residency rights in Ireland?

Text:

The Immigrant Investor Programme (IIP) was launched in 2012 after the last recession, to encourage foreign investment into Ireland for the creation of business and to stimulate employment. It has been a relative success, with over 1,100 investors availing themselves of the scheme. Interest in the IIP is likely to increase post-Brexit, as professionals and international investors seek to maintain or establish a base in Europe.

The figures reflect the IIP’s success. Since its inception, figures from the Department of Justice (DOJ) show that it has attracted around €826.5 million’s worth of investment from non-European Economic Area (EEA) nationals. Each of those individuals has invested in Irish businesses or charities in return for the right to reside in the Republic of Ireland.

In its inaugural year, a total of €1.5 million was paid by investors. This steadily increased year on year up until 2017, when a high of €253.7 million was contributed by investors through the IIP. While there has been a small decline since then, the IIP led to €184.6 million being invested in the Irish economy in 2020, despite the Covid-19 pandemic.

What is the benefit to investors?

The IIP offers non-EEA nationals a route to residency in the Republic of Ireland by offering four investment options to investors who satisfy certain criteria – namely, that they are of good character and have a minimum net worth of €2 million. Residency may also be granted to the investor’s spouse, partner and/or children if certain criteria are met. In general, children under the age of 18 will be granted residency if the applicant or their spouse or partner has legal guardianship. In some cases, children between the age of 18 and 24 will be considered for residence where they are financially dependent on the applicant and unmarried.

One advantage of the IIP is that the period of investment does not determine the length of time the investor can maintain residence in Ireland. In contrast, in the UK, investors in a similar programme are required to maintain investment for as long as they reside in the country and must also satisfy minimum thresholds of investment in order to renew their residency permissions.

Under the IIP, once an investor has complied with its terms, they can potentially successively renew their residency permission for five-year periods at a time – effectively maintaining their Irish residency indefinitely. Moreover, investors are only required to maintain their investment for a minimum of three years over the course of their residency. After this period, the investment in Ireland is deemed completed for immigration purposes and investors do not have to make further investment in order to renew their residency. This is especially attractive to individuals seeking to maintain a foothold in Europe as a result of Brexit, where there may have previously been an intention to channel investment into the UK.

Who is eligible?

To qualify for the IIP, applicants must be high-net-worth individuals with a personal wealth of at least €2 million. An applicant must be independently wealthy and cannot rely on funds that are solely owned by another individual. No account can be taken of the applicant’s spouse’s assets save in cases where the assets are held jointly, in which case the spouse’s consent is required.

Additionally, the applicant must have the requisite amount available for investment (see below). This must be from the applicant’s own resources and cannot be financed through a loan or other such facility. The investor’s bank must provide confirmation that the investor has disposing power and that the money can be transferred without restriction to a bank in Ireland.

There is a good-character requirement for each investor and any nominated family member who is over 16 years of age. This can be satisfied by providing police clearance certificates for each jurisdiction in which the applicant lived during the requisite period. The applicant must also provide a due diligence report on the source of their wealth from a recognised risk agent.

What are the investment options?

There are four investment options for non-EEA nationals who wish to acquire residence in Ireland through the IIP:

• Enterprise Investment: a minimum investment of €1m in either a single Irish enterprise or spread over several enterprises, which must be left in place for at least three years. The enterprise may be a start-up established by the investor or an existing business registered in Ireland. It must be registered and headquartered in Ireland and the investment must support the creation or maintenance of employment.

• Investment Fund: a minimum investment of €1m in an approved investment fund, which must be left in place for at least three years. The funds and fund managers must be regulated by the Central Bank of Ireland to conduct business in Ireland. A list of approved investment funds can be obtained from the Immigration Service Delivery (ISD).

• Real Estate Investment Trust (REIT): a minimum investment of €2 million in any single Irish REIT or a multiple of Irish REITs listed on the Irish Stock Exchange, which must be left in place for at least three years. After three years, the investor may divest no more than 50% of the shares purchased for the IIP. Where an investor has divested shares during year three, they may, after four years from the date of purchase, divest no more than a further 25% of the shares purchased for the IIP. There is no requirement for investors to retain shares after five years from the date of purchase.

• Endowment: a minimum €500,000 philanthropic donation (or €400,000 if the applicant is one of five investors or more) to a project which is of public benefit to the arts, sports, health, culture or education in Ireland.

Where does this investment go?

The DOJ sets the IIP’s priorities to focus on investment in projects aimed at social housing, nursing homes, primary healthcare facilities and combatting climate change. The Irish Times reported last month that funding through the IIP had to date raised €245 million for social housing, €165 million for building nursing homes and €108 million for hospitality and tourism (with the remainder being accounted for through investments in various other projects and industries). The DOJ has subsequently confirmed these figures to us.

This level of investment is clearly welcome. A lack of social housing has been a feature of the accommodation crisis with which successive Irish governments have been wrestling since the last recession. Importantly, investment through the IIP offers cheaper finance than traditional funding options. Many projects would not have commenced or succeeded without the availability of capital entering the country through the IIP, as Irish lending practices can often be restrictive.

In future, investment through the IIP could also assist in aiding Ireland’s economic recovery from the Covid-19 crisis, particularly in the hospitality and tourism sector.

What is the application process?

Once an investor has chosen their investment option, they should make an application to the ISD by completing the prescribed application form. Certain documents are required to be submitted with the form. Generally, applicants must provide copies of their passport, birth certificate, marriage certificate and evidence of net worth. All documents must be certified, notarised and/or apostilled.

Depending on the type of investment option, further documentation may be required. For example, if an investor is applying on the basis of making an Enterprise Investment in an existing Irish business, a relocating business or a new business, they must submit a comprehensive business plan completed in the template provided by the ISD. The template is designed to:

• Identify the financial investment being made in support of the application for residency under the IIP.

• Indicate how the investment will benefit Ireland, is in the public interest and will help create or maintain employment.

• Identify the extent of the equity in the business that the investor is acquiring and how they will receive a return on the investment. (As with any investment, the investor may or may not see a return).

Applications are vetted before being passed on to the Evaluation Committee, which is composed of senior civil and public servants from relevant Irish government departments and agencies. On average, the Evaluation Committee will process applications within six to eight months, but it can take longer.

Once the Evaluation Committee is satisfied that the application meets the required criteria, it goes to Minister for Justice for provisional approval. If the Minister signs it off, a letter of provisional approval is issued. There is no requirement to make the investment before this, but once provisional approval has been granted, the investor must do so within 90 days. On completion of the investment, a final letter will be issued allowing the investor to register their residency permission with the ISD.

Following stakeholder feedback, application windows will no longer apply and applications for the IIP can be submitted at any time. This is a welcome new measure and will hopefully encourage further interest in the programme.

What permission is granted to successful applicants?

Successful applicants and their nominated family members will be granted continuous residence in Ireland under “Stamp 4” conditions, which permit foreign nationals to work, study or start their own business without an employment permit. (Investors can, of course, choose to do nothing and simply enjoy our great country!).

Residence is initially granted for two years, which can be renewed for up to five years and beyond. Renewal is, however, based on the investment being in place for the required three-year period and certain other conditions being met. Essentially, the investor cannot become a financial burden on the Irish state, otherwise it is very unlikely their permission will be renewed. Investment progress reports should therefore be prepared on renewal dates, although successful investment performance is not a condition for continued residence.

Under the IIP, applicants are not required to continuously reside in Ireland in order to maintain or renew their immigration permission, which makes it an attractive option for applicants who reside in multiple jurisdictions. The only requirement is that applicants must prove at renewal stage that they visited Ireland at least once per calendar year of their residency.

The position is different if applicants want to rely on their IIP permission as a means of obtaining citizenship by naturalisation in Ireland, in which case they must also satisfy the relevant conditions for a citizenship application. They must, for instance, be legally resident in Ireland for at least five years out of the last nine years including one year of continuous physical residence immediately before the date of application. Successful IIP applicants therefore have the opportunity to show they meet the requirements for Irish citizenship.

While successful applicants will receive a multi-entry visa under the IIP, which allows them to travel in and out of Ireland as they please, this does not permit them to work or live elsewhere in Europe or the UK. Individuals would be subject to the immigration requirements in the relevant jurisdiction if they wish to enter, reside or work there. The IIP does nonetheless afford them a base location within the EEA.

Conclusion

The IIP has evident advantages for investors seeking to establish or maintain a foothold in Europe:

• Following the UK’s withdrawal from the European Union, Ireland is uniquely placed in being the only predominantly English-speaking country remaining in the EEA.

• The investment amount is competitive in comparison to other cash-for-residency arrangements in other similar European jurisdictions that have a higher investment value threshold. Interest groups in Ireland have previously lobbied for the investment amount to be lowered, to compete with other jurisdictions and thereby attract more inward investment. The Irish government may come under renewed pressure to lower the threshold in order to aid Ireland’s post-Covid-19 economic recovery.

• The residency requirements under the IIP may not be as restrictive as in other such schemes, as applicants are not required to reside in Ireland continuously in order to maintain their permission to live and work here. Also, there is no requirement for the investor to commit further investment beyond the three-year period in order to maintain residency.

• Residency can be continuously renewed for successive five-year periods, so long as the investor complies with the terms of their chosen investment fund and meets the appropriate conditions.

If you have any enquiries regarding the IIP or require guidance with an application, please contact Declan Groarke or Audrey Whyte.

 

Related Item(s): Business immigration in Ireland

Author(s)/Speaker(s): Declan Groarke,

Since the beginning of 2021, the Government has implemented a raft of additional travel and entry measures to minimise the spread of new coronavirus variants in the UK.

Text:

These include pre-departure COVID-19 testing, travel bans, suspending travel corridor arrangements and requiring visits to the UK to be for an essential purpose. Plans have also been announced to review the list of occupation-based self-isolation exemptions and to start using managed isolation hotels for those arriving from countries on the travel ban list.  

The recent developments for travel to England are outlined below, however the key point to note is that conditions for travel, entry and post-entry are rapidly changing and likely to become more restrictive in the short-term. Our recommendation is therefore for travellers to make preparations to meet the requirements in good time, including checking for updates to the position throughout the two weeks leading up to departure and seeking immigration advice where needed.

The requirements for entry to Scotland, Wales and Northern Ireland are broadly similar, however there are some differences, including to when specific changes become effective. Travellers to these destinations should ensure they check the current information published by the Government of the relevant nation.

Pre-departure COVID-19 testing

Since 4 am on 18 January 2021, all international passenger arrivals to England by air, sea or rail must have proof of an acceptable negative coronavirus test taken within 72 hours of the departure of their transportation to the UK. If the length of a person’s journey means they are unable to take a test within three days of their departure for England (e.g. if they will be transiting airside), they should take a test as close as possible to when they start their journey.

There is no specific list of authorised test providers, however the test providers and test types must meet the Government’s published minimum performance standards for specificity, sensitivity and viral loads. Some visa services providers such as VFS Global are coordinating COVID-19 testing services in various countries around the world, however the requirements for entry to England should be checked with the individual provider.

If a passenger has transit stops on their journey to England is acceptable for them to take a test part-way through their journey, however they should check whether this is logistically possible before they set out. This is because some countries have entry restrictions or other requirements that may make testing impossible. If a person is denied entry to the country where they planned to take their test, they will be allowed to continue their journey but risk being fined at least £500 on arrival due to not having a valid test result.

Travel bans 

Flights and vessels have been banned from arriving directly in the UK from a ‘red list’ of countries to which a travel ban applies. The list has been expanded since mid-January 2021 in response to the appearance and movement of new virus strains identified in Brazil and South Africa.

Individuals who have been in or transited through a red list country in the 10 days before they arrive in the UK will be refused entry, unless they are a British or Irish national, or a person with residence rights in the UK, as defined on GOV.UK. There is also currently a specific exemption for hauliers travelling from Portugal.

Those who are permitted to enter the UK after being in a relevant country within the last ten days will need to use an indirect route to arrive, or be brought to the UK on a repatriation service. On arrival to England, currently they must self-isolate for a full ten days, along with their household, and are not eligible to use the Test to Release scheme to reduce their self-isolation period.

Managed isolation in hotels

The Government announced on 27 January that the current self-isolation arrangements for those arriving from travel ban countries will be replaced by managed isolation in hotels. Further details are not yet available, including whether or not entire hotels will be government-managed for this purpose, and what the cost to travellers will be.

Travel corridors and self-isolation exemptions

Since 18 January 2021, all travel corridors to the UK have been suspended until further notice. The effect of this change is that only arrivals from the Common Travel Area are exempt from the requirement to self-isolate, along with those who are exempt because of their occupation.

The list of occupation-based exemptions does not apply to individuals who have been in or transited through ‘red list’ countries in the 10 days before their arrival in England. The exemptions have been narrowed three times already since the beginning of 2021, and a full review is currently underway with a view to reducing them further.

Visitors

Because of the national lockdown implemented from 4 January 2021, visitors arriving in the UK may be refused entry if their reason for seeking admission is not considered to be for an essential purpose. There is currently no definition of this, and reasons for travel will be considered by Border Force on a case-by-case basis.

If you have any queries about the current or planned requirements and how to manage them, please get in touch with a member of our Immigration Team.

 

Related Item(s): Immigration & Global Mobility

Author(s)/Speaker(s): Andrew Osborne, Kathryn Denyer,

Since the beginning of 2021, the Government has implemented a raft of additional travel and entry measures to minimise the spread of new coronavirus variants in the UK.

Text:

These include pre-departure COVID-19 testing, travel bans, suspending travel corridor arrangements and requiring visits to the UK to be for an essential purpose. Plans have also been announced to review the list of occupation-based self-isolation exemptions and to start using managed isolation hotels for those arriving from countries on the travel ban list.  

The recent developments for travel to England are outlined below, however the key point to note is that conditions for travel, entry and post-entry are rapidly changing and likely to become more restrictive in the short-term. Our recommendation is therefore for travellers to make preparations to meet the requirements in good time, including checking for updates to the position throughout the two weeks leading up to departure and seeking immigration advice where needed.

The requirements for entry to Scotland, Wales and Northern Ireland are broadly similar, however there are some differences, including to when specific changes become effective. Travellers to these destinations should ensure they check the current information published by the Government of the relevant nation.

Pre-departure COVID-19 testing

Since 4 am on 18 January 2021, all international passenger arrivals to England by air, sea or rail must have proof of an acceptable negative coronavirus test taken within 72 hours of the departure of their transportation to the UK. If the length of a person’s journey means they are unable to take a test within three days of their departure for England (e.g. if they will be transiting airside), they should take a test as close as possible to when they start their journey.

There is no specific list of authorised test providers, however the test providers and test types must meet the Government’s published minimum performance standards for specificity, sensitivity and viral loads. Some visa services providers such as VFS Global are coordinating COVID-19 testing services in various countries around the world, however the requirements for entry to England should be checked with the individual provider.

If a passenger has transit stops on their journey to England is acceptable for them to take a test part-way through their journey, however they should check whether this is logistically possible before they set out. This is because some countries have entry restrictions or other requirements that may make testing impossible. If a person is denied entry to the country where they planned to take their test, they will be allowed to continue their journey but risk being fined at least £500 on arrival due to not having a valid test result.

Travel bans 

Flights and vessels have been banned from arriving directly in the UK from a ‘red list’ of countries to which a travel ban applies. The list has been expanded since mid-January 2021 in response to the appearance and movement of new virus strains identified in Brazil and South Africa.

Individuals who have been in or transited through a red list country in the 10 days before they arrive in the UK will be refused entry, unless they are a British or Irish national, or a person with residence rights in the UK, as defined on GOV.UK. There is also currently a specific exemption for hauliers travelling from Portugal.

Those who are permitted to enter the UK after being in a relevant country within the last ten days will need to use an indirect route to arrive, or be brought to the UK on a repatriation service. On arrival to England, currently they must self-isolate for a full ten days, along with their household, and are not eligible to use the Test to Release scheme to reduce their self-isolation period.

Managed isolation in hotels

The Government announced on 27 January that the current self-isolation arrangements for those arriving from travel ban countries will be replaced by managed isolation in hotels. Further details are not yet available, including whether or not entire hotels will be government-managed for this purpose, and what the cost to travellers will be.

Travel corridors and self-isolation exemptions

Since 18 January 2021, all travel corridors to the UK have been suspended until further notice. The effect of this change is that only arrivals from the Common Travel Area are exempt from the requirement to self-isolate, along with those who are exempt because of their occupation.

The list of occupation-based exemptions does not apply to individuals who have been in or transited through ‘red list’ countries in the 10 days before their arrival in England. The exemptions have been narrowed three times already since the beginning of 2021, and a full review is currently underway with a view to reducing them further.

Visitors

Because of the national lockdown implemented from 4 January 2021, visitors arriving in the UK may be refused entry if their reason for seeking admission is not considered to be for an essential purpose. There is currently no definition of this, and reasons for travel will be considered by Border Force on a case-by-case basis.

If you have any queries about the current or planned requirements and how to manage them, please get in touch with a member of our Immigration Team.

Related Item(s): Immigration & Global Mobility

Author(s)/Speaker(s): Andrew Osborne, Kathryn Denyer,

Although still a largely agrarian economy, Indonesia is rapidly industrialising and diversifying into other spheres. The continuous and steady growth of the country makes Indonesia an attractive place for business in the coming years. It is important that organizations currently doing business in the country or considering doing so are aware of the often strict employment laws in Indonesia.

Text:

This in-brief provides a snapshot of some of the key aspects of employment law in Indonesia.

Our Hong Kong office was opened to meet a growing demand from many of our clients for coordinated employment and immigration/global mobility support across the Asia Pacific region (including Indonesia).

This publication provides general guidance only: expert advice should be sought in relation to particular circumstances. Our Hong Kong office can source Indonesian advice through its links with local firms in Indonesia.

Type: Inbrief

Author(s)/Speaker(s): Kathryn Weaver, Catherine Leung,

Attachment: Lewis Silkin Inbrief – Employment law in Indonesia – an overview