Category Archives: hong-kong

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Lewis Silkin – New Immigration Act becomes law

The Act provides the legislative basis for ending EU free movement arrangements in the UK after the end of the transition period, and for recognising the immigration status of Irish citizens in the UK.

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The Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 received Royal Assent on 11 November 2020.

What does the Act do?

The Bill contains provisions to:

  • Revoke the free movement arrangements EEA nationals and their family members currently enjoy, which enables the Government to bring them within the scope of the immigration system it plans to implement from 1 January 2021
  • Clarify and protect the status of Irish citizens in the UK, enabling them to continue to enter and remain the UK without restriction (including that they will not be required to apply for leave) once free movement arrangements end, unless they are subject to a deportation order, exclusion order or international travel ban
  • Make changes to social security coordination arrangements between the UK and EU after the end of the transition period for those who are not covered by the Withdrawal Agreement, eg tobring eligibility for income-related benefits for EEA/Swiss citizens in line with those for non-EEA nationals and to stop the export of Child Benefit from the UK
  • Require the Home Office to review, or arrange for a review of, the ways in which protection claimants who are in a member State are able to enter the United Kingdom lawfully (this is the only Lords amendment that has been incorporated into the Act)

When will the immigration changes take effect?

Separate commencement orders will need to be laid confirming this, however the immigration changes are expected to take effect from the end of the transition period, ie 11 pm on 31 December 2020. This will be necessary to enable the domestic Immigration Rules to be applied to EEA nationals and their family members with effect from that point.

The Government has made substantial changes to the current system via Statement of Changes in Immigration Rules HC 813, which was laid last month. We have commented on the Rule changes most likely to be of importance to employers here, including the introduction of the new Skilled Worker and Intra Company routes.

Separate regulations have been made to enable people who are eligible to apply under the EU Settlement Scheme (EUSS) to be able to maintain their lawful status in the UK, and to travel to and from the UK during the period from 1 January 2021 to 30 June 2021, which is the main deadline for applying under EUSS.

If you would like further information on this development, please contact a member of the immigration team.

 

Related Item(s): Immigration & Global Mobility, BREXIT, Immigration

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

Categories hong-kong

Lewis Silkin – Coronavirus FAQs for employers on working from home

As lockdown returns, these FAQs look at the various considerations that employers need to bear in mind in relation to employees working from home.

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As of 5 November 2020, England is back into lockdown. While not quite as severe a lockdown as in March – many will be relieved that schools and other educational institutions and childcare facilities can remain open – it’s clear that working from home will continue to be the new normal for most office-based staff. 

Employers will need immediately to review their homeworking practices in light of both the new lockdown and continually changing government advice. In the longer term, this will also mean reviewing homeworking policies and arrangements on a more formal basis. These FAQs summarise the government guidance on work under the new restrictions and a range of other considerations that employers need to take into account in relation to homeworking.

Should every office-based employee in England work from home?

The new lockdown measures require employees to stay at home except where they cannot work from home, i.e. it is not reasonably possible for them to do so. If the exception applies, they can go to work.

For many, travelling to an office to carry out a screen-based role is unlikely to be justified, although there will be some office-based employees for whom it is not reasonably possible to work from home. Employers will need to make a careful assessment. For more information, see our article on the new lockdown restrictions.

Health and safety

Do employers have health and safety duties to homeworkers?

Yes. Employers owe a duty to take steps that are reasonably necessary to ensure the health, safety and welfare of all their employees, and provide and maintain a safe system of work – including for employees working from home.

The UK’s workplace health and safety regulator, the Health and Safety Executive (HSE), has updated its homeworking guidance to take account of working arrangements during the  Covid-19 pandemic.

Acas has also published guidance on working from home which can be accessed here.

Do employers need to carry out a risk assessment for those working from home?

The short answer is yes.  However, the exact nature of the assessment will depend on the type of work which is being undertaken at home.

Under the Health and Safety Act 1974 and the Management of Health and Safety at Work Regulations 1999, employers have a general duty to conduct a risk assessment of all the work activities carried out by their employees. This involves identifying any hazards and assessing associated risks.  Employers must take measures to remove any hazards or, where this is not reasonably practicable, to minimise the associated risks. There are also specific obligations in relation to the use of display screen equipment (see below).

The duty of care which employers owe to employees also apply to those working from home. In these exceptionally challenging times, however, employers are unlikely to be required to approach things in the usual way – not least, because it isn’t currently possible for them to visit employees’ homes. Guidance issued by the HSE on regulating occupational health during the coronavirus outbreak says that it will continue to take a flexible and proportionate account of the risks and challenges arising from the pandemic.

At the very least, employers ought to undertake a basic homeworking risk assessment and consider whether there are any risks which arise from the type of work which is being undertaken from home, whether it can be done safely and whether any measures ought to be put in place to protect employees from any risks identified.  For employees whose work is largely on computers and the telephone the risks are likely to include feelings of isolation, a lack of supervision, physical issues arising from prolonged use of display screen equipment and working long hours and/or inadequate breaks from work.  Employers should go on to consider whether they can implement any measures to minimise the impact of these risks. For example:

  • Check that each employee feels the work they are being asked to do at home can be done safely.
  • Ensure adequate supervision of junior or less experienced staff members, including new joiners.
  • Keep in touch with lone workers, including those working from home, and ensure regular contact to make sure they are healthy and safe. There will always be greater risks for lone workers with no direct supervision, or anyone to help them if things go wrong. This is especially important for new joiners who may struggle to feel integrated.
  • Establish clear expectations on both sides in relation to communications, working hours, availability and so on.
  • Ensure employees have avenues to report mental wellbeing issues and schedule regular check-ins with homeworkers. In our survey, over a quarter (27%) of employers said that they had seen a significant increase in mental health problems for employees who have been able to work from home. We have produced a helpful guide to wellbeing while working from home and Acas has produced guidance on spotting and handling mental health in the context of homeworking and furlough.

Are there particular obligations where employees are using laptops and computers at home?

The Health and Safety (Display Screen Equipment) Regulations 1992 contain specific obligations in relation to display screen equipment (DSE). Employers must:

  • Identify risks for individuals who regularly use DSE, including laptops used for prolonged periods, as a significant part of their usual work. (HSE guidance suggests this means daily usage for continuous periods of an hour or more.)
  • Reduce the risks identified to the lowest extent reasonably practicable.
  • Provide adequate training and information to employees.

HSE guidance on protecting homeworkers states that there is no increased risk from DSE for those working from home temporarily, so employers are not expected to undertake a full home workstation assessment. Nonetheless, it would be advisable to provide guidance and information on health and safety risks arising from homeworking and to ask employees to assess risk in general terms (including in relation to DSE related problems). The HSE provides a useful checklist which can be given to the employee. Employers should keep the situation under review, since the adverse effects of homeworking with a sub-optimal set up will increase the longer the period of homeworking continues.

For employees working from home on a long-term basis, the risks of using DSE must be controlled by them doing a workplace assessment at home. It remains to be seen whether, as homeworking continues on a widespread basis, the HSE’s position will move towards requiring full workstation assessments for all employees working from home for Covid-related reasons. Given that many employees will have been working at home for over 6 months, it is prudent to provide guidance and support to employees so that they can undertake a workstation assessment. Certainly, those employers moving to a model of permanent remote working for the long-term, regardless of the pandemic, will need to carry out a suitable risk assessment.

What health and safety duties do companies (or “end-users”) have towards temporary or agency workers carrying out work for them at home?

The situation has become more complex in relation to temporary or agency workers during the pandemic, where they are working under the control of the end-user but not at the end-user’s premises. In short, agency workers should be provided with the same level of health and safety protection as employees.

Broadly speaking, the end-user has responsibility for ensuring the health and safety of the agency worker while the individual is working under their control, while the intermediary (e.g. the agency) has the duty to ensure that the end-user has taken steps to ensure the health and safety of the workers. 

Where there are multiple intermediaries (e.g. agencies or umbrella companies) involved in an engagement, or the possibility of multiple workplaces, the parties should agree who will take responsibility for which actions. End-users are encouraged to engage in active communication with all parties to ensure no-one’s health and safety is compromised.

Provision of equipment and expenses

Do employers need to provide homeworkers with equipment to use at home?

There is no general legal obligation on employers to provide the equipment necessary for homeworking.

In guidance issued during the first lockdown, the government encouraged employers to take every step possible to facilitate their employees working from home, including providing suitable IT and equipment to enable remote working. Some employers have developed systems to allow employees to take equipment from the office to satisfy this shorter-term need. Some employers are providing a (generally fixed sum) budget to employees to buy necessary work equipment for working at home, so long as receipts are provided.

Employers should provide equipment or flexibility for employees who are identified as being at risk. In circumstances where equipment is specifically needed to address health and safety concerns, employers are liable to fund the cost of that equipment (and possibly have a role in selecting it).

Disabled employees may be entitled to auxiliary aids as a reasonable adjustment under the Equality Act 2020. If such an aid is reasonably needed, the employer needs to make sure it is provided – at its expense – to the individual when working from home.

Employers and employees should review their respective insurance policies to ensure work equipment used at home is covered.

There is no income tax or NICs charge where an employer provides office equipment for employees working from home under a formal homeworking arrangement if certain conditions are satisfied, including that the property remains the employers and that there is no significant private use of the equipment.  A new temporary Covid-19 exemption has been introduced where an employer reimburses the employee for the cost of office equipment purchased by the employee in the period 16 March 2020 to 5 April 2021 provided certain conditions are satisfied, including that there is no significant private use.

HMRC has updated its tax rules for employers who cover the expense of providing or reimbursing the cost of homeworking equipment. Detailed guidance can be found here.

Who is responsible for paying any additional homeworking expenses?

Employees will be using their own heating, lighting, broadband and sometime phone lines while working from home but it will be challenging to quantify the amount used for work purposes. Employers are not legally required to reimburse employees for such costs, but they may find themselves under pressure to allow for employees to reclaim some of these expenses. Employers that decide to meet (a proportion of) these costs should review expenses policies to cover this.

If an employer decides to reimburse employees for the additional costs which the employee incurs while working at home under a formal working arrangement, the employer may pay up to £6 per week (£4 per week prior to 6 April 2020) free of income tax and NICs without the need to see receipts or records of expenditure.  If the employer decides to pay more than the £6 per week it will need to either: (i) show that it is reimbursing the actual costs incurred by the employee; or (ii) ensure that the excess above £6 per week is subject to income tax and NICs. The exemption is only available for additional costs and, for example, would not include internet/broadband charges which the employee was paying for prior to working from home under a formal arrangement.

Is there any tax relief available to employees in relation to office equipment and additional expenses?

Some assistance from HMRC is available in respect of both equipment and expenses. HMRC guidance states that payment or reimbursement to employees of up to £6 a week is non-taxable for expenses like electricity, heating or broadband incurred by an employer when an employee is working from home. Further guidance can be found here.

Employees can also claim tax relief if they are paying for these expenses, although they should not claim where their employer is covering the relevant expenses – see here.

Data protection and confidentiality

How should we manage the increased risk to data protection and confidentiality created by homeworking?

Information security and confidentiality are more difficult to manage where employees are hosting calls and meetings at home with others in earshot, or without the usual office systems in place for securing devices and documents. However, the normal duties to protect employer and client confidential information apply even when employees are working from home.

Employers should set out employees’ responsibilities in their homeworking policy (see below) and ensure that employees have adequate means of protecting information. For example, employers should be satisfied of the security of devices and software employees are using (e.g. the security levels of video-calling software and services). Care should be taken in choosing a secure platform that complies with your security requirements.

The Information Commissioner’s Office has produced guidance on the data protection aspects of working from home.

work from home – can we monitor them?

One of the issues which was traditionally raised by employers about homeworking was how best to monitor productivity or quality of output and enable effective supervision. Some employers, out of concern that employees are not managing to “switch off”, might also wish to know what hours employees are working.

Even when employees are working from home, employers still need to comply with duties to ensure rest breaks and other working time obligations. Some employers have adopted technology such as “lone worker apps” through which employees check-in on the app at the beginning of the day and check out at the end of each day.

Employers can monitor employees’ work activities, but the level of monitoring needs to be proportionate and reasonable – discussed further below.

What does an employer need to take into account when considering monitoring?

There is no statutory right to privacy in the UK but this does not mean that an employer has unrestricted monitoring rights. Inappropriate and disproportionate monitoring could lead to claims involving the employees’ right to respect for private life under Article 8 of the European Convention on Human Rights (incorporated into UK law by the Human Rights Act 1998). Employees also have data protection rights and can potentially claim that excessive monitoring amounts to a breach of the duty of mutual trust and confidence implied into all employment contracts – this may give qualifying employees a claim for unfair constructive dismissal.

In relation to data protection, the Information Commissioner’s Office’s employment practices code contains good practice guidance for employers in this area. In summary, employers should:

  • Complete a privacy impact assessment setting out the purposes of the monitoring, the adverse impact on data subjects, the mitigation and its justification.
  • Inform employees of the monitoring that is being undertaken, and the reasons why it has been adopted.
  • Limit the number of people who have access to the software and ensure that they are properly trained in confidentiality and data security.
  • Not use covert monitoring except in the most extreme circumstances (e.g. where criminal activity or similar is suspected).

Employers will need to weigh the perceived benefits to the business of monitoring, with the potential impact on morale, employee relations and mental health, which may ultimately lead to a deterioration in productivity. For a more in-depth discussion of these issues, please see our article.

Amending employment documentation

Should we amend existing employee’s contracts to reflect homeworking status?

Until the pandemic, homeworking was generally considered to be a non-standard, flexible working arrangement, where the “default” work location was the employer’s premises. Of course, employees have been working from home during the pandemic out of necessity rather than by choice, and the formalised flexible working request regime has to some extent fallen by the wayside (at least temporarily).

Employers may, however, wish to think about whether home working (or other flexible) arrangements need to be formalised in certain cases. Full or partial homeworking may have become a preference for many employees and many employers are considering reducing the office footprint in the longer-term. Even in July our employer survey showed that employers were already having to manage requests for permanent change. To claim the tax and NICs exemptions and reliefs there needs to be a formal home working arrangement in place between the employer and employee under which the employee must work at home regularly, so it is good to record this in writing.

Where contracts are amended to reflect the employee’s home as the place of work, employers will need to retain some flexibility to deal with some of the practicalities. For example, requiring employees to attend the office (for training, appraisals or disciplinary issues) and dealing with how expenses for travel to and from the office should be met. If an employee moves house, this may mean higher travel expense claims or a practical barrier to attending work at the office so employers could consider placing limits on how far an employee can move from a particular location. Employers may also want to retain the flexibility to alter the arrangement temporarily and consider making agreement to homeworking conditional on certain conditions being met, such as satisfactory performance being maintained.

While the uncertainty continues, employers may decide to keep homeworking under review until a definitive return to the office is possible. If so, you should continue to make clear that homeworking is, for the moment, a response to an exceptional situation, and that once a more comprehensive return to the office is anticipated, employees may make flexible working requests if they wish to work from home on a more permanent basis. These can be considered on a case-by case-basis. For more on this topic, please see our article.

Some employers have received requests from employees asking if they can work from “home” for an extended period overseas. Employers need to consider a variety of issues (including tax, social security, immigration and employment implications) before agreeing to any such request where “home” is not the UK. You can find out more on these issues in our article here.

What is the position for new starters who begin employment as homeworkers?

While recruitment activity has slowed down in many businesses, it has not stopped completely. Employers may wish to consider whether new recruits should be employed on a “working from home” basis from the outset, rather than stating a work location in the contract which they will not attend for some time to come.

Location clauses included in contracts can be drafted to state that the work should be performed from home initially, with a move to the office once it is safe and appropriate to do so. Additional obligations could also be included in contracts for new starters regarding access to an internet connection and other communication methods. Employers may also need to provide equipment (e.g. laptop, mobile phone) to individuals who would not normally be provided with these in their job role.

Should we amend existing policies or handbooks?

Many employers are currently reviewing how existing sickness, data and IT, disciplinary and grievance and benefit policies are impacted by a shift to homeworking.

Regarding sickness and absence policies, the Health Protection (Coronavirus, Restrictions) (Self-Isolation) (England) Regulations 2020 came into force on 28 September 2020. These make it a criminal offence, where an employer is aware that a worker is required to self-isolate, to allow the employee to attend work. In view of the range of circumstances in which employees may be absent from work due to the pandemic, it would be prudent to amend policies to allow for these potential temporary homeworking and Covid-related absences.

Regarding data and IT, it would be sensible to address data and information security issues related to working remotely, together with any need to address monitoring or other new ways in which personal data is being processed due to use of remote-working software.

Regarding disciplinary and grievance policies, employees working from home may no longer be able to attend in-person meetings for disciplinary and grievance procedures and the normal timelines for dealing with issues may need to be altered accordingly. Policies should be updated to ensure a fair procedure for both office workers and homeworkers.

As mentioned above, many employers are either updating or implementing homeworking policies, which draw together many of the areas mentioned above into a single document.

Employee benefits

How could homeworking impact employee benefits?

Some benefits have been used by employees in ways that are specific to their office location and may need to be reconsidered.

Homeworkers are unlikely to be using their commuter season tickets, which may have been purchased via an employer loan, and in many cases employees will already have claimed refunds where possible depending on the provider. Loan arrangements should be discussed and reviewed with the employee directly.

Other benefits may be specific to an office location – for example, subsidised or on-site childcare, gym membership, food. There may be alternative ways of helping employees in the longer term while they work from home, such as supporting them to access their tax-free childcare entitlement, providing occasional food vouchers or reimbursing the cost of attendance at local fitness classes as opposed to a city-centre gym. The provision of such alternative benefits may result in an income tax and/or NICs liability so employer would need to bear this in mind and seek appropriate advice.

Diversity and inclusion

How do we ensure that homeworking doesn’t disadvantage certain groups?

Homeworking may have its advantages for many employees, but employers should be cautious about whether homeworking has the practical effect of disadvantaging certain groups.

This may, for example, occur because of a lack of access to internet in rural areas, shared accommodation, disability, caring responsibilities, financial issues or other individual circumstances. Diversity and inclusion policies extend to homeworking and employers should invite and encourage employees to make any disadvantages known in order that reasonable steps can be taken to remove or reduce them.

As mentioned above, disabled employees may be entitled to auxiliary aids as a reasonable adjustment under the Equality Act 2010. If such an aid is reasonably needed, the employer needs to make sure it is provided – at its expense – to the individual when working from home.

 

Related Item(s): Employment, Covid 19 – Coronavirus, Occupational Health & Safety

Author(s)/Speaker(s): Abi Frederick, Annabel Lindsay,

Categories hong-kong

Lewis Silkin – A briefing note on the immigration implications for Tier 2 workers of changes to salary, the Government’s Furlough Scheme and redundancy amid the COVID-19 pandemic

The COVID-19 pandemic has significant and wide-ranging economic as well as public health impacts. Businesses are feeling the side-effects of profoundly changed trading circumstances. This note will take you through the immigration implications of a number of actions you may be forced to take to protect your business due to the pandemic, taking into account Home Office guidance as this is updated.

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(Updated as of 2 November 2020) 

Key points from latest guidance

The Home Office last issued revised information on GOV.UK on 14 April 2020 however this guide has been updated to consider wage support schemes other than the furlough scheme. We have also added a new section covering the potential need to review your sponsor licence as a result of economic impacts caused by COVID-19.

Placing employees on unpaid leave

Before taking any decision to place Tier 2 employees on unpaid leave or to grant voluntary periods of unpaid leave, employers must consider their sponsor compliance duties. These stipulate that a Tier 2 sponsored worker cannot take four or more weeks of unpaid leave per calendar year, according to their normal working pattern. So, for a person working a five-day week, the number of days taken must be less than 20 and for a person working a four-day week, it must be less than 16 days. This is cumulative and not only in one single block.

The Home Office’s standard guidance indicates that the person’s immigration permission may be cut short if this occurs, and that a sponsor may also face compliance action. However, the Home Office Coronavirus (COVID-19) immigration guidance for Tier 2, 4 and 5 sponsors initially published on 27 March 2020 states that sponsors are not required to withdraw sponsorship and will not face enforcement action if an unpaid absence from work of any length is authorised and due to coronavirus. The absences do not need to be reported on the SMS. The guidance refers to absences including illness, isolation or inability to travel due to travel restrictions. Following the closure of schools and other childcare providers, our view is that an absence due to the need to care for children during the closures would also be covered as being due to the outbreak. When using this concession, sponsors should take care to make an assessment of whether each particular absence is ‘due to coronavirus’ and note this on the employee’s HR file for audit purposes.

Cutting salaries and/or reducing hours

If you are having to consider cutting salaries or reducing working hours, this may have implications for Tier 2 workers.

A drop in salary, whether made directly or as the result of a reduction in hours, has to be reported on the sponsor management system (SMS) within 10 working days. If a drop in salary takes a Tier 2 employee below one of the salary thresholds for Tier 2, such as the £30,000 general minimum for experienced workers under the Tier 2 General visa route, or the minimum appropriate rate for the specific occupation under the relevant SOC code (if this is higher than the applicable general minimum), then the usual position is that they cannot continue to be sponsored. There are some specific exceptions where workers can continue to be sponsored, including where they are absent on an unpaid basis due to parental or long-term sick leave.

On 3 April 2020 the Home Office announced a concession for sponsors who have temporarily reduced or ceased trading. These sponsors can temporarily reduce the salary of sponsored workers to 80% of the salary recorded on their CoS or £2,500 per month, whichever is lower. This concession sets aside the requirement for sponsored workers to satisfy the minimum salary threshold for their job type and visa category, including where they have been furloughed or otherwise covered by a wage support scheme (see further information on this in the separate section below). Once the temporary salary reduction has ended, the salary must be returned to at least the same level as previously indicated on the assigned Certificate of sponsorship (CoS).

Usually, if you have to drop the salary for someone who was granted a Tier 2 General visa based on the fact that you did not need to run the resident labour market test as their salary was above £159,600, and the drop takes them below this salary level, then the standard guidance requires the person to make a new visa application. However, the latest Home Office guidance does not appear to discount any type of Tier 2 sponsored worker from the salary reduction concession, including high earners, as long as the policy is company-wide with a view to avoiding redundancies and all workers are treated the same. We interpret this to mean that sponsored workers are not to be treated more or less favourably than non-sponsored workers. The concession also does not appear to be restricted to the situation where the salary reduction occurs as the result of a sponsored worker being furloughed. The Home Office may provide further clarity on these points in due course so please seek further advice from us if you have Tier 2 workers affected.

Deferring salary

Tier 2 workers must be paid in accordance with the information set out in their CoS, taking into account any subsequent changes reported on the SMS. If you choose to defer a sponsored worker’s salary, this should be reported on the SMS. You should also ensure the deferral arrangement is appropriately documented on the worker’s HR file.

If deterioration in the business’s financial circumstances results in the deferral becoming a salary reduction, then the information above on cutting salaries would apply.

Secondments and role changes

You may consider seconding a Tier 2 worker, for example where there is reduced need for them to carry out their role in your business. This is allowed if the secondment is so you can fulfil a contractual obligation with the receiving business, the worker will provide a service or work on a project with a specific end date, and the service or project will not be operated by you or anyone else after that time. You must also continue to have genuine responsibility for deciding the duties, functions and outcomes of the job the worker will do while on secondment, as well as being able to monitor the worker for the purpose of complying with your reporting duties.

You may also consider altering the duties of a sponsored worker such that the new duties do not fall within the job description on their CoS. This could happen as part of a secondment or due to changed operational needs. If so, a change of employment application (possibly including resident labour market testing) may need to be made. The only exception would be where the new duties still fall within the sponsored SOC code and the worker would not be moving from a shortage occupation within the code to a non-shortage occupation.

Normally, a change of employment application must be approved before a person can start working in their new role. However, the Home Office’s guidance on GOV.UK has stated since 14 April 2020 that a Tier 2 or 5 worker with a pending in-country change of employment application may start work in their new role before their application is decided, provided certain requirements are met. These are covered in our guide to the immigration implications of COVID-19 for UK employers under the section on moving immigration category.

In some cases a sponsored worker may wish to work abroad during the pandemic. See our separate article for further information on that scenario.

Using government wage support schemes for your employees

The government has put in place various wage support schemes for business, including the Coronavirus Job Retention Scheme (‘furlough scheme’) and the Job Support Scheme.

The furlough scheme was designed to provide UK employers with support for paying wages of staff who would otherwise have been laid off or made redundant (furloughed) as a result of COVID-19.

Its successor, the Job Support Scheme comprises two wage support schemes, one to support businesses required to close as a result of coronavirus restrictions and another to support eligible businesses that can stay open but are facing lower demand. General FAQS on the Job Support Scheme (open and closed) and information on the operating dates for each scheme can be found here.

The Home Office has made provision for wage support schemes to be applied to sponsored workers. This is set out in a concession first published on 3 April 2020 as an update to the Home Office’s COVID-19 guidance for sponsors.

Under the concession, sponsors can temporarily reduce the salary of sponsored workers to 80% of the salary recorded on their CoS or £2,500 per month, whichever is lower. These figures match those that were allowed by the furlough scheme. The reduction in salary must be part of a company-wide policy to avoid redundancies in which all workers are treated the same. Our view is that it would not be acceptable for sponsored workers to be selected for inclusion on a wage support scheme as a group because of their visa status, or for them otherwise to be treated more or less favourably than non-sponsored workers. Once the period of temporary salary reduction ends, the salary must return to at least the rate specified on the sponsored worker’s CoS. All changes in salary must be reported on the SMS within 10 working days of the change.

However, the job support scheme in place from 1 November 2020 is not as generous as the furlough scheme it replaces. Under the job support scheme, employees are required to work a minimum of 20% of their usual hours (and receive payment as usual) with the government contributing 61.67% of pay for hours not worked (capped at £1,541.75 per month) and employers contributing 5% (capped at £125 per month). Overall, this means employees will receive at least 73% of their normal pay (if their monthly wages do not exceed £3,125), although employers are able to top this up if they choose. The Home Office has not amended the salary reduction concession to mirror the new figures provided for in the job support scheme. This means that unless an amendment is forthcoming, if you intend to apply the job support scheme to a sponsored worker, you must still ensure the concession is also met, which may mean  providing additional hours or topping up wages in some cases.

There will also be extra considerations for those employees who you intend to place on a wage support scheme who are working for you on a Tier 2 sponsored work visa.

During any period of time on a wage support scheme, Tier 2 employees are permitted to undertake training or do voluntary work in some circumstances. Supplementary employment is allowed, but only in a shortage occupation or in the same role and at the same level as their sponsored role. Supplementary employment also must be for no more than 20 hours a week and outside of the working hours stated on the sponsored worker’s CoS.

Additionally, the payouts from the Government under wage support schemes derive from public funds. This may cause confusion or doubt given that Tier 2 sponsored workers and their dependants are prohibited from having recourse to public funds. In accordance with the definition of ‘public funds’ under the Immigration Rules, receiving funds that are made payable to employers through the scheme will not constitute recourse to public funds. However, where the Government indicates that any reduction in salary may entitle workers to support through the welfare system, it is important to note that this is not available to Tier 2 sponsored workers or their dependants. To claim benefits in this way would be in breach of their immigration conditions, which could lead to the individual’s immigration permission being cut short or to future applications being refused. It could also potentially lead to compliance action against you as a sponsor. 

If you are considering placing Tier 2 workers on a wage support scheme, we would recommend you contact us for specific advice on appropriate actions including the following:

  • Reporting all changes in salary or working hours on the SMS as a change in migrant circumstances
  • Ensuring earnings do not drop below the amount permitted by the concession
  • Keeping detailed records of what has occurred, including records of the actions you have taken across the business to avoid redundancies, in case of future audits
  • Reminding any Tier 2 workers who covered by a wage support scheme of the immigration conditions they have that restrict work, training and volunteering

Terminating the employment of Tier 2 workers

Unfortunately, you may be forced to consider terminating the employment of sponsored workers or making them redundant as a result of the economic downturn. In this circumstance, employers are required to notify the Home Office of the end of their employment by submitting a report on the SMS within 10 working days of the employee’s last day of employment.

In normal circumstances, notifying the Home Office of a sponsored worker’s termination or redundancy will initiate the process of visa curtailment and, after they have left the UK, a 12-month ‘cooling-off period’.

The Home Office will then issue the worker with a ‘curtailment notice’ shortening their permission to stay in the UK to 60 calendar days and confirming the new visa expiry date. If there are fewer than 60 days remaining on the visa when the Home Office letter is issued, no change will be made to the expiry date. The curtailment will also apply to any dependent family members.

Between termination of employment and the new expiry date, the individual is permitted to seek alternative sponsorship or to submit an application for further permission to stay in an alternative category for which they qualify. However, if they are not able to find a new sponsor the individual and any dependent family members will be expected to leave the UK or face enforced removal.

On leaving the UK, the 12-month cooling-off period will be triggered, and they will need to wait for this to end before they will be eligible to apply under the Tier 2 category once again. The cooling-off period can be bypassed only where the individual’s new guaranteed salary exceeds the high earner threshold of £159,600, for Tier 2 General migrants or £120,000 for Tier 2 Intra-Company Transfer migrants, or where their original Tier 2 CoS was assigned for three months or less.

The Home Office’s COVID-19 guidance for UK visa applicants and temporary UK residents currently confirms that people with a visa expiring between 24 January 2020 and 31 May 2020 will be allowed to extend their stay in the UK in circumstances where they would normally have to apply from abroad, but that all other requirements and fees for applications remain unchanged.

For now, aside from sponsors not needing to report working from home due to COVID-19, or COVID-19-related absences, all other reports must be made as normal.  It is possible that further requirements may be waived once the Home Office has had an opportunity to further consider the implications of the situation as it develops, but this is not guaranteed. Please contact us for further advice should you have specific questions about the impact of termination on any sponsored employees.

Reviewing your sponsor licence

The economic impacts of COVID-19 may also have implications for your sponsor licence.

It may be necessary to add or remove key personnel from your licence due to staffing changes, for example where employees with sponsor licence responsibilities go on sabbatical, are made redundant or otherwise leave your business.

It may also be necessary for sponsored employees to be moved from one licence to another, or for a new licence to be applied for due to corporate restructuring.

The Home Office may also need to be informed of changes to group structure due to the need to evidence the intra-company links between entities when sponsoring Tier 2 Intra-Company Transfer migrants, or if you hold a licence which covers a number of UK entities within your group.

For further information

Please see our guide for other immigration issues raised by COVID-19. If you have any queries regarding this, please contact your usual contact or a member of the immigration team.

For information and guidance on issues including business continuitycontractual considerations and employer/employee relations visit our COVID-19 hub.

This publication provides general guidance only: expert advice should be sought in relation to particular circumstances.

(Updated as of 2 November 2020) 

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

Author(s)/Speaker(s): Joanna Hunt, Priya Gandhi,

Categories hong-kong

Lewis Silkin – To mark Black History Month, we’ve looked at some of the ads that been labelled racist in both the UK and further afield, but we’ve been shocked to identify the biggest offender of all.

Author’s note: I always give careful thought before publishing offensive ads in articles or including them in presentations, but unfortunately, I think it is often essential so that the reader or audience can fully appreciate the story. Nevertheless, I should like to apologise for any offence that is caused by the ads included in this piece.

Text:

This October has marked Black History Month, so as an advertising lawyer, I thought it would be interesting to delve into my personal archive of ads and try to ascertain whether there are any patterns in the ads that have caused racial offence over the last couple of decades. Is the occurrence of ads causing racial offence getting more prevalent? How does the UK compare with the rest of the world? And finally, who should be called out as the biggest culprit of all when it comes to publishing racist ads?

As someone who is pale, male and if not stale, then rapidly approaching my Best Before date, I should start by making an acknowledgement. I am not well placed to judge whether an ad is racially offensive, particularly to Black people, as I’m not Black. In thinking about the history of Black people in advertising, I have been struck, however, by the way in which British advertising has successfully incorporated members of other ethnic groups into advertising campaigns that have been effective in both their creative and commercial ambitions, but also beloved by the ethnic group being portrayed.

The paradigm example is the Beattie campaign featuring Maureen Lipman and created by Abbott Mead Vickers for British Telecom in the early 1980’s. I remember seeing the ad with the teenage boy sitting on the stairs, relaying his not very impressive O-level results to his grandmother, Beattie. She seizes on the fact that he has achieved a pass in sociology. “An ology” she declares. “You get an ology, you’re a scientist!” Across the entire series of ads, Jews laughed with the advertising because they recognised their own mothers and grandmothers. Gentiles laughed with us, not at us. My only concern at the time was that Maureen Lipman’s characterisation of Beatie was so uncannily reminiscent of my own grandmother that I began to wonder whether BT were tapping our phone, looking for inspiration.

It is difficult to think of an ad or a campaign that has pulled off the same trick with the Black community. There have been campaigns that have been led by Black actors, such as Sir Lenny Henry for Premier Inn, but he was very much being himself, rather than a character, with no reference to his ethnicity or the culture of the Caribbean. On re-watching an old TV ad from 1981 for “Lilt, with the totally tropical taste” I was shocked to realise that while the reggae inspired soundtrack remains as fresh as the pineapples and grapefruit used to make the drink, there is not a single Black person in the ad. Even the waiter handing the glasses of the cool, refreshing Lilt to the beautiful young Caucasian people appears to be white, although it’s hard to be sure as only his forearms are in shot. But the cultural appropriation is clear enough.

Perhaps the greatest success that has been achieved by British advertising reflects something that was mentioned by Baroness Floella Benjamin, DBE, when she appeared recently on Dessert Island Discs (16th October, 2020). Dame Floella recounted a story of when she was presenting Play School in 1976. She asked the producer whether the illustrations for their children’s stories could include not only white kids, but also Black, Asian and Chinese kids, “because I want the children out there to feel that they belong to that culture.” The change was made that day, and Dame Floella continues, “because if you don’t see yourself, how do you know you belong? How do you know you’re important?”

Reflecting on these comments, I think it is reasonable to say that in more recent years, the more frequent casting of Black people in advertising has hopefully helped to progress this sense of belonging, particularly when cast as the ‘heroes’ of a TV commercial, and not just as walk-on artists in the background.  For example, my personal favourite of the long series of fantastic Christmas ads created by adam&eveDDB for John Lewis is “Buster the Boxer” from 2016, with the CGI animals bouncing on the trampoline in the garden on Christmas morning. The family that feature in the ad happen to be Black, but they could be of any ethnicity. Hopefully, this casting is a good example of what Dame Floella describes as signalling that Black people belong to British Council. Sadly, and worryingly, things appear to have gone backwards since 2016.

Where were we at the start of the millennium?

It is difficult to find many reports of ASA investigations into the depiction of race in advertising until 1998 and therefore dangerous to make assumptions about the reasons for this absence. Of course, a higher proportion of advertising was on television or radio, and therefore subject to mandatory pre-vetting. Most non-broadcast advertising was either in newspapers or Out-of-Home, and even without pre-vetting, the media owners were well aware of their compliance obligations under the Advertising Codes. For many years, the British Codes of Advertising have prohibited ads that contain anything that is likely to cause serious or widespread offence, particularly in relation to certain specific characteristics, including race. The focus of the ICC Code is slightly different, however, prohibiting ads that incite or condone any form of discrimination, including that based on ethnicity.

The Commission for Racial Equality has been at the vanguard of confronting the issue of racism through advertising for decades. Some of their excellent, hard hitting work can still be seen on the website of the History of Advertising Trust. The CRE’s TV and cinema ad from 1996, “Them” is still very powerful, and ‘remainers’ might be forgiven for wishing it had been broadcast again before the EU Referendum in 2016.

Unfortunately, however, one of the first published ASA adjudications on the issue of race comes around this time, in 1999.

This was a poster ad that was part of a campaign by the CRE to make people confront their own attitudes to racial stereotypes. The original teaser just had the same image and the headline, “Scared?” The reveal then had the sub-heading, “You should be. He’s a dentist”  and identified the advertiser as the CRE. The campaign provoked one of the largest number of complaints ever in this area, 84, with people not only complaining about the racism of the teaser, but also the denigration of dentists and the danger of discouraging children from visiting the dentist. The CRE argued that the ad was an ironic and humorous challenge to stereotypes. There appears to have been no formal adjudication by the ASA, and it is difficult to get to the bottom of what happened in this case, but the upshot was that the CRE became the first advertiser (along with TalkRadio, by way of contrast), to be required to have their posters pre-vetted for 2 years by CAP Copy Advice – a procedure that had really been introduced to deal with the notorious FCUK campaign of the time. However, it seems that the ASA and CAP were uncomfortable with the use of shock tactics, which is a long-running bugbear, and perhaps about the lack of prior consultation.

Have commercial advertisers tried to challenge racism?

Yes, but with varying degrees of success.

By far the most successful advertiser in this vein has been Benetton. This simple Benetton ad from 1996 must be one of the most memorable anti-racism ads of all time.

Unfortunately, however, even Benetton came unstuck from time-to-time, and I understand that the ad below of the three kids of different ethnicities caused considerable offence in Saudi Arabia, where it is considered offensive to display an internal organ. In this case, being the tongue.

More recently, other advertisers appear to have made genuine efforts to challenge stereotypes. Even assuming they were working in good faith, and there is no reason to think otherwise, they have ultimately come unstuck.

In 2016, Nicofresh published this poster ad for an e-cigarette product on various Out-of-Home sites, but only in Belfast. So while there were only 6 complaints, it is worth considering that in the context of a media schedule with a limited geography. Of these complaints, 6 people complained that the ad was racist, implying that an interracial relationship was taboo, and 4 of these 6 also thought that it was offensive to imply than an inter-generational relationship was taboo. Nicofresh’s defence was essentially, ‘yes, that’s the point’. Our product means that smoking will no longer be taboo, just like these relationships are no longer taboo. The ASA seem to have been very hard on Nicofresh in this case, as well as on the ‘Average Consumer’, who apparently would have missed what seems to be a fairly clear message. There is also no reason to think that Nicofresh were blowing a dog-whistle. What would they possibly have to gain?

And on the subject of dog-whistles, the sad fact is that some of the most egregious and deliberately racist ads of the last 20 years, if not of all time, have not merely escaped censure by the ASA, but have managed to avoid the application of the Advertising Codes altogether, because they have been ‘political ads’ published in the course of an election campaign. Or in this case, a referendum. That referendum.

Have any advertisers been more ambitious in using Black and Caribbean culture?

Yes, but unfortunately attempts to go beyond simple casting on a ‘neutral’ basis in ads have back-fired badly, as illustrated by the Cadbury’s campaign for Trident Gum in 2007.

The expensively produced TV and cinema ad, with high production values, featured a West Indian dub poet waxing lyrical about the virtues of the new Trident gum, and finishes with him on a yellow tourist amphibious ‘duck boat’ passing the Houses of Parliament, shouting “mastication for the nation.” It seems inconceivable that with their advertiser, or their agency, JWT, has any intention of being racist. Cadbury had not only sought the views of the Afro-Caribbean community and the general public during the campaign’s creative development, but being a TV ad, they had also obtained pre-clearance from the Broadcast Advertising Clearance Centre, now Clearcast. Although Cadbury admitted that a few people had found the ad offensive during their consumer testing, that cannot have prepared them for the tidal wave of 519 complaints, propelling the ad into second place in the list of the most complained about ads of 2007. Although the ASA appeared to accept that Cadbury and JWT had acted in good faith, they found that “The stereotype depicted in the ads had, unintentionally, caused deep offence to a significant minority of viewers and that many of those who complained to us were concerned that the negative stereotype could be perpetuated.”

Unfortunately, it is hard to avoid the conclusion that this case may have had a chilling effect on any more ambitious attempts to give Black and Caribbean culture a more prominent role in British advertising.

Overall, is the issue of racism in advertising getting better or worse?

Sadly, it is difficult to avoid the conclusion that that situation has become worse in the last few years.

Some examples just leave you wondering what were they thinking of? Or even, were they thinking at all? Or was there no adult in the room when they decided to publish the ad. This is particularly true of ads published on companies’ own websites, which do not go through any process of pre-vetting. In several cases, the court of public opinion, as exercised through social media, has adjudicated so quickly that the ads have been withdrawn before the ASA have had an opportunity to investigate. 

This notorious ad by H&M featuring a Black boy wearing a hoodie with the legend “Coolest Monkey in the Jungle” was quickly withdrawn by H&M when it was pointed out to them on social media, quickly and in no uncertain terms, that the ad was wildly inappropriate.

While some commentators were prepared to give H&M the benefit of the doubt, accepting that young creatives are ‘colour blind’ and failed to spot the issue in advance, this ad for Gucci is just incredible.

It is quite incredible that in 2019, a major corporation could publish that advert and fail to spot the allusions to ‘black face’ which had only recently been the subject of considerable controversy, following the publication of some old photos of Justin Trudeau, the Canadian Prime Minister, who had worn ‘Black face’ on a number of occasions in his past. The creative director denied that the ad was intended to be racist.

Unfortunately, however, it is pretty difficult to deny the racist intent behind a couple of ads that the ASA have investigated in recent years, and particularly since 2016.

This regional press ad, with very limited circulation in the Purbeck Gazette in June 2016 (what else was happening in June 2016?), was for The Ginger Pop Shop, and not only featured a ‘golly’, but also the headline “English Freedom”. Despite the tiny media, 2 people complained to the ASA that the depiction was racist and offensive. The advertiser’s defence, as dutifully recounted by the ASA, is at best unconvincing, and at worst, insincere. The ASA also noted that “the inclusion of the words “ENGLISH FREEDOM” in the ad was likely to contribute to that offence, because in combination with the image it could be read as a negative reference to immigration or race. We therefore concluded that the ad was likely to cause serious or widespread offence.” This is a reminder that even a small number of complaints, such as one or two, can give rise to an upheld complaint, and that offence can be serious, even if confined to both the readers of the Purbeck Gazette.

The murder of George Floyd and the rise of Black Lives Matter has also provoked what might be a cynical backlash or might be a cynical attempt to ride on the back of movement. Neither explanation is particularly attractive. The final example in this section brings us right to date, with the ASA adjudication being published on 23rd September 2020, just over 5 weeks ago.

A car leasing company, LINGsCars, posted a Facebook ad in June 2020. The ad included the image “BLACK CARS MATTER. I ASKED HOLLY FOR A HEADLINE FOR THIS A4…AND SHE SAID: ‘ONCE YOU GO BLACK, YOU NEVER GO BACK!’”, with an image of a black raised hand fist with a wristband displaying the Audi logo and a black Audi car. (For the avoidance of doubt, the ad had nothing to do with Audi or its advertising agency.) Once again, the ASA rejected the advertisers wholly unpersuasive explanation, and concluded that using the slogan and iconography to draw attention to an ad for a car trivialised the serious issues raised by Black Lives Matter. In addition, the line, ‘Once you go black, you never go back’ objectified and fetishized black men.

So how do we compare with the rest of the world?

My personal consumption of advertising outside the United Kingdom is pretty limited, and mainly confined to watching lengthy advertising breaks on CNN in hotel rooms in the United States, while waiting for brief snippets of news. My not very scientific and anecdotal evidence is that Black people are seen more often in British advertising than in US advertising, and that while you may see Black couples on TV ads in the States, you are more likely to see a mixed race couple in a British ad. However, I have no data to back up this perception, and I would be happy to be proved wrong.

But probably the most breath-takingly racist ad that I have ever seen is a TV Commercial from China.

The story board above explains the ad. We start with an attractive young Chinese woman who, for reasons that were never explained, is visited in her apartment by a young Black man, whose voice betrays his roots as a likely lad from the East End. I’d guess Poplar, but possibly Bethnal Green. Although attracted to the young man, she is clearly perturbed by his ethnicity, so she somehow manages to put him into her top-loading washing machine, inserts the soap powder being advertised, and hey presto, he comes out Chinese. Her dilemma is resolved. You have to watch it to appreciate the fully awfulness of it.

So finally, what is the most racially offensive British ad of all time, and who was the advertiser?

This is more than just a numbers game. If it was, the winner would be the Trident ad, based on the number of complaints to the ASA, at 519.

However, in Cadbury’s defence, even the ASA accepted that they had not intended to cause racial offence, and the racism was inadvertent.

Also, there are some political parties, such as UKIP, of whom expectations are low in this regard. There are other examples mentioned above of marginal advertisers being deliberately provocative or mainstream advertisers being inattentive.

The ad, however, by the Home Office, comes from the UK Government, of whom it is reasonable to expect better. And the intention was clear: this was part of Theresa May’s attempt to create a hostile environment, which ultimately led to the shameful Windrush scandal, and brings us back full circle to families of Black Britons, such as Baroness Floella Benjamin, whose family came here – perfectly legally – from Trinidad in the 1950’s.

The ASA’s adjudication into the 224 complaints is long and complicated, dealing with 5 issues, 2 of which concern offensiveness, being the use of the phrase ‘Go Home’, the potential to incite racial hatred, and 3 of which concern the factual accuracy of various claims made in the ad.

The adjudication was published on 9th October 2013, well before the full horror of the Windrush scandal had unfolded. The surprising thing now, however, in the light of the that scandal, which resulted in the subsequent Home Secretary, Amber Rudd, being metaphorically thrown under the bus, is that while the ASA upheld 2 of the 3 complaints about factual accuracy, the 2 complaints about causing racial offence were rejected. The ASA accepted that the use of ‘Go Home’ was contextualised by the reference to illegal immigrants. Of course, at the time, the ASA was not to know that many of the people who were subsequently threatened with deportation would end up proving that they are here perfectly legally. The ASA also accepted that the reference to people facing deportation was targeted at illegal immigrants, not legal ones. To be fair to the ASA, its not their fault that the Home Office couldn’t tell the difference.

So where are we now?

It is clear that there is still a major problem with racism in advertising. Although many mainstream advertisers are helping to create an inclusive culture where young Black Britons will be encouraged to feel that they are part of the culture and they belong here, attempts to really celebrate Black and Caribbean culture in our advertising have so far not succeed. Meanwhile other advertisers seek to exploit or create division, and others just lazy or inattentive to the offence that they cause, which is arguably even worse.

So, while we’ve come along way from the days when the ‘golly’ was used to advertise marmalade, or Lilt ads were shot in the Caribbean without a single Black person, it is clear that we still have a very long way to go.

 

Related Item(s): Advertising & Marketing, Brands and IP newsnotes – issue 5, Retail, Hospitality & Leisure

Author(s)/Speaker(s): Brinsley Dresden,

Categories hong-kong

Lewis Silkin – To mark Black History Month, we’ve looked at some of the ads that been labelled racist in both the UK and further afield, but we’ve been shocked to identify the biggest offender of all.

Author’s note: I always give careful thought before publishing offensive ads in articles or including them in presentations, but unfortunately, I think it is often essential so that the reader or audience can fully appreciate the story. Nevertheless, I should like to apologise for any offence that is caused by the ads included in this piece.

Text:

This October has marked Black History Month, so as an advertising lawyer, I thought it would be interesting to delve into my personal archive of ads and try to ascertain whether there are any patterns in the ads that have caused racial offence over the last couple of decades. Is the occurrence of ads causing racial offence getting more prevalent? How does the UK compare with the rest of the world? And finally, who should be called out as the biggest culprit of all when it comes to publishing racist ads?

As someone who is pale, male and if not stale, then rapidly approaching my Best Before date, I should start by making an acknowledgement. I am not well placed to judge whether an ad is racially offensive, particularly to Black people, as I’m not Black. In thinking about the history of Black people in advertising, I have been struck, however, by the way in which British advertising has successfully incorporated members of other ethnic groups into advertising campaigns that have been effective in both their creative and commercial ambitions, but also beloved by the ethnic group being portrayed.

The paradigm example is the Beattie campaign featuring Maureen Lipman and created by Abbott Mead Vickers for British Telecom in the early 1980’s. I remember seeing the ad with the teenage boy sitting on the stairs, relaying his not very impressive O-level results to his grandmother, Beattie. She seizes on the fact that he has achieved a pass in sociology. “An ology” she declares. “You get an ology, you’re a scientist!” Across the entire series of ads, Jews laughed with the advertising because they recognised their own mothers and grandmothers. Gentiles laughed with us, not at us. My only concern at the time was that Maureen Lipman’s characterisation of Beattie was so uncannily reminiscent of my own grandmother that I began to wonder whether BT were tapping our phone, looking for inspiration.

It is difficult to think of an ad or a campaign that has pulled off the same trick with the Black community. There have been campaigns that have been led by Black actors, such as Sir Lenny Henry for Premier Inn, but he was very much being himself, rather than a character, with no reference to his ethnicity or the culture of the Caribbean. On re-watching an old TV ad from 1981 for “Lilt, with the totally tropical taste” I was shocked to realise that while the reggae inspired soundtrack remains as fresh as the pineapples and grapefruit used to make the drink, there is not a single Black person in the ad. Even the waiter handing the glasses of the cool, refreshing Lilt to the beautiful young Caucasian people appears to be white, although it’s hard to be sure as only his forearms are in shot. But the cultural appropriation is clear enough.

Perhaps the greatest success that has been achieved by British advertising reflects something that was mentioned by Baroness Floella Benjamin, DBE, when she appeared recently on Desert Island Discs (16th October, 2020). Dame Floella recounted a story of when she was presenting Play School in 1976. She asked the producer whether the illustrations for their children’s stories could include not only white kids, but also Black, Asian and Chinese kids, “because I want the children out there to feel that they belong to that culture.” The change was made that day, and Dame Floella continues, “because if you don’t see yourself, how do you know you belong? How do you know you’re important?”

Reflecting on these comments, I think it is reasonable to say that in more recent years, the more frequent casting of Black people in advertising has hopefully helped to progress this sense of belonging, particularly when cast in leading roles, not just as walk-on artists in the background. For example, my personal favourite of the long series of fantastic Christmas ads created by adam&eveDDB for John Lewis is “Buster the Boxer” from 2016, with the CGI animals bouncing on the trampoline in the garden on Christmas morning. The family in the ad happen to be Black, but they could just as easily be of any ethnicity. Hopefully, this casting is a good example of what Dame Floella describes as signalling that Black people belong to British culture. Sadly, as I shall describe later, things appear to have gone backwards since 2016.

Where were we at the start of the millennium?

 It is difficult to find many reports of ASA investigations into the depiction of race in advertising until 1999 and therefore dangerous to make assumptions about the reasons for this absence. Of course, a higher proportion of advertising was on television or radio, and therefore subject to mandatory pre-vetting. Most non-broadcast advertising was either in newspapers or on Out-Of-Home billboards, and even without pre-vetting, the media owners were well aware of their compliance obligations under the Advertising Codes. For many years, the British Codes of Advertising have prohibited ads that contain anything that is likely to cause serious or widespread offence, particularly in relation to certain specific characteristics, including race. The focus of the ICC Code is slightly different, however, prohibiting ads that incite or condone any form of discrimination, including that based on ethnicity.

The Commission for Racial Equality has been at the vanguard of confronting the issue of racism through advertising for decades. Some of their excellent, hard hitting work can still be seen on the website of the History of Advertising Trust. For example, the CRE’s TV and cinema ad from 1996, “Them” is still very powerful, and ‘Remainers’ might be forgiven for wishing it had been broadcast again before the EU Referendum in 2016, some 20 years later.

Unfortunately, however, one of the first published ASA adjudications on the issue of race comes around this time, in 1999.


This poster was part of a campaign by the CRE to make people confront their own attitudes to racial stereotypes. The original teaser just had the same image and the headline, “Scared?” The reveal then had the sub-heading, “You should be. He’s a dentist” and identified the advertiser as the CRE. The campaign provoked one of the largest number of complaints ever in this area, 84, with people not only complaining about the racism of the teaser, but also the denigration of dentists and the danger of discouraging children from visiting the dentist. The CRE argued that the ad was an ironic and humorous challenge to stereotypes. There appears to have been no formal adjudication by the ASA, and it is difficult to get to the bottom of what happened in this case, but the upshot was that the CRE became the first advertiser to be required to have their posters pre-vetted for 2 years by CAP Copy Advice – a procedure that had really been introduced to deal with the notorious FCUK campaign of the time. However, it seems that the ASA and CAP were uncomfortable with the use of shock tactics, which is a long-running bugbear, and perhaps about the lack of prior consultation.

Have commercial advertisers tried to challenge racism?

Yes, but with varying degrees of success.

By far the most successful advertiser in this vein has been Benetton. This simple Benetton ad from 1996 must be one of the most memorable anti-racism ads of all time.

Unfortunately, however, even Benetton came unstuck from time-to-time, and I understand that the ad below of the three kids of different ethnicities caused considerable offence in Saudi Arabia, where it is considered offensive to display an internal organ, including the tongue.

More recently, other advertisers appear to have made genuine efforts to challenge stereotypes. Even assuming they were working in good faith, and there is no reason to think otherwise, they have ultimately come unstuck.

In 2016, Nicofresh published this poster ad for an e-cigarette product on various Out-Of-Home sites, but only in Belfast. There were only 6 complaints, but that is in the context of a media schedule with a very limited geography. All the complainants felt the ad was racist, implying that an interracial relationship was taboo, and 4 of them also thought that it was offensively ageist to imply than an inter-generational relationship was taboo. Nicofresh’s defence was essentially, ‘yes, that’s the point’. Our product means that smoking will no longer be taboo, just like these relationships are no longer taboo. The ASA seem to have been very hard on Nicofresh in this case, as well as on the ‘Average Consumer’, who apparently would have missed what seems to be a fairly clear message. There is also no reason to think that Nicofresh were blowing a dog-whistle. What would they possibly have had to gain?

And on the subject of dog-whistles, the sad fact is that some of the most egregious and deliberately racist ads of the last 20 years, if not of all time, have not merely escaped censure by the ASA, but have managed to avoid the application of the Advertising Codes altogether, because they have been ‘political ads’ published in the course of an election campaign. Or in this case, a referendum.

Have any advertisers been more ambitious in using Black and Caribbean culture?

Yes, but unfortunately attempts to go beyond simple casting on a ‘neutral’ basis in ads have back-fired badly, as illustrated by the Cadbury’s campaign for Trident Gum in 2007.

The expensive TV and cinema ad, with high production values, features a West Indian dub poet waxing lyrical about the virtues of the new Trident gum, and finishes with him on an amphibious yellow tourist ‘duck boat’ passing the Houses of Parliament, shouting “mastication for the nation”. It seems inconceivable that with their advertiser, or their agency, JWT, had any intention of being racist. Cadbury had not only sought the views of the Afro-Caribbean community and the general public during the campaign’s creative development, but being a TV ad, they had also obtained pre-clearance from the Broadcast Advertising Clearance Centre, now Clearcast. Although Cadbury admitted that a few people had found the ad offensive during their consumer testing, that cannot have prepared them for the tidal wave of 519 complaints, propelling the ad into second place in the list of the most complained about ads of 2007. Although the ASA appeared to accept that Cadbury and JWT had acted in good faith, they found that “The stereotype depicted in the ads had, unintentionally, caused deep offence to a significant minority of viewers and that many of those who complained to us were concerned that the negative stereotype could be perpetuated.” If memory serves me correctly, I do remember being shocked by the ad the first time that I saw it, and I wonder whether the creatives behind it simply became anaesthetised to its’ impact in the course of working on it for so long.

Unfortunately, it is hard to avoid the conclusion that this case may have had a chilling effect on any more ambitious attempts to give Black and Caribbean culture a more prominent role in British advertising.

Overall, is the issue of racism in advertising getting better or worse?

Sadly, it is also difficult to avoid the conclusion that that situation has become worse in the last few years.

Some examples just leave you wondering what were they thinking of? Or even, were they thinking at all? Or was there no adult in the room when they decided to publish the ad. This is particularly true of ads published on companies’ own websites, which do not go through any process of pre-vetting. In several cases, the court of public opinion, as exercised through social media, has adjudicated so quickly that the ads have been withdrawn before the ASA have had an opportunity to investigate.

This notorious ad by H&M featuring a Black boy wearing a hoodie with the legend “Coolest Monkey in the Jungle” was quickly withdrawn by H&M when it was pointed out to them on social media, quickly and in no uncertain terms, that the ad was wildly inappropriate.

While some commentators were prepared to give H&M the benefit of the doubt, accepting that young creatives are ‘colour blind’ and failed to spot the issue in advance, this ad for Gucci is just incredible.

It defies belief that in 2019, a major corporation could publish that advert and fail to spot the allusions to ‘black face’ which had only recently been the subject of considerable controversy, following the publication of some old photos of Justin Trudeau, the Canadian Prime Minister, who had worn ‘Black face’ on a number of occasions in his past. The creative director denied that the ad was intended to be racist.

It is also difficult, if not impossible, to deny the racist intent behind a couple of ads that the ASA have investigated in recent years, and particularly since 2016.

This regional press ad, with very limited circulation in the Purbeck Gazette in June 2016 (what else was happening in June 2016?), was for The Ginger Pop Shop, and not only featured a ‘golly’, but also the headline “English Freedom”. Despite the tiny media, 2 people complained to the ASA that the depiction was racist and offensive. The advertiser’s defence, as dutifully recounted by the ASA, is at best unconvincing, and at worst, insincere. The ASA also noted that “the inclusion of the words “ENGLISH FREEDOM” in the ad was likely to contribute to that offence, because in combination with the image it could be read as a negative reference to immigration or race. We therefore concluded that the ad was likely to cause serious or widespread offence.” This is a reminder that even a small number of complaints, such as one or two, can give rise to an upheld complaint, and that offence can be serious, even if combined to both the readers of the Purbeck Gazette.

The murder of George Floyd and the rise of Black Lives Matter has also provoked what might be a cynical backlash or even a cynical attempt to ride on the back of movement. Neither explanation is particularly attractive. The final example in this section brings us right up to date, with the ASA adjudication being published on 23rd September 2020, just over 5 weeks ago.

A car leasing company, LINGsCars, posted a Facebook ad in June 2020. The ad included the image “BLACK CARS MATTER. I ASKED HOLLY FOR A HEADLINE FOR THIS A4…AND SHE SAID: ‘ONCE YOU GO BLACK, YOU NEVER GO BACK!’”, with an image of a black raised hand fist with a wristband displaying the Audi logo and a black Audi car. (For the avoidance of doubt, the ad had nothing to do with Audi or its advertising agency.) Once again, the ASA rejected the advertisers wholly unpersuasive explanation, and concluded that using the slogan and iconography to draw attention to an ad for a car trivialised the serious issues raised by Black Lives Matter. In addition, the line, ‘Once you go black, you never go back’ objectified and fetishized black men.

So how do we compare with the rest of the world?

My personal consumption of advertising outside the United Kingdom is pretty limited, and mainly confined to watching lengthy advertising breaks on CNN in hotel rooms in the United States, while waiting for brief snippets of news. My not very scientific and anecdotal evidence is that Black people are seen relatively more often in British advertising than in US advertising. And while you may see Black couples on TV ads in the States, you are more likely to see a mixed race couple in a British ad. However, I have no data to back up this perception, and I would be happy to be proved wrong.

But probably the most breath-takingly racist ad that I have ever seen is a TV Commercial from China.

The story board above explains the ad. We start with an attractive young Chinese woman who is visited in her apartment by a young Black man, who is a painter and decorator. His voice betrays his roots as a likely lad from the East End. I’d guess Poplar, but possibly Bethnal Green. Although attracted to the young man, she is clearly perturbed by his ethnicity, so she somehow manages to put him into her top-loading washing machine, inserts the soap powder being advertised, and hey presto, he comes out Chinese. Her dilemma is resolved.

So finally, what is the most racially offensive British ad of all time, and who was the advertiser?

This is more than just a numbers game. If it was, the winner would be the Trident ad, based on the number of complaints to the ASA, at 519.

However, in Cadbury’s defence, even the ASA accepted that they had not intended to cause racial offence, and the racism was inadvertent.

Also, there are some political parties, such as UKIP, of whom expectations are low in this regard. There are other examples mentioned above of marginal advertisers being deliberately provocative or mainstream advertisers being inattentive.

This ad, however, by the Home Office, comes from the UK Government, of whom it is reasonable to expect better. And the intention was clear: this was part of Theresa May’s attempt to create a ‘hostile environment’, which ultimately led to the shameful Windrush scandal, and brings us back full circle to families of Black Britons, such as Baroness Floella Benjamin, whose family came here – perfectly legally – from Trinidad in the 1950’s.

The ASA’s adjudication into the 224 complaints is long and complicated, dealing with 5 issues, 2 of which concern offensiveness, being the use of the phrase ‘Go Home’ and the potential to incite racial hatred in areas visited by the vans, and 3 of which concern the factual accuracy of various claims made in the ad.

The adjudication was published on 9th October 2013, well before the full horror of the Windrush scandal had unfolded. The surprising thing now, however, in the light of the subsequent scandal, which resulted in May’s successor as Home Secretary, Amber Rudd, being metaphorically thrown under the bus, is that while the ASA upheld 2 of the 3 complaints about factual accuracy, the 2 complaints about causing racial offence were rejected. The ASA accepted that the use of ‘Go Home’ was contextualised by the reference to illegal immigrants. Of course, at the time, the ASA was not to know that many of the people who were subsequently threatened with deportation would end up proving that they are here perfectly legally. The ASA also accepted that the reference to people facing deportation was targeted at illegal immigrants, not legal ones. To be fair to the ASA, its not their fault that the Home Office couldn’t tell the difference.

So where are we now?

It is clear that there is still a major problem with racism in advertising. Although many mainstream advertisers are helping to create an inclusive culture where young Black Britons will be encouraged to feel that they are part of the culture and they belong here, attempts to really celebrate Black and Caribbean culture in our advertising have not succeed so far. Meanwhile other advertisers seek to exploit or create division, and others are just lazy or inattentive to the offence that they cause.

So, while we’ve come along way from the days when the ‘golly’ was used to advertise marmalade, or Lilt ads were shot in the Caribbean without a single Black person, it is clear that we still have a very long way to go. 

 

Related Item(s): Advertising & Marketing, Brands and IP newsnotes – issue 5, Retail, Hospitality & Leisure

Author(s)/Speaker(s): Brinsley Dresden,

Categories hong-kong

Lewis Silkin – Home and away when working from home means working abroad

Covid-19 is causing many employees to ask if they can work from “home” for an extended period in an overseas country – for example, because it is their home nation or their family is based there. This article explains the potential legal issues and how to avoid the traps.

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Employers should consider a variety of issues, including tax, social security, immigration and employment implications, before agreeing to an employee’s request to work from home when “home” is not in the UK. We look at each of these issues below before explaining what practical steps you can take to minimise the risks.

Tax and social security implications of working temporarily abroad

From a UK perspective, the UK employer should continue to deduct income tax under the PAYE system in accordance with the employee’s PAYE code notwithstanding that the employee is temporarily working overseas. If it is anticipated that the employee will be working overseas for at least a complete UK tax year, they may apply to HMRC for a No Tax PAYE code which, if issued, will authorise the employer to pay the employee without PAYE deductions. In addition, the employer should continue to deduct employee national insurance contributions (NICs) and pay employer NICs.

You will need to consider, however, whether the employee’s stay in the host country creates risks of income tax or social security liability in that country – or even the risk that you (as the employer) are regarded as having created a permanent establishment there. Several tax authorities have issued concessions in the light of Covid-19, but not all have done so, and it will be important to establish the rules in place in the relevant host country. We briefly outline the issues below.

Income tax may be payable in host country

The starting point is that the host country has primary taxing rights over the employment income that the employee earns while physically working in that country. However, if there is a double tax treaty (DTT) between the UK and the host country, the employee may be exempt from income tax there if certain conditions are satisfied including:   

  • The employee is not a tax resident in the host country under the DTT. If the employee is tax resident in the UK and in the host country under each country’s domestic law, their residence status is determined in accordance with the DTT by reference to their personal circumstances.
  • The number of days the employee is present in the host country over a 12-month period (however briefly and irrespective of the reason) must not exceed 183 days.

The UK has a DTT with most countries, including all 27 EU countries and most other major world economies. In practice, this means that a short stay abroad in many locations is not going to result in the employee becoming liable for host country income tax.

Remember, though, that employees who have already spent other periods in the host country in the same 12-month period (e.g. visiting family) may reach the 183-day threshold sooner than you think. Also, the full details of the conditions can differ from DTT to DTT (particularly the period over which the 183-day test must be satisfied), and the employer and/or employee may still have obligations in the host country even if the DTT applies. (For example, the employer may need to register with local authorities as an employer and/or report on the income that is being paid to the employee.). It is therefore important to understand the local position.

If the employee does become subject to tax in the host country but remains UK tax resident, they will remain subject to UK income tax on their worldwide income but should be able to obtain credit for some or all the tax they pay in the host country. They will, however, need to complete the appropriate tax declarations, which could be a complex process.

Social security position is complex and depends on what agreements are in place

The general rule is that employee and employer social security obligations arise in the country in which the employee is physically carrying out their duties.

In the European Economic Area (EEA) and Switzerland, there are currently exceptions to this general rule where it may be possible, depending on the circumstances, for the UK employee and their employer to continue to pay UK NICs and not pay social security contributions in the host country. Broadly, the exceptions are if the employee is sent abroad by their employer for up to two years, or the employee is working in two or more countries. Unless local advice confirms it is unnecessary (for example, because a Covid-19 exemption applies in that country), it is crucial to apply for an A1 (or E101) certificate from HMRC (or the social security authorities in the employee’s country of residence if different) confirming the position.

Note that (other than for Ireland where a separate agreement has been negotiated) these rules are due to expire on 31 December 2020, when the current Brexit implementation period ends. Existing A1/E101 certificates which have an expiry date after 31 December 2020 will be honoured, provided the situation remains unchanged. However, the position for new arrangements remains to be seen and will depend on whether there is a trade agreement between the UK and EU which replicates any of these features.

Outside the EEA and Switzerland, the position will depend on whether there is a reciprocal agreement between the host country and the UK. In countries where there is a reciprocal agreement, such as the USA, Korea and Japan, it is possible for an employee to remain within the UK system (and not pay local social security contributions) for up to five years if they have a valid certificate of coverage.

In other countries where no agreement exists, such as China, India and Australia, the UK employer must continue to deduct employee UK NICs and pay employer NICs for the first 52 weeks of the arrangement. Further, there may also be a liability to pay social security contributions in the host country in addition to any contributions that are made in the UK.

Risk of creating a permanent establishment is low but should be considered

In some situations, there will be a risk that the employee’s activities or presence in the host country will create a permanent establishment for the employer in that country. This would be the case if, for example, the employee has a sales or business development role and is habitually exercising an authority to conclude contracts in the name of the employer while in the host country.

If a permanent establishment is created, the profits attributable to that establishment would be subject to corporate tax in that country. It would also mean that the income tax exemption in the DTT would not apply. While this may be less of a problem if you already have established operations in the host country, it could be a real headache if you do not.

Assuming the working-from-home arrangement is only short term, it would be difficult for the tax authorities to argue that a permanent establishment had been created. The longer the arrangement continues, however, the greater the risk – particularly if the employee routinely negotiates the principal terms of contracts with customers which are simply “rubber-stamped” without amendment by UK employees.

Immigration implications of working abroad temporarily

Immigration permission is generally not required for business visits. Depending on the employee’s activities, it may be possible to characterise their stay as a business visit – for example, if their activities are limited to those typically undertaken during business trips (e.g. meetings and training). However, restricting an employee’s activities in this way is unlikely to be practical for many employees and, in general, the longer an employee works without permission, the more difficult it will be to characterise their stay as a business visit. In some countries, work itself is prohibited even as a business visitor.

Currently, if the employee is a UK or EEA national, they have the right to live and work in an EEA country (although this position will change for UK nationals from 31 December 2020 when the current Brexit implementation period ends).

If an employee is not an EEA national and/or wishes to work from a non-EEA country, you will need to consider what restrictions may be in place. For example, if they want to work in Hong Kong but don’t have permission to stay there indefinitely, they should not undertake any work without permission, even for a limited period and even if the employing entity is not a Hong Kong entity. As with tax and social security, some countries have implemented emergency Covid-19 legislation that will affect the normal immigration position, but this is not the case everywhere.

You may also need to consider any immigration issues that could arise on the employee’s return to the UK. For example, EU nationals should consider whether to secure settled or pre-settled status in the UK before they travel overseas. Other non-British nationals should consider whether their absence from the UK may affect their visa, or their eligibility to apply for other types of status in future where absences are assessed, such as indefinite leave to remain, permanent residence or naturalisation as a British citizen.

Employment law and data privacy implications of working abroad temporarily

On top of the tax, social security and immigration implications explained above, there are various other employment law and data privacy considerations.

Mandatory employment protections may apply

If employees live and work abroad, even for short periods, they can become subject to the jurisdiction of that other country and start to benefit from the applicable local mandatory employment protections. These may include minimum rates of pay, paid annual holidays and – perhaps most importantly in the event of a dispute – rights on termination. What protections, if any, an employee acquires will depend on the country in question. 

Within the EEA, there is also the Posted Workers Directive (PWD) to consider. This applies where an employee is “posted” from one undertaking or establishment to another cross-border within the EEA (and, until 31 December 2020, the UK). Changes to the PWD, which must be implemented by the end of July, mean that employees will be entitled to the same mandatory pay as comparable employees in the host location.

The PWD itself was not designed to cover the situation of an employee working from home temporarily in another EEA country, and it would not be directly engaged unless you opt for a formal secondment to a local group company or ask the employee to work on a contract for a local client. However, the local implementation of the PWD may nonetheless end up capturing this situation.

For example, in Belgium the local implementation of the PWD requires that all employment, remuneration, working terms and conditions and collective bargaining agreements that have been declared generally binding apply as of day one to any employee working temporarily in Belgium. This is also true of the UK, where employees have certain minimum statutory rights from day one. This can be a complicating factor, particularly if a dispute or termination scenario arises and the employee asserts that they have employment rights in another jurisdiction.

Be careful about transferring data

If an employee’s role involves processing personal data, this could give rise to data protection issues, especially if the employee is requesting to work from a country outside of the EEA which is not subject to the General Data Protection Regulation and other EU data privacy laws.

Local health and safety protections may apply

UK employers have a duty to protect the health, safety and welfare of their employees, which includes providing a safe working environment when they are working from home. If an employee works from home abroad, you should also ensure that it is compliant with any local health and safety requirements. For example, in the Netherlands, employers must provide employees with the equipment needed to ensure a safe working environment which in some cases might involve making a contribution or purchasing relevant equipment.

Employees will also need to comply with applicable public health guidance (e.g. quarantine periods) both in the host country and on their return to the UK.

How to minimise the risks

Given the current situation, you will no doubt want to be flexible when it comes to accommodating requests to work from home overseas, but you will also want to minimise the risks. Depending on how many requests you expect to receive, you may even want to consider developing a short policy to ensure that these situations are dealt with consistently and fairly. It is possible that you will receive more such requests in future, as employees look to take advantage of increased remote-working opportunities to ask if they can work abroad for a short period on a regular basis.

The key practical steps for minimising the risks are as follows:

  • Only accept requests if the employee’s role can be performed effectively remotely and can be done lawfully from the country in question.
  • The shorter the period the employee is working abroad, the smaller the risks are likely to be. Consider only approving requests for a short, time-limited duration where the employee’s expected return date is clearly documented.
  • Always take expert local advice on any tax, social security, immigration and employment obligations you may have in the host country, and on any Covid-19 concessions that have been issued. The employee may also need their own advice.
  • Much will depend on the identity of the host country and the nationality of the employee. For the time being, working in the EEA is generally more straightforward but this will change after 31 December 2020 when the Brexit implementation period comes to an end.
  • Check what data processing the employee will be doing, and that this can be carried out lawfully in line with your usual policies.
  • Agree the terms of any temporary overseas working arrangement and record them in writing. Ideally, these should clarify that:
    • the employee will be liable for any additional income taxes or employee social security which may be charged because of their decision to work for a short period in an overseas location (and that the employer is authorised to make additional deductions or seek reimbursements, if necessary, for this purpose)
    • the employee will be responsible for any personal tax declarations that may need to be made
    • the employment contract remains subject to UK law and jurisdiction
    • the employee is still working solely for the UK business
    • the employee does not have the authority to enter into contracts with local customers while in the host country and should not hold themselves out as having such an authority
    • the employee takes responsibility for ensuring they have the necessary technology and arrangements in place to enable them to work effectively
    • the employee accepts that they are working from home at their own risk and that the employer will not be liable for any loss they suffer due to their request being approved
    • the employee must comply with all applicable public health guidance in both in the country to which they travel and in the UK.

 

Related Item(s): Employment, Covid 19 – Coronavirus, Employer & employee relations, Immigration & Global Mobility, Tax for Employers & Executives, Workplace Data Privacy, Employment

Author(s)/Speaker(s): Colin Leckey, Rosie Moore,

Categories hong-kong

Lewis Silkin – The countdown for the new UK immigration system 2020 and Brexit are you ready?

From 1 December 2020 there will be a new immigration system in the UK. It will apply to EEA/Swiss (‘EEA’) nationals from 1 January 2021. Employers need to start preparing for these changes now, including understanding the proposed new rules, checking recruitment plans and budgets, obtaining or reviewing a sponsor licence and assisting staff with applications under the EU Settlement Scheme.

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The below timeline outlines the areas that employers need to consider and suggests timeframes for taking action from September 2020 onwards.

Inform your current EEA employees and their family members about their eligibility for the EU Settlement Scheme and British citizenship

 

Now, if you haven’t already, so the relevant employees can easily prove their UK immigration status and plan the timing of any British citizenship application.

Why?

Current EEA employees and their family members who are eligible but do not apply to the scheme by 30 June 2021 will lose their right to live and work in the UK under free movement law. Aside from the obvious business disruption and anxiety  this would cause, applications under the UK’s immigration system come at a significant cost, whereas applications under the EU Settlement Scheme are free. Making sure your employees are aware of their eligibility for Pre-Settled or Settled Status under the scheme, and thinking about the timing of upcoming moves of EEA nationals to the UK can save money in the long term.

The end of the transition period also has implications for how and when EEA nationals and their family members may be able to apply for British citizenship, with it being beneficial for some individuals to ensure their application for British citizenship is submitted by 31 December 2020.

See our webinar and Q&A on Brexit and the EU Settlement Scheme for further information.

We also highlight the potential pitfalls to avoid with the EU Settlement Scheme, particularly when the circumstances of the COVID-19 pandemic are factored in. See our article here on the six pitfalls and suggestions on how to avoid them.

Finally, we have prepared a simple scenario infographic of what employers need to consider if they are looking to hire an EEA national or family member of an EEA national in now or following the end of the transition period on 31 December 2020. Download it here.

Need more detailed assistance?

Under the Brexit strand of our Immigration Solutions for HR, you can pick and mix from a range of options to help you navigate the EU Settlement Scheme including our handy FAQ guide, specific training sessions and advice surgeries for your EEA staff.

We are also able to assist individuals with EU Settlement Scheme and British citizenship applications.

Get in touch with a member of our Immigration team to discuss putting together the right tools for your business.

Update your HR policies to include remote working and remote right to work checks.

 

Why?

All UK employers have a responsibility to ensure that their employees have the right to work in the UK before they start work and throughout their employment. Carrying out a right to work check properly will shield you from liability for a civil penalty if you are found to have inadvertently employed somebody who does not have the right to work in the UK. The requirements remain in place, however certain temporary allowances having been made due to COVID-19 (which we cover here). HR teams need to stay on top of COVID-19 right to work compliance to avoid being exposed to illegal working penalties.

Need more detailed assistance?

Our Immigration Solutions for HR provide a full overview of the requirements for right to work compliance.

We can also arrange bespoke training sessions for your HR team to upskill them in carrying out compliant checks or do keep a look out for our event on right to work checks in December.

Get to grips with the new system. How will it work? Who will it apply to? How much will it cost?

 

Why?

Businesses will need to familiarise themselves with the implications of the end of free movement and the new immigration system to avoid losses in productivity and talent, as well as minimising cost. This will only be possible if employers are aware of the actions they need to take to adjust their recruitment and employee retention strategies.

The existing routes for sponsoring workers will be significantly reformed. For skilled workers, some of the existing requirements such as resident labour market testing will be removed, and it will be possible to sponsor skilled workers for jobs at A-level equivalent rather than degree level equivalent. There will also be lower salary thresholds and the introduction of ‘tradeable’ points-scoring criteria. See our overview article for further information about the main changes.

Need more detailed assistance?

Our Immigration Law Academies are a one-stop-shop for learning about the future immigration system. Our next online academy is being held on 23 and 24 November, find out more hereor get in touch with a member of our Immigration team to arrange for bespoke training.

Review HR processes to ensure that compliance standards are met.

 

Why?

The Home Office sets stringent compliance standards for employers of migrants, and once they have been breached, it is often impossible to correct them retrospectively. Reviewing HR processes to ensure compliance with sponsorship and right to work obligations will give you the certainty required to focus your efforts on obtaining and retaining talent. 

Need more detailed assistance?

As part of our Immigration Solutions for HR, our Immigration team can offer training, compliance guides and mock audits of your existing HR and right to work processes to analyse compliance, identify any areas of risk, suggest improvements and prepare you for a real Home Office audit.

You may consider that carrying out a sponsorship mock audit and/or right to work mock audit would be a useful exercise if you need to renew or expand your sponsor licence, particularly as the Home Office has now resumed sponsor compliance visits.

Review or apply for a sponsor licence if you anticipate recruiting from the EEA and the rest of the world from January 2021.

 

Before October 2020 to ensure that a new or expanded licence is obtained before the new system goes live. Sponsor licence applications can take up to eight weeks to process.

Why?

The Home Office has written to sponsors to confirm that renewals can be submitted earlier than the normal month ahead of expiry. We anticipate that the queues for consideration of sponsor licence applications will only grow longer as we move towards the end of the year, because many sponsors’ licences are due for renewal if they originally became a sponsor when the Points Based System was launched in 2008. By applying in the coming months, you will beat the inevitable rush at the end of the year and avoid suffering with delays to new hires as a result. 

Need more detailed assistance?

Our Immigration team has a wealth of experience in advising on and assisting with sponsor licence applications and can help you with any queries if you are new to the process.

Review international recruitment processes to develop an efficient mechanism for analysing skills requirements, shortage occupations and SOC codes for sponsored workers.

 

Why?

An out-of-date recruitment strategy will increase the risk that relationships with existing employees and new hires will be damaged if mistakes are made. Adapting early will give your recruitment team confidence they understand the new processes, saving the business headache, time and money.

Need more detailed assistance?

Consider whether you require training on what jobs will be eligible for sponsorship under the new system and the criteria that will need to be met.

If so, get in touch with a member of our immigration team to explore how we might help. As an indication, you can view our training brochure here.

We also offer a handy compliance guide for sponsors of workers, which includes insight into how best to handle SOC code allocation and revision of skills requirements.

Review whether a non-sponsored working visa route may be suitable for current and potential employees.

 

Identify relevant employees before November 2020 to allow time for the full range of options to be analysed before the new system is implemented.

Why?

Existing employees with upcoming visa expiries, and prospective employees due to start work next year may be eligible for an expanded range of non-sponsored immigration categories under the new system.

Global Talent, Innovator and Start-Up visas provide skill-specific routes to live and work in the UK, while Youth Mobility and UK Ancestry visas are available for some individuals. With more non-sponsored working routes set to be introduced, including a new route for Hong Kongers, companies should be aware of the immigration options available to their current and potential employees. Not only will this allow for improved recruitment strategies, but the absence of fees specific to sponsorship means that these routes can be cheaper.

Need more detailed assistance?

If you need to explore the options that might be available to existing workers and new hires under the new regime, get in touch with our immigration team. We are able to advise on and assist with any necessary applications.

Consider the timing of initial, extension and switching applications for current and potential employees.

 

Identify relevant employees before November 2020 to allow for applications to be processed under the most beneficial arrangements where appropriate.

Why?

The requirements of the current and new systems are different, and in some cases it may be beneficial to defer planned applications until the new arrangements are in place. Examples of where this may be the case are where resident labour market testing would currently be required for a Tier 2 (General) application but would not for a Skilled worker application, or where switching will be allowed under the new system but not the current one. In other cases it may be necessary or beneficial to go ahead with planned applications under the current system. Failure to identify relevant employees early enough to submit applications in the most beneficial way may result in the individual being unable to continue working in the UK for a period of time, or may delay their future eligibility for settlement.

Need more detailed assistance?

If you are looking to explore the options available to your employees in the new regime, contact a member of our immigration team. We will be able to assist with any necessary applications.

Upskill your HR team on sponsor licence management and the requirements of the new system.

 

Before December 2020 so that they are ready to go in December 2020.

Why?

Delays to new hires and early mistakes in recruitment processes can lead to additional cost and missed compliance duties.
 

Need more detailed assistance?

Our Sponsoring Workers  guidance provides an overview of sponsor licence management and compliance requirements.

We are alternatively able to arrange bespoke training for HR teams.

Stay ahead of the curve with changes and updates.

 

Always. Immigration policies normally have at least two major updates per year in April and October, however the pace of change has significantly increased in recent years. Significant adjustments will continue to be necessary as the post-Brexit immigration system is established, so we anticipate frequent updates throughout 2021 and beyond.

Why?

Falling behind on the requirements of hiring and retaining international talent can happen quickly in a constantly changing legal landscape. This can lead to missed opportunities and mistakes that are stressful, costly and time-consuming to deal with.

Need more detailed assistance?

Sign up to our email updates to remain ahead of the curve. 

 

You can download a timeline reminder of the areas to be aware of as we countdown to the new immigration system 2020.

 

Related Item(s): Immigration & Global Mobility, Immigration Solutions for HR, BREXIT, Immigration

Author(s)/Speaker(s): Andrew Osborne, Stephen OFlaherty,

Attachment: Lewis Silkin – The countdown for the new UK immigration system 2021 – are you ready

Categories hong-kong

Lewis Silkin – Six pitfalls to avoid with the EU Settlement Scheme

Despite the EU Settlement Scheme (EUSS) being publicised as being simple and straightforward, there are many potential pitfalls for the unwary, particularly when the circumstances of the COVID-19 pandemic are factored in. To avoid them, it will be important for individuals to be aware of the scheme and to get to grips with it before the end of this year. This is because in some cases, assessments and actions will need to be completed by then, despite main deadline for the scheme not being until 30 June 2021.

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This article sets out some of the potential pitfalls and suggestions for how to avoid them.

1. People not being aware of the scheme and when they need to apply or take other actions

The Home Office’s latest statistics show that by 30 September 2020 over 4 million people have applied under the EUSS, but the total number of people who are eligible to apply is currently unknown.

As the scheme is an application scheme rather than a registration scheme, those who are currently living in the UK and need to apply but fail to secure their status under it will have no lawful immigration status in the UK beyond 30 June 2021. The Home Office will be able consider late applications with a reasonable excuse, however individuals who apply out of time will not have the right to work, rent or to access free healthcare until such time as their application is approved.

The 30 June 2021 deadline also applies to individuals currently living abroad who acquired permanent residence status in the UK less than five years ago. As permanent residence status is lost after a continuous absence from the UK of two years, it is highly likely that some individuals who are in fact eligible to apply may think the scheme does not apply to them.

The situation can also be more complex for family members who may potentially fall within the scope of the scheme, but who need to take action by 31 December 2020 to secure their eligibility. For example, in many cases the relevant family relationship must be established by 31 December 2020.

A recent report by the Migration Observatory outlines a range of reasons why people may fail to secure status under EUSS, which includes people who are still not aware of the scheme at all, or who think that it does not apply to them.

There are also potential issues that may arise where employers, landlords or others are not aware of the grace period from 1 January 2021 to 30 June 2021, or that EUSS status in many cases will only be verifiable online. Where an eligible person has not yet obtained status under the EUSS, or cannot present physical documentation confirming their status under the scheme, there is a risk that they may incorrectly have employment or rental accommodation refused or terminated, or they may be denied other services.

Actions to take to avoid issues arising:

  • Employers can minimise potential disruption to their business by sending periodic firmwide communications with information on the scheme and supporting members of their workforce to apply. This support can range from providing signposting to more detailed information to arranging advice sessions or supporting the cost of immigration assistance for the process.
  • Employers with European offices may choose to include information on EUSS as well as on frontier worker permits as part of communications relating to Brexit
  • Individuals can choose not to wait until the grace period to make their application, ensure they read the guidance from the Government in their approval letter (which they will receive by email) on how their status can be verified, and share this information with relevant third parties

2. Applying under EUSS when this is not necessary

Some EEA national children born in the UK may be British by birth and should therefore not make an application under EUSS. This is because such children have the right of abode in the UK and are not subject to the Immigration Rules.

Actions to take to avoid issues arising:

  • Check whether an EEA national child is a British citizen by birth
  • Consider making a British passport application for a child who is a British citizen, in order to evidence their British nationality and facilitate their travel to and from the UK after the end of the transition period

3. People not being lawfully in the UK during the post-transition ‘grace period’

Draft regulations published on 21 September 2020 confirm the Government’s intention to allow EEA nationals and their family members who are lawfully resident in the UK by 31 December 2020 to be covered by a grace period to enable them to apply under EUSS after the end of the transition period. The grace period will last from the end of the transition period on 31 December 2020 until 30 June 2021. It also extends beyond 30 June 2021 where an individual has an EUSS application or related appeal outstanding.

The problem for some people however is that the benefit of the grace period will not apply to those whose residence in the UK is not in line with the requirements of the current Immigration (European Economic Area) Regulations 2016. Obvious examples of people who would be excluded are students and the economically self-sufficient who do not hold comprehensive sickness insurance.

The consequence of not being covered by the grace period is that a person will be exposed to hostile environment measures until such time as they are granted leave under the EU Settlement Scheme. This includes not being allowed to work, rent private accommodation or access free healthcare.

The actions to take to avoid issues arising:

  • Ensure comprehensive sickness insurance is in place by 31 December 2020 for individuals who are students or economically self-sufficient
  • Submit applications under the EU Settlement Scheme as soon as possible, with a view to minimising or eliminating the time the applicant is in the UK without lawful status

4. Applicants not understanding residence requirements for settled status

If a person with pre-settled status spends more than six months in any 12-month period outside the UK it will break the continuity of their residence for settlement eligibility purposes. There is an exception that a single absence of up to 12 months for an important reason for example childbirth, serious illness, study, vocational training or an overseas work posting can be ignored. Compulsory military service, being abroad as a Crown servant, armed forces member or their family member will also be ignored.

The Home Office has not yet produced any specific policy on how absences due to COVID-19 will be treated for the purpose of settlement under the EU Settlement Scheme, however it is possible that this will be produced at some point in the future.

It is however clear that as long as a fresh continuous residence period is started by 31 December 2020 following a break in continuous residence, it is possible to make a further application for pre-settled status by 30 June 2021. Otherwise, where continuous residence has been broken, it would be necessary to qualify for an extension of stay under one of the categories of the new UK immigration system or depart the UK before the expiry of the pre-settled status.

Actions to take to avoid issues arising:

  • Review absences in the lead up to 31 December 2020
  • Ensure a fresh period of residence in the UK commences by 31 December 2020 if continuous residence has been broken
  • Make a further application for pre-settled status by 30 June 2021

5. Applicants not meeting the residence requirements for naturalisation

The residence requirements for naturalisation are different from the requirements for settlement, and this should not be ignored for those who wish to obtain British citizenship, particularly in view of the travel and other disruptions caused by the COVID-19 pandemic.

In recognition of the effect the pandemic is having on international travel and in particular absences from the UK, on 2 September 2020 the Home Office published an update to its naturalisation guidance. The update confirms that where an applicant has absences from the UK of between 480 to 900 days during the qualifying period for naturalisation (or between 300 and 540 days for applicants with a British spouse), their excess absences may be ignored if they were unable to return to the UK due to a global pandemic.

Absences of more than 100 days but no more than 180 days in the final year of the qualifying period may also be ignored if the applicant was unable to the UK due to a global pandemic. There is also discretion to ignore a higher level of final year absences in limited circumstances.

In most cases, applicants will also be required to have established their home, employment, family and finances in the UK.

Actions to take to avoid issues arising:

  • Understand what the residence requirements are for naturalisation ie eligibility may be adversely affected if the applicant spends more than 450 days outside the UK during the five year qualifying period, or 270 days over the three year qualifying period (for those with a British spouse or civil partner), or more than 90 days outside the UK during the 12 months before the application
  • Record and monitor absences from the UK
  • Avoid non-essential international travel outside the UK until travelling conditions become more predictable
  • Consider whether absences from the UK during the COVID-19 pandemic are due to an inability to return to the UK, or preference – in the latter case it may be that excess absences will not be ignored

6. Applicants not understanding the implications of the end of the transition period for a naturalisation application

Naturalisation applications for people with a UK permanent residence document can be submitted 12 months after the date the Home Office has recognised on the permanent residence approval letter, however the Home Office has confirmed that individuals who have a permanent residence document will not be able to apply for naturalisation based on this after 31 December 2020 if they have also been granted settled status under EUSS. They must wait until at least 12 months has elapsed since they were granted settled status. Naturalisation applicants also must build in time to prepare for and pass the Life in the UK Test unless they are exempt from this requirement.

Individuals who have a British citizenship application pending on 30 June 2021 (the main in-country deadline for applications under EUSS) must make an application under the EUSS by 30 June 2021, otherwise they will be considered to be an overstayer.

Actions to take to avoid issues arising:

  • Submit any naturalisation application relying on a permanent residence document before 31 December 2020 if eligible
  • Submit an application for settled status under the EUSS by 30 June 2021 if an application for naturalisation is still pending at that point

If you are an employer wanting more information on how you can support your EEA workforce in the lead-up to the end of the transition period or beyond, please take a look at our Immigration Solutions for Brexit. If you are an individual or have a specific query on any of the issues raised in this article, please contact a member of our Immigration Team.

Related Item(s): Immigration & Global Mobility, Immigration, BREXIT

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

Categories hong-kong

Lewis Silkin – Six pitfalls to avoid with the EU Settlement Scheme

Despite the EU Settlement Scheme (EUSS) being publicised as being simple and straightforward, there are many potential pitfalls for the unwary, particularly when the circumstances of the COVID-19 pandemic are factored in. To avoid them, it will be important for individuals to be aware of the scheme and to get to grips with it before the end of this year. This is because in some cases, assessments and actions will need to be completed by then, despite main deadline for the scheme not being until 30 June 2021.

Text:

This article sets out some of the potential pitfalls and suggestions for how to avoid them.

1. People not being aware of the scheme and when they need to apply or take other actions

The Home Office’s latest statistics show that by 30 September 2020 over 4 million people have applied under the EUSS, but the total number of people who are eligible to apply is currently unknown.

As the scheme is an application scheme rather than a registration scheme, those who are currently living in the UK and need to apply but fail to secure their status under it will have no lawful immigration status in the UK beyond 30 June 2021. The Home Office will be able consider late applications with a reasonable excuse, however individuals who apply out of time will not have the right to work, rent or to access free healthcare until such time as their application is approved.

The 30 June 2021 deadline also applies to individuals currently living abroad who acquired permanent residence status in the UK less than five years ago. As permanent residence status is lost after a continuous absence from the UK of two years, it is highly likely that some individuals who are in fact eligible to apply may think the scheme does not apply to them.

The situation can also be more complex for family members who may potentially fall within the scope of the scheme, but who need to take action by 31 December 2020 to secure their eligibility. For example, in many cases the relevant family relationship must be established by 31 December 2020.

A recent report by the Migration Observatory outlines a range of reasons why people may fail to secure status under EUSS, which includes people who are still not aware of the scheme at all, or who think that it does not apply to them.

There are also potential issues that may arise where employers, landlords or others are not aware of the grace period from 1 January 2021 to 30 June 2021, or that EUSS status in many cases will only be verifiable online. Where an eligible person has not yet obtained status under the EUSS, or cannot present physical documentation confirming their status under the scheme, there is a risk that they may incorrectly have employment or rental accommodation refused or terminated, or they may be denied other services.

Actions to take to avoid issues arising:

  • Employers can minimise potential disruption to their business by sending periodic firmwide communications with information on the scheme and supporting members of their workforce to apply. This support can range from providing signposting to more detailed information to arranging advice sessions or supporting the cost of immigration assistance for the process.
  • Employers with European offices may choose to include information on EUSS as well as on frontier worker permits as part of communications relating to Brexit
  • Individuals can choose not to wait until the grace period to make their application, ensure they read the guidance from the Government in their approval letter (which they will receive by email) on how their status can be verified, and share this information with relevant third parties

2. Applying under EUSS when this is not necessary

Some EEA national children born in the UK may be British by birth and should therefore not make an application under EUSS. This is because such children have the right of abode in the UK and are not subject to the Immigration Rules.

Actions to take to avoid issues arising:

  • Check whether an EEA national child is a British citizen by birth
  • Consider making a British passport application for a child who is a British citizen, in order to evidence their British nationality and facilitate their travel to and from the UK after the end of the transition period

3. People not being lawfully in the UK during the post-transition ‘grace period’

Draft regulations published on 21 September 2020 confirm the Government’s intention to allow EEA nationals and their family members who are lawfully resident in the UK by 31 December 2020 to be covered by a grace period to enable them to apply under EUSS after the end of the transition period. The grace period will last from the end of the transition period on 31 December 2020 until 30 June 2021. It also extends beyond 30 June 2021 where an individual has an EUSS application or related appeal outstanding.

The problem for some people however is that the benefit of the grace period will not apply to those whose residence in the UK is not in line with the requirements of the current Immigration (European Economic Area) Regulations 2016. Obvious examples of people who would be excluded are students and the economically self-sufficient who do not hold comprehensive sickness insurance.

The consequence of not being covered by the grace period is that a person will be exposed to hostile environment measures until such time as they are granted leave under the EU Settlement Scheme. This includes not being allowed to work, rent private accommodation or access free healthcare.

The actions to take to avoid issues arising:

  • Ensure comprehensive sickness insurance is in place by 31 December 2020 for individuals who are students or economically self-sufficient
  • Submit applications under the EU Settlement Scheme as soon as possible, with a view to minimising or eliminating the time the applicant is in the UK without lawful status

4. Applicants not understanding residence requirements for settled status

If a person with pre-settled status spends more than six months in any 12-month period outside the UK it will break the continuity of their residence for settlement eligibility purposes. There is an exception that a single absence of up to 12 months for an important reason for example childbirth, serious illness, study, vocational training or an overseas work posting can be ignored. Compulsory military service, being abroad as a Crown servant, armed forces member or their family member will also be ignored.

The Home Office has not yet produced any specific policy on how absences due to COVID-19 will be treated for the purpose of settlement under the EU Settlement Scheme, however it is possible that this will be produced at some point in the future.

It is however clear that as long as a fresh continuous residence period is started by 31 December 2020 following a break in continuous residence, it is possible to make a further application for pre-settled status by 30 June 2021. Otherwise, where continuous residence has been broken, it would be necessary to qualify for an extension of stay under one of the categories of the new UK immigration system or depart the UK before the expiry of the pre-settled status.

Actions to take to avoid issues arising:

  • Review absences in the lead up to 31 December 2020
  • Ensure a fresh period of residence in the UK commences by 31 December 2020 if continuous residence has been broken
  • Make a further application for pre-settled status by 30 June 2021

5. Applicants not meeting the residence requirements for naturalisation

The residence requirements for naturalisation are different from the requirements for settlement, and this should not be ignored for those who wish to obtain British citizenship, particularly in view of the travel and other disruptions caused by the COVID-19 pandemic.

In recognition of the effect the pandemic is having on international travel and in particular absences from the UK, on 2 September 2020 the Home Office published an update to its naturalisation guidance. The update confirms that where an applicant has absences from the UK of between 480 to 900 days during the qualifying period for naturalisation (or between 300 and 540 days for applicants with a British spouse), their excess absences may be ignored if they were unable to return to the UK due to a global pandemic.

Absences of more than 100 days but no more than 180 days in the final year of the qualifying period may also be ignored if the applicant was unable to the UK due to a global pandemic. There is also discretion to ignore a higher level of final year absences in limited circumstances.

In most cases, applicants will also be required to have established their home, employment, family and finances in the UK.

Actions to take to avoid issues arising:

  • Understand what the residence requirements are for naturalisation ie eligibility may be adversely affected if the applicant spends more than 450 days outside the UK during the five year qualifying period, or 270 days over the three year qualifying period (for those with a British spouse or civil partner), or more than 90 days outside the UK during the 12 months before the application
  • Record and monitor absences from the UK
  • Avoid non-essential international travel outside the UK until travelling conditions become more predictable
  • Consider whether absences from the UK during the COVID-19 pandemic are due to an inability to return to the UK, or preference – in the latter case it may be that excess absences will not be ignored

6. Applicants not understanding the implications of the end of the transition period for a naturalisation application

Naturalisation applications for people with a UK permanent residence document can be submitted 12 months after the date the Home Office has recognised on the permanent residence approval letter, however the Home Office has confirmed that individuals who have a permanent residence document will not be able to apply for naturalisation based on this after 31 December 2020 if they have also been granted settled status under EUSS. They must wait until at least 12 months has elapsed since they were granted settled status. Naturalisation applicants also must build in time to prepare for and pass the Life in the UK Test unless they are exempt from this requirement.

Individuals who have a British citizenship application pending on 30 June 2021 (the main in-country deadline for applications under EUSS) must make an application under the EUSS by 30 June 2021, otherwise they will be considered to be an overstayer.

Actions to take to avoid issues arising:

  • Submit any naturalisation application relying on a permanent residence document before 31 December 2020 if eligible
  • Submit an application for settled status under the EUSS by 30 June 2021 if an application for naturalisation is still pending at that point

If you are an employer wanting more information on how you can support your EEA workforce in the lead-up to the end of the transition period or beyond, please take a look at our Immigration Solutions for Brexit. If you are an individual or have a specific query on any of the issues raised in this article, please contact a member of our Immigration Team.

Related Item(s): Immigration & Global Mobility, Immigration, BREXIT

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

Categories hong-kong

Lewis Silkin – FIVE pitfalls to avoid with the EU Settlement Scheme

Despite the EU Settlement Scheme (EUSS) being publicised as being simple and straightforward, there are many potential pitfalls for the unwary, particularly when the circumstances of the COVID-19 pandemic are factored in. To avoid them, it will be important for individuals to be aware of the scheme and to get to grips with it before the end of this year. This is because in some cases, assessments and actions will need to be completed by then, despite main deadline for the scheme not being until 30 June 2021.

Text:

This article sets out some of the potential pitfalls and suggestions for how to avoid them.

1. People not being aware of the scheme and when they need to apply or take other actions

The Home Office’s latest statistics show that by 30 September 2020 over 4 million people have applied under the EUSS, but the total number of people who are eligible to apply is currently unknown.

As the scheme is an application scheme rather than a registration scheme, those who are currently living in the UK and need to apply but fail to secure their status under it will have no lawful immigration status in the UK beyond 30 June 2021. The Home Office will be able consider late applications with a reasonable excuse, however individuals who apply out of time will not have the right to work, rent or to access free healthcare until such time as their application is approved.

The 30 June 2021 deadline also applies to individuals currently living abroad who acquired permanent residence status in the UK less than five years ago. As permanent residence status is lost after a continuous absence from the UK of two years, it is highly likely that some individuals who are in fact eligible to apply may think the scheme does not apply to them.

The situation can also be more complex for family members who may potentially fall within the scope of the scheme, but who need to take action by 31 December 2020 to secure their eligibility. For example, in many cases the relevant family relationship must be established by 31 December 2020.

A recent report by the Migration Observatory outlines a range of reasons why people may fail to secure status under EUSS, which includes people who are still not aware of the scheme at all, or who think that it does not apply to them.

There are also potential issues that may arise where employers, landlords or others are not aware of the grace period from 1 January 2021 to 30 June 2021, or that EUSS status in many cases will only be verifiable online. Where an eligible person has not yet obtained status under the EUSS, or cannot present physical documentation confirming their status under the scheme, there is a risk that they may incorrectly have employment or rental accommodation refused or terminated, or they may be denied other services.

Actions to take to avoid issues arising:

  • Employers can minimise potential disruption to their business by sending periodic firmwide communications with information on the scheme and supporting members of their workforce to apply. This support can range from providing signposting to more detailed information to arranging advice sessions or supporting the cost of immigration assistance for the process.
  • Employers with European offices may choose to include information on EUSS as well as on frontier worker permits as part of communications relating to Brexit
  • Individuals can choose not to wait until the grace period to make their application, ensure they read the guidance from the Government in their approval letter (which they will receive by email) on how their status can be verified, and share this information with relevant third parties

2. Applying under EUSS when this is not necessary

Some EEA national children born in the UK may be British by birth and should therefore not make an application under EUSS. This is because such children have the right of abode in the UK and are not subject to the Immigration Rules.

Actions to take to avoid issues arising:

  • Check whether an EEA national child is a British citizen by birth
  • Consider making a British passport application for a child who is a British citizen, in order to evidence their British nationality and facilitate their travel to and from the UK after the end of the transition period

3. People not being lawfully in the UK during the post-transition ‘grace period’

Draft regulations published on 21 September 2020 confirm the Government’s intention to allow EEA nationals and their family members who are lawfully resident in the UK by 31 December 2020 to be covered by a grace period to enable them to apply under EUSS after the end of the transition period. The grace period will last from the end of the transition period on 31 December 2020 until 30 June 2021. It also extends beyond 30 June 2021 where an individual has an EUSS application or related appeal outstanding.

The problem for some people however is that the benefit of the grace period will not apply to those whose residence in the UK is not in line with the requirements of the current Immigration (European Economic Area) Regulations 2016. Obvious examples of people who would be excluded are students and the economically self-sufficient who do not hold comprehensive sickness insurance.

The consequence of not being covered by the grace period is that a person will be exposed to hostile environment measures until such time as they are granted leave under the EU Settlement Scheme. This includes not being allowed to work, rent private accommodation or access free healthcare.

The actions to take to avoid issues arising:

  • Ensure comprehensive sickness insurance is in place by 31 December 2020 for individuals who are students or economically self-sufficient
  • Submit applications under the EU Settlement Scheme as soon as possible, with a view to minimising or eliminating the time the applicant is in the UK without lawful status

4. Applicants not understanding residence requirements for settled status

If a person with pre-settled status spends more than six months in any 12-month period outside the UK it will break the continuity of their residence for settlement eligibility purposes. There is an exception that a single absence of up to 12 months for an important reason for example childbirth, serious illness, study, vocational training or an overseas work posting can be ignored. Compulsory military service, being abroad as a Crown servant, armed forces member or their family member will also be ignored.

The Home Office has not yet produced any specific policy on how absences due to COVID-19 will be treated for the purpose of settlement under the EU Settlement Scheme, however it is possible that this will be produced at some point in the future.

It is however clear that as long as a fresh continuous residence period is started by 31 December 2020 following a break in continuous residence, it is possible to make a further application for pre-settled status by 30 June 2021. Otherwise, where continuous residence has been broken, it would be necessary to qualify for an extension of stay under one of the categories of the new UK immigration system or depart the UK before the expiry of the pre-settled status.

Actions to take to avoid issues arising:

  • Review absences in the lead up to 31 December 2020
  • Ensure a fresh period of residence in the UK commences by 31 December 2020 if continuous residence has been broken
  • Make a further application for pre-settled status by 30 June 2021

5. Applicants not meeting the residence requirements for naturalisation

The residence requirements for naturalisation are different from the requirements for settlement, and this should not be ignored for those who wish to obtain British citizenship, particularly in view of the travel and other disruptions caused by the COVID-19 pandemic.

In recognition of the effect the pandemic is having on international travel and in particular absences from the UK, on 2 September 2020 the Home Office published an update to its naturalisation guidance. The update confirms that where an applicant has absences from the UK of between 480 to 900 days during the qualifying period for naturalisation (or between 300 and 540 days for applicants with a British spouse), their excess absences may be ignored if they were unable to return to the UK due to a global pandemic.

Absences of more than 100 days but no more than 180 days in the final year of the qualifying period may also be ignored if the applicant was unable to the UK due to a global pandemic. There is also discretion to ignore a higher level of final year absences in limited circumstances.

In most cases, applicants will also be required to have established their home, employment, family and finances in the UK.

Actions to take to avoid issues arising:

  • Understand what the residence requirements are for naturalisation ie eligibility may be adversely affected if the applicant spends more than 450 days outside the UK during the five year qualifying period, or 270 days over the three year qualifying period (for those with a British spouse or civil partner), or more than 90 days outside the UK during the 12 months before the application
  • Record and monitor absences from the UK
  • Avoid non-essential international travel outside the UK until travelling conditions become more predictable
  • Consider whether absences from the UK during the COVID-19 pandemic are due to an inability to return to the UK, or preference – in the latter case it may be that excess absences will not be ignored

6. Applicants not understanding the implications of the end of the transition period for a naturalisation application

Naturalisation applications for people with a UK permanent residence document can be submitted 12 months after the date the Home Office has recognised on the permanent residence approval letter, however the Home Office has confirmed that individuals who have a permanent residence document will not be able to apply for naturalisation based on this after 31 December 2020 if they have also been granted settled status under EUSS. They must wait until at least 12 months has elapsed since they were granted settled status. Naturalisation applicants also must build in time to prepare for and pass the Life in the UK Test unless they are exempt from this requirement.

Individuals who have a British citizenship application pending on 30 June 2021 (the main in-country deadline for applications under EUSS) must make an application under the EUSS by 30 June 2021, otherwise they will be considered to be an overstayer.

Actions to take to avoid issues arising:

  • Submit any naturalisation application relying on a permanent residence document before 31 December 2020 if eligible
  • Submit an application for settled status under the EUSS by 30 June 2021 if an application for naturalisation is still pending at that point

If you are an employer wanting more information on how you can support your EEA workforce in the lead-up to the end of the transition period or beyond, please take a look at our Immigration Solutions for Brexit. If you are an individual or have a specific query on any of the issues raised in this article, please contact a member of our Immigration Team.

Related Item(s): Immigration & Global Mobility, Immigration, BREXIT

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