• Insights

Closure of Tier 2 Intra-Company Transferee (Short Term) Category, Minimum Salary Modifications Among April 6 Changes

March 17, 2017

insight-news-default

Country / Territory

  • United KingdomUnited Kingdom

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

United Kingdom

New rules effective April 6, 2017 will include the closure of the Tier 2 Intra-Company Transferee (ICT) (Short Term Staff) category, changes to salary thresholds and relaxed graduate recruitment provisions. As expected, the Immigration Health Levy is to be extended across all Tier 2 ICT categories and an Immigration Skills Charge will be introduced for most new Tier 2 applications.

The new rules are explained in detail below.

Tier 2 Intra-Company Transfer Category

The Tier 2 Intra-Company Transfer category will be reduced to the following two sub-categories from four:

  • Long Term Staff – for those with a minimum salary of GBP 41,500 or those who meet the Standard Occupational Code (SOC) minimum; and
  • Graduate Trainee – for those with a minimum salary of GBP 23,000 or those who meet the SOC minimum.

Other changes include the following:

  • The salary threshold to avoid the 12-month cooling-off period for Tier 2 ICT will be reduced to GBP 120,000 from GBP 155,300.
  • The salary threshold to remain in the United Kingdom for nine years under Tier 2 ICT will be reduced to GBP 120,000 from GBP 155,300.
  • Tier 2 ICT migrants earning over GBP 73,900 will be exempt from the requirement to have at least 12 months’ employment experience.
  • The government clarified what does and does not count toward allowances. Notably, employers will have to pay assignees guaranteed annual payments to cover mobility or cost of living in the United Kingdom.
  • An Immigration Health Levy of GBP 200 per applicant per year will apply to all Tier 2 ICT migrants and their dependants.

Tier 2 General – Salary Changes

The key changes that will affect salaries for workers in the Tier 2 General category include the following:

  • The minimum salary will increase to GBP 30,000;
  • The High Earner threshold (where no Resident Labour Market Test is required) will be increased to GBP 159,600;
  • What does and does not count toward allowances has been clarified. Employers must pay guaranteed allowances for the duration of the applicant’s employment in the United Kingdom, which must match what would be paid to a local settled worker in similar circumstances; and
  • Applications on or after April 6, 2022 for Indefinite Leave to Remain based on residence as a Tier 2 General migrant will require a minimum salary of GBP 37,900.

Tier 2 General – Recruiting Practices

Employers will be able to advertise on at least one prominent graduate recruitment website which does not charge a fee to jobseekers to view job advertisements or to apply for jobs via those advertisements. Employers will no longer be required to advertise on specific commercial websites such as Target Jobs or to use the milkround recruitment method.

Employers will be required to make an offer to graduates within 12 months of the end of the recruitment exercise, up from six months.

The salary threshold for employers who are exempt from advertising on Universal Jobmatch will be increased to GBP 73,900.

Immigration Skills Charge

  • An Immigration Skills Charge will be introduced for foreign nationals who apply for a stay over six months in the Tier 2 General and ICT categories at a rate of GBP 1,000 per year.
  • There will be exemptions for Tier 4 to Tier 2 switches, Tier 2 ICT Graduate Trainee and PhD roles.
  • Small and charitable sponsors will be subject to a lower charge of GBP 364.

Criminal Record Certificates

Tier 1 Investor, Tier 1 Entrepreneur and certain Tier 2 General SOC code employees (in medical and educational roles) will be required to obtain a Criminal Record Certificate from the relevant authority in any country in which they have resided for 12 months or more (whether continuously or in total) in the past 10 years while age 18 or over.

The Home Office will allow waivers of this requirement in certain circumstances.

Tier 1 Entrepreneur

The government has clarified the following points about Tier 1 Entrepreneurs:

  • They will be able to become members of a Partnership to retain eligibility.
  • ‘Investment’ means that the funds have been invested into a business or businesses in which the applicant is self-employed or is a director or member of a partnership.

Tier 1 Exceptional Talent

There will be minor changes to Arts Council England criteria, and major changes to Tech Nation criteria, with separate criteria for those applying under the Exceptional Talent and Exceptional Promise categories.

Representative of an Overseas Business

The rules clarify that a UK branch of an overseas business can already be in existence but must not be active to qualify for the visa.

Inward Investment Companies

The Home Office has confirmed the definition of an Inward Investment Company and indicated that the Resident Labour Market Test will not apply to companies that meet the following requirements:

  • The sponsor was registered in the United Kingdom with Companies House no earlier than three years before the date the Certificate of Sponsorship was assigned;
  • The sponsor is the registered branch or wholly-owned subsidiary of a business which has its headquarters and principal place of business outside the United Kingdom;
  • The relocation or inward investment involves new capital expenditure of GBP 27 million or the creation of at least 21 new UK jobs; and
  • The sponsor can provide evidence of the above points, if required. For this purpose, working in support of an inward investment project does not include the supply of services to a third-party client.

Other Changes

Applications will be refused if a migrant has overstayed a visa in the United Kingdom for 30 days or more and leaves voluntarily. This is a reduction from the current more generous 90 days’ allowance, where transitional arrangements are in place.

The Home Office will grant 10 business days for applicants to provide additional documents for their visa applications where requested, an increase from seven business days.

Passports will no longer have to be current to meet English language requirements, as required by certain visa categories.

What This Means for Employers and Foreign Nationals

These changes will result in a substantial increase in the cost of obtaining permission to work in the United Kingdom due to the introduction of the Immigration Skills Charge, the extension of the Health Levy to Tier 2 ICT category and the elimination of the Tier ICT Short Term Staff category.

Foreign nationals should, however, benefit from the introduction of a lower threshold for the cooling-off period for the Tier 2 ICT category and the relaxation of the graduate recruitment rules.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

© 2017 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Country / Territory

  • United KingdomUnited Kingdom

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Blog post

Canada’s Immigration Dual Reality: Narrower Access, Persistent Demand

Partner Jack Kim discusses how Canada’s increasingly selective and complex immigration system is affecting talent access, retention and long-term workforce planning for employers.

Learn more

Blog post

UK Temporary Shortage List Review: What the Migration Advisory Committee's Recommendations Mean for Employers

UK Government Affairs Strategy Director Shuyeb Muquit explores what the recommendations mean, what’s still uncertain and what employers should be watching next

Learn more

Blog post

A1-Bescheinigung für Geschäftsreisen und Entsendungen: Was Arbeitgeber wissen müssen

In this blog, Senior Manager Katharina Vorländer explains when employers need an A1 certificate for employees traveling or working temporarily within Europe, the application process and how timely planning can help manage social security compliance risks.

Learn more

Awards

Fragomen Retains Band 1 Ranking & Receives Four Individual Rankings in Chambers High Net Worth 2026 Guide

Fragomen and UK team members are ranked in the “Immigration: High Net Worth Individuals – UK-wide” category of the Chambers High Net Worth 2026 Guide.

Learn more

Blog post

Establishing a Business Presence in Switzerland: Key Considerations for Employers

In this blog, Director Ana Bessa Santos explores what Swiss authorities expect from employers when assessing work permit applications—including why a well-developed business plan, realistic growth projections and evidence of a genuine operational presence are critical to supporting both initial applications and future permit renewals.

Learn more

Media mentions

Personnel Today: Migration Committee Proposes to Cut 24 Occupations From New Shortage List

Partner Louise Haycock discussed the Migration Advisory Committee’s Temporary Shortage List recommendations and the need for clear workforce plans and transitional arrangements.

Learn more

Media mentions

Business Insider: 3 Lawyers React to Trump's New Limits on Student Visas

Counsel Brian Hunt discusses how proposed changes to F-1 student visas could create uncertainty for international students transitioning to the US workforce.

Learn more

Media mentions

Deutscher AnwaltSpiegel: Rechtliche Risiken bei Mitarbeitereinsätzen aus dem Ausland

Senior Manager Katharina Vorländer explains how employers and clients can reduce legal risks during cross-border employee assignments in Germany.

Learn more

Blog post

Mainland vs. Free Zone in the UAE: Choosing the Right Company Structure in 2026

Senior Manager Zak Hynes explores the key factors businesses should consider when establishing a presence in the UAE—from operating model and visa requirements to banking, office needs and long-term growth plans—in our new blog. The right structure is the one that best supports your business strategy, not simply the lowest upfront cost.

Learn more

Video

2026 Regional Immigration Overviews | #MobilityMinute

Partner Catherine Macris highlights key findings from Fragomen’s 2026 regional immigration overviews, including tighter compliance controls, digital border transformation and emerging pathways for global talent.

Learn more

Media mentions

Gazeta Prawna: Unijny parasol nad pracownikami z Ukrainy rozpięty do 2028 r. Polscy pracodawcy mogą spać spokojnie, ale czas ucieka

Partner Karolina Schiffter discusses how the EU's extension of temporary protection for Ukrainian citizens through 2028 will affect employers in Poland.

Learn more

Fragomen news

Fragomen's Immigration Guide for the UK Tech Sector

Fragomen’s "Immigration Guide for the UK Tech Sector" introduces visa options available for those working and recruiting in the tech sector.

Learn more

Blog post

Canada’s Immigration Dual Reality: Narrower Access, Persistent Demand

Partner Jack Kim discusses how Canada’s increasingly selective and complex immigration system is affecting talent access, retention and long-term workforce planning for employers.

Learn more

Blog post

UK Temporary Shortage List Review: What the Migration Advisory Committee's Recommendations Mean for Employers

UK Government Affairs Strategy Director Shuyeb Muquit explores what the recommendations mean, what’s still uncertain and what employers should be watching next

Learn more

Blog post

A1-Bescheinigung für Geschäftsreisen und Entsendungen: Was Arbeitgeber wissen müssen

In this blog, Senior Manager Katharina Vorländer explains when employers need an A1 certificate for employees traveling or working temporarily within Europe, the application process and how timely planning can help manage social security compliance risks.

Learn more

Awards

Fragomen Retains Band 1 Ranking & Receives Four Individual Rankings in Chambers High Net Worth 2026 Guide

Fragomen and UK team members are ranked in the “Immigration: High Net Worth Individuals – UK-wide” category of the Chambers High Net Worth 2026 Guide.

Learn more

Blog post

Establishing a Business Presence in Switzerland: Key Considerations for Employers

In this blog, Director Ana Bessa Santos explores what Swiss authorities expect from employers when assessing work permit applications—including why a well-developed business plan, realistic growth projections and evidence of a genuine operational presence are critical to supporting both initial applications and future permit renewals.

Learn more

Media mentions

Personnel Today: Migration Committee Proposes to Cut 24 Occupations From New Shortage List

Partner Louise Haycock discussed the Migration Advisory Committee’s Temporary Shortage List recommendations and the need for clear workforce plans and transitional arrangements.

Learn more

Media mentions

Business Insider: 3 Lawyers React to Trump's New Limits on Student Visas

Counsel Brian Hunt discusses how proposed changes to F-1 student visas could create uncertainty for international students transitioning to the US workforce.

Learn more

Media mentions

Deutscher AnwaltSpiegel: Rechtliche Risiken bei Mitarbeitereinsätzen aus dem Ausland

Senior Manager Katharina Vorländer explains how employers and clients can reduce legal risks during cross-border employee assignments in Germany.

Learn more

Blog post

Mainland vs. Free Zone in the UAE: Choosing the Right Company Structure in 2026

Senior Manager Zak Hynes explores the key factors businesses should consider when establishing a presence in the UAE—from operating model and visa requirements to banking, office needs and long-term growth plans—in our new blog. The right structure is the one that best supports your business strategy, not simply the lowest upfront cost.

Learn more

Video

2026 Regional Immigration Overviews | #MobilityMinute

Partner Catherine Macris highlights key findings from Fragomen’s 2026 regional immigration overviews, including tighter compliance controls, digital border transformation and emerging pathways for global talent.

Learn more

Media mentions

Gazeta Prawna: Unijny parasol nad pracownikami z Ukrainy rozpięty do 2028 r. Polscy pracodawcy mogą spać spokojnie, ale czas ucieka

Partner Karolina Schiffter discusses how the EU's extension of temporary protection for Ukrainian citizens through 2028 will affect employers in Poland.

Learn more

Fragomen news

Fragomen's Immigration Guide for the UK Tech Sector

Fragomen’s "Immigration Guide for the UK Tech Sector" introduces visa options available for those working and recruiting in the tech sector.

Learn more
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Travel and Mobility Considerations: Situation in the Middle EastNavigating Immigration Under the Second Trump AdministrationImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Travel and Mobility Considerations: Situation in the Middle East
  • Navigating Immigration Under the Second Trump Administration
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
Important Updates
Important Updates
July 27, 2026 | United StatesUnited States: Burma TPS Employment Authorization Extended Through August 3
July 29, 2026 | South AfricaSouth Africa: Draft Immigration Fee Amendments Published for Public Comment
July 29, 2026 | South AfricaSouth Africa: Electronic Travel Authorization Requirement Updates
July 28, 2026 | JapanJapan: Stricter Permanent Residence Requirements Proposed
July 27, 2026 | United KingdomFragomen Retains Band 1 Ranking & Receives Four Individual Rankings in Chambers High Net Worth 2026 Guide
July 27, 2026 | United StatesUnited States: Burma TPS Employment Authorization Extended Through August 3
July 29, 2026 | South AfricaSouth Africa: Draft Immigration Fee Amendments Published for Public Comment
July 29, 2026 | South AfricaSouth Africa: Electronic Travel Authorization Requirement Updates
July 28, 2026 | JapanJapan: Stricter Permanent Residence Requirements Proposed
July 27, 2026 | United KingdomFragomen Retains Band 1 Ranking & Receives Four Individual Rankings in Chambers High Net Worth 2026 Guide
July 27, 2026 | United StatesUnited States: Burma TPS Employment Authorization Extended Through August 3
Subscribe

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • AI Transparency Statement
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • TikTok
  • Twitter

© 2026 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.