• 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

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

The Compliance Risks of International Remote Working and Hush Trips

International remote working can offer valuable flexibility, but undisclosed “hush trips” may expose employers to immigration, social security, insurance, employment-law and tax risks that they cannot properly assess or manage.

Learn more

Blog post

The Narrowing Talent Pipeline: From International Student to Corporate America

Counsel Susan Steger examines recent policy changes and litigation affecting the pathway from F-1 study and practical training through H-1B sponsorship and permanent residence, and the considerations for US employers recruiting and retaining early-career international talent.

Learn more

Media mentions

The National Interest: How Boosting Your Privacy Will Make America More Secure

Managing Director, Digital Identity Amit Sharma explores how digital identity can strengthen privacy and security.

Learn more

Media mentions

CEDA: The Drive to Reduce Net Overseas Migration and the Challenges for Business

Managing Partner, Australia and New Zealand Teresa Liu discusses how Australia’s efforts to reduce net overseas migration are affecting businesses amid ongoing skilled workforce shortages.

Learn more

Media mentions

Australian Broadcasting Corporation: Overnights

Senior Counsel Dr. Anna Boucher discusses Australia’s net migration figures and recent changes to the country’s migration policies.

Learn more

Blog post

Can International Graduates in the Netherlands Qualify for the 30% Ruling? Eligibility Rules Explained

Tiemen Peters, Silvia Norte Mercade and Soraya Driessen outline when international graduates who studied in the Netherlands may qualify for the 30% ruling and the key eligibility, timing and compliance considerations for graduates and employers.

Learn more

Blog post

Right to Work Changes: What Do They Mean for Employers in Northern England?

Manager Ko Ito, Senior Immigration Consultant Danielle Barks, Associate Naureen Malik and Trainee Solicitor Amna Ali outline how the expanded UK Right to Work Scheme could affect employers in Northern England and the practical steps businesses can take ahead of the 1 October 2026 changes.

Learn more

Media mentions

Business Traveller: Six Months in, the EU’s Entry/Exit System Isn’t Working

Partner Christine Sullivan discusses the implementation of the EU’s Entry/Exit System (EES) across member states and at border crossing points.

Learn more

Blog post

Polish Citizenship by Descent: A Practical Guide for 2026

Poland Immigration Strategy Director Tomasz Rogala, Senior Associate Tomasz Rdzanek and Senior Immigration Consultant Paulina Fołta-Cisak discuss who may qualify for Polish citizenship by descent, how historical events can affect a claim and what applicants should expect from the 2026 confirmation process.

Learn more

Media mentions

ABC News: What Australia can learn from 165 years of migration data

Senior Counsel Anna Boucher is quoted in ABC News regarding Australia's migration debate and what more than 165 years of migration data reveals about long-term immigration trends.

Learn more

Blog post

Swiss Immigration Quotas 2026: Are Work Permit Quotas Likely to Run Out Before Year-End?

Senior Immigration Consultant Alessandra Rüede discusses Switzerland’s 2026 work permit quota utilisation and what current availability, canton-level allocation practices and processing considerations mean for employers planning international hiring and mobility.

Learn more

Media mentions

Bloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope

Partner K. Edward Raleigh discusses how US employers should consider displacement and conduct a risk analysis when assessing H-1B filings in light of recent policy changes.

Learn more

Blog post

The Compliance Risks of International Remote Working and Hush Trips

International remote working can offer valuable flexibility, but undisclosed “hush trips” may expose employers to immigration, social security, insurance, employment-law and tax risks that they cannot properly assess or manage.

Learn more

Blog post

The Narrowing Talent Pipeline: From International Student to Corporate America

Counsel Susan Steger examines recent policy changes and litigation affecting the pathway from F-1 study and practical training through H-1B sponsorship and permanent residence, and the considerations for US employers recruiting and retaining early-career international talent.

Learn more

Media mentions

The National Interest: How Boosting Your Privacy Will Make America More Secure

Managing Director, Digital Identity Amit Sharma explores how digital identity can strengthen privacy and security.

Learn more

Media mentions

CEDA: The Drive to Reduce Net Overseas Migration and the Challenges for Business

Managing Partner, Australia and New Zealand Teresa Liu discusses how Australia’s efforts to reduce net overseas migration are affecting businesses amid ongoing skilled workforce shortages.

Learn more

Media mentions

Australian Broadcasting Corporation: Overnights

Senior Counsel Dr. Anna Boucher discusses Australia’s net migration figures and recent changes to the country’s migration policies.

Learn more

Blog post

Can International Graduates in the Netherlands Qualify for the 30% Ruling? Eligibility Rules Explained

Tiemen Peters, Silvia Norte Mercade and Soraya Driessen outline when international graduates who studied in the Netherlands may qualify for the 30% ruling and the key eligibility, timing and compliance considerations for graduates and employers.

Learn more

Blog post

Right to Work Changes: What Do They Mean for Employers in Northern England?

Manager Ko Ito, Senior Immigration Consultant Danielle Barks, Associate Naureen Malik and Trainee Solicitor Amna Ali outline how the expanded UK Right to Work Scheme could affect employers in Northern England and the practical steps businesses can take ahead of the 1 October 2026 changes.

Learn more

Media mentions

Business Traveller: Six Months in, the EU’s Entry/Exit System Isn’t Working

Partner Christine Sullivan discusses the implementation of the EU’s Entry/Exit System (EES) across member states and at border crossing points.

Learn more

Blog post

Polish Citizenship by Descent: A Practical Guide for 2026

Poland Immigration Strategy Director Tomasz Rogala, Senior Associate Tomasz Rdzanek and Senior Immigration Consultant Paulina Fołta-Cisak discuss who may qualify for Polish citizenship by descent, how historical events can affect a claim and what applicants should expect from the 2026 confirmation process.

Learn more

Media mentions

ABC News: What Australia can learn from 165 years of migration data

Senior Counsel Anna Boucher is quoted in ABC News regarding Australia's migration debate and what more than 165 years of migration data reveals about long-term immigration trends.

Learn more

Blog post

Swiss Immigration Quotas 2026: Are Work Permit Quotas Likely to Run Out Before Year-End?

Senior Immigration Consultant Alessandra Rüede discusses Switzerland’s 2026 work permit quota utilisation and what current availability, canton-level allocation practices and processing considerations mean for employers planning international hiring and mobility.

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 InsightsView 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
  • 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
September 22, 2026 | PanamaPanama: Qualified Investor Residence Program Revised Under New Decree
September 23, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
September 23, 2026 | South AfricaSouth Africa: New Law Would Increase Locals in Labor Market
September 22, 2026 | United StatesBloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope
September 22, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
September 22, 2026 | PanamaPanama: Qualified Investor Residence Program Revised Under New Decree
September 23, 2026 | 🌐Middle East - The Latest News on Mobility and Travel Considerations
September 23, 2026 | South AfricaSouth Africa: New Law Would Increase Locals in Labor Market
September 22, 2026 | United StatesBloomberg Law: White House H-1B Order Puts Employer Layoffs Under Microscope
September 22, 2026 | European UnionEuropean Union/Schengen Area: Internal Schengen Border Checks Situation
September 22, 2026 | PanamaPanama: Qualified Investor Residence Program Revised Under New Decree
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.