United Kingdom: Improvements Related to Salary Reductions, Government Notifications and Fees Implemented

November 10, 2022

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Country / Territory

At a Glance

The UK government has implemented three key improvements for employers sponsoring Skilled Workers and foreign nationals under the Global Business Mobility route:

  • A change of employment application is no longer required for salary reductions due to temporary reduction in hours for individual health reasons;
  • Employers are no longer required to notify the Home Office of delayed start dates for foreign nationals, unless the delay is more than 28 days; and
  • Effective January 1, 2023, employers will be exempt from paying the Immigration Skills Surcharge when sponsoring certain EU senior or specialist workers assigned to work for less than a three-year period.

The situation

The UK government has implemented improvements for employers sponsoring Skilled Workers and foreign nationals under the Global Business Mobility route.

CHANGE DETAILS IMPACT
Change of employment application is no longer required for salary reductions due to temporary reduction in hours for individual health reasons
    • Effective immediately, employers no longer need to submit a change of employment application if a Skilled Worker’s salary is reduced because of a temporary reduction in their hours for individual health reasons or a phased return to work for individual health reasons.
    • In either case, this must be supported by an occupational health assessment and their hourly pay must not fall below any requirement which applied when their current permission was granted. 
    • Employers must still notify the Home Office of this change.  
 This results in one less administrative burden for employers whose employees change their hours under the qualifying reasons.
Changes to start date delay notification process
    • Effective immediately, UK employers are no longer required to notify the Home Office of delayed start dates for foreign nationals, unless the delay is more than 28 days.
    • If delays are more than 28 days:
      • The employer should notify the UK government via the Sponsor Management System (the system used by the Home Office to monitor employer compliance with immigration matters);
      • There must be a valid reason for the delayed start date, including but not limited to travel disruption due to a natural disaster, military conflict or pandemic; the worker requires an exit visa from their home country and there have been administrative delays in processing this; or illness, bereavement or other compelling family or personal circumstances.
      • If there is not a valid reason, the employer must stop sponsoring the worker.
    • If the employer wishes to continue sponsoring the worker, they should be aware that the Home Office may cancel the worker’s permission if they do not consider there is a valid reason for the delayed start.
    • If the worker tells the employer their permission has been cancelled, the employer must stop sponsoring them and report this within 10 business days after the 28-day period ending.
 This revision is intended to reduce administrative burdens and process requirements for employers onboarding new employees.
Immigration fee to be waived for certain EU workers
    • Effective January 1, 2023, UK employers will be exempt from paying the Immigration Skills Surcharge to the UK Home Office when sponsoring EU-linked senior or specialist workers assigned to work in the United Kingdom for less than a three-year period.
    • An EU-linked worker is defined as a national of an EU country or a Latvian non-citizen (this concession does not apply if the worker is a national of Iceland, Norway, Liechtenstein or Switzerland and is assigned to a business established in the European Union).
    • Currently, employers must pay a fee of either GBP 1,000 or GBP 364, depending on the size and revenue of the employer, regardless of the assignment period, for each year the sponsored worker remains in the United Kingdom.

This exemption is subject to Parliamentary approval, though it is expected to be passed.

 This reduction in employment costs favors the employment of workers from EU-based companies.
  • Purpose of guidance. This guidance was published to clarify recent Statements of Changes and other changes to existing immigration policy. UK Immigration Rules are often changed several times a year, via Statement of Changes, which lists the amendments that will be incorporated into updated Immigration Rules on the specified implementation dates. 
  • Proposed changes announced under Truss administration. The Truss Government had signaled an intention to make further changes to the work visa system. The Growth Plan published in September 2022 stated that the government intended to implement a plan to ensure the immigration system supports growth while maintaining control. Media reports suggested that possible changes could include expanding the shortage occupation list; more temporary visas for seasonal horticultural workers; and reduced English language requirements. Those changes were put on hold following the former Prime Minister’s short tenure.

Fragomen is yet to receive details of how the new government under Prime Minister Sunak proposes to use immigration policy to enable the functioning of business in the United Kingdom, but we expect the government to announce plans for the general approach to immigration in the coming weeks.

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].

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