Out-Law News 2 min. read

EU workforce retention essential as visa pressure continues


The planned introduction of post-Brexit 'settled status' for European workers will create more recruitment and retention opportunities for UK employers, an expert has said.

The plans, if implemented following agreement with the EU, are "potentially the most straightforward way for EU nationals to obtain permanent residence in another member state in the EU", according to employment law expert Euan Smith of Pinsent Masons, the law firm behind Out-Law.com.

"EU nationals may not understand this to be the case, as this is contrary to the common perception of Brexit," Smith said. "Employers need to communicate this to their existing and potential EU employees to take advantage of the opportunity."

UK net migration has fallen to its lowest level since 2004 according to the latest figures from the Office for National Statistics (ONS), driven in part by a reduction in EU migrants. The latest Home Office figures show continuing pressure on demand for Tier 2 (General) restricted Certificates of Sponsorship (RCoS) for skilled workers from outside the EU, with the cap on certificates being reached in June for the seventh month in a row. Successful applicants for the 2,049 certificates available required a salary of £60,000 or above in most cases.

The Home Office does not publish the total number of applications made in any given month. However, the increase in minimum salary required to attain the necessary number of points under the UK's points-based immigration system suggests a possible increase in the level of applications from previous months. The number of applications has been at or about double the available number of certificates when the figures have been disclosed following Freedom of Information requests.

The government has announced that NHS doctors and nurses will be removed from the Tier 2 (General) visa cap from July. This will ultimately help all employers, as it will mean that the overall demand for RCoS will reduce. However, the removal of these roles from the cap alone is unlikely to be sufficient to deal with the demand issue at least in the near term, according to Smith.

"Employers are in a difficult position in trying to recruit skilled employees until a Brexit deal is confirmed," said Smith.

"On the assumption there is a deal then employers should ensure that they do all they can to retain their existing EU workforce but also look at opportunities during the implementation period, which runs from 30 March 2019 to 31 December 2020, to both recruit and retain EU nationals. The Home Office has now published details of how employees already here, or arriving between now and the end of the implementation period, can remain in the UK and obtain permanent residence even if they only arrive in the UK on 31 December 2020," he said.

The Home Office published its detailed plans for the process EU citizens who wish to obtain the right to remain in the UK after Brexit will need to follow last month. Applicants will be asked to prove their identity and that they have been living in the UK for the past five years, and to declare that they have no serious convictions. They will be able to apply entirely online via a government website or an app for tablets and smartphones, or to apply by post.

Settled status will be available to EU citizens who have been living in the UK continuously for five years before the end of the post-Brexit transition period, anticipated for 31 December 2020. Those who have not yet met the five-year residence requirement will be able to apply for 'pre-settled status', and to convert this to settled status once they have been living in the UK for five years. The government intends to open the scheme to applications in a phased way from later this year, subject to final agreement with the EU. It will be fully operational by 30 March 2019.

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