The World Bank estimates that increasing migration would equal to a 3% rise in the workforce of developed countries by 2025 and will generate $356 billion in global gains, says Yash Duba, so it makes sense to apply to become an approved sponsor now
Internationally, we are beginning to see some freedom return as restrictions are gradually being relaxed in countries that have managed to control the spread of coronavirus. It is doubtful that things will return fully to the way they were for some time. Indeed, many commentators believe some form of social distancing will remain in all nations until a vaccine is found and made widely available.
However, governments across the world differ in their approach and all are intent on safely re-opening as many businesses as they can, to arrest the economic decline that lockdowns and restrictions cause.
As businesses re-open, it is expected that some travel restrictions will also be lifted, although it is too early to predict how international travel will be affected in the medium term.
Given the uncertainty of how the future will play out, it may seem like the wrong time to be thinking about strengthening workforces with overseas recruits. However, putting the groundwork in now allowing you to attract labour from overseas when business starts to move again is a smart move, particularly as there will be a potential rush of custom, orders, contracts, and revenue when normality returns.
Here I explain the steps and considerations UK businesses must take in order to capitalise on the global workforce.
How to apply for a licence to sponsor overseas workers?
The first thing companies need to know about hiring skilled workers from overseas is that in order to do so, they need a licence from the Home Office, officially called a Tier 2 Sponsor Licence. Except for certain agricultural workers, there is currently no provision in UK immigration law that allows firms to hire unskilled staff from abroad. Other visas are available for those classed as exceptionally talented and for students.
Currently, skilled and unskilled workers from the EU, European Economic Area (EEA), and Swiss nationals are free to work in the UK while the number of visas for skilled migrants outside Europe are capped. Once the UK exits the EU, on 1 January 2021, a new regime comes into force and EU workers will have to fulfil the same criteria as those from outside the continent, but the cap on numbers will be removed. There is however some uncertainty as to the dates the new laws will come into effect, as the COVID-19 crisis has impacted on the timings for Brexit.
Despite the uncertainty it makes sense to apply to become an approved sponsor now. Figures show that less than 30,000 of the UK’s employers are on the approved list. With 1.4m British businesses employing people in 2019, this means only a tiny percentage are geared up to take advantage of the global personnel market, so by doing so, employees give themselves an advantage.
Sponsor licence applications can be made online at the Home Office website. You will need to provide a range of documentation including but not limited to VAT certificate (if applicable), financial statements, bank statements, liability insurance, lease/rent agreement, official confirmation of PAYE and account office reference number.
The process of obtaining a Tier 2 Sponsor Licence can be complicated and time consuming and many companies prefer to use experienced legal immigration experts to help them through the application process.
To gain a Tier 2 Sponsor Licence organisations must be able to prove the following:
- They are legally operating in the UK
- Key personnel have been appointed, and they are of good character (someone to manage the sponsor licence management system, a key contact and someone who can undertake everyday licence system tasks)
- A sustainable HR system able to manage future sponsorship duties
- A genuine vacancy which meets criteria set out by the home office
They also need to demonstrate they have the necessary systems in place to comply with Sponsor Licence duties and responsibilities, key personnel must have no past convictions or breaches in immigration or any other area of law and no history of breaches of UK Visas and Immigration’s sponsorship duties.
In addition to the online application, applicants must send a covering letter explaining why they require a licence and giving details of the position they are recruiting for.
Once the documentary stages are complete, applicants can expect a visit from a UK Visa and Immigration officer to check there is a genuine need for a licence and to ensure correct systems are in place to manage sponsored workers. The officer also checks that the application details are accurate.
How long the process will take?
In my experience and depending on whether a test is needed to make sure the position cannot be filled by a domestic applicants, the process in preparing and obtaining a Tier 2 Sponsor Licence can take four to 12 weeks.
Is it possible to carry out an interview with an applicant remotely?
Under the Tier 2 Sponsor Licence system, there is no prescribed interview process, so as long as the role being filled meets the criteria candidates can be interviewed either via Skype or phone. Ideally, an HR officer should oversee interviews, whether internal or external. Organisations are required to keep interview notes made for each shortlisted candidate.
What overseas employees can offer a UK company?
It is too simplistic to only look at migrant workers through the prism of bodies to fill skills shortages. Yes, overseas workers to fill skills gaps in healthcare, IT, engineering, and many others, and hiring them is cost effective, particularly for start-ups, but they also add much more. Workers from overseas do not uproot themselves from their families and their homelands lightly. Many take financial risks to get to the UK. They benefit the economy because they work hard, pay taxes and spend the money they earn in the UK. – not sure about this last sentence, too sweeping?
The World Bank estimates that increasing migration would equal to a 3% rise in the workforce of developed countries by 2025 and will generate $356 billion in global gains. Today, more than 40% of companies on the US Fortune 500 list were founded by immigrants or children of immigrants, including Apple and Google.
Migrants drive innovation and economic development.
Yash Dubal is the Founder and Managing Director of A Y & J Solicitors.
