Understanding the Points Based System and other solutions

• • • UK immigration system European free movement Tier 4 / students Tier 1 Post-Study Work Tier 1 General Tier 2 General Tier 1 Entrepreneur Tier 1 Investor Other options Settlement © LDS 2011 All rights reserved

UK immigration system UKBA, Nationality Group, European Group UKBA North (General case-work including PBS) On entry: UKBA, HM Immigration Service After entry: Home Office, UK Border Agency (UKBA), General Casework Before entry: International Group/UK Visas (Foreign & Commonwealth Office/UKBA), British diplomatic posts overseas © LDS 2011 All rights reserved

European free movement EEA members • Austria • Belgium • Bulgaria** • Cyprus • Czech Republic* • Denmark • Estonia* • Finland • France • Germany • • • Greece Hungary* Iceland Ireland Italy Latvia* Lichtenstein Lithuania* Luxembourg *A 8 - worker registration required for employment until 30. 4. 11 • • • Malta Netherlands Norway Poland* Portugal Romania** Slovakia* Slovenia* Spain Sweden UK **A 2 - accession worker card required for employment © LDS 2011 All rights reserved

Points based system - tiers • Tier 1 – highly skilled individuals (General, Investor, Entrepreneur, Post-study, Exceptional Talent) • Tier 2 – skilled workers with job offer (General, ICT, Sportspersons, Religious workers) • Tier 3 – low skilled workers to fill specific temporary labour shortages – on hold • Tier 4 – students • Tier 5 – youth mobility and temporary workers for primarily noneconomic objectives (creative/sporting, voluntary, religious, exchange, international agreements, youth mobility) © LDS 2011 All rights reserved

Tier 4 migrants/students Working • 20 hours per week during term-time, (10 if lower than foundation degree level) • full-time hours during vacation periods and after completion • not full-time permanent vacancy • internship • sandwich placement beware travel after completion © LDS 2011 All rights reserved

Tier 1 post-study worker • • Attributes (75) • recognised UK bachelors degree, post-graduate degree/PGCE or Scottish HND (20) • graduate from eligible UK institution (20) • current leave in an immigration category that permitted the study (20) • application made within 12 months of obtaining qualification (15) Deemed to meet English language requirement (10) Funds (10) • £ 800 or £ 2, 800, plus £ 533 or £ 1, 600 per dependant, every day for 90 days Can work 2 years Not count to settlement Consultation proposal to delete category © LDS 2011 All rights reserved

Tier 2 - employer sponsorship • Replaced work permit scheme 27 November 2008 • Three elements • sponsor licence application • assign certificate of sponsorship (COS) • migrant applies for leave to enter/remain • Licence valid for 4 years • COS allocation for 1 year (NB: caps) • Sponsors operate via web-based Sponsor Management System (SMS) • Principle of shared responsibility - more onerous duties on employers © LDS 2011 All rights reserved

Tier 2 - sponsor licence & COS categories General • resident labour market test (RLMT) • shortage occupations (SO) • post study work switch (PSW switch) Intra-company transfer (ICT) • established staff • graduate trainee • skills transfer Sportspeople Ministers of religion © LDS 2011 All rights reserved

Tier 2 - interim limits • • • From 19 July 2010, interim limit on COS allocated to each sponsor – based on number of COS used 19 July 2009 – 31 March 2010 Only applies to Tier 2 (General) – all categories including extensions If require more COS, apply for exceptional additional COS (only if A rated) on case by case basis. Monthly panel system, currently prioritise: • all extensions (as existing work permit or Tier 2 only) • remainder of available COS divided proportionately between shortage occupations and other and ranked by salary: • £ 40, 000+ • £ 36, 000+ • £ 32, 000+ • £ 28, 000+ • £ 24, 000+ • £ 20, 000+ (shortage occupation only) © LDS 2011 All rights reserved

Tier 2 - permanent limits – from 6 April 2011 • New division of ‘restricted’ and ‘unrestricted’ COS • Unrestricted • ICT • already in UK in switching category • salary £ 150, 000+ • Restricted • Tier 2 General outside UK and under £ 150, 000 salary © LDS 2011 All rights reserved

Tier 2 - permanent limits – from 6 April 2011 • Annual allocation of unrestricted ICT COS and unrestricted Tier 2 (General) COS • Restricted COS requests put to monthly panel on case by case basis but new points ranking. 4, 200 cap in first month, 1, 500 thereafter • Onus on sponsor to correctly identify whether job/migrant falls to be a restricted/unrestricted COS – lose licence if misuse allocation © LDS 2011 All rights reserved

COS allocation points table Route Points Salary (mandatory) Points SOL 75 £ 20, 000+ 2 Ph. D level posting and 50 £ 21, 000+ 3 RLMT 30 £ 22, 000+ 4 £ 23, 000+ 5 £ 24, 000+ 6 £ 25, 000+ 7 £ 26, 000+ 8 £ 27, 000+ 9 £ 28, 000+ 10 £ 32, 000+ 15 £ 46, 000+ 20 £ 75, 000+ 25 £ 100, 000+ 30 Minimum 32 points required © LDS 2011 All rights reserved

Tier 2 - permanent limits – from 6 April 2011 • ICT – limited to 5 years for salary of £ 40, 000+ and 12 months for salary of £ 24, 000+, 12 month exclusion period from UK before further ICT • General and ICT – all jobs must be graduate level (specified SOC codes not necessarily mean the role requires a degree!) • Transitional arrangements • No RLMT for jobs of £ 150, 000 salary • Points for LTE/LTR simplified (30 for COS, 20 for salary) • English level increasing to B 1 © LDS 2011 All rights reserved

Tier 2 - assigning COS • Identify whether the job/migrants qualify for restricted or unrestricted COS • Identify appropriate SOC code • Check criteria met eg • check Code of Practice for minimum salary and skill level • check post/migrant meet skills criteria • for Tier 2 (General) check recruitment method compliant with code, occupation on shortage occupation list or meets PSW switch requirements • for Tier 2 (ICT) check meet minimum service period • Ensure documents for retention obtained (Appendix D) • Enter data to SMS, pay fee, assign COS • Provide details of COS to migrant and ensure migrant understands the LTE/LTR requirements - issue of COS does not guarantee grant of leave © LDS 2011 All rights reserved

Tier 2 - COS - resident labour market test Advertising medium/procedure • Job Centre Plus (exceptions including Director level £ 130, 000+ salary) AND • as specified in sector Codes of Practice • national newspapers, professional journal • internet ad (including own website if over 250 UK employees) • head-hunter • milk round (minimum of 3 UK universities visited (codes also state interns and graduate positions only, if applicable at all) • min 4 weeks, max 6 months (exceptions!) between date of advertising and COS • content of advertisement: job title, main duties/responsibilities, location, indication of salary package/range/terms, skills/qualifications/experience required, closing date (unless rolling) • No RLMT for: shortage occupations or post study worker switch (if 6 months service) – and from 1 April, salary £ 150, 000+ Ø retain Appendix D documents © LDS 2011 All rights reserved

Tier 2 - ICT Link between UK/overseas company generally common ownership/control • established staff • • • graduate trainee • • 12 mths employment already up to 3 years, can extend 3 mths employment already max 12 mths/max 5 per year per sponsor on specified graduate occupations on accelerated promotion schemes skills transfer • • no min period of employment max 6 mths specified graduate occupations Supernumerary No longer leads to settlement © LDS 2011 All rights reserved

Tier 2 points A. Attributes points – minimum 50 required* Certificate of sponsorship Qualifications Prospective earnings (mandatory) Shortage 50 occupation Transitional None, or below A-level or 0 0 £ 20, 000+ S/NVQ 3 Under £ 20, 000 10 50 A-level or S/NVQ 3 5 £ 24, 000+ 15 30 Bachelors 10 £ 28, 000+ 20 25 Masters or Ph. D 15 £ 32, 000 + 25 arrangements RLMT or PSW switch ICT B. English – minimum 10 points (mandatory – but deferred for ICT) Maintenance – minimum 10 points (mandatory) * From 6 April 2011, 30 points for COS, 20 points for salary compliant with Code of Practice C. © LDS 2011 All rights reserved

Tier 2 – English language • A 1 Common European Framework (increasing to B 1, 6 April 2011) • Majority English speaking country, or • Degree taught in English, or • Approved English test • ICTs – no proof of English on initial entry, required on extension (after 3 years) © LDS 2011 All rights reserved

Tier 2 – maintenance points • Applicants: £ 800 • £ 533 per dependant • Own funds, every day last 90 consecutive days or • Employer undertaking on COS (A rated only) (but NB not cover dependants – separate letter required) © LDS 2011 All rights reserved

Sponsor duties Duties of sponsors • only assign COS to migrants sponsor believes meet criteria and likely to comply with conditions of leave • ensure hold any legally required professional accreditation/registration • right to work document checks, tracking expiry dates and checking every 12 months • not employ migrant contrary to conditions of leave • co-operating with UKBA – allow access on demand, adhere to any action plan, comply any good practice guidance © LDS 2011 All rights reserved

Sponsor duties Record keeping • photocopy/electronic copy of migrant’s passport/BID showing right to work • migrant’s up to date address, telephone number and mobile number • other documentation UKBA may consider relevant (eg recruitment information) • Appendix D documentation © LDS 2011 All rights reserved

Sponsor duties Reporting • must report to UKBA within 10 working days if • • • does not turn up for 1 st day (and reason) absent more than 10 working days without reasonable permission stop sponsoring individual (details of new sponsor if known) change of job/title/core duties/salary letter (other than annual increments) location/reduction duration of contract suspicions of breach of conditions • significant change in migrant’s circumstances • significant changes to sponsors circumstances (eg merger) within 28 days • details of any third party who assisted in recruitment • report to police information suggesting terrorism/other criminal activity © LDS 2011 All rights reserved

Tier 1 General Permission to pursue work • employment • self-employment • combination Ø

Tier 1 General – caps and changes from April 2011 • Tier 1 (General) for entry clearance (outside UK) became subject to monthly cap from 19 July 2010 and closed on 23 December 2010 • Tier 1 (General) leave to remain (in UK) will be deleted on 6 April 2011 – applications must be submitted by 5 April 2011 • Transitional provisions for those subsequently extending under Tier 1 © LDS 2011 All rights reserved

Tier 1 General - switching Permitted switching categories for in-country applications: • Tier 1 (all sub-categories) • Tier 2 • Tier 4 (and former student categories) • Tier 4 dependant • HSMP • work permit • postgraduate doctor/dentist/trainee GP • SEGS/IGS/FTWISS • innovator • business person • lawyers’ concession • writer/composer/artist • PLAB/clinical attachment © LDS 2011 All rights reserved

Tier 1 General - points table – initial applications Attributes 80 minimum Highest Qualification (or equivalent) Previous earnings Points Age Points UK experience Points Bachelor 30 Under £ 25, 000 0 Over 40 0 Masters 35 £ 25, 000+ 5 35 -39 5 Ph. D 45 £ 30, 000+ 15 30 -34 10 £ 35, 000+ 20 29 or under 20 £ 40, 000+ 25 £ 50, 000+ 30 £ 55, 000+ 35 £ 65, 000+ 40 £ 75, 000+ 45 £ 150, 000+ Points 80 (Age points are modified accordingly for extension applications) Qualification obtained in the UK (initial applications only) 5 £ 25, 000 or higher 5 previous earnings in UK Maintenance 10 (mandatory) English language 10 (mandatory) © LDS 2011 All rights reserved

Tier 1 General Income (5 -80) • consecutive 12 month period from within the 15 months immediately prior to making application (unless absent due to maternity or adoption related leave) • earned income only (employment or self-employment) • exchange rate – Oanda. com – on date of last pay • country – where working © LDS 2011 All rights reserved

Tier 1 General – initial applications – previous earned income - multipliers Income points (£) / multiplier Country Code A e. g. UK & US 5 points 25, 000+ 15 points 30, 000+ 20 points 35, 000+ 25 points 40, 000+ 30 points 50, 000+ 35 points 55, 000+ 40 points 65, 000+ 45 points 75, 000+ 80 points 150, 000+ x 1 B e. g. Malaysia x 2. 3 C e. g. China x 3. 2 D e. g. India x 5. 3 E e. g. Ghana x 11. 4 © LDS 2011 All rights reserved

Tier 1 General English language • national of a majority English speaking country • bachelor’s degree in specified country • bachelor’s degree undertaken in English (NARIC) • pass an English language test from prescribed list eg IELTS, TOEFL, ESOL – level C 1 Council of Europe Common European Framework for Language Learning (equivalent to grade C GCSE) © LDS 2011 All rights reserved

Tier 1 General UKBA list of English speaking countries – nationality/degree • Antigua & Barbuda • Ireland** • Australia • Jamaica • The Bahamas • New Zealand • Barbados • St Kitts & Nevis • Belize • St Lucia • Canada* • St Vincent & the Grenadines • Dominica • Trinidad & Tobago • Grenada • UK** • Guyana • USA *Nationality only **Degree only © LDS 2011 All rights reserved

Tier 1 General - Maintenance In UK under 12 months In UK at least 12 months £ 800 Each dependant £ 1, 600 £ 533 Example totals family of 4 £ 5, 600 £ 2, 399 Main applicant Ø Every day of 90 day period © LDS 2011 All rights reserved

Tier 1 General Periods • initially 2 years • extension for 3 years •

Tier 1 - Entrepreneur • Attributes (75) • access to at least £ 200, 000 (25) • held in a regulated financial institution (25) • disposable in UK (25) • English language (10) • Maintenance (10) • To extend must register as director or self-employed within 3 months and within 3 years invest full £ 200, 000 and create at least 2 jobs (30 hours per week) for at least 12 months Ø no employment (except in business(es) invested in) © LDS 2011 All rights reserved

Tier 1 - Investor Current rules: • £ 1 million own money held in a regulated financial institution and disposable in the UK (OR £ 2 million net personal assets and £ 1 million FSA loaned funds) (75) • no English requirement • no maintenance requirement • may take any employment/self-employment/none • must bring £ 1 million to the UK and invest £ 750, 000 in Government bonds/UK share or loan capital within 3 months • potential settlement after 5 years From 6 April 2011: • accelerated route to settlement (£ 5 million = 3 yrs, £ 10 million = 2 yrs) • greater permitted absences for settlement: 180 days per annum • no cap! © LDS 2011 All rights reserved

Tier 1 General – caps and changes from April 2011 • New Tier 1 (Exception Talent) will be introduced on 6 April • for science and the arts • internationally recognised as world leaders in field (eg Nobel Prize) or exceptional promise as endorsed by a ‘competent body’ • annual limit of 1000 • details still under development © LDS 2011 All rights reserved

Other options • Tier 5 (Youth Mobility Schemes and temporary workers) • UK ancestry – Commonwealth citizen with UK born grandparent • Spouse/civil partner/unmarried partner © LDS 2011 All rights reserved