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Insights on employment and immigration law for the UK sponsors

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Categories: Video
Date published: 23/12/2024

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In this second episode, Alicja Bielawska and Jarmila Entezari, discuss the Skilled Worker Visa and its implications for employers. Whether you’re an HR professional, business owner, or interested in how immigration and employment law intersect, this guide will provide practical information.

Tune in on Mondays for expert discussions and strategies to keep your business moving forward.

Listen and stay informed!

What Is the Skilled Worker Visa?

The Skilled Worker Visa allows UK businesses to sponsor skilled employees from abroad. It’s a vital tool for industries seeking to fill critical roles, but it comes with specific requirements:

  • The role must be on the eligible occupation list and meet minimum salary thresholds.
  • The employee needs relevant qualifications or experience and must prove their English language proficiency (B1 level or higher).
  • Employers can certify maintenance to cover an employee’s living costs during their initial stay in the UK.

For businesses, obtaining a Sponsor Licence is essential. This license grants the ability to sponsor Skilled Workers but also entails significant compliance duties.

Employment Contracts and Immigration Compliance

When employing Skilled Workers, drafting employment contracts requires careful attention to both immigration and employment law.

Key Contractual Elements:

  • Job Title and Description: Must align with the Certificate of Sponsorship (CoS) to avoid compliance issues.
  • Salary: Must meet or exceed Skilled Worker Visa thresholds for the specific role.
  • Travel or Multi-location Roles: Specify any travel or location requirements in the contract. Changes must be reported to the Home Office.
  • Termination Clause: Include conditions related to visa status, such as termination if the employee breaches immigration requirements.

Example of a Clawback Clause:

If an employer covers visa costs, they might include a clause requiring repayment if the employee resigns within a specific timeframe.

A well-drafted contract protects both the employer and the employee, ensuring clarity and compliance from day one.

HR Policies and Best Practices for Compliance

Employing Skilled Workers demands robust HR policies that address immigration requirements and maintain Home Office compliance.

Essentials for Employers:

  • Right-to-Work Checks: Verify the employee’s legal status before employment begins.
  • Record Keeping: Maintain copies of key documents, including passports, visas, and employment contracts.
  • Reporting Changes: Use the Sponsorship Management System (SMS) to report role changes, pay adjustments, or unauthorised absences exceeding 10 consecutive working days.
  • Regular Training: Train HR staff on immigration compliance, SMS usage, and right-to-work checks.

Penalties for Non-Compliance

Failing to comply with sponsor duties can result in severe penalties:

  • Fines: Up to £60,000 per illegal worker.
  • License Revocation: Loss of the ability to sponsor Skilled Workers in the future.
  • Reputational Damage: Negative impacts on recruitment and business operations.
  • Downgraded Rating: A downgraded sponsor rating requires remedial action and comes with additional costs.

Real-Life Example:

A company sponsors an IT specialist but fails to report the employee’s relocation to a new office. During an audit, the Home Office identifies this oversight as a breach, risking penalties or loss of the sponsor license.

Conclusion

Navigating the Skilled Worker Visa process requires attention to detail, strong compliance frameworks, and effective HR policies. Employers must stay informed and proactive to avoid penalties and maintain a positive reputation.

This podcast is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this podcast was published.

Call us now to discuss your case 03301070106 or email us at business@imd.co.uk.

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