The tough new rules bosses face when hiring

IDecember 2023, the UK Government committed to reduce migration to the UK by 300,000 annually. This was achieved through a comprehensive five-point plan that included revisions to the Immigration Rules for sponsored work visas. On March 14, these changes were implemented.

Signifying the biggest reform of UK work routes since Brexit, the Government’s message is clear: it’s time to stop relying on foreign individuals and focus on investing in the domestic workforce. Whether or not you believe in this ideology or that it will achieve UK economic benefit, these are the rules that employers must now follow if they wish to sponsor migrant workers.

The overall system remains unchanged, operating on a pointsbased framework. The objective is to accumulate the highest number of points, totalling 70, by meeting specific requirements in order to obtain a work visa.

However, there have been significant changes to the rules for earning points. Most notably, salary thresholds have increased from £26,200 to £38,700 for Skilled Worker visas. This adjustment was expected following the Government’s announcement in December, no doubt painfully digested by many alongside their festive Christmas mince pies.

Less anticipated is the change to the Standard Occupational Classification codes (SOC). Jobs now have a corresponding SOC code and skill level, which determines its eligibility for sponsorship. Each code has a specific salary known as the

“going rate”. With the new set of codes, Certificates of Sponsorship must align, and salaries must meet the new going rates, especially if they are higher than the general threshold.

FURTHER solidifying the “no business sector should be permanently reliant on immigration” message, the Shortage Occupation List has been abolished and replaced by a streamlined Immigration Salary List, which no longer includes the previous discount to the SOC code going rates.

Evidently, scoring points for jobs on lower pay grades will be much harder, and in some cases potentially impossible. When it comes to recruitment strategy, relying solely on reactive approaches will present challenges. Employers must adopt more proactive and forwardthinking approaches to sponsorship. Simply increasing salaries abruptly to meet visa thresholds may not only be unfeasible financially, but could also lead to unintended consequences related to equal pay and discrimination. Hiring budgets should be reviewed in advance and gradually increased, if possible, in line with the projected sponsorship requirements.

Adequate time must be allocated for verifying eligibility and preparing applications.

The additional challenge of cross-referencing tables in the Immigration Rules for SOC codes and salary rates, especially during the initial months, raises the risk of making mistakes and receiving a rejection. Submitting an application last minute could have serious consequences for both the applicant and the employer.

Employers may not agree with these changes, but arguing with the referee won’t help win the game. Instead, employers should focus on understanding the new rules, exploring potential benefits, and adjusting their approach accordingly.