Tier 2 Points Based System FAQs

Tier 2 Points Based System

From 26 November 2008, the Work Permit Scheme was replaced by Tier 2 Points Based System.  All UK employers who wish to sponsor non-EU employees to work in the United Kingdom (UK) after this date will need to register for a Licence as a sponsoring employer.

Frequently asked questions:

•  What is Tier 2 Points Based System?

Work permits will no longer be issued by the UK Border Agency (UKBA) and Tier 2 Points Based System replaced the Work Permit Scheme.  This means that all UK employers who wish to sponsor non-EU employees to work in the UK after 27 November 2008 will need to register for a Licence as a sponsoring employer.  Those wanting to sponsor a migrant worker will be required to issue a Certificate of Sponsorship, as opposed to applying for a work permit.

•  When was the new scheme launched?

Tier 2 Points Based System was launched on 27 November 2008.

• How can I sponsor migrants now that Tier 2 is launched?

You must apply for a Licence if you wish to employ migrant workers under Tier 2 Points Based System.

The process of applying involves:

1. Apply online;
2. Submit relevant documents to establish your organisation;
3. Obtain Licence; and
4. Prepare for a possible visit by the UKBA Compliance Officers pre / post Licence submission.

If your Licence application is approved, you will be able to issue your own Certificates of Sponsorship for migrant workers.

• What are the differences between the previous Work Permit Scheme and the new Tier 2 Points Based System?

Tier 2 Points Based System means that if you have been approved as a sponsoring employer, you are able to issue Certificates of Sponsorship to migrant workers who you wish to employ.  You will no longer need to apply to the UKBA for a work permit.

A Certificate of Sponsorship is not a physical document, but is a unique reference number issued through a system known as the "Sponsor Management System" (SMS).  Only sponsored employers granted a Licence will be given access to the SMS via a User ID and password.

It is extremely important to ensure that, as a sponsoring employer, you issue the Certificates of Sponsorship correctly, or there could be very serious repercussions for your organisation, including withdrawal of your sponsor Licence.

Before applying for a Licence, you as the sponsor employer, must ensure you have a good HR system in place which allows you to monitor the company's migrant workforce.  You must also ensure each sponsored migrant has the "right to work in the UK" and appropriate checks have been undertaken before the migrant commenced employment.  A sponsor company will be required to undertake certain reporting duties under the Points Based System to include keeping records on each migrant and reporting any change in a migrant's circumstance to the UKBA.  Failure to do this may mean that your sponsorship Licence is downgraded from an A-rating to a B rating or withdrawn.

• What is a B-rating?

You will be given an A-rating or a B-rating when you are approved as a sponsoring employer by the UKBA.  Sponsoring employers may be given a B-rating if they do not have the appropriate HR systems in place.  B-rated employers will be given an action plan for becoming an A rated employer.  Failure to comply with this action plan could result in the employer losing its Licence.

• Once I am registered as a sponsoring employer, what steps will I need to take to ensure that I issue a Certificate of Sponsorship correctly to a migrant worker?

1. It is important to check that the worker has 70 points to obtain entry clearance before issuing the Certificate of Sponsorship.  Click here to access the UKBA points calculator;
2. You will need to check that the salary offered is at the 'going rate' for the position on offer in the UK;
3. The sponsor employer will also need to check that the advertising requirements have been met and fully comply with the UKBA's Code of Practice; and

4. The position on offer must also be at the appropriate skill level.

• New hire: what will the advertising requirement be?

If you wish to recruit a migrant worker for a job which is not on the list of shortage occupations, you must meet the resident labour market test, show that no resident worker is suitably qualified for the job on offer and a genuine vacancy exists.  This means that you must have advertised the job to settled workers according to the Code of Practice specific to that job.

If the salary offered for the position is £40,000 or under it must be advertised for a minimum of two weeks.  If the salary offered is over £40,000 it must be advertised for a minimum of one week.

• What are the shortage occupations?

Employers who wish to hire a non-EEA worker to fill a job vacancy that is on a list of shortage occupations may do so without carrying out a resident labour market test.  Shortage occupations are those for which there are not enough resident workers to fill the available positions.  Click here to view this list.  However, the Migration Advisory Committee has made recommendations for changes.  The UKBA will shortly announce whether it accepts the recommendations made by the Migration Advisory Committee. The new list will then be published.

• How will I know if the salary I offer is at the 'going rate' for the position?

The minimum appropriate salary rates for each position can be found in the Codes of Practice on the UKBA website here.  .

• Once I have issued the Certificate of Sponsorship to the migrant worker, will the sponsored migrant then be able to come to the UK?

The sponsored migrant will then need to apply for entry clearance abroad before coming to the UK.  An applicant making an application from outside the UK for entry clearance should go to www.ukvisas.gov.uk/en/howtoapply/vafs . The sponsored migrant must score the necessary points to obtain entry clearance to the UK.  For Tier 2 sponsored workers, the applicant must score: 

• 50 points for attributes (such as qualifications and prospective earnings);
• 10 points for English language (unless applying for an intra-company transfer); and
• 10 points for maintenance.

The sponsored worker must supply the necessary documentation and have his or her  biometric details taken.  The entry clearance application must be supported by the Certificate of Sponsorship.  Without this Certificate, the entry clearance application will fall for refusal.

• What is the English language requirement?

Sponsored migrants should be able to speak English to a competent level.  This can be demonstrated in three ways: 

• if they are a national of a majority English speaking country;
• the migrant has a degree taught in English;
• by taking an approved English language test.  Click here for details of approved English language tests for Tier 2 on the UKBA website.

Failure to satisfy the English language test requirement will result in the entry clearance application being refused.

An Individual being transferred to the UK as intra-company transferee does not need to satisfy the English language requirement at entry clearance stage.  This will only become a requirement if your employer would like you to remain working for the organisation in the UK beyond a period of three years.

•  What is the maintenance requirement?

The migrant worker will need to show that they have held the sum of £800 in a Bank or savings account for the last 3 months before applying for entry clearance from overseas or from within the UK.  The applicant will also need to show that he or she has held an extra £533 for the last 3 months for each dependant.

It may not always be possible for an applicant to produce evidence of funds.  In this type of situation, the UKBA has agreed that if a Tier 2 applicant is sponsored by an A-rated Company, it will accept written confirmation from the sponsor employer that it will maintain and accommodate the Tier 2 applicant, and his or her dependants, until the end of the first month of work in the UK.

Failure to satisfy the maintenance test will result in the application being refused.

•  What happens to migrant workers with work permits who we are employing at the moment?

If the migrant worker is already in the UK with a work permit, you can continue to employ this worker as before. However, you will need to apply for a Certificate of Sponsorship under Tier 2 if the work permit holder changes jobs or changes his or her duties and responsibilities within the current job.  A UK sponsor wishing to extend a permit holder's existing work permission would need to sponsor the permit holder under Tier 2 Points Based System and issue a Certificate of Sponsorship, as opposed to filing a work permit extension application.

•  How long can Tier 2 workers seek to enter and remain in the UK?

Migrants coming to the UK under Tier 2 will initially be given permission to stay for up to 3 years, depending on the length of their offer of employment.  An extension of permission to stay can then be sought for a further period of 2 years.

•  Where Kingsley Napley can help?

Kingsley Napley is recognised as one of the leading immigration practices in the UK.  We deal with a full range of applications to assist employers in hiring and transferring the personnel they need to the UK.  We act for large and small businesses in many sectors including banking, IT, engineering, pharmaceutical, investment, law, media, fashion and construction. 

We also provide a highly personalised service for individuals seeking to live and work in the UK, exploring all possibilities and importantly providing solutions which meet the personal needs of our clients' requirements.

Contact

If you have any queries regarding the new business visitor rules or any general business immigration queries, please contact:

Nicolas Rollason
Head of Immigration

Email: nrollason@kingsleynapley.co.uk
Direct Line: 020 7814 1276