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Imminent changes to the Points Based System that may affect your workforce

On 22 February 2009, the Home Secretary Jacqui Smith unveiled three significant changes to the Points Based System (PBS) that will be effective from 1 April 2009. These are:

  • All vacancies that have to meet the Resident Labour Market Test under Tier 2 of the PBS must be advertised in Job Centre Plus. Previously, job vacancies were advertised in a suitable and relevant newspaper, journal or internet website. The implications of this could be far reaching as employers may receive countless job applications.
  • All applicants wishing to come to the UK using Tier 1 of PBS will only be eligible for points if they have a masters degree and earn a minimum of £20,000. Previously, applicants had to have a bachelors degree and the minimum qualifying salary was £16,000. This will have a detrimental effect on the potential routes by which migrant workers can come to the UK to work as it significantly raises the bar on a popular immigration category.
  • Shortage occupations under Tier 2 of PBS will be reviewed and attempts will be made to 'upskill' resident workers so that sourcing migrant workers from outside of the UK will not be necessary.

In addition, the Home Secretary is also asking the Migration Advisory Committee, chaired by Professor David Metcalf to consider:

  • the contributions made by dependants under the PBS;
  • whether jobs under Tier 2 of PBS should be restricted to Shortage Occupations only; and
  • whether there should be further changes to Tier 1 in the current economic climate.

New immigration rules will be laid before Parliament shortly. These will include changes to the business visitor category specifically to clarify training and secondments.

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