The biggest revision of the UK immigration system in nearly 50 years is taking effect from the end of November, and it is aimed at curtailing immigration from outside the European Economic Area.

The new system is points-based and it will be introduced in stages during 2008 and 2009. With a points hurdle set at 70, immigrants have to earn the right to enter the UK by scoring points for various skills, qualifications and prospective earnings. To complicate matters, the government’s Migration Advisory Committee has reported on those business sectors where there are skills shortages. If the recommendations are accepted, applicants from those occupations will get a 50-point boost that will help them breach the hurdle. Others will have to work much harder.

November 2008 will see the activation of Tiers 2 and 5 of the new immigration system. But what does it all mean for you and your business, in practice?

Which tiers are coming into force in November?

There are two tiers that are coming into force in November. Tier 2 covers skilled workers with a job offer to fill gaps within the UK labour force. For these recruits, sponsorship will be required. This tier combines four sub-categories - general, ministers of religion, sports people and inter-company transfers.

The other is Tier 5, which covers youth mobility and temporary workers allowed to work in the UK for a limited period of time to satisfy primarily non-economic objectives. Again, sponsorship will be required. There are five sub-categories; temporary workers - creative and sporting, charity workers, religious workers, international agreement and youth mobility.

Which workers will be affected?

The new points-based system will affect workers entering from outside the European Economic Area and Switzerland.

What about workers currently in the country?

Workers currently in the UK who wish to apply to extend their leave to remain in the UK will have to meet the requirements of the immigration rules that are in force at the time of their application.

If the worker applies for an extension following the implementation of Tiers 2 and 5, then they will have to meet the requirements under those tiers, even if in possession of a valid work permit under the pre-November 2008 system.

What will happen to applications made during the transition from the old to the new system?

Until the introduction of Tiers 2 and 5 in November 2008, the immigration work permit system will apply to any applications made. Applications will not have to comply with the requirements laid down by Tiers 2 and 5. If the applications are successful, they will be valid for six months. Any permits that expire and are to be extended following the introduction of the new tiers will have to comply with the new specific tier requirements.

How will this affect new workers wishing to enter the country?

In order for workers to be eligible to enter the UK under Tiers 2 or 5, they must be sponsored by an organisation licensed by the UK Border Agency before entry.

Sponsorship does not, however, automatically guarantee entry; individuals must also meet other conditions, which will vary depending on the tier and sub-category under which they apply to enter the country.

How do you become a licensed sponsor?

Organisations can now apply to the UK Border Agency for a licence to issue certificates of sponsorship for Tiers 2 and 5.

In order to join the register of licensed sponsors, the requirements laid down by the UK Border Agency must be met by the organisation.

These are that there must be a legitimate organisation in the UK; the organisation must be found to be trustworthy, dependable, past employment history and pose no threat to immigration. The organisation must be in a position to be able to meet its sponsorship duties.

Each of the above requirements will be assessed by the agency, and extensive checks and searches will be carried out, in some cases extending to an on-site check.

As a result of the inspection, the organisation will be awarded a score, which corresponds with the organisation’s level of compliance with the agency’s requirements. The points will then be collated for all the categories, to see whether or not the organisation can become a registered sponsor.

There will be limits as to the number of sponsorship certificates organisations will be able to issue to workers, and the agency can withdraw or downgrade any organisations registered as sponsors for abuse or failure to meet duties.

Applying to become a licensed sponsor

The organisation applying is required to submit its own application to become a sponsor. Legal representatives cannot submit the form on behalf of organisations. This does not, however, exclude receiving advice and help with completing the form.

What does it cost to become a licensed sponsor?

Applying for the first time to become a licensed sponsor will cost from £300 to £1,000, depending on the number of tiers the organisation wishes to become a licensed sponsor for, and also depending on the type of organisation.

For each Tier 2 certificate of sponsorship that is issued, the organisation will be required to pay £170 and £10 for each Tier 5 certificate.

Sponsorship management system

When the new tiers are introduced in November 2008, a new management system should also be up and running. The system will enable organisations to carry out their day-to-day activities, which are required under the new sponsorship system.

Will we have new duties?

The Home Office believes that those who benefit from migrant workers should play a part in ensuring the system is not subject to abuse and misuse. Further, the Home Office wants to ensure that those who apply for entry into the UK are eligible, that a reputable employer actually wishes to employ them and that there is a genuine need within the UK job market for the workers.

Those organisations that become licensed sponsors will be required to comply with a number of duties. These duties extend from complying with applicable and relevant law, to co-operating with the UK Border Agency as well as general housekeeping duties.

One example of the obligations is the requirement to inform the agency if the worker fails to turn up to work, or is absent for a significant period of time, and importantly to ensure that they maintain records of any migrant workers within their organisation.

Will the new system require the business to make changes?

As a result of becoming a licensed sponsor, organisations must create a ‘key personnel’ structure. This means changes to internal procedures as certain responsibilities must be allocated within the organisation; these responsibilities can be allocated to one individual or to separate individuals.

Your organisation will need the following:

• Authorising officer - Responsible for ensuring the organisation meets the duties imposed on sponsors, and also responsible for all the other key personnel. Therefore, it is essential that they are senior, competent and responsible.

• Level 1 user - Responsible for the day-to-day activities, for example the assignment of certificates and reporting migrants activities.

• Level 2 user - Responsible to a lesser extent for the day-to-day activities, with limited responsibilities.

• Key contact - Point of contact between the organisation and the UK Border Agency.

How long will it take for applications to be processed by the UK Border Agency?

The UK Border Agency had originally required any organisations that wish to issue certificates of sponsorship from November 2008 to submit their application to the agency by October 1.

This date has passed and so until April 1, 2009, the estimated timescale for dealing with applications to become a licensed sponsor and also for dealing with the worker’s application will be six weeks for each. This time estimate is based on expected volume of applications.

After April 1, 2009, the period for processing the licensed sponsorship applications will be four weeks - this is also the same for the workers’ applications.

The parallel offences system

Running in parallel to the sponsorship system will be a penalty system. This will include criminal offences and civil penalties, which will reinforce the immigration system. Compliance with the new system is essential to avoid the revocation or downgrading of their sponsorship licences, hefty fines or even imprisonment.

What are the expected benefits of the new immigration scheme?

It is expected that the new scheme will be much clearer and more logical than the current system in place. The application for the registration of certificate sponsors is now online and will be much less time-consuming with, hopefully, fewer delays.

The aim is to make it easier and quicker for organisations to bring workers into the UK, while ensuring that the system is effective and efficient.

Katie Mear is a trainee solicitor at Sykes Anderson LLP Solicitors

More information can be found at:

http://www.ukba.homeoffice.gov.uk/employers/points/

http://www.ukba.homeoffice.gov.uk/aboutus/workingwithus/indbodies/mac/macfirstshortagelist/

http://www.ukba.homeoffice.gov.uk/employers/points/sponsoringmigrants/employingmigrants/shortageoccupationlist/