The government’s new immigration white paper tightens controls, creating challenges for businesses reliant on overseas workers. Employers should prepare now by reviewing their workforce, adjusting recruitment strategies, and budgeting for higher costs.
The graduate visa will shorten from 2 years to 18 months, potentially disrupting graduate schemes.
Employers should assess if they can sponsor employees before their visa expires.
Skilled Worker visas will now require RQF 6 (degree-level) roles, eliminating around 180 medium-skilled occupations.
Salary thresholds will rise, disproportionately affecting charities, small businesses, and those outside London.
Employers should explore hiring locally, offering apprenticeships, or increasing wages.
Skilled Workers will need 10 years (instead of 5) to qualify for settlement, possibly deterring overseas talent.
Skilled Workers must now meet B2 (fluent) level in English, and adult dependents must pass A1 (basic). Employers may need to fund language training to help employees meet requirements for extensions and settlement.
The Immigration Skills Charge will rise by 32% (to £1,320/year for large businesses).
Employers should model costs, consider clawback clauses, and ensure compliance with fee-sharing rules.
Employers must:
- Conduct compliant right-to-work checks.
- Update contracts to clarify sponsorship conditions.
- Seek legal advice before terminating sponsored workers to avoid discrimination claims.
Ignoring these changes risks talent shortages and unexpected costs. Employers should act now by auditing their workforce, revising hiring strategies, and budgeting for higher immigration expenses. Preparation will be crucial to maintaining a stable and compliant workforce.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
