Having run on a manifesto promising to “reform the points-based immigration system so that it is fair and properly managed,” the United Kingdom’s incoming Labour government is expected to implement several changes to the country’s immigration system, including with respect to employment.
The key policies for employers in relation to immigration are set out below.
Net Migration
Labour intends to reduce net migration to the UK. This policy largely focuses on work routes and is devised to be achieved by filling skills shortages from within the UK, reforming the points-based system, and introducing new powers to ban hiring from overseas for employers and agencies that break employment law.
Skills Shortages
Labour’s election manifesto promised to bring “joined-up thinking,” meaning decisions on immigration would be taken within a wider approach to working conditions in the UK and industrial strategy. In particular, the manifesto emphasizes the upskilling of the domestic workforce to reduce employer demand for overseas workers, thereby reducing overall net migration.
The manifesto included an intention to strengthen the Migration Advisory Committee and establish a formal framework for the committee to work with skills bodies across the UK to address skills shortages in the economy. Referring specifically to the health care and construction industries as sectors intended to benefit from this skills plan reflects the intention of ending certain sectors “languishing endlessly on immigration shortage lists” as roles in both are included on the current Immigration Salary List, having previously been included on the predecessor Shortage Occupation List.
Salary Thresholds
Labour has indicated that they will ask the Migration Advisory Committee to investigate the impact of the increased immigration salary thresholds that were implemented in April 2024.
There have been no other announcements regarding changes to these thresholds, and Labour has not been critical of the increase.
Enforcement and Compliance
The theme of ensuring increased skills and working conditions are reflected in the pledge that “employers who flout the rules will be barred from hiring workers from abroad.” Employers are already subject to a duty to comply with wider UK law (including employment law), the breach of which may result in enforcement action such as the downgrading, suspension, or revocation of sponsor licences. This pledge may, however, indicate that the new government intends to continue recent efforts to increase enforcement and compliance efforts following increases to civil penalties for hiring illegal workers earlier in the year.
Labour has not made any specific policy statements regarding the Student and Graduate routes in the UK. The previous government commissioned the Migration Advisory Committee to carry out a review of the Graduate route, and the main finding was that the route should continue in its current form. Labour has not confirmed whether they will maintain the route.
Labour has indicated that they will not introduce a wider Youth Mobility Scheme for European nationals. Several European nations already benefit from this scheme on a country-to-country basis.
While no specific policy for Creative Workers has been announced, Labour has indicated that they may seek to renegotiate arrangements with the EU for touring performers.
Labour has not made any statement regarding changes to the application fees that were raised in February and April of 2024.
The fee increases, together with the increases to the Skilled Worker minimum salary threshold, have made the sponsorship of junior roles prohibitively expensive for many businesses in the UK. Labour has not indicated whether they intend to reevaluate this approach in their immigration policy.
We expect any changes to the UK’s immigration system to be confirmed in the coming months through Statements of Changes before implementation in the Immigration Rules. Employers should monitor these changes and ensure that their recruiting policies are updated where required.
We recommend conducting a mock audit or reviewing internal recruitment policies to ensure strong compliance mechanisms if stricter enforcement and stronger penalties are implemented.
Morgan Lewis lawyers stand ready to assist employers in keeping abreast of the anticipated changes.
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