Stringent UK visa rules worry Indian companies, skilled workers
By Ishani Duttagupta, ET Bureau | 20 Mar, 2011,
NEW DELHI: With the tightening of UK work permit rules, which comes into effect from April 6, skilled Indian workers and companies with operations in the UK are feeling the heat. The Tier 2 (general) category will be subject to a limit on numbers of 20,700 in the year starting April 6, 2011. Companies will now need to apply on a monthly basis for certificates and provide business reasons to justify why they require the particular worker.
"The rules are likely to impact the number of applicants globally, but it is too early to say what the impact will be in India. We are however, confident that India will continue to be a significant source of highly skilled and skilled migrants to the UK. Also, in India approximately 90% of Tier 2 visas issued last year were to intra-company transferees. Whilst there will be some changes to the ICT route, it is exempt from the cap on numbers," a spokesperson from the British High Commission said.
The good news, in fact, is that Tier 2 intra-company transfers for employees transferred to UK because they possess skills which cannot be sourced in the local market has been kept outside quotas. "The government listened to business in reforming the economic migration routes, and kept ICT outside the annual cap. It did, however, make some changes including requiring those who wish to stay in the UK longer than one year to earn a minimum of £40,000," the spokesperson for the British High Commission added. UK's migration advisory committee (MAC) estimated that about 50% of ICTs are paid more than £40,000.
While the minimum changes to the ICT route is a breather for Indian companies, there will be a significant impact on individuals going to work in the UK under Tier 2. "Certain categories of chefs and senior care workers will be removed from the shortage occupation list entirely.
Scores of staff in both these categories have been coming to the UK from India to fill shortage gaps, that will no longer be possible," says London-based immigration lawyer Maria Fernandes.The UK government is also reviewing student visa rules and it is expected that the 2-year post study work rule will be made more strict and only available for skilled work in the student's field of study.
"The plans to limit work after studies is likely to have a huge impact as other countries, in particular Germany, are trying to lure students by offering work after their studies," says Fernandes. Meanwhile, the UK government has just introduced fast-track settlement for high value investors and entrepreneurs. Those who invest £5 million will be allowed to settle in the UK after three years and those who invest £10 million or more will be allowed to settle after two. This compares with the minimum five year requirement that is currently in place.
"The UK wishes to attract the best and brightest talent from overseas. It is therefore introducing relaxed requirements for entrepreneurs who wish to set up businesses here. In addition, the European Union and the UK government are currently in negotiations with India to create a new immigration route for Indian workers.
If a deal is reached, the UK will implement special provisions for talented Indian professionals who wish to come to the UK. This would be exempt from the immigration cap," says Kamal Rahman, a London-based lawyer and partner at Mishcon de Reya, who has worked closely with Britain's home office in providing inputs in framing the rules.
"The rules are likely to impact the number of applicants globally, but it is too early to say what the impact will be in India. We are however, confident that India will continue to be a significant source of highly skilled and skilled migrants to the UK. Also, in India approximately 90% of Tier 2 visas issued last year were to intra-company transferees. Whilst there will be some changes to the ICT route, it is exempt from the cap on numbers," a spokesperson from the British High Commission said.
The good news, in fact, is that Tier 2 intra-company transfers for employees transferred to UK because they possess skills which cannot be sourced in the local market has been kept outside quotas. "The government listened to business in reforming the economic migration routes, and kept ICT outside the annual cap. It did, however, make some changes including requiring those who wish to stay in the UK longer than one year to earn a minimum of £40,000," the spokesperson for the British High Commission added. UK's migration advisory committee (MAC) estimated that about 50% of ICTs are paid more than £40,000.
While the minimum changes to the ICT route is a breather for Indian companies, there will be a significant impact on individuals going to work in the UK under Tier 2. "Certain categories of chefs and senior care workers will be removed from the shortage occupation list entirely.
Scores of staff in both these categories have been coming to the UK from India to fill shortage gaps, that will no longer be possible," says London-based immigration lawyer Maria Fernandes.The UK government is also reviewing student visa rules and it is expected that the 2-year post study work rule will be made more strict and only available for skilled work in the student's field of study.
"The plans to limit work after studies is likely to have a huge impact as other countries, in particular Germany, are trying to lure students by offering work after their studies," says Fernandes. Meanwhile, the UK government has just introduced fast-track settlement for high value investors and entrepreneurs. Those who invest £5 million will be allowed to settle in the UK after three years and those who invest £10 million or more will be allowed to settle after two. This compares with the minimum five year requirement that is currently in place.
"The UK wishes to attract the best and brightest talent from overseas. It is therefore introducing relaxed requirements for entrepreneurs who wish to set up businesses here. In addition, the European Union and the UK government are currently in negotiations with India to create a new immigration route for Indian workers.
If a deal is reached, the UK will implement special provisions for talented Indian professionals who wish to come to the UK. This would be exempt from the immigration cap," says Kamal Rahman, a London-based lawyer and partner at Mishcon de Reya, who has worked closely with Britain's home office in providing inputs in framing the rules.
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