Tier 2 of the Points Based System: The Basics

Tier 2 of the points based immigration system permits licensed employers to sponsor skilled workers to work in the UK provided that they meet the necessary requirements. There are 4 main categories under Tier 2.

These are:

  • Tier 2(General)
  • Tier 2 (Intra Company Transfer)
  • Tier 2 (Sports Person)
  • Tier 2 (Ministers of Religion)

The first two are the most commonly used by employers: we explain these categories below.

Tier 2 (General)

Tier 2 (General) permits employers to sponsor skilled workers where the employer has a job available which cannot be filled by a settled worker (anywhere in the European Economic Area).

The key requirements are that:

  • The job must be deemed to be sufficiently skilled by the Home Office. This means that it must generally be at NQF Level 6 or above (although there are some exceptions). The Home Office website contains details of those jobs which are considered to be skilled for these purposes.
  • The job must be paid the higher of £20,300 or the rate of pay which is specified for that particular job.
  • The employer will usually need to satisfy the resident labour market test (RLMT). This is satisfied by advertising the role for 28 days in accordance with the Home Office guidance. If the employer can demonstrate that despite having advertised the position, no suitable resident workers have applied for the job, the role is eligible for sponsorship under Tier 2. Careful drafting of the advert is critical – and certain minimum information must be included in the advert to comply with the rules.
  • The applicant must also generally qualify for points for maintenance (being able to maintain and accommodate themselves in the UK) and for having a certain standard of English language skills.

If an employer can establish that the requirements are met, they can apply for and can issue a Certificate of Sponsorship (COS) to the individual. The COS is applied for online and a fee of £184 is paid to the Home Office. That COS is then used by the individual, to apply for entry clearance into the UK (or for leave to remain in the UK). Further forms are completed and a further fee is paid for this stage of the process. The application process is therefore in two stages.

There is no need to satisfy the Resident Labour Market Test in certain cases. These exceptions are important as they can make the sponsorship process quicker and simpler.

These are:

  • Jobs with a salary of £152,100 or more.
  • Job offers for specific research positions, doctors or dentists in training (in specific cases), or for a Doctor in Speciality Training (in limited cases).
  • Where someone is switching - whilst remaining in the UK - from Tier 1 (Post Study Work). This category is now closed to new entrants.
  • For those whose last leave was as a student or under Tier 4. This exception is subject to additional requirements including that the person is applying from inside the UK and that they have completed a bachelors degree, a masters degree, a Post Graduate Diploma in Education or 12 months study towards a PHD.
  • Roles that appear on the shortage occupation list. There is a separate Shortage Occupation list for Scotland.

Tier 2 (Intra Company Transfers)

Tier 2 (ICT) is for employees of a multi-national company who are being transferred to a UK branch of the same organisation. There are 4 types of Tier 2 (Intra Company Transfer) visa (ICT). An employer's Sponsorship Licence will indicate if they are eligible to sponsor employees under this category.

Tier 2 (ICT) is a temporary immigration category – it does not lead to permanent residence – so that should be taken into account when deciding whether or not to apply under this category. Specific rules apply to each type of Tier 2 (ICT) visa. Each type services a specific purpose. The long term staff category is for those employees coming to the UK for more than a year (and a minimum salary of £40,600 is required). The short term category is for transfers of up to 12 months- and a lower salary threshhold of £24,300 applies. There are also specific rules applicable to graduate trainees and those coming to the UK on short term placements to impart or learn skills.

Annual Limit
An overall limit applies to the number of employees who can be sponsored under Tier 2 (General) each year. The annual limit does not apply to Tier 2 (ICT) – the most commonly used category.
There are a number of other situations where the annual limit does not apply.

It does not apply to

  • Jobs that have a salary of £152,100 or above.
  • All in country applications under Tier 2 (except for dependants of a Tier 4 Student).

Certificates of Sponsorship issued to employees in circumstances where the annual limit applies, are referred to as "Restricted" Certificates of Sponsorship. Certificates of Sponsorship which are not subject to the annual limit are referred to as "Unrestricted" Certificates of Sponsorship.

Employers must apply to the Home Office on a case by case basis for a Restricted Certificate of Sponsorship. This can impact the timing of the sponsorship process as such applications can take longer.

This is a brief overview of the rules. It is not entirely comprehensive – we are happy to advise on any specific situations so please contact us with any queries.

Tier 2 of the Points Based System: The Basics

Tier 2 of the points based immigration system permits licensed employers to sponsor skilled workers to work in the UK provided that they meet the necessary requirements. There are 4 main categories under Tier 2.

These are:

  • Tier 2(General)
  • Tier 2 (Intra Company Transfer)
  • Tier 2 (Sports Person)
  • Tier 2 (Ministers of Religion)

The first two are the most commonly used by employers: we explain these categories below.

Tier 2 (General)

Tier 2 (General) permits employers to sponsor skilled workers where the employer has a job available which cannot be filled by a settled worker (anywhere in the European Economic Area).

The key requirements are that:

  • The job must be deemed to be sufficiently skilled by the Home Office. This means that it must generally be at NQF Level 6 or above (although there are some exceptions). The Home Office website contains details of those jobs which are considered to be skilled for these purposes.
  • The job must be paid the higher of £20,300 or the rate of pay which is specified for that particular job.
  • The employer will usually need to satisfy the resident labour market test (RLMT). This is satisfied by advertising the role for 28 days in accordance with the Home Office guidance. If the employer can demonstrate that despite having advertised the position, no suitable resident workers have applied for the job, the role is eligible for sponsorship under Tier 2. Careful drafting of the advert is critical – and certain minimum information must be included in the advert to comply with the rules.
  • The applicant must also generally qualify for points for maintenance (being able to maintain and accommodate themselves in the UK) and for having a certain standard of English language skills.

If an employer can establish that the requirements are met, they can apply for and can issue a Certificate of Sponsorship (COS) to the individual. The COS is applied for online and a fee of £184 is paid to the Home Office. That COS is then used by the individual, to apply for entry clearance into the UK (or for leave to remain in the UK). Further forms are completed and a further fee is paid for this stage of the process. The application process is therefore in two stages.

There is no need to satisfy the Resident Labour Market Test in certain cases. These exceptions are important as they can make the sponsorship process quicker and simpler.

These are:

  • Jobs with a salary of £152,100 or more.
  • Job offers for specific research positions, doctors or dentists in training (in specific cases), or for a Doctor in Speciality Training (in limited cases).
  • Where someone is switching - whilst remaining in the UK - from Tier 1 (Post Study Work). This category is now closed to new entrants.
  • For those whose last leave was as a student or under Tier 4. This exception is subject to additional requirements including that the person is applying from inside the UK and that they have completed a bachelors degree, a masters degree, a Post Graduate Diploma in Education or 12 months study towards a PHD.
  • Roles that appear on the shortage occupation list. There is a separate Shortage Occupation list for Scotland.

Tier 2 (Intra Company Transfers)

Tier 2 (ICT) is for employees of a multi-national company who are being transferred to a UK branch of the same organisation. There are 4 types of Tier 2 (Intra Company Transfer) visa (ICT). An employer's Sponsorship Licence will indicate if they are eligible to sponsor employees under this category.

Tier 2 (ICT) is a temporary immigration category – it does not lead to permanent residence – so that should be taken into account when deciding whether or not to apply under this category. Specific rules apply to each type of Tier 2 (ICT) visa. Each type services a specific purpose. The long term staff category is for those employees coming to the UK for more than a year (and a minimum salary of £40,600 is required). The short term category is for transfers of up to 12 months- and a lower salary threshhold of £24,300 applies. There are also specific rules applicable to graduate trainees and those coming to the UK on short term placements to impart or learn skills.

Annual Limit
An overall limit applies to the number of employees who can be sponsored under Tier 2 (General) each year. The annual limit does not apply to Tier 2 (ICT) – the most commonly used category.
There are a number of other situations where the annual limit does not apply.

It does not apply to

  • Jobs that have a salary of £152,100 or above.
  • All in country applications under Tier 2 (except for dependants of a Tier 4 Student).

Certificates of Sponsorship issued to employees in circumstances where the annual limit applies, are referred to as "Restricted" Certificates of Sponsorship. Certificates of Sponsorship which are not subject to the annual limit are referred to as "Unrestricted" Certificates of Sponsorship.

Employers must apply to the Home Office on a case by case basis for a Restricted Certificate of Sponsorship. This can impact the timing of the sponsorship process as such applications can take longer.

This is a brief overview of the rules. It is not entirely comprehensive – we are happy to advise on any specific situations so please contact us with any queries.

For further information, please contact Karen McGill on 0131 229 5046 or Elaine McIlroy on 0141 303 1100.

© MacRoberts 2013

UPCOMING EVENTS

Business Immigration for HR: an overview of the rules and how to prepare for a compliance visit

Keeping up to date with the rules about who can be sponsored to work in the UK is vital from a business perspective but can present a challenge as the rules change so often. If you are an HR professional or have an interest in knowing more about sponsorship duties this seminar will provide practical tips and recommendations.

© MacRoberts 2013

Disclaimer

The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.