UK Calling: The new immigration rules to be paid a minimum of £49,400 to HRDs
The new UK law will increase the minimum salary requirement for HR managers and directors from £36,500 to £49,400.
The UK is now more willing to hire HR specialists from across the world; as a result of the new immigration laws, HR will pay the highest wages in the country.
More information on the immigration rule changes that would increase the wage criteria for skilled workers to enter the UK starting in April 2024 has been released by the Home Affairs Office.
The new law will increase the minimum salary requirement for HR managers and directors from £36,500 to £49,400.
In order to align income criteria for various jobs with the median pay for resident workers in those occupations, the general salary threshold is scheduled to increase from £26,200 to £38,000.
The entire memorandum was released by the government this week, but the revisions were first revealed in January 2024.
A 30% reduction in the criteria will be granted to new participants in the skilled worker market.
The new Immigration Salary List has taken the place of the Shortage Occupation List, which had permitted some industries to pay workers 20% less than the threshold amount.
This action is a component of government initiatives to “encourage businesses to invest in the resident workforce rather than over-relying on migration,” according to the explanatory memorandum.
The modifications are scheduled to take effect on April 4, 2024, and they will cover the entirety of the United Kingdom.
The head of immigration at Bates Wells, Chetal Patel, told HR magazine that the higher wage ceiling will have a greater impact on some industries than others, including HR.
“A number of sectors will find the sharp increase in pay thresholds to be a nightmare,” the speaker stated.
“Instead of the existing £36,500, HR managers and directors will need to be paid a minimum of £49,400 (based on a 37.5-hour week, unless any trading points apply). It is an enormous additional expense.
Patel went on to say that certain firms may need to significantly alter their employment practices as a result of the government’s actions.
“This is the biggest reform of UK work routes since Brexit,” the speaker declared. The government’s intention to reduce net migration is evident from the drastic modifications made to the skilled worker route.
If international graduates are unable to achieve the new pay limits, many SMEs will be forced to turn them away. Some employers just won’t be able to raise salaries. To fill voids, they will instead need to consider the resident workforce.
The revisions will affect industries that are experiencing a skills’ shortage, according to Vanessa Ganguin, managing partner at Vanessa Ganguin Immigration Law, who spoke with HR magazine.
“These hikes in the minimum salary may be crippling at a time when they face many challenges,” the speaker stated, referring to start-ups, industries experiencing a skills’ shortage, and many organizations outside the capital that do not pay London salaries.
“The hardest hit will be organizations with skills gaps that they have relied on hiring from overseas, particularly those paying lower rates outside the capital.
It is anticipated that industries including engineering, construction, agriculture, and hospitality will have to pay much higher salaries to employees who are sponsored.
Gaugin pointed out that when companies sponsor new hires as competent workers, they may receive a subsidized wage.
“There are discounts for sponsoring new entrants as skilled workers (generally people under 26 years old or people who have recently graduated in the UK) for more junior staff members,” the spokesperson stated. Graduate visa holders are exempt from the sponsored skilled worker salary requirements.
The managing director of Migrate UK, an immigration law business, Jonathan Beech, gave employers of skilled workers’ advice on how to prepare for potential changes in their immigration status.
“Employers will need to figure out what rules will need to be met at the time employees get their immigration expiration date,” he said in an interview with HR magazine.
“Employers must be aware of the salary disparity at the time they need to prolong their stay because they will need to meet the requirements and submit an application. Being aware of that early on and making preparations in advance are highly recommended.
He pointed out that if workers receive different remuneration for doing the same work, the pay increase can give rise to additional employment law problems.
“With an increase in salaries for skilled workers, it might cause a disparity in salary with other workers,” Beech went on. “You could have one group doing exactly the same job but getting paid less, and another group getting paid more.” That might raise problems with employment law.
He continued by saying that businesses may experience setbacks for up to a year as a result of the reforms. Unfortunately, it doesn’t seem like the adjustments were given any attention.
“The government’s information isn’t as accurate as it could be since the Migration Advisory Committee, which conducted the research and made the recommendations, made it plain that it didn’t have enough time.
“Yes, it needs to be examined in greater detail, but we anticipate that won’t happen until later in the year. Or undoubtedly after a change of administration. I now predict that firms will suffer for a good 10 to 12 months as a result.
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