Skip navigation

Law Donut, Commercial law advice

lexel accreditation logo
FSA Logo

newsletter thumbnail
Subscribe to and view our newsletter

Interim Limit Imposed on Skilled Non-EU Migrant Workers

29th June 2010

There is to be a temporary cap on the number of people allowed to come to work in the UK from outside the EU.

The Home Secretary, Teresa May, announced this week that a limit is to be imposed on the number of workers to 24,000 between now and April 2011. A permanent limit will be introduced after that. 

The Government aims to scale back net migration to levels last seen in the 1990s of tens of thousands rather than hundreds of thousands. The limit on migrants from outside Europe is just one measure in a series to help the Government achieve its target.

In a bid to prevent a rush on applications to work in the UK between now and April next year when the permanent limit will come into force, the Government will enforce an interim limit which from 19 July 2010.

Michael Pitt, Employment partner at Pearson Hinchliffe Commercial Law, explained: “By putting in place an interim limit The Government wishes to prevent a rush of applications and maintain the 2009 level of work visas issued, in effect stopping a ‘closing down sale’ effect by saying, if there are tighter restrictions coming down the line, there is a chance that migrant workers might try and duck in before creating a surge in applications in advance of the permanent annual limit being imposed next April – the opposite of the desired result. That seems sensible as you only need to do that if you are planning to announce tight restrictions in the future.”

Consultation to be launched 

Details of the final limit and how it is to be achieved will follow a 12-week consultation with businesses.

The Government hopes that the results of the consultation will pave the way for 'fundamental changes' to the way in which non-EU workers are to be selected to come to the UK to work.

Exemptions to the cap on skilled migrant workers

Michael Pitt added: "Although there are an number of exemptions to the cap, nearly half of the skilled migrants who come to Britain by many accounts, the Government must be mindful of stifling economic growth at such a critical time for the UK economy."

The Liberal Democrats had demanded "flexibility" in the annual limits so that internal transfers of staff by mutinational companies, ministers of religion and elite sports people".

Critics if the immigration limitations

The clampdown is not without critics from a wide range of stakeholders from within the Coalition Government to employers groups and educational institutions who rely on bringing people in from abroad. The Guardian last week reported that:

“The education secretary, Michael Gove, and the universities secretary, David Willetts, privately warned last week that too rigid an immigration cap could hit Britain's competitiveness and reputation among top overseas students. The business secretary, Vince Cable, voiced his concerns in public about a too-inflexible cap.”

John Philpott, chief economist at The Chartered Institute of Personnel and Development, said: "Employers will not look on this favourably. They will be weary of any measures that make it difficult and more costly to hire the staff that they need." However, he conceded the health care proposal was "sensible" if it encouraged employers to recruit British workers before going abroad.

The Liberal Democrats, who are part of the Coalition Government, opposed the Conservatives' policy during the election campaign.

 


May 2012
Director and shareholder found in contempt of court for selling company assets

Templeton Insurance v Motorcare Warranties: High Court held director of an insurance company in contempt of court for breaching a freezing order imposed against the company.

More
April 2012
Pearson Hinchliffe founding Partner, Roger Hinchliffe, retires

After a 5-decade long career, head of Corporate Commercial department retires.

More
April 2012
Sunday Trading (London Olympic Games and Paralympic Games) Bill

Sunday trading restrictions during the Olympic and Paralympic Games to be suspended.

More
March 2012
The Budget 2012

Summary of the key points.

More
March 2012
National Minimum Wage rates for 2012-13 announced

The national minimum wage will increase by 11p to £6.19 an hour from October 1 2012.

More
March 2012
National Minimum Wage rates for 2012 announced

The national minimum wage will increase by 11p to £6.19 an hour from October 1 2012.

More
September 2011

How to Conduct a Disciplinary Hearing

A recent presentation by Employment solicitor, Susan Mayall, setting out the stages for handling a disciplinary, referencing the ACAS Code of Conduct.

June 2011

ACAS Advice leaflet “Holidays and Holiday Pay”

Download the guidance covering arrangements for holidays and holiday pay.

October 2010

Recent Case Study: Commercial Landlord and Tenant - An Authorised Guarantee Agreement

Authorised Guarantee Agreements keep the original tenant on the hook in case a third party assignee defaults; they should be drafted with care.

July 2010

Recent Case Study: Doing Battle in the Boardroom

How Pearson Hinchliffe Commercial Law helped members of the Board of Directors achieve the outcome they sought in their boardroom dispute with a senior executive director.

May 2010

How the Mergers & Acquisitions team helped Lanes Group PLC achieve their LAS sell-off

Drainage specialists dispose £12.3 million majority stake in Lanes Assistance Services.

March 2010

PH Employment Direct

The Employment team at Pearson Hinchliffe Commercial Law have created PH Employment Direct - a user-friendly and simple service that gives you access to the best advice at the end of a phone 24hrs a day, 7 days a week, 365 days a year.

January 2010

Debt Recovery Service

With our specialist commercial Debt Recovery service you can significantly increase the speed and likelihood of recovering the money owed to your business.

October 2009

M&A Opportunities

A live selection of current assignments offered by Pearson Hinchliffe Commercial Law or those of our professional partner organisation,