Tag: Visa and Immigration Rules

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China Residency Rules May Increase Taxes on Foreign National Employees

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China residency rules are changing with the implementation of a new law. The People’s Republic of China Individual Income Tax law has abolished the 5-year tax exemption period during which a foreign national employee does not have to pay income tax on their worldwide earnings. As a result, foreign national employees working in China may face higher taxes on their earnings.

What are the Current China Residency Rules?

Currently, foreign national employees have an exemption for five years before they must pay income tax on their worldwide earnings. Until the five year requirement is met, they only owe income tax on their earnings in China. Also, the current China residency rules require five full years before tax on worldwide earnings takes effect. Foreign national employees with absences are able to avoid the tax requirement if they break residency with one of the following scenarios:

  1. Have an absence of 30 or more days continuously on a single trip during the year.
  2. Have an absence of 90 or more days over multiple trips during the year.

What are the New China Residency Rules?

The new China residency rules eliminate the full year requirement for residency starting January 1, 2019. Instead, foreign national employees who are a resident in a People’s Republic of China-treaty country, and who work in China more than 183 days in a given year, will owe taxes on worldwide earnings. Foreign national employees receive an exemption for China income tax if they do not exceed 183 days residing in China.

Foreign national employees from a non-treaty country have a much shorter China tax exemption of only 90 days. After 90 days, these employees would owe tax to China on their worldwide earnings.

What Should Employers Expect?

Employers in China should expect that the new China residency rules may require employees to pay taxes on their worldwide earnings to China if they exceed 183 days residing in China during a year. Also, there is no mention of any five year period to determine residency, so employees may face immediate tax obligations.

What Should Employers do?

Employers should review their current employment situations in China to determine how the new China residency rules will impact their company and their employees residing in China. They should also provide information to their employees residing in China so the employees can prepare for possible tax obligations accordingly.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to respond effectively to new China residency rules.

Learn how your company can mitigate the impact of China residency rules and resulting tax impacts on employees from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

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India’s Supreme Court Overturns Colonial-Era Ban on Same-Sex Relationships

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In September 2018, India’s Supreme Court overturned the country’s colonial-era ban on same-sex relationships. The landmark ruling gave rise to celebrations across India and throughout Southeast Asia. Activists hope the ruling sparks similar reform in other nations. The Supreme Court rule noted that consensual same-sex relationships are not criminal in nature. Also, the Supreme Court noted that people in same-sex relationships in India are to receive all the protections offered in the Constitution of India.

History Behind India’s Supreme Court Ruling on Section 377

British Rule Over India

The law prohibiting same-sex relationships is known as Section 377. As part of the Indian Penal Code (IPC), Section 377 became law in 1861 when India was under British rule. Violations of Section 377 could have resulted in severe punishments. These punishments included the possibility of imprisonment for life, or a term up to 10 years, as well as a monetary fine.

First Challenge to Section 377

The challenge to Section 377 began in July 2009. This is when the Delhi High Court first decriminalized same-sex relationships among consenting adults. The Delhi High Court was hearing Public Interest Litigations (PILs) filed by non-government organizations. One such organization was The NAZ Foundation (India) Trust. NAZ Foundation has been working on sexual health matters in India since 1994.

Setback at the Delhi High Court

However, the Delhi High Court restored Section 377 in 2013 after appeals from several religious and conservative groups. In that decision, the court noted that Parliament, and not the courts, should take up the issue.

New Approach at India’s Supreme Court

Activists regrouped and took a different approach on the issue in 2016. Their new challenge focused on Section 377 as violating their rights to equality and liberty guaranteed under the India Constitution. July 2018’s hearings at India’s Supreme Court on the challenge included arguments that the law was legally inconsistent with other recent court rulings. One such ruling in 2017 guaranteed the constitutional right to privacy.

What does this mean?

With this ruling from India’s Supreme Court, the government in India will no longer be able to use Section 377 to prosecute consenting adults in same-sex relationships. India nationals in same-sex relationships will be accorded all of the India Constitution’s protections. While the ruling did not strike Section 377 from the IPC, the government can no longer use it to prosecute people in consensual same-sex relationships. It is important to note that India’s Supreme Court ruling on Section 377 applies to India nationals. The ruling may not apply to foreigners in India.

What should employers expect?

Employers in India should expect that additional legal challenges and rulings will follow. These challenges may be focused on issues such as marriage and parenting rights. Rulings that alter the current landscape of same-sex relationships may result in future employer obligations. Such obligations might include extension of health care benefits or similar programs. Many companies in India are eager to adopt inclusive policies and have been waiting for India’s Supreme Court to make its ruling on Section 377. As a result of this ruling, companies can now proceed to extend benefits to same-sex partners.

What should employers do?

Employers in India should review India’s Supreme Court rulings to determine how they might proceed with their employment plans. Employers should also be aware that future rulings will likely emerge over the next several years. As a result, these rulings may impact the employer’s ability to accommodate employees in same-sex relationships. Companies that are eager to provide benefits for their employees in same-sex relationships should work to ensure equal and fair treatment for all employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees across the world. Our team can help your HR teams communicate India’s Supreme Court ruling on Section 377 and its impact on transferees and their family members residing in India.

GMS was the first relocation company to register as a .com, created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

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USCIS Adjusting Premium Processing Fees to Improve Adjudications and Service Processes

USCIS Adjusting Premium Processing Fees to Improve Adjudications and Service Processes

The U.S. Citizenship and Immigration Service (USCIS) will increase premium processing fees for some forms starting on October 1, 2018. The fees will increase by 14.92%, reflecting the percentage increase in inflation since implementation of the last fee increase in 2010. The increase is being done in accordance with the Immigration and Nationality Act. The Act permits USCIS to raise such fees in order to provide services.

What is the issue?

Costs for staff, technology, and supplies have increased since 2010. Using the Consumer Price Index for all Urban Consumers as a benchmark, the increase on average is 14.92% over this time frame. At the same time, the demand for immigration services that USCIS provides has significantly increased. Without an increase in the premium processing fees, USCIS will be increasingly unable to continue providing services.

What are the forms subject to increases in premium processing fees?

Premium processing fees are additional fees that petitioners can pay for the option of requesting a 15-day processing time for specific requests. Petitioners must also pay the basic form filing fee as well as any other required fees.

Forms subject to increases in premium processing fees include:

Form I-129, Petition for a Nonimmigrant Worker – this form is for petitioners filing on behalf of a nonimmigrant worker to come to the United States temporarily to perform services or labor, or to receive training, as an H-1B, H-2A, H-2B, H-3, L-1, O-1, O-2, P-1, P-1S, P-2, P-2S, P-3, P-3S, Q-1 or R-1 nonimmigrant worker. Petitioners may also use this form to request an extension of stay in or change of status to E-1, E-2, E-3, H-1B1 or TN, or one of the above classifications for a foreign national.

Form I-140, Immigrant Petition for Alien Workers – this form is used to petition for an alien worker to become a permanent resident of the United States.

What does increasing premium processing fees mean for the USCIS?

USCIS will be able to hire additional staff, as well as make significant investments in technology. As a result, this will allow the agency to provide adjudications and premium processing services quickly and more efficiently than is currently possible.

What should employers expect?

Employers should expect that premium processing fees for Form I-129 and I-140 will increase by 14.92%. Currently, the fee is $1,225. Starting on October 1, the fee will increase to $1,410.

What should employers do?

Employers should review their hiring plans and determine any current budgetary impact related to increases in premium processing fees for Form I-129 and Form I-140. Employers should also review future budgets to ensure they reflect the increased fees.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to respond effectively to the USCIS’s increase in premium processing fees. Learn how your company can mitigate the impact of increases in premium processing fees from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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EU Blue Card and Single Permit Directive Allow Non-EU Citizens to Work in EU Countries

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Within the European Union (EU), the EU Blue Card program allows non-EU citizens to work in EU countries. Applicants for the EU Blue Card must meet specific criteria before they can obtain the card. Employment portals such as the EU Blue Card Network lets applicants submit applications as well as create profiles that can be searched by EU employers so they can offer employment contracts. Additionally, the European Job Mobility Portal provides an overview of job opportunities in the EU, as well as tips on how to apply for jobs and information on living and working in all EU countries.

What are the specific criteria that citizens must fulfill to request an EU Blue Card?

There are several specific conditions that non-EU citizens must meet before they can request an EU Blue Card:

  1. Citizenship outside of the EU
  2. Have post-secondary education (degree) or at least five years or more professional experience
  3. Obtain an employment contract or binding employment offer from an EU employer that is at least one year in length
  4. Work as a paid employee; self-employed workers or entrepreneurs are not eligible for the EU Blue Card
  5. Annual gross salary must be at least one and a half times the average national salary (except when the lower salary threshold applies)
  6. All necessary travel documents are in order
  7. Health insurance is in place for yourself and any relatives who come to the EU with you
  8. Proof that you fulfill the legal requirements to practice your profession, if the industry regulates your profession

How did the EU Blue Card program originate?

The European Commission believes that workers with a high level of skills from outside the EU are crucial to maintaining the EU’s economic competitiveness. Several sectors of the EU economy are dealing with a shortage of skilled employees, lowering the EU’s ability to compete in the international market. Since 2009 the EU Blue Card Directive creates a common admission criteria and helps speed the procedure for hiring skilled foreign nationals. A new EU Blue Card Directive in June 2016 further simplifies and streamlines the processes. The EU Immigration Portal created a new EU Blue Card website to provide a user-friendly portal as well as current information for applicants.

What should employers do?

Employers seeking to hire non-EU citizens should review the program’s requirements. They should also investigate EU Blue Card job portals and networks that will allow them to search for qualified applicants to help fill job openings.

Conclusion

Global Mobility Solutions’ team of global relocation experts helps thousands of our clients with country-specific employment requirements. We can help your company understand how to use the EU Blue Card program and job networks to search for highly skilled foreign nationals to fill your job openings, and help you design a relocation policy that appeals to qualified job seekers. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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United States Internal Revenue Service Could Deny or Revoke Over 362,000 Passports

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The Fixing America’s Surface Transportation (FAST) Act signed by President Barack Obama on December 4, 2015, includes a provision regarding a United States Passport and delinquent tax debt. This provision requires the Internal Revenue Service (IRS) to collaborate with the State Department. As a result, the IRS may deny or revoke the passport of any US taxpayer with seriously delinquent tax debt.

What is the issue?

The IRS has issued Notice 2018-1 “Revocation, Limitation, or Denial of Passport in Case of Certain Tax Delinquencies” to provide clarification on the issue.

  1. Section 32101(a) of the FAST Act adds new Code Section 7345. This requires the Treasury Department to notify the State Department if a certification is made that an individual has a “seriously delinquent tax debt.”
  2. Code Section 7345(a) provides that if the Treasury Department receives certification by the IRS Commissioner that an individual has a seriously delinquent tax debt, they must send this certification to the State Department for action and may include denial, revocation, or limitation of the taxpayer’s passport.
  3. Under Code Section 7345(b)(1), a “seriously delinquent tax debt” is an unpaid, legally enforceable, and assessed federal tax liability of an individual. The amount must be greater than $50,000, and for which:
    • A notice of federal tax lien is on file under section 6323, and
    • The taxpayer’s right to a hearing under section 6320 exhausts or lapses; or
    • A levy issues under section 6331.

Additionally, Code Section 7345(f) requires the $50,000 amount to adjust for inflation each calendar year beginning after 2016.

What is the need for Code Section 7345?

The basic concept of Code Section 7345 is to increase revenues. Prior to Code Section 7345, a taxpayer who was seriously delinquent on their tax debts faced limited consequences. Often residing outside of the country, such taxpayers had little incentive to pay their tax obligations in a timely manner.

Who does Code Section 7345 affect?

Code Section 7345 affects taxpayers who have seriously delinquent tax debt with no arrangements to settle. An important point to note is that this tax debt does include penalties and interest. A somewhat manageable $20,000 tax debt can quickly grow to over $50,000 when the amount includes penalties and interest. This in turn will trigger the possible passport denial or revocation. As a result, approximately 362,000 Americans could be at risk of losing their passport. Importantly, taxpayers who are in bankruptcy, subject to tax-related identity theft, or are working with the IRS to create a payment plan will not face passport denials or revocations.

What should employers expect?

Employers should expect that their United States citizen employees on assignment outside of the United States either permanently or on temporary basis are subject to Code Section 7345’s requirements. Employees denied a passport renewal or who have their passport revoked will not be able to move between countries.

What should employers do?

Employers who have US citizen employees on permanent or temporary assignment outside of the country should communicate Code Section 7345’s requirements to these employees. The IRS has remedies in place for taxpayers with seriously delinquent debt to prevent the loss of a passport. However, those employees must take action or face the denial of a passport renewal, or revocation of their current passport.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. As a result, we can help your company understand how to respond effectively to Code Section 7345’s requirements. Learn how to respond to IRS and State Department passport enforcement issues that may impact US citizen employees on permanent or temporary assignment. Global Mobility Solutions’ relocation industry and technology experts are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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India’s Economic Growth Continues and Becomes Sixth-Largest in World, Surpassing France

Mumbai skyline view from Marine Drive in Mumbai, India

According to the World Bank’s data for 2017, India’s economic growth has now pushed the country forward to become the world’s sixth-largest economy. With a 2017 Gross Domestic Product (GDP) of $2.597 trillion, India’s economy surpasses France’s 2017 GDP of $2.582 trillion. India’s economic growth is further enabled by its surplus of highly skilled professional workers. According to the Centre for Economics and Business Research, India is on track to also surpass Britain in 2018, becoming the world’s fifth-largest economy.

Where is the growth in India?

India’s economic growth is accelerating across several sectors of its economy. The growth of India’s population adds further accelerant to its rapidly expanding economic growth. Sectors experiencing the greatest growth rates include:

  • Agriculture
  • Banking and Insurance
  • Business Investment
  • Construction
  • InfoTech Industry
  • Manufacturing
  • Mining
  • Real Estate
  • Retail/Consumer Spending

What does this mean?

As Global Mobility Solutions has previously noted, Korn Ferry’s study “Global Talent Crunch” highlights the skilled talent shortage that is impacting countries and specific industries around the world. This same study, however, notes that India is the only country in the analysis that will maintain a surplus of skilled talent through 2030. India’s economic growth is accompanied by a surplus of skilled talent that will provide the nation with a highly vibrant economy and bright prospects for continued success. The government of India will have more resources to invest in infrastructure improvements. Therefore, the population of India will benefit from plentiful job opportunities throughout the nation, across several industries.

What should employers expect?

Employers should expect India’s economic growth will continue to increase. If they are currently selling to India-based customers, this business should be on track for future expansion. Additionally, India offers good prospects for business investment and joint ventures. Employers should examine their business objectives to see how their company can benefit from India’s continued economic success. Since India also has a significant surplus of highly skilled workers, employers should expect that the country will be a good source for talented workers.

What should employers do?

Employers should review their business objectives and hiring plans related to their projects in India, or that result from sales trade with customers based in India. They should also examine the India government’s policies related to work permits and visas, so they can understand and respond to future growth and investment activities in this country. Employers should review their relocation policy to ensure it is designed to attract transferees and new hires from India’s skilled labor force. They should also examine the work permit and visa guidelines in the countries in which they have business locations that would benefit from relocating India-based transferees and new hires.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with country-specific employment and visa requirements. As a result, we can help your company understand how to gain the most benefit from India’s economic growth and favorable business prospects. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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European Union Member States Must Recognize Residency Rights of Same Sex Spouses

Amazing London skyline with Tower Bridge during sunset

A new rule from the European Court of Justice, located in Luxembourg, requires European Union (EU) countries to recognize the residency rights of same sex spouses. The rule applies even if the countries do not authorize marriage between persons of the same sex. These countries may not obstruct the freedom of residence of any EU citizen. They cannot refuse to grant their same sex spouse, who is a national of a country that is not an EU Member State, a derived right of residence in their country.

Why is this rule needed?

Prior to the new rule, several EU member states did not offer legal protection for same sex spouses. These countries include Bulgaria, Latvia, Lithuania, Poland, Romania, and Slovakia. They also did not offer residency rights for same sex spouses of EU citizens.

Who does this rule affect?

This new rule affects same sex married couples who reside in the countries of Bulgaria, Latvia, Lithuania, Poland, Romania, and Slovakia.

What should employers expect?

Employers should expect that all non-EU citizens who become residents by marriage to an EU citizen will now have full residency rights applicable to all EU citizens. This includes employment rights and health benefits for which they were previously not eligible. As a result, some employees may want to add their same sex spouses to their health benefit coverage, if applicable.

What should employers do?

Companies that have current EU citizen employees should take notice. Most especially if these employees reside in the countries of Bulgaria, Latvia, Lithuania, Poland, Romania, and Slovakia. Companies should review their employee’s eligibility under the new rule for benefits coverage. They should also review the eligibility for all other related services for their employee’s same sex spouses. EU citizen employees and their family members within these countries should also take notice. They should understand the impact of the EU’s new rule affording residency rights for same sex spouses.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency rights requirements. We can help your company understand how to respond effectively to the EU’s new rule. We can explain the impact of residency rights for same sex spouses in these specific countries. Learn how to navigate the changing residency landscape in the EU from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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United Kingdom Creates New Settled Status for European Union Nationals and Family Members

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The United Kingdom is creating a new Settled Status for European Union nationals and their family members residing in the UK. This new designation arose from an agreement between the United Kingdom and the European Union. The new Settled Status replaces the current permanent residence status that is granted under EU Law.

Negotiations pertaining to the UK’s exit from the EU, also known as BREXIT, continue on specific matters pertaining to the exit process.

What are the important timeline dates?

The Month of March 2019: The application process will be fully open

March 29, 2019: The United Kingdom exits the European Union

The Timeframe from March 30, 2019 through December 31, 2020: Implementation Period for BREXIT

December 31, 2020: Five Year Residency deadline for EU citizens and immediate family members residing in the UK

June 30, 2021: The deadline for applying for the new Settled Status

Who is eligible to apply for the new Settled Status?

  • All European Union nationals and their qualifying family members (spouses, unmarried and civil partners, children) living in the UK on a continuous basis for five years up to December 31, 2020.
    • NOTE: A fee comparable to the current cost of a UK passport (£80) will apply.
  • All European Union nationals who arrive in the UK prior to the December 31, 2020 deadline, have not met the five year residency rule, but who do want to remain in the UK.
    • NOTE: Must apply for temporary “pre-Settled Status” permission to reside in the UK until they meet the requirements for the new Settled Status.
    • NOTE: A fee comparable to the current cost of a UK passport (£80) will apply.
  • Immediate family members of European Union nationals who arrive in the UK prior to the December 31, 2020 deadline, have not met the five year residency rule, but who do want to remain in the UK—ONLY if the family relationship existed BEFORE December 31, 2020.
    • NOTE: Must apply for temporary “pre-Settled Status” permission to reside in the UK until they meet the requirements for the new Settled Status.
    • NOTE: A fee comparable to the current cost of a UK passport (£80) will apply.
  • Current EU citizens residing in the UK who hold permanent residence status or plan to do so before December 31, 2020 must exchange this document for the new Settled Status in order to continue residing in the UK after the deadline.
    • NOTE: There should be no fee to exchange this document if the EU citizen currently holds permanent residence status.

What is the process to apply for the new Settled Status?

The United Kingdom Home Office will be introducing a new online application process. This new process will eliminate the current requirement to complete an application form and provide several supporting documents. The Home Office notes that the new process will link to relevant government departments. Also, the new process will synchronize records to automatically confirm data such as the applicant’s work history.

Applicants for the new Settled Status, or those applying for temporary permission to reside in the UK until they meet the residency requirements for Settled Status, must prove their identity and nationality. Acceptable documents include a current passport, Identification Card, and a recent photograph. Applicants must also declare any criminal convictions on their records.

When will the new Settled Status application system be in use?

The United Kingdom Home Office is targeting the application system to be fully open by March 2019.

What should employers do?

Companies that have current EU national employees residing in the United Kingdom should review their eligibility under the new Settled Status requirements and plan accordingly. EU national employees and their family members should learn about and understand the UK’s new residency and application requirements if they wish to remain in the United Kingdom.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to respond effectively to the United Kingdom’s new Settled Status. Learn how to navigate the changing residency landscape during BREXIT from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Japan Issuing New Work Permit to Attract More Foreign Workers

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Japan’s government is planning to issue a new work permit in a bid to increase the number of foreign workers. The initiative will address the country’s severe labor shortage that is impacting several business sectors, especially smaller businesses outside of large metropolitan areas. Japan will also permit the entry of unskilled laborers, who have not previously been able to obtain work permits.

Which business sectors does the new work permit cover?

Japan has at least five severely undermanned business sectors. Agriculture, construction, and nursing care make up the largest share of the labor shortage. Adding to the labor shortages are several 2020 Tokyo Olympic construction projects.

Why does Japan need this initiative?

Currently, many employees in Japan often work extensive overtime hours, to the point of physical and mental exhaustion. Additionally, Japan’s working-age population of people between the ages of 15 and 64 will drop by 15 million between this fiscal year and fiscal 2040.

What does the initiative entail?

There may be two methods for foreign workers to acquire the new work permit:

  1. Foreign workers can complete the Technical Intern Training Program, which lasts up to five years. Participants currently must return home at the end of the program. However, the government wants to let them use their new skills in Japan, so that requirement would change.
  1. Foreign workers can pass an exam on technical and Japanese language skills. Workers will need to be able to hold a basic conversation in Japanese. Some workers may receive approval with less proficiency (for example, workers in the agriculture and construction sectors).

The Japanese government understands that it must ensure foreign workers’ assimilation into the local culture. Language skills for foreign workers will help ensure they can integrate into Japanese society, and the government has sponsored Japanese language classes to assist foreign residents.

Working conditions for foreign workers are another government concern. The government will require that foreign workers be paid the same as Japanese workers, and receive the same fair and equal treatment in the workplace. Japan’s “My Number” tax and social security identification system will be revised to track foreign workers and ensure they are not being forced to put in more work hours than the mandated cap allows.

What should employers expect with this change?

When the government in Japan develops the new work permit and related program features, employers should expect greater access to an available pool of foreign workers entering the country for employment opportunities. Employers should also expect the incoming workers might need assistance with language training and assimilating into the Japanese culture.

What should employers do?

Employers should review their hiring plans for foreign workers in Japan to determine their eligibility with these changes. They should also monitor the Japanese government’s progress on creating the new work permit and related program features to determine timeframes for adding foreign workers, what their organizations need to do, and scheduling future projects.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with country-specific employment and visa requirements. We can help your company understand how to gain the most benefit from Japan’s new work permit. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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United Kingdom Changes Immigration Rules for Tier 2 Sponsored Visas

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The United Kingdom Home Office is changing the Immigration Rules for Tier 2 Sponsored Visas effective July 6, 2018. The change is in response to growing concern within the business community over the negative impact the current immigration rules are having on hiring efforts for technical occupations.

What is the change to the Immigration Rules for Tier 2 Sponsored Visas?

Starting on July 6, doctors and nurses who apply under the Tier 2 (General) Sponsored Visa rules will be exempt from having to also apply for a Restricted Certificate of Sponsorship (RCoS). This removes these workers from the cap on skilled worker visas.

What is the reason for this change?

Currently, over 8,000 RCoS requests have been refused since December 2017 due to the available quota reaching its limit. Since December 2017 those with salaries below £50,000 have been unsuccessful in obtaining an RCoS. Applicants must receive an RCoS before they can submit a visa application. Thousands of doctors have been denied Tier 2 Visas due to the immigration quotas. The National Health Service has been pressing the Home Office to exempt skilled employees from Tier 2 visa requirements as the immigration quotes restrict their ability to hire medical staff. Starting on July 6, there will be no requirement for prior approvals, and a Certificate of Sponsorship (CoS) can be assignable to an individual following the completion of a Resident Labor Market Test (RLMT).

What is the impact of this change?

This change will allow the National Health Service to recruit talent from outside of the United Kingdom and European Union. This change in turn also increases the availability of up to 1,600 RCoS that health workers no longer require. Employers can use these RCoS for highly qualified professionals in other areas such as Information Technology, Engineering, and Teaching.

What should employers expect with this change?

Removing health workers from the monthly allocation should open up opportunities for recruitment in other business sectors under the RCoS. The business community is hoping that the minimum salary threshold will soon be reduced from the current £50,000 threshold, to further increase the availability of labor for businesses in the United Kingdom.

What should employers do?

Employers should review their hiring plans for foreign professionals in the United Kingdom to determine their eligibility with these changes. They should also monitor the United Kingdom Home Office’s future changes to rules. Changes that may reduce the minimum salary threshold below £50,000 would further expand the available pool of labor.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with country-specific employment and visa requirements. We can help your company understand how to gain the most benefit from the changes to the United Kingdom’s Tier 2 Sponsored Visas. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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