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companies would likely need to navigate Tier 2 of the Points Based System to recruit from the EU. This can quickly become a very expensive exercise.
“ Under Tier 2, an employer needs a sponsor’ s licence which carries a one-off cost of £ 1,476. For each employee, they also need a Certificate of Sponsorship which carries a fee of £ 199. The employee needs to apply for their visa but often the employer meets this cost to which currently stands at £ 575 for entry clearance and £ 664 for leave to remain.
Hospitality businesses“ face £ 2,675 EU worker recruitment costs”
The hospitality industry is a major employer of EU nationals: 22 % of roles are filled by EU workers. According to the ONS, there are currently over 2 million non-UK nationals from EU countries working in Britain.
The Brexit vote has prompted a surge in enquiries to immigration lawyers, with businesses and workers concerned for their future.
Law firm Simpson Millar’ s Head of Immigration Emma Brooksbank has reported a 1,100 % rise in calls from EU migrants hoping to secure permanent residence, and a similar surge in enquiries from businesses employing EU workers who face a significant new tariff as the UK exits the European Union.
Brooksbank warns the bill for recruiting employees from overseas could soon hit a record £ 2,675 – or more:
“ If the UK removes the current exemptions for EEA nationals and ceases to be a signatory to the Treaties which enshrine the rights of free movement in the EU,
“ The Immigration Act 2016 imposes an Immigration Skills Charge which was due to be introduced in April 2017. I anticipate that this could now be brought forward. The proposal is for businesses that recruit from overseas to pay a charge of £ 1,000, or £ 364 for small business, for every employee when they apply for entry clearance or leave to remain. They would usually pay the charge twice in the lifetime of a person’ s leave under Tier 2.
“ When you add up the sums, the immediate cost of taking on an overseas worker could soon be a staggering £ 3,250 per employee or more( or £ 2,039 for SMEs) – and that doesn’ t even take into account the cost of recruitment, legal fees and regulatory administrative costs.”