With more than 54% of businesses in England and Wales employing international workers, recruiting talent from overseas has become essential for many companies. Krishma Bathia, senior associate at Birketts law firm, highlights key factors that employers must consider when hiring international workers.
Employers must ensure that their recruitment processes are non-discriminatory, giving all candidates fair consideration irrespective of nationality or immigration status. Race is a protected characteristic under UK law, and discrimination in hiring could lead to legal claims.
Once a candidate is selected, employers need to confirm whether the individual has permission to live and work in the UK. Conducting a right to work check determines if sponsorship is required to comply with UK immigration rules.
Popular visa categories
While there are numerous visa options, the most common for employment in the UK include:
- Family visa: Based on having a British or permanent resident family member.
- Youth Mobility Visa: Restricted by age and nationality.
- Graduate Visa: For graduates from British higher education institutions.
- Global Talent Visa: For leaders in academia, research, arts, culture, or digital technology.
- Expansion Worker Visa (Global Business Mobility route): For senior or specialist workers expanding overseas businesses into the UK.
- Innovator Founder Visa: Enables entrepreneurs to establish unique businesses.
- Skilled Worker Visa: For eligible jobs with a Home Office-approved sponsor.
Hiring internationally
The removal of visa routes such as the Investor, Entrepreneur, and Representative of an Overseas Business categories has limited hiring options for some candidates. There are also few options available for industries whose workers are typically self-employed, such as the creative sector.
The Skilled Worker visa has emerged as the most popular route, with more than 369,000 work visas granted in 2024. Sponsor Licence applications surged by 197%, with 105,000+ employers now approved. However, tighter scrutiny has led to almost 40% of new applications being refused and 343% more licences revoked for non-compliance.
Managing recruitment costs
Hiring international workers can be costly, and employers should consider rising visa fees, Immigration Health Surcharge costs, and relocation expenses.
- Visa fees: From 9 April, the Certificate of Sponsorship fee increased to £525, doubling the previous cost. Visa application fees will rise by 5-10%.
- Financial support: Larger employers are more likely to cover visa costs – 21.8% of companies with 500+ employees provide financial support.
To address these costs, many employers are implementing clawback agreements in contracts. These provisions allow companies to recover visa-related fees if employees leave before their sponsorship term ends.
Some employers offer interest-free loans to employees to help cover visa costs. Caution is advised however, as there can be Benefit in Kind taxation implications and new Home Office rules mean that regular deductions from wages for visa support could impact qualification under minimum salary requirements (see below).
Minimum salary requirements
Sponsoring a visa requires employers to meet government-prescribed minimum salary levels, which vary by job type. Increasing minimum salary thresholds make it difficult for smaller businesses to afford to sponsor candidates. Employers must also ensure pay consistency across roles to avoid legal risks related to unequal pay or discrimination claims.
In conclusion, employers should:
- Carefully plan and budget for rising recruitment costs.
- Ensure compliance with immigration and employment laws.
- Account for visa processing times, which may delay start dates.
- Maintain consistent and fair policies across all employees.
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