From 1 January 2021, free movement will end and the UK will introduce a points-based immigration system that will treat EU and non-EU citizens equally and transform the way in which all migrants come to the UK to work.

Under a points-based immigration system, points are assigned for specific skills, qualifications, salaries and shortage occupations. Visas are then awarded to those who gain enough points.

The points-based system will provide simple, effective and flexible arrangements for skilled workers from around the world to come to the UK through an employer-led system.

This represents a significant change for employers in the UK, who will need to adapt. New government guidance provides an overview of the new system and sets out the steps employers can take to prepare. Here are some of the key points:

EU citizens already living in the UK

The new system will not apply to EU citizens living in the UK by 31 December 2020. They and their family members are eligible to apply to the EU Settlement Scheme and have until 30 June 2021 to make an application.

As a transition measure, employers can continue to accept the passports and national identity cards of EU citizens as evidence of their right to work up until 30 June 2021.

Skilled workers

From 1 January 2021, anyone coming to the UK to work will need to demonstrate that:

• they have a job offer from a Home Office approved sponsor;
• the job offer is at the required skill level – RQF 3 or above (A Level and equivalent); and
• they speak English.

In addition to this:

• if they earn more than the required minimum salary threshold they are eligible to make an application; or
• if they earn less than the required minimum salary threshold, but no less than £20,480, they may still be eligible if they can demonstrate that they have a job offer in a specific shortage occupation or a PhD relevant to the job.

Anyone coming to work in the UK will need to be paid the higher of the specific salary threshold for their occupation – the ‘going rate’ – and the general salary threshold. However, some applicants will be able to trade characteristics, such as their qualifications, against a lower salary. The general minimum salary threshold will be £25,600.

Highly skilled workers

From January 2021, the current Global Talent route will open to EU citizens on the same basis as non-EU citizens. This means the most highly skilled, who can achieve the required level of points, will be able to enter the UK without a job offer if they are endorsed by the relevant competent body.

In the longer term, an unsponsored route for highly skilled workers will be introduced. This would allow a small number of the most highly skilled workers to come to the UK without a job offer.

Lower-skilled workers

There will not be an immigration route specifically for those who do not meet the skills or salary threshold for the skilled worker route.

The new immigration system provides greater flexibility for employers with changes to salary and skills thresholds. Employers can also benefit from the youth mobility scheme. The UK has arrangements in place with eight countries and territories to enable around 20,000 young people to come to the UK each year.

Other routes

Initiatives are also being brought forward for scientists, graduates and NHS workers, which will provide businesses with additional flexibility. A new Graduate Immigration Route will be available to international students who have completed a degree in the UK from summer 2021. This will enable international students to remain in the UK and work at any skill level for two years after they have completed their studies.

Becoming an approved sponsor

You need to apply to be a sponsor if you want to recruit workers from outside the resident labour market from 1 January 2021. Until then current immigration rules will apply.

The standard processing time for an application is usually eight weeks and will start when your application is received.

You do not need to be a sponsor to employ someone from the resident labour market with an existing right to work in the UK. This includes EU citizens with settled or pre-settled status, and non-EU citizens with indefinite leave to remain in the UK.

The full guidance on the points-based immigration system can be accessed here.