ImagesMagUK_January_2022

BUSINESS DEVELOPMENT www.images-magazine.com 24 images JANUARY 2022 I need more staff – how can I employ people from the EU, and what will it cost? A s the UK economy’s restrictions have eased, the true impact of Brexit and the coronavirus pandemic has become apparent through the shortages of workers in the embroidery and print industry. During this time, demand has not faltered, meaning that employers in the embroidery and print industry may need to increase salaries to attract talent from a smaller pool of candidates. Employers can still hire European nationals who hold Settled or Pre-Settled status (and those who arrived in the UK before 1 January 2021 may be able to make an out- of-time application to this scheme). However, employers may look at how to bring overseas workers to the UK, using the UK’s points-based system to establish whether they can hire non- UK nationals under a Skilled Worker visa. In order to do this, employers must first obtain a UK sponsor licence. Applying for a UK sponsor licence In order to obtain a sponsor licence, a company must file an application with the Home Office. As a holder of a licence, the company takes on record- keeping and reporting obligations in relation to those individuals that it sponsors and must ensure that it has the necessary processes and procedures in place to meet this threshold. A company can qualify for a licence providing it is legally operating and trading in the UK and can provide prescribed documentation to evidence this. Licence holders are awarded an A-rating and can sponsor individuals to work in the UK, provided they meet the Skilled Worker or Intra-Company Transfer criteria (ICT permits are out of scope of this article). For information on the documents needed to apply for this, as well as the obligations the company is taking on, go to imagesmag.uk/hiringEUnationals. Navigating the requirements of a Skilled Worker visa Licence holders can sponsor non-UK nationals that they wish to employ provided that the job on offer is at the required skill level – RQF 3 or above (A-Level and equivalent); the individual speaks English to the required standard; the job offer must meet the ‘going rate’ [to see the rates for different occupation codes, go to imagesmag.uk/going-rates ] for the role, or £25,600 for ‘experienced workers’, whichever is higher (various caveats apply). Applicants must gain a minimum of 70 points to be eligible for this visa. Some criteria are mandatory whilst others are ‘tradeable’ – a table of the criteria can be seen at imagesmag.uk/ hiringEUnationals. Appropriate skill level The job role an employer is seeking to fill must be an eligible job at or above a minimum skill level—RQF level 3, which is roughly equivalent to A-levels. The applicant does not need to hold a formal qualification in order to satisfy the skills level requirement. It is the skill level of the job that will determine whether the threshold is met. Roles that may be eligible for sponsorship include ‘screen printers’, ‘screen print managers’, ‘pre-press artworkers’ and ‘embroiderers’. Subject to their job descriptions, they may fall within the eligible Standard Occupational Codes in the table above. Government costs But what additional considerations for businesses are there? The UK has one of the most expensive immigration systems in the world. A medium- sized business wanting to employ a production manager for five years would be looking at costs of nearly £10,000 in addition to the licence fee. Any dependant family members would be charged additionally. Companies looking to go down this route should do so with budget available and ensure that they draft processes and packages to set out who picks up those costs. A sponsor licence for a skilled worker ranges from £536 to £1,476; a certificate of sponsorship is £199; and the immigration skills charge goes from £394 to £1,000 per year. [For more costs, go to imagesmag.uk/ hiringEUnationals.] The current trend of employers having to push up salaries to attract talent is unsustainable, not least due to its impact on inflation. There is little doubt that taking on a sponsor licence is additional administration and has a financial impact, but amongst the compliance obligations and the costs, obtaining a sponsor licence does allow businesses access to a wider talent pool, which may help them fill vacancies more quickly and, perhaps, find some brilliant candidates! Expert advice on the business of running a garment decoration company Q&A Jennifer Simpson and Victoria Welsh are senior associates at Fragomen, a law firm that provides strategic consultative services and support to meet the full spectrum of business immigration needs. www.fragomen.com SOC Code Annual going rate (based on 39-hour week) 1121 Production managers and directors in manufacturing £33,000 (£16.27 per hour) 5422 Printers £20,800 (£10.26 per hour) 5419 Textiles, garments and related trades not elsewhere classified £18,300 (£9.02 per hour)