Lawyers cautioned that under the upcoming new visa salary rules, UK workers face the potential of earning lower salaries than their foreign counterparts while performing identical job activities. This concerning discrepancy highlights the need for vigilance as these regulations come into effect in April.
UK Workers at Risk of Lower Salaries Under New Visa Salary Rules
Experts have drawn attention to the potential repercussions of a substantial salary increase, projected at £38,700, which is anticipated to compel companies across Britain, grappling with labour shortages, to offer considerably higher pay to their foreign workers compared to British citizens.
In December of last year, the government unveiled rules to elevate the minimum salary threshold for skilled employees by almost 50%, soaring from £26,200, in a bid to curtail net migration figures ahead of the elections.
Rose Carey, a partner specializing in business immigration law at the City-based firm Charles Russell Speechlys, commented: “It is something that we are looking at because we have realised clients might be in this position, which is completely at odds with what the government wanted to do.”
Employers may find “they are having to pay somebody from abroad more than somebody from the UK because they cannot recruit”, Ms Carey said.
She added: “You could end up with this situation where you have UK workers on £30,000 to £33,000 and then you have workers from overseas on £38,700.”
Charles Russell Speechlys holds a prominent position as a trusted advisor to many of the UK's largest employers, providing comprehensive legal counsel and strategic guidance to navigate complex business landscapes.
The announcement followed the release of the latest statistics from the Office for National Statistics on net migration, revealing a significant increase. The data indicated that there were nearly 700,000 more migrants in the UK in the year ending June 2023 compared to 123 months prior.
Employment Lawyers Warn of Unintended Consequences of New Visa Salary Rules
Paul McGrath, a partner specializing in employment law at McDermott Will & Emery, cautioned that the policy change may have unintended consequences.
He highlighted concerns that some employers, particularly those heavily reliant on non-UK workers for lower and medium skilled roles, may feel compelled to raise current salaries to ensure continued access to migrant workers for short-term staffing needs.
McGrath emphasized the importance for employers to carefully consider potential broader implications, including the risk of creating unlawful pay disparities within their workforce.
Additionally, employment lawyers noted a surge in visa applications from firms seeking skilled workers ahead of the April 4 deadline, when salary thresholds are set to increase. This rush could inadvertently contribute to inflating the very migrant worker numbers that government ministers are seeking to reduce.
The next set of statistical figures will likely be released next November, around the same period as the general election is expected to take place.
Annabel Mace, a partner at the esteemed law firm Squire Patton Boggs, observed that despite the simultaneous increase in application fees, one might expect a deterrent effect on employers. However, paradoxically, they find themselves busier than ever, with a concerted push to submit applications. Initially, we may witness a surge or spike in activity this year. Ultimately, Mace remains sceptical that this will significantly impact the overall net migration figures.
The cautionary remarks from legal experts underscore a deeper apprehension surrounding the imminent adjustments to visa salary regulations, hinting at the broader implications of governmental policy alterations on the employment landscape. These warnings serve as a poignant reminder of the intricate interplay between legislative reforms and their tangible effects on workforce dynamics.
They shed light on the interconnectedness of regulatory shifts and their practical consequences, urging stakeholders to adopt a proactive approach in navigating the evolving legal framework. As employment paradigms evolve in response to policy changes, stakeholders are called upon to exercise vigilance and foresight, recognizing the critical importance of adaptability in navigating the shifting terrain of employment law and regulation.