Employee groups and trade unions have voiced their
disappointment at recommendations to tighten-up the rules of the
permit system beingused by businesses to bring-in IT staff from
overseas.
The Migration Advisory Committee, a Home Office committee which
includes representatives from business and trade unions, last week
recommended changes to the
Intra-Company Transfer scheme, following claims that it is
being overused by UK firms.
The Intra-Company Transfer scheme allows staff to apply for a
permit to transfer to the UK from an overseas branch of their
employer. Employers need to have a sponsor's licence to use the
permit system, and could be at risk of losing their permit if they
abuse the system.
Businesses argue that non-European IT skills are vital to the UK
economy. But bringing overseas workers to the UK using the
onshore/offfshore model to complete UK jobs has proved
controversial, particularly when UK IT workers are being made
redundant.
The Home Office says the recommendations represent the biggest
change in the immigration system for 45 years. "These changes will
ensure that those with the skills we need can come to the UK, and
help create a fairer Britain with fair treatment for those who play
by the rules, but tough action against those who break the
law."
"Intra-company transfers are an important part of making the UK
an attractive place in which to do business, and therefore keep
industry and the economy moving."
The scheme is being used in the IT sector much more than any
other. According to data obtained by the Association of
Professional Staffing Companies from the Home Office under the
Freedom of Information Act, 35,430 non-EU IT workers came to work
in the UK last year. Despite the recession, this is significantly
higher than the 12,726 who came to the UK during the dotcom boom in
2000.
Employee groups claim that employers are using the
Intra-Company Transfer scheme, intended as a means of filling
skills gaps, to bring in lower-cost staff.
The UK Borders Agency
warned earlier this month, that the scheme
"must not be directly replacing a settled worker".
The Migration Advisory Committee says it wants the Intra-Company
Transfer route for immigrants to be retained because, "It is an
important in terms of ensuring the UK remains globally competitive
and continues to attract high levels of inward investment."
But it also wants the following changes:
- Intra-company transfers should not lead to a right to permanent
residence.
- The qualifying period for individuals to work at an overseas
company before they can use the Intra-Company Transfer scheme to
come to the UK extended from six to 12 months.
- A separate scheme should be created for graduates only,
requiring three months' prior experience with the company, but with
a maximum stay in the UK of 12 months.
- The government should "give consideration to whether the level
of resource currently being devoted to the enforcement of
intra-company transfers is sufficient, and whether the degree of
transparency around enforcement of the system could be
increased".
George Anastasi, spokesman at the Professional Contractors
Group, which represents IT contractors, says the group is
disappointed with the Migration Advisory Committee report but
supports the government's attempts to tighten the rules.
"We are quite disappointed that the MAC did not go further," he
says. "But the government should take on the MAC proposals to
strengthen enforcement. This is one of the things we have been
calling for."
Ann Swain, CEO at the Association of Professional Staffing
Companies (Apsco), which represents IT recruitment agencies, says
she is also disappointed by the response from the Migration
Advisory Committee.
"Apsco feels it is important that the government gives due
consideration to whether it is really necessary for a small number
of Indian software companies to populate their UK offices with
relatively low-skilled IT imports," she says.
But Mark Lewis, partner and head of outsourcing at law firm
Berwin Leighton Paisner, says overall, the Migration Advisory
Committee report is "a measured, pro-business, anti-protectionist
recommendation".
"It recognises the reality that UK businesses need a range of
resourcing and services cost options to stay in business. It is a
firm putdown of the increasingly protectionist lobbying from some
quarters in the UK."
He welcomed the advice that intra-company transfers should not
lead to a right to permanent residence and the recommendation to
extend the period a worker has to be with a firm before they can be
given a transfer.
Peter Skyte, National Officer at union Unite, says there is a
need for balanced rules that do not damage UK businesses and do not
disadvantage UK workers.
"The points-based migration system and in particular use of the
Intra-Company Transfer route in the IT sector is open to misuse or
abuse by employers with the potential to undercut pay rates and
displace skilled resident workers as currently operated," he
says.
"We welcome the recognition that the Migration Advisory
Committee has given to the evidence submitted by the union in
respect of the IT sector in the recommendations to government,
although we are disappointed that these don't go further in
recommending firmer transparency and enforcement and addressing
some of the problems with the Intra-Company Transfer scheme."
Bob McDowall, analyst at Towergroup, says if the government
tightens the scheme, big businesses will have challenges resourcing
for IT. "This will be especially the case in the financial services
sector."
There is no doubt that overseas skills add value to the UK
economy. But UK IT workers are voters and taxpayers, so it is
inevitable that the government will have to do something to stem
the loss of UK jobs in favour of overseas workers. High emotion is
understandable, but the government has to find a balance that
protects business and workers.