What Does an Employer Need to Know About Employing Foreign Workers in England?

As an employer, you may wish to hire staff from outside the UK. However, from 1 January 2021, the way you employ workers outside the UK has changed due to the Brexit transition period. Consequently, the UK immigration system must process all foreign worker applications, including workers from the European Union but not citizens of the Republic of Ireland. However, if you knowingly employ a person without immigration permission, this can lead to a prison sentence of up to two years. This article will explain:

• who qualifies as a foreign worker;
• the importance of checking if a person can work in England; and 
• the criteria foreign workers must meet and sponsor licences.

What is a Foreign Worker?

A foreign worker is someone who works for you and does not have UK citizenship. A foreign worker may not wish to settle permanently in the UK. Instead, they may want to work in the UK for a certain period of time.

Checking a Person is Allowed to Work in the UK

If you consider offering someone a job, you must check if they are allowed to work in the UK. This means you must ask them to prove they can work in the UK before you decide to employ them. If you fail to check that a person can work in the UK, you could receive a fine of up to £20,000. 

However, you do not need to conduct a check where the worker:

• is from the EU, EEA or Switzerland;
• already an employee of a UK business; and
• has been in the UK before 1 July 2021.

Understanding the Immigration System

The immigration system is a points-based one which means:

• specific criteria need to be met when employing foreign workers; and
• you will likely need a sponsor licence when hiring foreign workers as staff.

Specific Criteria

The criteria to be met when choosing a foreign worker depends on various things such as how long they may work for you, their nationality and skills. Generally, a foreign worker can work for you where they:

• have a job offer from an approved sponsor at the skill level required;
• can speak English; and
• have 70 points from a list of specific characteristics.

Sponsor Licences

Not all foreign workers will require a sponsor licence to work for you. For example, you will not need one for:

• an Irish citizen;
• a person who has indefinite leave to stay in the UK; or
• someone who has applied to the EU Settlement Scheme and gained settled or pre-settled status.

However, many potential employees will require a sponsor licence. This includes people who come to the UK after 31 December 2020 from:

• the EU;
• Iceland;
• Liechtenstein;
• Norway; and 
• Switzerland.

Where your employee needs a sponsor licence, you must check which type of licence you require. This depends on various factors, such as whether the person will work for you temporarily or long-term. You must apply online for your sponsorship licence and pay the relevant fee. 

You will also need to check:

• if your business is allowed to apply for a sponsor licence;
• if the job you wish to fill is one suitable for sponsorship; and
• who will manage the sponsorship.

Foreign Workers and Employment Contracts

When employing foreign workers, you should consider whether their employment contract needs adjustments. For example, you should think about:

• how long you expect them to work for your business;
• payment details, such as what currency you will use;
• any financial benefits such as relocation costs and pension contributions;
• social security and tax payments; and
• whether different laws apply. 

Key Takeaways

If you employ foreign workers, they must have the right to work in the UK. You can ensure this by asking for proof of their worker’s rights. Additionally, you will likely need to:

• acquire a sponsor license; and
• make specific provisions in the employment contract that vary from those signed by your domestic workers. 

If you need help understanding the rules around employing foreign workers in England and Wales, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page.

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