UK-based international firms must be allowed to recruit top talent

The Law Society has welcomed proposals to increase the salary threshold of skilled workers and intra-company transferees entering the UK from outside the European Economic Area (EEA).

In its independent review of skilled migration, undertaken on behalf of the government, the Migration Advisory Committee (MAC) recommended raising the threshold from £20,800 to £30,000 for workers applying for Tier 2 visas.

The Law Society’s president, Jonathan Smithers, said non-EEA lawyers make a significant contribution to the UK’s economy through business generation, salary expenditure, and tax revenue.

However, Smithers expressed concern that other recommendations might place greater pressure on the annual cap for Tier 2 migrants.

The Law Society had argued in its recommendations made to the MAC that international firms must be able to recruit the best talent from outside the UK to these shores.

Chancery Lane also proposed salary levels as a way of identifying expert workers as they reflect market shortages in skills and the economic value of the work undertaken.

‘The legal services sector contributes £23.8bn to the UK economy each year,’ said Smithers. ‘Much of that economic value is generated by international law firms operating in a competitive global marketplace.

‘It is vital to the economy that the UK remains the leading global centre for the provision of international legal services and dispute resolution.’

Elsewhere in the report, the MAC recommended the introduction of an immigration skills charge (ISC) to incentivise employers to reduce their reliance on migrant workers and invest in training domestic employees.

Furthermore, an overhaul of the Tier 2 (Intra-company Transfer) route has been put forward to ensure only highly specialised migrants can be brought into the UK.

A salary threshold of £41,500 is also recommended as an effective proxy for senior managers and specialists.

MAC chair, Professor Sir David Metcalf CBE, said: ‘Skilled migrant workers make important contributions to boosting productivity and public finances, but this should be balanced against their potential impact on the welfare of existing UK residents.

‘Raising the cost of employing skilled migrants via higher pay thresholds, and the introduction of an immigration skills charge, should lead to a greater investment in UK employees and reduce the use of migrant labour.’