The UK financial services sector is one of the largest employers in the country, with over a million people working in finance. Around 100,000 of these workers come from outside the EU. However, with Brexit, many financial companies are concerned about how they will recruit skilled workers from abroad.
In fact, migration from non-EU countries to the UK has already started to overtake EU migration, as shown by government statistics. This shift may continue, but it raises questions about how finance and fintech businesses will continue to access skilled talent in the future.
Are Finance and Tech Firms Concerned About Hiring Talent?
Mike Laven, the CEO of Currencycloud, expressed his concern about the reduction in skilled talent coming into the UK, particularly in the technology sector, which requires expertise in computer engineering. This could force more jobs to be based in the EU instead of the UK. While he hasn’t seen a mass exodus of talent yet, the future of hiring talent may depend on how the UK is perceived as a place for overseas workers.
Financial groups like UK Finance have also pushed for maintaining the free movement of workers in the financial industry between the UK and the EU post-Brexit. No one knows for sure what the recruitment rules will be like after Brexit, so finance companies relying on foreign workers should start preparing for different scenarios, including how to continue sponsoring non-EEA workers.
How Can Financial Firms Protect Their Ability to Hire from Outside the EU?
Many financial companies already have a Sponsor Licence that allows them to hire staff from outside the EEA. This system, introduced by the UK government in 2008, allows licensed businesses to issue Certificates of Sponsorship (CoS) to non-EEA workers under the Tier 2 General and Tier 2 ICT Visa schemes. However, companies must stay compliant with strict regulations to maintain their sponsor license.
If a company fails to meet Home Office duties, they risk having their license downgraded or revoked. This can have serious consequences, such as:
- Being unable to issue new Certificates of Sponsorship to bring in non-EEA workers.
- Losing the ability to expand the license to include new branches or tiers.
- Undergoing more frequent audits from the Home Office.
- Facing difficulties certifying that a worker has enough money to live in the UK (a requirement for certain visas).
- Curtailing the leave (visa) of existing non-EEA employees.
Preparing for a Sponsor Licence Audit
The key to maintaining your sponsor license is preparation. If your company is fully prepared for a Home Office audit, you’ll reduce the risk of your license being revoked and ensure you can continue hiring talent from outside the EU. Here are the main things to focus on:
- Keep Records Updated: Always have copies of your original sponsor license application and supporting documents. Ensure your Sponsorship Management System (SMS) is up-to-date.
- Have a Backup System: The Level 1 user (the person responsible for your sponsor license) must be familiar with their role. It’s important to have a backup in place in case they are unavailable.
- Prepare All Locations: The Home Office may visit any site where your sponsored employees are based, so it’s important to prepare all of them for an inspection.
- Report Staff Changes: Notify the Home Office of any changes in key personnel roles, such as the Authorising Officer or Level 1 user. An immigration lawyer can manage this for you.
- Keep Track of Applications: If you’ve conducted Resident Labour Market Tests (to check whether local workers could fill the role), make sure you keep records of domestic applicants who weren’t suitable, including CVs and interview notes.
- Document Your Processes: Everyone involved in managing your sponsor license should know their duties. There should be clear processes in place to ensure compliance at all times.
If you’re concerned about your firm’s compliance with sponsor license requirements, it’s wise to consult with an immigration lawyer. A lawyer can help you assess your current readiness, fill any gaps in compliance, update your Sponsorship Management System, and carry out mock audits to prepare for a Home Office inspection. By getting expert help, you can ensure that your business remains able to recruit skilled workers from outside the EU without interruption.
If you need assistance with your sponsor license or have questions about hiring non-EEA talent, contact Law and Visas for professional, reliable support.
