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Why the Resident Labour Market Test is Crucial for UK Employers

If you’re a UK business looking to hire skilled workers from outside the European Economic Area (EEA), you’ll need a Tier 2 Sponsor Licence. This license allows you to sponsor non-EEA nationals to work in the UK. A key part of this process is the Resident Labour Market Test (RLMT), which ensures you’re doing everything by the book.

Failure to carry out a compliant RLMT can lead to severe penalties, including the suspension or revocation of your Sponsor Licence. It can also damage your company’s reputation and make it harder to attract talent from overseas.

This article will explain what the RLMT is, when you need to conduct it, and how to do it correctly.

What is the Resident Labour Market Test?

The Resident Labour Market Test is a process that requires employers to show they have tried to hire a UK worker before offering the job to a non-EEA national. The goal is to protect the UK workforce by giving settled workers (those with Indefinite Leave to Remain or British Citizenship) the first opportunity to apply for a job.

By running a compliant RLMT, you’ll demonstrate to the Home Office that the job is genuine and that there are no suitable UK workers available to fill the role.

When Is an Resident Labour Market Test Required?

In most cases, employers must complete an RLMT before sponsoring a non-EEA worker. However, there are some exceptions:

  • The job is listed on the Shortage Occupation List, and the employee will work at least 30 hours per week.
  • The salary for the job is £159,600 or more.
  • The non-EEA employee is already working in the job and needs to extend their visa.
  • The employee is applying for a Tier 2 (General) Visa, and their last visa was as a Tier 4 student who has completed a UK bachelor’s or master’s degree or a PhD.

How to Run a Compliant Resident Labour Market Test

To pass the RLMT, you must advertise the position properly, follow a fair recruitment process, and keep detailed records. Here’s what you need to do:

1. Advertising the Position

  • The job must be advertised on at least two approved recruitment platforms, such as the Find a Job website or professional trade journals.
  • The advertisement must run for at least 28 days.
  • The job listing must include:
    • Job title
    • Job location
    • Salary
    • Job description
    • Required skills and qualifications
    • Posting and closing dates

2. The Recruitment Process

  • When reviewing applicants, you must assess them based on the skills, qualifications, and experience listed in the advertisement.
  • If a UK worker (settled worker) meets the requirements, they must be offered the job over any non-EEA candidate.

3. Record-Keeping

  • Keep a record of all advertisements, including proof that they ran for the required 28 days.
  • You must also retain interview notes and reasons for rejecting candidates.
  • Store CVs and application forms from shortlisted candidates for future reference.

The UK Visas and Immigration (UKVI) can ask for these records during a compliance visit, so it’s essential to keep everything well-organized.

Will the Resident Labour Market Test End?

The RLMT may no longer be required after Brexit. The UK government has proposed changes that could speed up the process of hiring skilled workers, including EEA nationals. The exact future of the RLMT is still unclear, but it may be replaced with a new process, or the need for the test could be removed entirely.

Running a compliant Resident Labour Market Test is crucial for businesses that want to sponsor skilled workers from outside the EEA. Not following the rules could lead to serious consequences, including penalties and losing your Sponsor Licence. It’s essential to follow the process carefully, from advertising the role to keeping thorough records.

How Law and Visas Can Help?

At Law and Visas, our team of expert immigration consultants is here to make your travel to the UK straightforward and successful. Whether you’re applying for a Business Visa or an Immigrant Investor Visa, we handle every step—from preparing your application to gathering the required documents.

Our immigration lawyer consultants and Lawyers ensure that your application meets the highest standards, with no details missed. We’ll also keep you informed throughout the process, coordinating with the immigration office or embassy on your behalf.

Law and Visas has a strong record of helping clients secure the visas and permits they need for international travel. Call us today at +234 812 5505 986 to learn how we can assist you.

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