Employers need to be aware that important changes to the immigration rules are coming in to force in April.

Tier 1 rules
One of the most significant of these is the closure of the Tier 1 (post study work) immigration category from 5 April 2012. This provided international students who had studied in the UK with a straightforward route to working here for up to two years after graduation. The process was easy for students: they did not need a job offer to qualify and they could stay in the UK to look for work. And they could work in any role, regardless of its skill level.

From the employer's perspective the process was simple too, since there was no requirement to 'sponsor' the individual immediately, no need for an immigration licence, and no paperwork to complete. The student had permission to work based on their own attributes. In many cases, employers would subsequently sponsor these employees so they could stay in the role beyond the two-year period.

Tier 2 route
The government decided to close this immigration route in order to "ensure that only the brightest and the best" students can stay in the UK. Under the new rules, in place from 6 April, employers who want to recruit international students, through graduate recruitment programmes or otherwise, will have to sponsor them under category Tier 2 (general) of the points based immigration system from the start of employment.

It will still be relatively easy to sponsor an international graduate provided that certain criteria are met. There will be no need to satisfy the resident labour market test (used to demonstrate that no British and European workers could do the job). But employers will need an immigration licence and have to ensure that certain HR systems and processes are in place in order to comply with that licence. And the job must be graduate level, and be paid at least £20K (or more in some cases, depending on the job). So the rules are more restrictive than before.

Staying on
Employers also need to be aware that the rules on settlement in this country are changing. In the future, a Tier 2 (general) visa will only be granted for six years. After that period the employee will need to leave the UK and wait 12 months before being able to return. This could affect key employees. Individuals will need to be earning a minimum salary level to qualify for settlement. Transitional arrangements will cover certain employees already in the UK.


Elaine McIlroy is a senior associate at Dundas & Wilson LLP