March 2020 Farming Monthly National

Expense, red tape and vacancies?

How the Government’s new immigration policy will affect farmers heavily reliant on migrant labour from the EU.

On 19 February, the Government published the first details about its proposed new Immigration system, planned to be operational on 1 January 2021 following the termination of EU freedom of movement on 31 December 2020. Barlow Robbins LLP’s immigration specialist Hesham Shoeband rural property specialist Charlotte Brackley examine how the proposed changes could impact farms that rely on workers from the EU. In particular:

• the requirement to hold a ‘sponsor licence’;

• the lack of a dedicated visa route for low skilled workers;

• minimum salary threshold;

• English language requirements;

• employer surcharges; and

• the expansion of the Seasonal Workers Pilot Scheme.

Sponsor Licence

Until now, EU nationals have been able to work in the UK without restriction, much like British citizens. Under the new system, employers will have to hold a ‘sponsor licence’ to employ all foreign (i.e. non-British) workers, not just non-EU employees as they do now.

Currently, a licence costs £536 for a small organisation, or £1,476 for medium or large organisations.

Holding a licence doesn’t just permit the holder to employ foreign workers, it also imposes obligations. These include: tracking employee attendance; keeping employee contact details up to date; monitoring employees’ immigration status; and reporting any problems to the Home Office. To do this, the employer will need adequate and reliable record keeping systems in place.

The Home Office can inspect sponsors at random and revoke licences if they suspect any breaches of the rules. If a licence is revoked, this could have serious consequences: sponsored workers could lose their immigration status and would have to leave the UK.

No specific visa route for low skilled workers

The Government’s new system is designed to attract “highly skilled workers”, rather than the low skilled workers that have been filling, for example, seasonal agricultural worker roles until now. (n.b. but also see below re Seasonal Workers Pilot Scheme).

In order to qualify for a work visa under the new system an applicant must be doing a job at a skill level equivalent to at least Regulated Qualifications Framework (‘RQF’) level 3 (equivalent to A-Level).

Whilst this is lower than the level required under the existing system (which requires a minimum skill level of RQF6 (equivalent to a Bachelor’s degree)) - and therefore will increase the number of jobs which can qualify for a work visa - it will still be too high for many jobs in the farming sector.

By way of example, a Farm Manager is deemed to have a skill level equivalent to RQF level 4, meaning that most seasonal workers are unlikely to satisfy this criteria. Whether or not there is sufficient British labour willing to fill these roles remains to be seen.

Minimum salary threshold

If the foreign worker satisfies the skill level test above, the next hurdle that must be crossed is the minimum salary threshold.

The new base threshold will be £25,600 and the migrant must be paid the higher of either (i) the base rate or (ii) the appropriate rate of pay governed by the Immigration Rules for skilled work. Under the existing skilled worker rules, an employer is required to pay an experienced non- EU Farm Manager at least £30,000. Following the implementation of the new rules, the lower base salary may make it easier to recruit for skilled roles.

English language requirement

It will also be mandatory for applicants to prove their proficiency in English prior to getting a visa. This can be done by passing specified language tests or having a recognised degree taught in English.

Skills and Health Surcharges

In addition to the visa fees, employers must pay an ‘Immigration Skills Charge’ for every foreign worker. Currently this is calculated according to the length of the visa and the size of the sponsor. For a medium employer sponsoring a skilled worker for 5 years, the skills charge is £5,000.

They must also pay an ‘Immigration Health Surcharge’ of £2,000 for the same 5-year visa. If the worker has dependents, such as a spouse or children, the same costs will apply to their visas as well.

Seasonal Workers Pilot Scheme

In 2017, the National Farmers Union’s ‘Supply of Seasonal Labour to British Horticulture Farms’ survey found that the overwhelming majority of seasonal workers in agriculture – around 99% - came from the EU.

The Government launched the Seasonal Workers Pilot Scheme in September 2018 as a way of alleviating worker shortages during peak production periods. Through the pilot, workers can be hired for a period of up to six months to help out on farms during peak production periods.

Defra has confirmed that the Pilot will be expanded in 2020 to allow farmers in the edible horticulture sector to access a pool of 10,000 workers from outside the EU – increased from 2,500 last year- to help them pick and gather the 2020 harvest.

The emphasis on imposing high costs and red tape are clearly all designed to put farmers off employing foreign workers post 2020. However, whether there are sufficient British nationals ready, willing and able to fill these roles – and whether the expansion of the Seasonal Workers Pilot Scheme provides adequate support – are key questions for farmers as they plan for the future beyond the EU transition period.