Immigration in the civil engineering sector – does inclusion on the shortage occupation list make a difference?

Gemma Tracey is a partner at Latitude Law

Due to the need to attract talent to the UK - in particular to help gaps within the UK’s labour market - UK Visas and Immigration includes a Shortage Occupation List in the Immigration Rules. The list is reviewed regularly and is often updated following recommendations from the Migration Advisory Committee (MAC).

Roles listed on the Shortage Occupation List are suitable for sponsorship under the Skilled Worker route, with certain advantages attaching to such sponsorship. The route also enables UK businesses to recruit talent into roles that aren’t a recognised shortage occupation in the UK, but which are suitably skilled for sponsorship (usually roles skilled to at least A-level).

So how does the Shortage Occupation List make a difference in recruiting civil engineers? Once a suitable role and worker has been identified, businesses will need to consider the salary to be paid to the individual identified, which must comply with Immigration Rules. The general minimum salary to be paid is £26,200 per annum or £10.75 per hour, unless the role identified has a higher going rate, in which case the higher going rate will apply. The going rate varies depending on the role identified for sponsorship.

For jobs on the Shortage Occupation List, a lower minimum salary applies. For these roles, the general salary threshold is just £20,960 per year or £10.75 per hour. For roles listed on the Shortage Occupation List, only 80% of the going rate must be paid.

Applying the above to civil engineers under Standard Occupation Code 2121, the going rate (calculated at 80%) is currently £14.24 per hour/£27,760 for a 37.5 hours per week. As this going rate is higher than the general minimum salary and hourly rate of £10.75, this going rate is the minimum salary that must be paid to a sponsored civil engineer.

In addition to benefiting from lower salary thresholds, those being sponsored to undertake a shortage occupation role pay lower visa application fees to the Home Office. Fees are currently £479 for sponsorship up to three years and £943 for sponsorship exceeding three years. Compare this to roles that are not contained on the Shortage Occupation List, fees of £719 and £1,423 respectively are payable. All applicants must also pay the Immigration Health Surcharge. Regardless of whether the role is a shortage occupation or not, employers will also likely need to pay an Immigration Skills Charge, unless the worker can benefit from an exemption.

It should be noted that the government has recently announced that visa application fees will be increased by 15% later this year, and the surcharge will be increased from £624 to £1,035 per year of sponsorship for adults.

Another benefit also exists; organisations can recruit skilled workers sponsored by another organisation to undertake a shortage occupation role on a part-time basis (up to 20 hours per week) to undertake supplementary employment alongside their main sponsored role.

What if the role is not listed on Appendix Shortage Occupation List?

If, for any reason, the proposed sponsored role does not fall within the civil engineer Standard Occupation Code 2121 but does fall within Table 1 or Table 2 of Appendix Skilled Occupation, the worker should still be able to benefit from sponsorship. However, the higher minimum salary of £26,200 will apply, and the full going rate will likely apply unless the worker has certain attributes to benefit from an alternative reduction to the salary rates:

A PhD relevant to the job would reduce the general minimum salary to £23,580, and only 90% of the going rate would be payable. A PhD in a Stem (science, technology, engineering and mathematics) subject relevant to the job would reduce the salary threshold to £20,960, and only 80% of the going rate would be payable.

If the individual is a new entrant to the labour market, the general salary threshold will be just £20,960, and only 70% of the going rate would be payable.

In all circumstances, a minimum hourly rate of £10.75 is payable unless, of course, the going hourly rate is higher than this.

As summarised above, visa application fees for non-shortage occupation roles are also higher, so sponsoring workers to undertake shortage occupation roles is certainly financially beneficial to organisations looking to sponsor skilled workers in the UK.

• Gemma Tracey is a partner at Latitude Law

Like what you've read? To receive New Civil Engineer's daily and weekly newsletters click here.