Hospitality Today Aug-Sep 2016 - Page 11

hospitalitytoday . com | 11
companies would likely need to navigate Tier 2 of the Points Based System to recruit from the EU . This can quickly become a very expensive exercise .
“ Under Tier 2 , an employer needs a sponsor ’ s licence which carries a one-off cost of £ 1,476 . For each employee , they also need a Certificate of Sponsorship which carries a fee of £ 199 . The employee needs to apply for their visa but often the employer meets this cost to which currently stands at £ 575 for entry clearance and £ 664 for leave to remain .
Hospitality businesses “ face £ 2,675 EU worker recruitment costs ”
The hospitality industry is a major employer of EU nationals : 22 % of roles are filled by EU workers . According to the ONS , there are currently over 2 million non-UK nationals from EU countries working in Britain .
The Brexit vote has prompted a surge in enquiries to immigration lawyers , with businesses and workers concerned for their future .
Law firm Simpson Millar ’ s Head of Immigration Emma Brooksbank has reported a 1,100 % rise in calls from EU migrants hoping to secure permanent residence , and a similar surge in enquiries from businesses employing EU workers who face a significant new tariff as the UK exits the European Union .
Brooksbank warns the bill for recruiting employees from overseas could soon hit a record £ 2,675 – or more :
“ If the UK removes the current exemptions for EEA nationals and ceases to be a signatory to the Treaties which enshrine the rights of free movement in the EU ,
“ The Immigration Act 2016 imposes an Immigration Skills Charge which was due to be introduced in April 2017 . I anticipate that this could now be brought forward . The proposal is for businesses that recruit from overseas to pay a charge of £ 1,000 , or £ 364 for small business , for every employee when they apply for entry clearance or leave to remain . They would usually pay the charge twice in the lifetime of a person ’ s leave under Tier 2 .
“ When you add up the sums , the immediate cost of taking on an overseas worker could soon be a staggering £ 3,250 per employee or more ( or £ 2,039 for SMEs ) – and that doesn ’ t even take into account the cost of recruitment , legal fees and regulatory administrative costs .”
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