The report of the Federation of Small Businesses has found that small-scale firms in the UK were against the increase in costs for recruiting staff from the EU, especially the Tier 2 immigration skills fee of 1,000 pounds for every single overseas immigrant worker effective from April 2017. For several smaller firms, this is an annual charge of 364 pounds. Around 75% of the respondents surveyed by this report said that they would not oblige to incur any additional hiring costs for workers from the EU.
The immigration surcharge imposed by the UK Immigration Act 2017 has been severely denounced by the critics owing to its failure to appreciate the significance of overseas immigrant workers to the businesses in the UK and the economy. Apart from the fee for immigration skills, firms have been adversely affected by a higher salary ceiling for recruiting the immigrant workers through Tier 3 UK visas that were hiked to 30,000 pounds from the existing 25,000 pounds, as quoted by the Workpermit.
Federation of Small Businesses has elaborated in its report that 21% of small scale firms are already having numerous workers from the EU. The report also clarifies that these small scale firms will have a tough time recruiting staff after the exit of the UK from the EU. As per this report, almost 60% of the firms in the UK are concerned regarding the implementation of the new immigration rules after Brexit is made operational. These firms in the UK already have several staffs from the EU.
Chartered Institute of Personnel and Development in the UK has revealed in its latest report that the small scale firms in the nation very meagerly utilized the Tier 2 Sponsorship License system and Tier 2 UK visa. Latest statistics have informed that a whopping 95% of the small scale firms never opted for the points based immigration system Tier 2 visas and very few had employees recruited through the Tier 2 Sponsorship License.
Owing to the scarcity of overseas immigrant workers in the small-scale firms in the UK, Chartered Institute of Personnel and Development has recommended them to offer development and training to the existing staff to enhance their skills after UK’s exit from the EU.
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