The new points based immigration system, due to be phased in from next year, will cut red tape for employers but may restrict the supply of cheap workers, it has been claimed.
Under the new system workers that have immigrated to Britain will be graded into five categories according to skill.
Tier one will consist of highly skilled individuals such as scientists while tier five will mainly consist of youths and temporary workers.
The new system will reduce red tape for employers but it may also restrict the supply of workers in sectors such as catering and cleaning which rely on cheap labour from overseas, according to law firm DWF.
“[The new system] does away with the two-stage process where an employer applies for a work permit which the employee then uses to apply for entry clearance,” said Ansar Ali, solicitor with DWF.
“Instead, one application will be made from the country of origin. Given the decreased number of options, employers and applicants alike will be able to identify more easily the category that will be suitable for them. Employers will have a better idea as to whether or not a candidate will qualify for entry because they can do a reasonably accurate assessment.”
However, Ali said one of the downsides of the new system which was announced by immigration minister Liam Byrne last week, may be logistical problems when dealing with applications from abroad.
“Since the new system is designed to reduce low-skilled migration, sectors which rely on cheap non-EEA labour are likely to be affected,” added Ali.
“The risk is that this will serve only to exacerbate illegal migration and increase exploitation of workers in such sectors.”
© Crimson Business Ltd. 2007