Employers in the UK may come across a range of different visa types when employing people. While student or graduate visas may be fairly common, particularly in cities or university towns, there are also other visas that individuals may hold that allow them to work in the UK.
In this blog, we’ll explore the key differences between some of the common visas employees may hold: the Student Visa, Graduate Visa, High Potential Individual Visa, and Youth Mobility Scheme Visa. We’ll also highlight important considerations for employers looking to sponsor someone to switch to a Skilled Worker Visa.
Understanding the different visa types
Student Visa:
The Student Visa allows international students to study at accredited institutions in the UK. Students can work subject to their specific circumstances.
Most commonly, employers will recruit students who are studying at degree level or above and have the right to work part-time during term time (up to a maximum of 20 hours a week) and full-time during vacation periods.
Graduate Visa:
This visa is available for those who have successfully completed a bachelor’s degree, a postgraduate degree, or another eligible course in the UK. A graduate visa holder can work in most jobs for the period of the visa (typically 2 years, though individuals with a PHD or other doctoral qualification will be granted a visa for 3 years).
High Potential Individual Visa:
This visa is available to individuals who have been awarded a qualification by an eligible university within the last 5 years and allows them to live and work in the UK for up to 2 years (or 3 years if they hold a PhD or other doctoral qualification). Holders of this visa can also be self-employed.
Youth Mobility Scheme Visa:
This visa allows individuals between ages 18 and 30 (or 35, depending on their nationality) to live and work in the UK for up to 2 years. Individuals on this visa can also be self-employed and pursue study opportunities.
Aside from the specific work restrictions for student visa holders, employers can generally employ individuals on these visas relatively easily.
Key considerations for employers looking to switch visas
Visa extensions
Only student visas allow for extensions, provided the individual is continuing their education and meets certain criteria. This means employers need to plan ahead if they wish to permanently retain employees who are unable to extend their visa, as this will likely require them to extend their stay by switching into another visa.
Switching to a Skilled Worker Visa
In some cases, an employee’s personal circumstances may allow them to switch into another visa category. However, if an employer intends to sponsor an employee as a Skilled Worker, there are important differences between the various visas that need to be considered. Below, we explore these key distinctions.
Salary requirements
When considering whether an employee can be sponsored, employers need to check that the role is sufficiently skilled and that the individual will meet the required salary thresholds.
New entrant benefit
There are tradeable points options to meet the salary requirement. One key advantage for employees holding a Student or Graduate visa is that they can be classified as a “new entrant”. This status reduces the Skilled Worker salary threshold from £38,700 to £30,960, and the applicable going rate is reduced to 70% of the usual rate.
However, this new entrant option is not automatically available for those on High Potential Individual visas or Youth Mobility Scheme visas. They can be treated as new entrants if they:
- are under 26 on the day they apply,
- are working towards a recognised professional qualification, or
- are pursuing full registration or chartered status in the job for which they will be sponsored.
If they do not meet these criteria, and unless they qualify under another tradeable points option, they must satisfy the full salary threshold and going rate.
The new entrant rate applies for a maximum of 4 years. Importantly, this period includes any time already spent on a Graduate visa. As a result, employees who hold a Graduate visa have less time to increase their salary to meet the full requirements of the Skilled Worker route compared to those on Student visas.
Immigration Skills Charge
One significant benefit of sponsoring an individual switching from a Student visa, compared to other visas, is that employers are exempt from paying the Immigration Skills Charge. This fee is £1,000 per year for medium or large employers, and £364 for small employers and registered charities. For employees aiming to qualify for indefinite leave to remain, this exemption can save employers up to £5,000 over the course of the visa.
However, unless another exemption applies, all other individuals switching to a Skilled Worker visa will be subject to the immigration skills charge.
How esphr can help
These are just some of the visa types employers might come across when recruiting. Our team of experts at ESP Solicitors is here to help you understand the implications of recruiting visa holders and to guide you through the sponsorship process. We can also provide comprehensive right to work training for you and your team to ensure you stay compliant. Get in touch with us today to learn more about our tailored immigration support.
