2008 sees the introduction of a new points-based system for work permits for workers coming to the UK from outside the EEA, similar to the system used in Australia. Points will be awarded according to skills, experience, age and past earnings.

There will be five tiers:

1. The first tier should be in place by Spring 2008 and includes highly skilled migrants, for example, engineers and entrepreneurs.
2. The second tier, due to come into effect in Autumn 2008, will include skilled workers with an offer of a job, for example, teachers and nurses.
3. The third tier constitutes low skilled workers filling specific temporary labour shortages.
4. The fourth tier, due to come into effect early in 2009, covers students.
5. The fifth tier includes youth mobility and temporary workers, for example, working holidays.

Workers in all but the first tier will require a sponsor, and a fee, the level of which is yet to be announced, will be payable. For further details see the Border and Immigration Agency website at www.bia.homeoffice.gov.uk.

It should also be noted that parts of the Immigration, Asylum and Nationality Act 2006 come into force on 29 February 2008. These provisions provide for a system of civil penalties under which employers who negligently hire illegal workers will face fines of up to £10,000 per worker. In addition, an employer found to have knowingly hired illegal workers may face an unlimited fine and a possible prison sentence.

We will bring you more on this as the points system is implemented.

Davenport Lyons is a corporate and rights law firm based in London's West End. To find out more about us and how we can assist SMEs please visit our website at www.davenportlyons.com.

© Davenport Lyons 2008. All rights reserved.
This document reflects the law and practice as at February 2008. It is general in nature, and does not purport in any way to be comprehensive or a substitute for specialist legal advice in individual circumstances.