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More evidence that work permit abuses are damaging the UK's IT sector

Published on Jan 18, 2010 |

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Responses to a recent contractors' opinion poll, conducted by Professional Passport, clearly support the belief that the intra company transfer (ICT) rules are being widely abused by businesses as a way of bringing cheap foreign labour in to the UK.

"ICT - Intra Company Transfers abuse has had a devastating effect on the contract market, radical enforcement and heavy fines are needed" was just one of the many comments made by IT contractors who cited this as the main issue they believe needs to be resolved.

What makes the comments more striking is the complete contrast with those comments made from contractors in other sectors; which predominately relates to issues such as tax and IR35.

Over 60% of all contractors responding to the survey, across all sectors, stated that they believe visa loopholes are allowing cheap foreign labour to take UK contracting jobs.

IT market the worst affected sector

Crawford Temple COO of Professional Passport commented: "This clearly shows that ICT's are being abused and damaging the UK economy; with the results of the survey now providing irrefutable evidence to support those initial beliefs."

The IT market seems to be the worst affected with many IT contractors specifically commenting on the issue in their responses to the survey: "Inter-company visa transfers are destroying rates in the UK and creating an uneven playing field."

This is an area that has, for some time, been seen by many as a simple way around the UK's visa rules; although this has been denied on many occasions by both Government and UKBA.

Government response

In December the Government responded to the claims by issuing the following statement on the UKBA website:

Under an intra-company transfer, an employer can fill vacancies in its UK operations by bringing across some of its existing foreign-based staff. It has been claimed that this enables jobs in the IT and other sectors to be taken by migrants who are paid less than resident workers, but this is not true - workers coming to the UK in the Tier 2 (Intra company transfer) category must be paid the going rate.

From the beginning of next year, workers in this category will need to have 12 months' experience (instead of six months as at present) with their employer before they can be transferred to the UK, and the category will be closed as a route to permanent settlement in the UK.

Border and Immigration Minister Phil Woolas said:

"Intra-company transfers are an important part of making the UK an attractive place in which to do business, and therefore keep industry and the economy moving.

"Workers that come in via this route must display the appropriate level of earnings and qualifications, and the numbers are strictly controlled by the points-based system - meaning only those the UK needs can come here."

COO Crawford Temple stated; "The Professional Passport Contractors' Survey now provides us with the missing piece to the jigsaw. We all knew this was an issue but lacked the evidence from those workers who had been directly affected. The results of the survey now provide indisputable evidence of the abuse; and together with all the other evidence, must now make it impossible for the issue to be ignored, denied or glossed over by those in Government."

He went on to say; "If any contractors have specific examples they can provide to support these claims then please get in touch with Professional Passport."

Professional Passport has written to Phil Woolas requesting a meeting on this, and other issues, and at the time of writing we were still awaiting a response.