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New rules to clamp down on abuse of Intra-Company Transfers

Posted Feb 16, 2011

New government rules to stamp out the abuse of Intra Company Transfers (ICT) have been announced by the Home Office today.

The new rules, which will take effect from 1st April 2011, will prevent large companies from transferring employees earning under £40,000 from working in the UK for more than one year under the ICT regime.

However, firms will still be able to move non-EU personnel into the UK via ICTs for less than 12 months, as long as they earn £24,000.

The PCG, which has lobbied strongly for many years over the abuse of the ICT rules, says the changes will ensure that talented UK based workers are no longer side-stepped for UK jobs and bring regulation around ICTs in line with other working visas.

Summary of new ICT rules

The ICT rules will be changed in the following 3 years, the Home Office has announced:

1) the job will have to be in an occupation on the graduate occupation list

2) only those paid £40,000 or more will be able to stay for more than a year. They will be granted for three years with the possibility of extending for a further two

3) those paid between £24,000 and £40,000 will be allowed to come to the UK for no longer than 12 months, at which point they must leave and will not be able to re-apply for 12 months

"A huge step forward"

Simon McVicar, head of Public Affairs at the PCG, commented:

"Today we are seeing a huge step forward in our campaign to regulate ICTs following years of work with the UK Borders Agency.

"With rising unemployment we see the one year work limit with a pre-determined ban on returning for the following year for those under £40,000 as essential to the intellectual future of the workforce.

"In future we hope that ICTs will be incorporated into the immigration cap which controls influx of workers depending on skills shortages in that sector, the only way to ensure that the country is at its optimum productivity."

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