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Are some IT contractors' clients abusing the immigration rules?
Posted Apr 20, 2009
The PCG is seeking evidence from contractors that some clients may be abusing the points-based immigration system (PBS).
The freelancer organisation is launching an evidence gathering campaign following concern that abuses have been taking place, particularly in the IT industry.
Just last week, APSCo called on the Government to close a loophole which allows companies to hire non-EU workers without having to first advertise the job vacancies in the UK.
Contractors are losing out
John Brazier, the PCG's managing director, explained:
"The Points Based System is a great improvement over the previous system of work permits. However, as a self-policing system, it is open to abuse. We have heard from numerous contractors worried that their clients may be breaking the rules, for example by hiring workers from outside the European Economic Area at below the market rate for a particular post, or abusing the facility to bring in so called 'Intra Company Transfers' (ICTs).
"In some cases, contractors are threatened with replacement by cheaper ICTs if they do not accept substantial rate cuts. This is clearly an unacceptable state of affairs, and contractors are losing out"
How clients engage non-EEA workers
Unlike the previous system, the PBS has a set of clearly-defined conditions that have to be met by a business before they can engage a non-EEA worker.
A business wishing to bring a worker into the UK must be
given "sponsor" status by the UK Borders Agency (UKBA).
"Sponsors" must pay an appropriate salary above a specified limit, and in most cases must advertise a post for at least two weeks before employing a non-EEA worker. If they fail to apply these rules correctly, "sponsor" status may be withdrawn, preventing them from bringing in any migrant workers.
What type of evidence is being sought?
1. Abuses of intra-company transfers (ICTs)/work permits
2. Migrant/non-EEA workers being paid below the market rate
3. Jobs being advertised below the market rate
4. Contractors being pressured to take an unreasonably low rate
5. Contractors being replaced by workers being paid below the market rate
6. Contractors being rejected for opportunities that are being advertised to pay lip-service to the rules, even though the client intends to bring in an overseas worker.
All such evidence should be sent to policy@pcg.org.uk.
This evidence will then be passed onto the UKBA to be followed up.
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