We are an overseas company with a high value contract (over ￡50million) with a UK Company – can we second employees to UK company?

Gherson recommends utilising the Global Business Mobility framework, specifically the Secondment Worker route, to facilitate this process. This article outlines the key requirements, benefits, and limitations of this visa route, along with additional legal and regulatory considerations.

The Global Business Mobility: Secondment Worker Route

The Secondment Worker route under the Global Business Mobility framework offers a structured and efficient pathway for overseas companies to second employees to the UK. The UK Secondment Worker is a points-based system visa, requiring applicants to earn a total of 40 points based on two criteria: sponsorship and having a job offer at the appropriate skill level, in addition to meeting age and overseas work requirements. Here’s what you need to know:

Key Requirements

1. Sponsorship Points (20 points)

?? - Certificate of Sponsorship (CoS): The overseas company must secure a valid CoS from a UK licensed sponsor under the Global Business Mobility – Secondment worker category.

?? - Genuine Job: The role must be legitimate and not created merely to facilitate immigration.

2. Skill Points (20 points)

?? - Skilled Occupations: The job must be listed in the Appendix Skilled Occupations for Global Business Mobility routes.

?? - Appropriate Occupation Code: Ensure the chosen occupation code is suitable and eligible.

3. Sponsorship Criteria

?? - Approved Sponsor: The UK employer must hold an A-rated sponsor licence approved by the Home Office.

?? - Eligible Contract: There must be an eligible contract with the overseas business worth at least ï¿¡10 million per year and no less than ï¿¡50 million overall. This means that if the duration of the contract is less than 5 years, it must be valued at least ï¿¡50 million. If the term of the contract is 5 years or more, it must be worth at least ï¿¡10 million per year. If the contract has no specified end date, it must be worth at least ï¿¡50 million over the first five years.

?? - Contract Registration: The sponsor must register the contract with the Home Office and confirm it when assigning the CoS for the secondment worker.

4. Additional Requirements

?? - Financial Proof: The applicant must demonstrate at least ï¿¡1,270 available for 28 consecutive days, unless the sponsor certifies maintenance for one month. The application fee for this route is ï¿¡298 in addition to the annual immigration health surcharge, which is ï¿¡1,035 per year.

Benefits of the Secondment Worker Visa

- Dependants: Successful applicants can bring dependants, provided they can prove a genuine relationship through documents like proof of cohabitation , marriage/civil partnership certificate, regular communication, and mutual financial support.

- Duration of Stay: The visa allows for an initial stay of 12 months, extendable to a maximum of two years, including the initial stay of 12 months.

- Integration and Oversight: Enables close monitoring and seamless execution of high-value projects.

Limitations of the Secondment Worker Visa

- Public Funds and Benefits: Visa holders cannot apply for benefits, public funds, or a state pension.

- Employment Restrictions: Visa holders cannot undertake supplementary employment in addition to their current work under this visa category.

- No Indefinite Leave to Remain: The visa route does not lead to Indefinite Leave to Remain.

Additional Legal and Regulatory Considerations

Beyond the specific requirements of the Secondment Worker route, several other legal and regulatory considerations must be addressed:

1. Immigration Compliance

?? - Ensure compliance with all immigration requirements to avoid legal repercussions, including accurate record-keeping and reporting to the UK Home Office.

2. Employment Law

?? - Review and amend employment contracts to reflect the secondment terms, ensuring compliance with UK employment laws related to working hours, health and safety, and anti-discrimination.?

3. Tax Implications

?? - Address tax obligations for both the employer and the seconded employee, including UK income tax and social security contributions as may be applicable

4. Employee Benefits

?? - Clarify the management of pensions and healthcare benefits during the secondment.

?? - Consider offering relocation support, including housing, travel allowances, and support for family members.?

5. Corporate Governance

?? - Ensure the secondment arrangement complies with UK corporate governance standards, particularly if the secondee will assume a director-level role.

Practical Steps for a Smooth Secondment

1. Planning and Documentation

?? - Develop a comprehensive secondment agreement outlining all terms, roles, responsibilities, and duration.

?? - Prepare and submit all legal, tax, and immigration documentation well in advance.

- Conduct valid right to work checks before the employee can start their secondment in the UK.

2. Integration and Training

?? - Provide cultural and operational training to seconded employees.

?? - Set clear expectations and support the employees’ integration into the UK company’s work culture.

3. Ongoing Support, Continuing Compliance and Monitoring

?? - Establish clear communication channels between the home company, seconded employees, and the UK company.

?? - Regularly review the secondment arrangement to address any issues promptly and ensure compliance with all regulatory requirements.

Conclusion

The Secondment Worker route under the Global Business Mobility framework offers a straightforward and efficient method for seconding employees to the UK for high-value contracts. By understanding the key requirements, benefits, limitations, and addressing additional legal and regulatory considerations, overseas companies can navigate the complexities of secondment effectively.?

For tailored advice and support on seconding employees to the UK, please contact our experienced team at Gherson. We specialise in corporate immigration and Global Business Mobility visas, ensuring a seamless and compliant secondment process for your business.

How Gherson can assist

Gherson’s Immigration Team are highly experienced in advising on UK visa matters. If you have any questions arising from this blog, please do not hesitate to?contact us?for advice, send us an?e-mail: enquiries@gherson.co.uk

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please do not hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

?Gherson?2024