UK business immigration law provides the legal framework for individuals coming to the UK for work and business purposes. These laws regulate the entry and residence of various types of workers, from skilled professionals to business owners.
For businesses operating in the UK or planning to establish a presence there, strategic use of immigration routes can provide a competitive edge, enabling effective talent recruitment and mobility to support commercial goals.
However, business immigration laws also impose strict compliance obligations, designed to prevent illegal immigration and uphold the integrity of the UK’s immigration system. Understanding and following these regulations allows businesses and individuals to operate within the legal framework, contributing positively to the UK economy while complying with the legal requirements.
This article provides a detailed overview of UK business immigration law and the key areas of interest and concern for organisations looking to bring talent into the UK. We will look at visa options available for work purposes, as well as visa sponsorship and compliance requirements and the legal obligations of businesses in the UK.
Section A: UK Business Immigration Law Overview
The United Kingdom is a global hub for business and innovation, attracting entrepreneurs, skilled workers, and investors from around the world. To facilitate this influx of talent and capital, the UK government operates a legal framework governing business immigration.
Business immigration laws in the UK are designed to regulate the entry and stay of foreign nationals who intend to work, invest, or start businesses in the country. These laws are governed by various visa categories, each with specific eligibility criteria, application processes, and compliance requirements.
Key elements of UK business immigration laws include:
a. Visa Categories: The UK offers multiple visa options tailored to different business activities, including the Skilled Worker Visa, Innovator Founder Visa, and Global Business Mobility (GBM) visas.
b. Sponsorship: Many business visas require the applicant to be sponsored by a licensed UK employer or organisation. Sponsors must obtain a sponsor license and adhere to specific duties, such as record-keeping and reporting obligations.
c. Compliance: Businesses and visa holders must comply with UK immigration laws and regulations, including right-to-work checks, visa conditions, and reporting changes in circumstances.
d. Points-Based System: The UK operates a points-based immigration system, where applicants must meet specific criteria, such as skills, salary thresholds, and English language proficiency, to qualify for certain visas.
Section B: Types of UK Business Visas
The UK offers a variety of visas tailored to different business needs and activities, enabling skilled workers, entrepreneurs, investors, and businesses to operate and thrive in the UK.
1. Sponsored Work Visas
The majority of UK work visas require sponsorship by an employer with a valid sponsor licence. The main routes include:
a. Skilled Worker Visa
The Skilled Worker visa allows individuals to come to the UK to work for a licensed sponsor if they meet specific skill and salary requirements. Applicants must have a job offer from a UK employer and be able to speak English to a required level. It offers a pathway to permanent residency after five years. The visa is designed to fill labour shortages in the UK economy with skilled workers from overseas.
b. Health & Care Worker Visa
This visa is for individuals coming to the UK to work in the health and care sector, addressing labour shortages in these essential areas. It prioritises health and social care roles that are difficult to fill with UK workers with lower salary thresholds, lower application costs and faster application processing.
c. Self Sponsorship
The Skilled Worker visa may also be used as a self sponsorship route, whereby a foreign national establishes or runs a UK-based business, which sponsors them for their visa.
d. Senior or Specialist Worker (GBM) Visa
The Senior or Specialist Worker Visa under the Global Business Mobility (GBM) category is for experienced professionals transferring to a UK branch of an overseas company. Applicants must be employed overseas for at least 12 months before the move and be earning a specified salary. The visa allows for up to three years in the UK, with potential extensions. It supports the growth of international businesses in the UK.
e. UK Expansion Worker (GBM) Visa
Designed for individuals setting up a new UK branch of an overseas company, the UK Expansion Worker visa allows a stay of up to one year. Applicants must be employed by the overseas parent company. The visa aims to attract foreign investment and create jobs in the UK.
f. Graduate Trainee (GBM) Visa
For graduates joining a training programme within a UK branch of an overseas company, the Graduate Trainee visa offers up to two years in the UK. Applicants must have a degree and be sponsored by their parent company. The visa aims to develop future business leaders and foster international talent exchange.
g. Secondment Worker (GBM) Visa
This visa allows employees of overseas companies to work temporarily in a UK branch for up to 12 months. It’s suitable for short-term assignments or projects. The visa supports business operations and knowledge transfer between international offices.
h. Service Supplier (GBM) Visa
For individuals providing specialist services to a UK-based client, the Service Supplier visa allows stays of up to 12 months. This visa is suitable for consultants, contractors, and experts. It supports the UK economy by facilitating the provision of specialist services.
i. Scale-Up Visa
The Scale-Up Visa is a targeted immigration route designed to support the rapid growth of high-potential businesses in the UK. To qualify, individuals must secure a job with a designated ‘scale-up’ business meeting specific growth criteria. This visa offers a pathway to permanent residency after three years and allows workers to switch jobs without sponsorship after six months, providing greater flexibility compared to other work visas.
2. Unsponsored Work Visas
A number of routes offer more flexible terms for specific types of workers to come to the UK, as they do not require sponsorship by a UK employer:
a. Innovator Founder Visa
The Innovator Founder visa is for individuals establishing a new business in the UK with high growth potential. Applicants must meet strict criteria and secure endorsement from an approved body. The visa aims to foster innovation and entrepreneurship in the UK.
b. Graduate Visa
The UK Graduate visa allows international students who have successfully completed a UK degree to stay and work or look for work in the UK. It offers flexibility, with no job offer or sponsorship required. Graduates can work in any role, at any skill level. The visa duration is typically two years, extended to three for PhD holders. This route provides valuable opportunities for graduates to gain work experience and potentially transition to other visa categories for longer-term stays.
c. Global Talent Visa
The UK Global Talent Visa is designed to attract exceptional individuals in fields like science, digital technology, and arts and culture. Applicants must demonstrate their leadership potential or established excellence through endorsement from a designated body. Successful applicants can live and work in the UK for up to five years, with potential for settlement. This visa route offers flexibility, allowing individuals to work without a specific job offer, and provides opportunities for career development and innovation.
d. High Potential Individual Visa
The UK High Potential Individual (HPI) visa is a fast-track route for exceptionally talented individuals from outside the UK to live and work in the country. To qualify, applicants must demonstrate significant potential in fields like science, technology, engineering, or arts and humanities. There’s no job offer or sponsorship requirement, offering flexibility. HPI visa holders can work, study, or set up a business. After two years, they can apply for settlement. This visa aims to attract top global talent to contribute to the UK’s economy and innovation.
4. Temporary Worker Visas
The UK Immigration Rules also provide short-term visas for certain types of temporary workers:
a. International Sportsperson Visa
Designed for professional athletes and coaches, the International Sportsperson visa allows entry into the UK for sporting activities. Applicants must meet specific eligibility criteria and have a job offer from a UK sports club or organisation.
b. Creative Worker Visa
For individuals working in specific creative industries, such as film, television, fashion, and music, the Creative Worker visa allows entry into the UK. Applicants must meet specific eligibility criteria and have a job offer in the creative sector.
c. Seasonal Worker Visa
The Seasonal Worker visa allows individuals from specific countries to fill temporary labour shortages in sectors like agriculture and horticulture. It has strict eligibility criteria and time limits. The visa helps ensure that essential industries have access to a workforce during peak periods.
d. Charity Worker Visa
Designed for individuals working for registered charities in the UK, this visa allows entry for a specific role within the charity. It supports the work of charities in achieving their objectives.
e. Religious Worker Visa
This visa is for individuals coming to the UK to work in a religious role, such as a priest, minister, or rabbi. It requires sponsorship from a religious organisation. The visa supports the religious needs of communities in the UK.
f. International Agreement Visa
This visa is for individuals coming to the UK under specific international agreements, such as those related to trade or cooperation. The visa facilitates the movement of people under these agreements.
g. Authorised Government Exchange Visa
This visa is for individuals participating in government-approved exchange programs. It covers a range of sectors, including education, science, and culture. The visa promotes international collaboration and knowledge sharing.
h. Youth Mobility Scheme
Designed for young people aged 18-30 from eligible countries, (or 18 – 35 for certain nationalities), the Youth Mobility Scheme visa permits temporary work and travel in the UK. It offers a cultural exchange experience and the opportunity to gain work experience. Visa holders can stay for up to two years, and in some cases three, but cannot bring dependents. The scheme aims to foster international understanding and cooperation.
i. Minister of Religion (T2)
Similar to the Religious Worker visa, this visa is for ministers of religion coming to the UK to work in a religious role. It requires sponsorship from a religious organisation.
Section C: Sponsorship for UK Business Immigration
Sponsorship plays a central role in the UK business immigration system, allowing companies to hire skilled workers from outside the UK to meet their business needs. To employ overseas workers, UK businesses, in most cases, will need to obtain a sponsor licence from the Home Office.
1. Types of UK Sponsor Licence
Businesses must hold a valid sponsor licence to hire workers from outside the UK. There are two main types of sponsor licences, each tailored to different categories of workers:
a. Worker Sponsor Licence: This license is for businesses that wish to sponsor long-term employees under various visa categories such as the Skilled Worker Visa, Health & Care Worker Visa, and the Senior or Specialist Worker (GBM) Visa. It covers roles that require significant skills and qualifications.
b. Temporary Worker Sponsor Licence: This licence is for businesses that intend to sponsor workers on a temporary basis. It includes categories such as the Seasonal Worker Visa, Charity Worker Visa, Creative Worker Visa, and other short-term roles.
2. Sponsor Licence Application Process
The process of obtaining a sponsor license involves several key steps:
Step 1: Determine the Type of Licence Needed
Businesses must first decide whether they need a Worker Sponsor License or a Temporary Worker Sponsor Licence based on the roles they wish to fill.
Step 2: Prepare Required Documentation
Businesses need to gather various documents to prove their legitimacy and ability to meet the sponsorship requirements. This includes proof of business registration, financial statements, and evidence of HR systems to manage sponsored employees.
Step 3: Submit the Online Application
The application is submitted online through the UK Visas and Immigration (UKVI) website. The business must pay the appropriate application fee, which varies based on the type and size of the organisation.
Step 4: Compliance Visit
The Home Office may conduct a compliance visit to ensure that the business can meet its sponsorship obligations. This includes verifying the information provided in the application and assessing the company’s HR systems.
Step 5: Decision
If the application is successful, the business will receive a sponsor license, allowing them to issue Certificates of Sponsorship (CoS) to prospective employees.
Section D: Immigration Compliance
All UK employers are subject to certain immigration compliance duties, regardless of size or industry, to help prevent illegal working. These duties should form an integral part of an organisation’s HR systems, processes, and policies. By embedding immigration compliance into everyday business practices, employers can effectively manage the risk of enforcement action and provide a defence in the event of any allegations of breaches.
1. Sponsor Duties and Compliance
Holding a sponsor licence comes with significant compliance responsibilities. Sponsors must adhere to these rules to maintain their licence and their permission to sponsor foreign workers.
Failure to meet the compliance requirements can result in severe consequences, including the suspension or revocation of the sponsor license, financial penalties, and damage to the business’s ability to hire overseas workers in the future.
Key duties include:
a. Record-Keeping: Sponsors must keep accurate and up-to-date records of their sponsored employees. This includes maintaining copies of passports, right-to-work documents, and contact details. Records must be kept for the duration of the sponsorship and for at least one year after the employee leaves the company.
b. Reporting Duties: Sponsors are required to report certain events to the Home Office within specified timeframes. This includes reporting if a sponsored employee does not turn up for their first day of work, if they are absent without permission for more than ten working days if their employment is terminated, or if there are significant changes in their role or salary.
c. Compliance Requirements: Sponsors must ensure that they comply with all immigration laws and the specific conditions of their sponsor license. This includes conducting right to work checks to prevent illegal working, complying with salary and employment conditions as specified in the CoS, and cooperating with any compliance checks or audits conducted by the Home Office.
2. Right to Work Checks
All UK employers are required by law to conduct right to work checks to ensure all of their workers are legally authorised to work in the UK. These checks must be carried out before the individual begins their role and should be repeated at regular intervals if the employee’s right to work in the UK is subject to time limits.
Right to work checks can be carried out in a number of ways, depending on factors such as the individual’s nationality and other circumstances.
For example, employers should use an Identity Service Provider (IDSP) to conduct digital identity verification for British or Irish citizens holding valid passports, while those with EU settled status would provide a share code to prove their eligibility to work.
Others can use an ‘acceptable document’ for the employer to conduct a manual document check, while in other cases, such as when an individual is unable to provide proof of their right to work, the employer should carry out a check using the Home Office’s Employer Checking Service for confirmation of the individual’s status.
Businesses must keep evidence of all right to work checks for all employees for the duration of the employee’s employment and for at least two years after they leave the company.
3. Penalties for Non-Compliance
Failure to comply with immigration laws can result in significant penalties for businesses. These penalties are designed to deter illegal working and ensure that businesses adhere to their legal obligations.
Employers who fail to carry out right to work checks or employ someone who does not have the right to work in the UK can be fined up to £45,000 per illegal worker for a first offence, increasing to £60,000 for repeat breaches. Knowingly employing someone without the right to work is also a criminal offence, and employers found guilty can face an unlimited fine and up to five years in prison.
In addition to fines, businesses found to be non-compliant with immigration laws may face reputational damage.
Importantly, the Home Office also has powers to suspend or revoke the organisation’s sponsor licence in the event of a breach, which can severely impact operations:
a. Sponsor licence suspension: Non-compliance with sponsor duties, such as failing to report changes in a sponsored worker’s circumstances or inadequate record-keeping, can result in the suspension of the sponsor license. This prevents the business from sponsoring new employees until the issues are resolved.
b. Sponsor licence Revocation: Serious or repeated non-compliance can lead to the revocation of the sponsor licence, which means the business can no longer sponsor overseas workers. Sponsored employees may also have their visas curtailed, requiring them to leave the UK.
Section E: Applying for a UK Visa
The first step in applying for a UK visa is to assess the type of work or business activity involved in order to identify the most suitable visa category. Depending on factors such as your job offer, skills, experience, nationality and circumstances, this could range from the Skilled Worker Visa to the Innovator Founder Visa or one of the Global Business Mobility visas.
Once the appropriate visa category is identified, ensure you meet all relevant visa eligibility criteria. These criteria typically include qualifications, job offers, and salary thresholds. Your employer may also need to apply for a UK sponsor licence.
Once the visa has been identified, you should check the procedural rules for the visa in question, as some have specific requirements, such as securing endorsement, before the visa application can be made.
The next stage involves gathering all necessary documents to evidence eligibility. This could include proof of identity, details of the job offer, Certificate of Sponsorship, sponsorship information, financial evidence, and proof of English language proficiency.
The next step is to complete the online application through the UK Visas and Immigration (UKVI) portal. It is important to fill out the application form with accurate and complete information. Once completed, the required documentation should be uploaded, and the application should be submitted.
For your application to be processed, you will need to pay the relevant visa application fee, which varies depending on the type of visa you’re applying for and how long your visa will last. You may also have to pay the Immigration Health Surcharge (IHS) for each year of stay, if your visa will be for more than six months.
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Full IHS Rate per Year
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Discounted Rate per Year
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£1,035
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£776
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Next, you’ll need to schedule and attend a biometrics appointment to provide fingerprints and a photograph.
After submitting the application and attending the biometrics appointment, you’ll need to wait for UKVI to process the application. The processing time typically takes around three weeks for applications made outside the UK, but this can vary.
Section F: Common Challenges and How to Overcome Them
One common challenge applicants may face is meeting specific eligibility criteria, such as salary thresholds or English language requirements. To address this, it is advisable to thoroughly review the eligibility criteria before applying. Additional measures, such as taking an approved English language test or negotiating salary adjustments with the employer, may also be considered.
Incomplete or incorrect documentation can lead to delays or even refusals. To avoid such issues, it is crucial to carefully prepare and double-check all required documents. Using checklists provided by the UKVI and seeking professional advice when necessary can further reduce the risk of errors.
Employers without a valid sponsor licence cannot sponsor employees for certain visas, which can present a significant hurdle. To overcome this, employers should apply for a sponsor license well in advance and ensure they comply with sponsorship duties to maintain their license.
Delays in processing can have a substantial impact on travel and employment start dates. Applying as early as possible is one way to mitigate this risk. Additionally, applicants might consider using priority or super-priority services for faster processing.
Both applicants and employers must comply with ongoing visa conditions, such as reporting changes in circumstances and conducting right-to-work checks. Staying informed about these conditions and maintaining accurate records are essential practices to ensure compliance.
Frequent changes in immigration rules can create confusion and potentially affect the outcome of applications. Keeping up-to-date with the latest immigration rules and guidance, whether through subscribing to updates from the UKVI or consulting with immigration professionals, is advisable to stay informed and prepared.
Section G: Summary
The United Kingdom offers a range of immigration routes under which employers can recruit from overseas and bring in talent to the UK. However, these opportunities come with the responsibility of understanding the visa rules, criteria, and processes involved.
Of equal importance are the compliance duties that UK employers must adhere to, particularly when sponsoring foreign workers. Failure to meet these obligations can result in severe penalties, including fines, legal action, and the potential loss of the sponsor licence.
So, while recruiting internationally can significantly benefit UK businesses, it requires insight into the immigration regulations to avoid unwanted Home Office scrutiny and enforcement action.
Section H: FAQs
What is the purpose of a sponsor licence, and who needs one?
A sponsor licence is required by UK businesses that wish to employ foreign nationals under specific visa categories, such as the Skilled Worker Visa. It grants the business permission from the Home Office to legally sponsor and employ overseas workers. Without a sponsor licence, a business cannot issue a Certificate of Sponsorship (CoS), which is essential for the worker’s visa application.
How do I know which visa category is right for me?
The appropriate visa category depends on the nature of your work or business activities in the UK. For example, the Skilled Worker Visa is suitable for those with a job offer in a skilled occupation, while the Innovator Founder Visa is intended for entrepreneurs with a new and innovative business idea. Reviewing the eligibility requirements for each visa category on the UK Visas and Immigration (UKVI) website can help determine the best fit for your situation.
What documents are required for a UK visa application?
The documents required for a UK visa application typically include a valid passport, proof of identity, a Certificate of Sponsorship (CoS) from your employer (if applicable), evidence of financial means, proof of English language proficiency, and any additional documents specific to the visa category. It is essential to ensure all documentation is accurate and complete to avoid delays or refusals.
How long does it take to process a UK visa application?
The processing time for a UK visa application generally takes around three weeks for applications submitted outside the UK. However, processing times can vary depending on the visa category, the applicant’s circumstances, and the current workload of UK Visas and Immigration (UKVI). Priority or super-priority services are available for faster processing at an additional cost.
What happens if my visa application is delayed?
If your visa application is delayed, it could affect your travel plans or employment start date. To mitigate the impact of potential delays, apply as early as possible and consider using priority services. Regularly checking the status of your application through the UKVI portal and maintaining communication with your sponsor can also help manage any issues that arise.
Can I bring my family with me if I obtain a UK work visa?
Some UK work visas allow you to bring dependants, including your spouse or partner and children under 18, to the UK. You will need to demonstrate that you can financially support your dependants, and they will need to apply for dependent visas. The rules and requirements may vary depending on the visa category, so it’s important to review the specific guidelines.
What is the Immigration Health Surcharge (IHS), and do I have to pay it?
The Immigration Health Surcharge (IHS) is a fee that visa applicants must pay as part of their visa application. It grants them access to the National Health Service (NHS) during their stay in the UK. Most applicants are required to pay the IHS unless exempted under specific circumstances, such as holding a Health and Care Worker Visa.
How can employers ensure they comply with visa conditions and immigration laws?
Employers must fulfil their sponsor duties, which include conducting right to work checks, maintaining accurate records of sponsored employees, and promptly reporting any changes to the Home Office. Regularly reviewing the latest guidance from UKVI and seeking professional advice can help employers stay compliant and avoid penalties.
What should I do if I do not meet the eligibility criteria for my chosen visa?
If you do not meet the eligibility criteria for your chosen visa, consider whether you can take steps to meet these requirements, such as improving your English language proficiency or negotiating a higher salary with your employer. In some cases, you may need to explore alternative visa categories that are more suitable for your situation.
What are the consequences of non-compliance with UK immigration laws?
Non-compliance with UK immigration laws can lead to severe consequences, including substantial fines, criminal charges, and the suspension or revocation of a sponsor licence. It can also result in reputational damage and the inability to sponsor foreign workers in the future. Both employers and employees must ensure they adhere to all relevant immigration rules and regulations.
Section I: Glossary
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Term
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Definition
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Biometric Residence Permit (BRP)
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A card issued to foreign nationals in the UK, containing personal details and biometric data, serving as evidence of their immigration status and right to remain. BRPs are being replaced by eVisas, and will no longer be acceptable from 31 December 2024.
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Certificate of Sponsorship (CoS)
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A reference number provided by a licensed sponsor to a worker, confirming the details of their job offer and enabling them to apply for a work visa.
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Compliance Visit
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An inspection carried out by the Home Office to ensure that businesses holding sponsor licences are fulfilling their obligations and adhering to immigration laws.
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Eligibility Criteria
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The set of conditions that an applicant must meet to qualify for a specific visa, including qualifications, job offer, salary threshold, and English language proficiency.
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Immigration Health Surcharge (IHS)
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A fee that visa applicants must pay to access the National Health Service (NHS) during their stay in the UK.
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Online Application Portal
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The digital platform provided by UK Visas and Immigration (UKVI) where visa applicants complete and submit their applications, along with required documentation.
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Right to Work Checks
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The legal checks that employers must perform to ensure that an employee is legally authorised to work in the UK. This includes verifying documentation such as passports and visas.
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Sponsor Licence
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An authorisation issued by the Home Office allowing UK businesses to employ foreign nationals under specific visa categories, such as the Skilled Worker Visa.
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Sponsor Duties
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The responsibilities that a sponsoring employer must fulfil, including keeping accurate records, reporting changes to the Home Office, and ensuring compliance with immigration laws.
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Visa Vignette
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A sticker placed in the passport of a visa holder, granting them permission to enter the UK within a specified timeframe before collecting their Biometric Residence Permit (BRP).
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UK Visas and Immigration (UKVI)
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The division of the Home Office responsible for managing visa applications, controlling immigration, and enforcing immigration laws in the UK.
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Global Business Mobility (GBM)
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A category of visas designed to facilitate the movement of workers within international companies, including visas like the Senior or Specialist Worker Visa.
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Priority Service
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An optional service that allows visa applicants to expedite the processing of their application for an additional fee.
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Section J: Additional Resources
UK Visas and Immigration (UKVI)
https://www.gov.uk/government/organisations/uk-visas-and-immigration
The official government website for UK Visas and Immigration providing detailed information on visa categories, application processes, and immigration policies.
GOV.UK
https://www.gov.uk
The UK government’s primary online portal, offering a wide range of resources related to immigration, including visa eligibility checks, fee calculators, and guidance on sponsor licences.
Office of the Immigration Services Commissioner (OISC)
https://www.gov.uk/government/organisations/office-of-the-immigration-services-commissioner
The OISC regulates immigration advisers and provides a directory of certified immigration professionals who can offer advice and assistance with UK immigration matters.
VFS Global
https://www.vfsglobal.com
A service provider managing visa application centres for the UK, where applicants can book appointments, submit biometrics, and track their application status.
TLScontact
https://www.tlscontact.com
Another service provider for UK visa applications, offering appointment booking, biometrics submission, and application tracking services.
The Law Society
https://www.lawsociety.org.uk
The Law Society provides a directory of solicitors who specialise in immigration law, offering professional advice and representation for businesses and individuals.
Confederation of British Industry (CBI)
https://www.cbi.org.uk
A leading business organisation in the UK, the CBI offers resources and support for businesses dealing with immigration and recruitment challenges.
Federation of Small Businesses (FSB)
https://www.fsb.org.uk
The FSB provides support and guidance to small businesses in the UK, including information on employing foreign workers and complying with immigration laws.
Chartered Institute of Personnel and Development (CIPD)
https://www.fsb.org.uk
The CIPD offers resources and training for HR professionals on managing global talent, including compliance with UK immigration regulations.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services Limited - a Marketing & Content Agency for the Professional Services Sector.
