Navigating Change: Business Immigration and Collective Redundancy Consultation

Business Immigration

In terms of their key pledges for business immigration, Labour have said that they will:

1. Reduce net migration (no figure is specified) and reform the points-based immigration system through “appropriate restrictions on visas” with a plan to link immigration and skills polic

Impacts:

Skill Shortages: Reduced net migration could lead to skill shortages in certain industries that rely heavily on foreign talent.

Recruitment Costs: Businesses might face increased costs and administrative burdens associated with navigating the revised points-based system and ensuring compliance with new visa restrictions.

Strategies for Businesses:

Investing in local talent development and apprenticeships.

Collaborating with educational institutions to align curriculums with industry needs.

2. Impose new conditions on employers to draw up “skills improvement plans” to train UK-based workers in sectors applying for high numbers of skilled worker visas:

Impacts:

Training Investments: Employers will need to invest in training programs for UK-based workers, which could increase operational costs in the short term.

Administrative Burden: Developing and implementing these plans will require additional resources and time.

Strategies for Businesses:

Utilising government incentives or grants for training and development.

Creating partnerships with vocational training centres and universities.

3. Introduce workforce and training plans for sectors such as health & social care and construction, to end long-term reliance on overseas workers.

Impacts:

Sector-Specific Challenges: Sectors like health & social care and construction, which have historically relied on overseas workers, may face significant disruptions.

Increased Training Costs: There will be a need for substantial investment in training UK workers to fill these roles.

Strategies for Businesses:

Developing sector-specific training programs and apprenticeship schemes.

Advocating for sector-specific support and transitional measures from the government.

Ban employers who “flout the rules” from hiring workers from abroad (for example, those who breach immigration or employment laws); and

strengthen the Migration Advisory Committee and establish a framework for joint working with skills bodies across the UK, the Industrial Strategy Council and the Department for Work and Pensions.

Collective Redundancy Consultation

Businesses can currently avoid collective consultation by spreading redundancies across different locations.

Labour’s Proposed Change

Labour plans to change the rules around collective redundancy consultation, basing the obligation on the number of employees impacted across the business rather than at a single workplace.

• Expected Benefits: Better protection for employees through more thorough consultation processes.
• Potential Challenges: Increased administrative burden for businesses.

Implementation

Employers will need clear criteria for what constitutes a business-wide impact and support for businesses in conducting consultations will be key to effective implementation.