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IMPACT – HIGH
What is the change? Today, the U.K.’s Immigration Bill received Royal Assent – the Immigration Act 2014 is now in force.
What does the change mean? The law will make life more difficult for undocumented migrants in the U.K. by restricting access to housing, banking, healthcare and other services. However, the depth and breadth of the provisions will impact all British citizens and foreign nationals in the U.K. and create significant administrative burdens.
Background: The bill was heavily debated as it moved through Parliament, mostly focusing on legal arguments, such as enforcement, appeals and human rights. However, the Immigration Act’s potential impact on corporate employers and employees (whether British citizens or foreign nationals) is significant.
Some key provisions impacting employers include:
BAL Analysis: While the new law discourages illegal migration, it imposes new costs associated with administering and regulating a “tighter” system. Employers are likely to feel the impact of the Immigration Act in their pockets, due to several additional direct costs and administrative processes.
Notably, the residential tenancy provisions will likely impact any relocation company or HR team that assists with home searches for employees, as the rules apply equally to domestic and international tenants. Given the difficulties companies experience conducting right-to-work checks in the employment arena, BAL anticipates considerable confusion amongst landlords and agents, and ultimately the development of a right-to-work service, whose cost will be borne by the employer or tenant.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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