PLG Global Immigration Update
July 13, 2010

Australia — Changes to the Subclass 457 Visa Requirements

On July 1, 2010, the Australian Department of Immigration & Citizenship introduced several important corporate immigration changes. They increased the Skilled Migration Income Threshold (TSMIT) and the minimum salary levels required to obtain an exemption from the English proficiency test, both under Subclass 457, the visa category most commonly used by foreign temporary workers.

Increase in Temporary Skilled Migration Income Threshold for 457 Visas

In order to ensure that visa holders are provided the same terms and conditions as Australian workers, employers are now required to pay the market rate for their occupation. The TSMIT was increased from $45,220 AUD to $47,480 AUD per year.

The Australian Government introduced the concept of TSMIT in September 2009. If the market rate for an occupation is below the TSMIT, then the occupation cannot be approved under the Subclass 457 visa rules, which means that an employer cannot fill that occupation with a foreign worker with a 457 visa, regardless of how much they intend to pay the specific individual.

New Salary Level for 457 English Language Exemptions

Also effective July 1, those Subclass 457 visa applicants who wish to seek an exemption from the English language proficiency test are required to receive a base salary of at least $85,090 AUD, up from $81,040 AUD. This new minimum salary will also apply to applicants who have pending 457 visa applications on July 1. In order to be exempt, applicants must demonstrate their English proficiency through an International English Language Testing System by scoring at least a five in each of the test’s four components. Some applicants may need to score higher, depending on their occupation.

Exemptions for passport holders from Canada, Ireland, New Zealand, the United Kingdom or the United States, where the nominated occupation does not require a level of English language competency for registration, license or membership, remain unchanged. Also, applicants who are nominated in an occupation that does not require a level of English language competency for registration, license or membership and who have completed at least five consecutive years of full-time study in a secondary and/or higher education institution instructed in English are also still exempt.

Canada — Tighter Requirements for Permanent Residency

Citizenship and Immigration Canada (CIC) announced tighter requirements for obtaining permanent residency in Canada in an effort to protect their labor market while still attracting skilled workers. There is now an annual cap of 20,000 applications that will be considered for the Federal Skilled Workers program (a points-based method for acquiring permanent residency), along with a new language proficiency requirement. In addition, a proposal to double the required personal net worth of new investors under the Federal Investor program is under consideration.

To be eligible as a Federal Skilled Worker, the applicants must have a job offer or experience in one of the in-demand occupations. Within the 20,000 cap, each occupation will be capped at 1,000 cases. The initial cap will be calculated from June 26, 2010, through June 30, 2011, although in future years it will run from July 1 through June 30.

All applicants under the Federal Skilled Workers programs must now submit results of an English or French language proficiency test. The test must be administered by a third-party language testing organization designated by the Minister of Citizenship, Immigration and Multiculturalism. Previously, applicants could submit a writing sample to demonstrate their language abilities. This requirement also applies to those permanent residency applications under the Canadian Experience Class.

In the June 26 announcement was also a proposal for a requirement for Federal Investor Program applicants to possess a personal net worth of at least $1.6 million CAD, up from $800,000 CAD, and to make a minimum investment in Canada of $800,000 CAD, up from $400,000 CAD.

While CIC is accepting public comments on the proposal for 30 days, they expect the changes will be passed.

India — Quota Removed

Effective immediately, the Ministry of Home Affairs has decided to end the quota system in all industry sectors. In 2009, the Indian government implemented a one percent quota (or 20 person limit, whichever was less) on all companies seeking employment visas for their foreign workers, although companies in Information Technology industries were granted increased limits back in December.

Along with this relaxed policy come simplified and expedited renewal procedures in the major cities with Foreigners' Regional Registration Offices (FRRO), which includes Amritsar, Bangalore, Chennai, Mumbai and New Delhi. Renewal applications submitted to an FRRO will now be granted for up to 12 months; previously, extensions were approved for three months only, with the additional nine months being granted by the Ministry of Home Affairs. Smaller cities in India with only Foreigners’ Registration Offices (FRO) may still only grant the initial three-month extension. Please note that some FRRO and FRO authorities have also announced new requirements, which must be confirmed before any registration and renewal matters are processed.

United Kingdom — Temporary Cap Introduced

At the end of June, the UK government introduced a temporary cap on the number of non-European Union (EU) foreign workers. While a permanent cap will be announced in September 2010 after a 12-week government consultation, the temporary limit will be in effect from July 19, 2010, through April 1, 2011. Along with the cap will be heightened requirements for the Tier 1 (General) category. The UK Border Agency has confirmed the following changes:

• the number of Tier 2 (General) Certificates of Sponsorship will be reduced to a cap of 18,700; Tier 2 (Intra-Company Transfer) is not currently affected; and
• the number of self-sponsored Tier 1 (General) migrants applying from outside the UK will be capped at 5,400.

In addition to the cap, the UK government is temporarily raising the number of points needed to qualify for Tier 1 (General) from 95 to 100. Applicants with salaries greater than £150,000 in the last 12 months can still qualify on the basis of salary alone because the points awarded for salary will also be increased by the five points. Other changes restricting employers’ ability to bring non-EU workers are likely to be announced after September 2010.

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Disclaimer/Reminder

The PLG Global Immigration Update provides periodic alerts about noteworthy developments in business and corporate immigration and related topics. It is provided as information only and is not a substitute for legal counsel. If you have questions about the NewsFlash, please contact your PLG attorney or write plgglobal@immigrationlaw.com.

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