The Daily Telegraph reports a significant increase in the number of foreign workers employed in the UK via intra company transfers under Tier 2 of the country’s points-based immigration system. In 2008, more than 48,000 intra-company transfer applications were filed; approximately 30,000 concerned foreign IT workers. In total, over 35,000 foreign IT workers entered the UK that year – three times the amount that entered during the height of the dot com boom in 2000.

The intra-company transfer scheme allows an employer to transfer to the UK its foreign-based staff who have at least six months’ knowledge-specific company experience. Unlike the points-based system’s other schemes, the employer is not required to first advertise the position to British workers. Transferred workers are permitted to work full-time in the UK for up to three years and may work up to 20 hours in supplementary employment in the same profession. After three years, these employees may apply for a two-year extension and, after five years in the UK, they may apply for permanent residency.

Critics warn that these intra-company transfers damage the UK’s economy and worsen the plight of British workers. Some contend that IT companies pay their foreign workers less than market wages.

Responding to these criticisms, the UK Border Agency stated that:

• contrary to the allegations, employees must be paid the position’s going rate;
• in early 2010, the requirements will be amended to require employees to have 12 months’ experience (instead of six months as at present) with their employer before they can be transferred to the UK; and
• it is closing the category as a route to permanent settlement.