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Europe is focused on economic recovery but faces societal challenges. Conflict in the region and nearby Middle East is driving instability.
BACKGROUND
The United Kingdom is a constitutional monarchy where the hereditary monarch serves as head of state while the prime minister serves as the elected head of government. Executive power is entrusted to a unitary parliamentary system formed by members of the Parliament, where legislative power is vested in the two parliamentary chambers: the House of Commons and the House of Lords. Elections are held no more than five years apart and are scheduled by the prime minister. U.K. citizens vote for all 650 members of the House of Commons for a term of up to five years, and the party that commands a majority, either alone or in coalition, form the next government. The majority party’s leader becomes the prime minister.
The first national general election in five years was announced by Prime Minister Rishi Sunak for July 4. Sunak, a former Treasury chief who had been prime minister since October 2022, hoped to continue the 14-year reign of the Conservative Party (Tories). His primary opponent was Keir Starmer, a former director of public prosecutions in England and leader of the Labour Party since April 2020.
OUTLOOK
The Labour Party won the general election with a total of 412 seats, an increase of 211 seats since the previous general election in 2019. The Conservative Party total of 121 seats represents its worst-ever defeat, with more than 250 seats lost. Starmer has met with King Charles at Buckingham Palace and officially accepted the role of prime minister. The new PM pledged to steer the country toward “calmer waters” in his first address to the nation.
The Labour Party will face many challenges, including a polarized debate on migration. The Conservatives’ signature policy regarding migration was restrictive in nature and focused on measures designed to reduce net migration and prioritize the domestic workforce. Labour Party representatives have described similar priorities to reform the points-based immigration system to reduce migration, boost Britain’s skills to address skills shortages and focus on domestic workers. Labour’s immigration policies will seek to improve wages and conditions for Britain’s workers and continue to focus on compliance with harsher penalties. Employers should be prepared for new rules and requirements when it comes to international recruitment, given the drastic change in government and healthy majority that the Labour Party now possesses for future policy reforms.
RECENT IMMIGRATION NEWS
The U.K. government is prioritizing increasing their domestic workforce through the “Back to Work Plan.” The government recently announced several initiatives to intentionally reduce net migration and make immigration more expensive for both employers and foreign nationals. The Home Office announced a plan to cut net migration to the United Kingdom by 300,000 people by reducing the high number of dependents coming to the U.K. and increasing the minimum salaries required for overseas workers and family visa applications. The statement of changes published by the Home Office confirmed the increases to the minimum general salary threshold and going rates for skilled workers as well as increases to the minimum income threshold for those bringing dependents on family visas.
The Home Office announced increased fines for employers and landlords who employ or rent to illegal migrants. The increased fines represent the largest increase in civil penalties since 2014. The measure is designed to identify and reduce illegal migration and ensure only those eligible are able to work and receive benefits or access public services. Since the start of 2018, almost 5,000 civil penalties have been issued to employers with a total value of £88.4 million.
The U.K. Parliament officially approved a new law increasing immigration health surcharge fees, effective Feb. 6, 2024, as well as announced new fees for legalizing public documents starting Jan. 1, 2024. The 66% increase to the health surcharge is an element of a broader strategy to increase fees to help fund pay raises for certain public sector jobs. As part of that effort, work and visit visa fees increased by 15%, family visas and settlement and citizenship visas by 20% and student visas by 35%.
Most recently, the Home Secretary announced on July 31 that the planned increase to the minimum income threshold for those bringing dependents to the United Kingdom on family visas is on hold. The Home Secretary also stated that the Migration Advisory Committee will review key sectors within international recruitment, including IT and engineering. The ministerial statement demonstrates a continued support for the changes announced earlier this year, including increases to salary thresholds for skilled workers and health and care workers. Other proposed changes include eliminating the ability for health and care worker visa holders filling care worker and senior care worker roles to bring dependents with them and an end to the 20% “going rate” salary discount for shortage occupations. The statement highlights the Labour Party’s new legal migration objectives and reintroduces expected reforms to migration policy. British citizens and those settled in the U.K. who want their family members to join them will not be impacted by the planned hike to the minimum income threshold yet.
Electronic Travel Authorization program
The government is creating an Electronic Travel Authorization (ETA) program that will require travelers who do not need a visa to apply for authorization to enter the U.K. The ETA will be valid for two years for multiple entries into the country. Individuals who are denied an ETA must apply for a standard visitor visa, temporary work — creative worker visa or transit visa. The program initially launched for nationals of Bahrain, Jordan, Kuwait, Oman, Saudi Arabia and the United Arab Emirates, and it is expected that by the end of 2024, ETA will be required for all visitors who do not need a visa for short stays, including those visiting from Europe and other countries including Australia and the United States. The Home Office is introducing ETA to increase border security and better monitor travel for those who do not need a visa to enter the country.
In addition, the rules for travel to most European countries are rapidly changing as well. Starting in the first half of 2025, an estimated 1.4 billion people from over 60 visa-exempt countries will be required to have a travel authorization to enter 30 European countries for a short stay. EU Commissioner Ylva Johansson recently announced the official commencement date for the new Entry/Exit System (EES) and the European Travel Information and Authorization System (ETIAS).
EES, originally part of a “Smart Borders” initiative, is an automated system for registering non-EU nationals traveling for a short stay — up to 90 days in a 180-day period — that will record each time an individual crosses an external Schengen area border. It will replace passport stamping and require travelers to have biometric data (facial images and fingerprints) recorded upon entry. It was originally expected to take effect during the first half of 2022 but will now launch Nov. 10, 2024.
EES differs from ETIAS, which is an entry requirement for visa-exempt nationals traveling to any of 30 European countries. It is linked to a traveler’s passport and allows individuals to enter for short-term stays up to 90 days in any 180-day period. ETIAS will require travelers from the 63 countries currently approved to travel into the EU visa-free to register for a visa waiver before arriving in the Schengen area and is expected to launch in 2025.
EU authorities have stated that the new systems will provide vital information necessary to identify those who have stayed in the EU longer than allowed, who do not have the right to enter the EU, or those who are involved in criminal or terrorist activity and assess potential security risks. Schengen-participating states may benefit by being able to better manage their external borders and improve internal security. Travelers may also benefit by obtaining earlier indications of their admissibility and making legal travel across Schengen borders easier.
The Fifth Republic, France’s current republican semi-presidential system of government, consists of an executive branch, a legislative branch and a judicial branch. Executive power is exercised by the president of the republic and the government. The government consists of the prime minister and the parliament, made up of the National Assembly (Assemblée nationale) and the Senate (Sénat). The prime minister is appointed by the president, who is the directly elected head of state.
On June 9, current President Emmanuel Macron dissolved the lower house of France’s parliament in a surprise announcement. Legislative elections were held June 30 and July 7 to elect all 577 members of the 17th National Assembly of the Fifth French Republic. The move by Macron came in response to the European Union’s parliamentary election, where France elected 81 members of the European Parliament. Macron himself was not a candidate in the EU elections, and his term as president runs for three more years. The far-right National Rally party, led by Marine Le Pen, made substantial gains in that EU election, however, and Macron’s Besoin d’Europe electoral list lost a significant number of seats.
In the 2022 legislative elections, Macron’s centrist party won the most seats but lost its majority in the National Assembly. Le Pen was the runner-up to Macron in the last two presidential elections and “welcomed” Macron’s move to dissolve the National Assembly and call a snap election. Macron’s decision was a massive political risk that could have drastically impacted the rest of his presidential term, which ends in 2027. In his address, Macron justified his decision by the “historic score of the far-right” that could not be ignored and called the rise of nationalism by agitators a threat to France, Europe and France’s place in the world.
Three alliances emerged on top after the recent election. Each fell short of an outright majority, where a party or coalition needs to secure at least 289 of the National Assembly’s 577 seats. The New Popular Front (NFP), an alliance of leftist and environmental parties, won the largest number of seats with 188. Ensemble, the centrist coalition led by Macron, came in second with 161 seats. Finally, National Rally (RN) and its allies, led by far-right leader Le Pen, won 142 seats. Macron said “no one won” the parliamentary election and called on mainstream parties with “republican values” to form a governing alliance. As a consequence, nobody can propose the name of a prime minister with the assurance that they would get the support of a majority of lawmakers in a vote.
France’s divided National Assembly kept Speaker Yaël Braun-Pivet, a centrist member of Macron’s party and head of the National Assembly since 2022, as speaker after three rounds of votes in the lower house of parliament. Macron accepted the resignation of Prime Minister Gabriel Attal, and there is no firm timeline for when the president must name a new prime minister as the government continues to operate and work toward a coalition.
As of Aug. 27, Macron continues to maintain the current centrist caretaker government, which has led France since the July 7 vote and through the Paris Olympics. The NFP announced its preferred candidate for prime minister, Lucie Castets, after their bloc won the most seats in parliament during the snap elections. Macron has rejected the nomination and talks are currently underway to nominate a government.
Without a majority in the National Assembly, Macron faces a strong challenge from the far right and is reliant on parties outside the government to get legislation through. His government managed to push through a new comprehensive immigration law with the backing of right-wing Republicans and the far-right RN, and, in order to get the bill through, the government accepted a series of amendments such as limiting family reunifications and reducing access to welfare. Future immigration bills will be impacted by the new coalition government. The priorities of Macon’s administration are combating illegal immigration but also promoting the integration of foreign nationals in France. The challenge of the far right will continue to be a focus point from an immigration policy perspective.
In preparation for Paris hosting the 2024 Summer Olympic Games, French authorities began operating a new Olympic consulate system for processing the anticipated high volume of visa applications entirely online via the government’s France-Visas platform. The Olympic consulate system represents France’s first venture into processing e-visas and a similar digitalized visa process. The French government later launched a new digital tool that will alert foreign nationals when it is time to renew their residence permit. The new digital program is designed to help foreign nationals request renewal of their residence permit in a timely manner and avoid late fees as well as limit the need for issuance of provisional documents.
The government is also undertaking additional efforts to relax rules related to the taxes paid by French companies that hire foreign nationals from outside the European Union/European Economic Area/Switzerland. A recently released policy provided a benefit for employers of French residence permit holders, for whom they no longer need to pay the foreign worker tax. This measure is part of an effort to streamline the immigration process and ease the process for French employers seeking to attract and hire foreign talent.
New immigration law
The French government published a new comprehensive immigration law on Jan. 27 that included provisions for a new residence permit for medical professionals and a residence permit allowing for the regularization of certain undocumented workers. The bill also introduced a French-language proficiency requirement for multiyear residence permit holders while also installing limits on repeated renewals of certain temporary residence permits. The law was originally passed in December 2023, but several provisions were later struck down by the Constitutional Council. After right-wing and far-right pressure, most of the measures rejected by France’s nine-member Constitutional Council were later added back into the controversial bill. Le Pen supported the legislation after it was passed in December and the bill received popular protests. The new law includes important amendments surrounding residency and citizenship intended to combat irregular migration. Permit holders should prepare in advance for when the changes will take effect. The renewal limitation for temporary residence permits took immediate effect, but the higher language proficiency changes are expected to be in force by Jan. 1, 2026.
This analysis has been provided by the BAL Global Practice Group.
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