The Shortage Occupation List sets out roles which are in short supply in the UK, meaning employers face a shortage of suitable employees within the resident labour market. The jobs which appear on the list are given some benefits within the Immigration Rules to make it easier for employers to hire them through the Skilled Worker visa route.
The government periodically commissions the Migration Advisory Committee (MAC) to identify and recommend occupations which should appear on the Shortage Occupation List. Ultimately, the government decides which occupations actually appear. The list can be found in Appendix Shortage Occupation List of the UK Immigration Rules. The list includes care workers, architects, veterinarians, engineers, programmers and software developers and scientists – to name a few.
Most non-UK resident workers will need to apply for a visa to work in the UK. The main visa route is the Skilled Worker visa, which replaced the old Tier 2 (General) visa. There are other work routes, but here we are focusing on the Skilled Worker visa, the Shortage Occupation List and how this might benefit employers and employees.
When a role features on the Shortage Occupation list, there are various benefits:
- A lower salary threshold: Applicants may generally be paid 80% of the going rate for the occupation code. Points will be ‘tradable’ against a salary that is up to 20% below the minimum salary threshold (in most cases, £20,480). The majority of applicants will need to earn at least £20,480 per year, £10.10 per hour or 80% of the going rate for their profession, whichever is higher.
- Pay a lower Home Office visa application fee: If a role is not a shortage occupation, the fees are: £625 for up to 3 years or £1,235 for more than 3 years. If a role is a shortage occupation, the fee is £479 for a visa up to 3 years or £943 for a visa for more than 3 years. Additional fees will apply for dependants and Immigration Health Surcharge.
- Immigration Skills Charge: a smaller number of roles which appear on the Shortage Occupation List are also exempt from the Immigration Skills Charge, a yearly fee payable by the sponsor. There are also roles are not shortage occupations, but which are also exempt from the Immigration Skills Charge. There are also other circumstances when someone may be exempt from ISC, for example a Student switching to a Skilled Worker visa.
One of the most significant benefits was that employers did not have to conduct a Resident Labour Market Test (RLMT). However, from 1 January 2021 this requirement was abolished for all Skilled Worker roles – not only those appearing on the Shortage Occupation List. However, employers will still need to demonstrate that the vacancy the Skilled Worker will fill is a genuine vacancy.