PCG raises fast track visa abuse claims with Work Permits (UK)
The Professional Contractors Group and Work Permits (UK), part of the Home Office, are in correspondence regarding allegations of possible abuse that are taking place within the IT industry.
The simplified Work Permit route, which allows employers to waive the need to test the resident labour market, should allow firms to hire skilled professionals from abroad when they can't hire people with the relevant skills in the European Economic Area, because of the current skills shortage. However with the economy drifting into recession with an estimated 30 per cent of contractors between contracts, there is a need to regularly review the shortage occupation list which Work Permits (UK) operates.
A skill is deemed to be in short supply if it is included on the Work Permits (UK) shortage occupation list. This list was established and is maintained by Work Permits (UK) in consultation with the Information Technology, Electronics and Communications sector panel members. (A group of industry representatives who meet quarterly with officials from Work Permits (UK)). The PCG have recently become members of this group and at the last meeting in October contributed to the discussions, which resulted in the removal of a number of skills from the list, such as Visual Basic. (Although Visual Basic is still considered to be a shortage under the job titles Business Analyst and Network Specialist)
The list of defined skill shortages is here.
There is a growing body of evidence that suggests that firms are using these arrangements not to plug skill gaps but to cut rates and push out resident workers. An investigation by the Mail on Sunday (December 24-2000) revealed that computer-services company, FI Group, was offering its employees a £1,000 bounty to nominate UK contractors within the company who could be replaced by cheaper workers from the Indian sub-continent. While it would be illegal to replace permanent employees with workers from overseas, there is nothing to prevent independent contractors being treated in this way. These are the same independent contractors the Government wants to treat as 'employees' when it comes to tax purposes.
Philip Ross, PCG spokesperson, said: "There is a growing weight of evidence that the FTV system is being abused. Not by the FTV workers themselves who are quite justified in taking advantage of the scheme, but by unscrupulous employers who aren't using the scheme to plug skill gaps but are using it to bring in cheaper labour. In doing so are under cutting genuine businesses in the UK and are also exploiting and profiteering from the FTV workers that they bring in.
"We believe that body shop companies are bringing in FTV workers, paying them low salaries and charging them out at high rates, profiteering from the system and undermining the existing UK system. Body shop companies acting in this way are in breach of the regulations concerning the FTV system. Because FTV workers are dependant on work with that company they can't leave them, because if they do then their visa becomes invalid."
Work Permits (UK) will investigate any allegations made against employers undercutting resident workers and those employers, which may be abusing the work permit arrangements.
Philip Ross said: "Contractors can contact us anonymously, either by filling in the form (PCG members only) or by e-mailing us here.
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The Editor