Overseas worker rules could stifle food manufacturing

The rules could even force some firms to relocate their research and development (R&D) overseas resulting in a "brain drain"​, the Institute of Food Science & Technology (IFST) and others have warned.

As part of its commitment to cut net immigration, the government has tightened up requirements for Tier 2 visas the category for any non-EU employees educated to degree-level and earning under £150,000 a year, which allows them to work in the UK for six years.

Under the new rules, any firm that wants a Tier 2 employee to stay in the UK for longer than six years must sponsor them for indefinite leave to remain. To qualify, an employee cannot have spent more than 180 days out of the UK for the period covered by the visa before applying. Those seeking indefinite status must apply after year five of the six- year Tier 2 visa.

Immigration expert​

But, employees in multinational food and drink firms will easily exceed the 180-day maximum, said an immigration expert, who asked to remain anonymous. If an employee fails to gain indefinite leave to remain, under the new rules he would be banned from working in the UK for a year, added the source.

"Firms might have a situation where they have a financial director for the EMEA ​[Europe, Middle East and Africa] region who cannot go to France for fear of going over allowable days abroad,"​ he said.

Global firms with UK hubs are less likely to base long-term projects particularly R&D here as a result, the expert added. "This doesn't mean we just have one fewer foreigner coming in, we are also losing out on all the jobs and innovation around that project."​

The scientific community has expressed concern that the restrictions will result in a brain drain, said John Poole, IFST chief executive. Many talented, skilled workers that have trained here will be put off by the restrictions, taking their knowledge and the money invested in them home, he added.

Worsens the situation​

The government's decision to cut the post-study visa which allowed foreign students studying in the UK two years to work here worsens the situation, said Gerwyn Davies public policy adviser at the Chartered Institute of Personnel and Development (CIPD).

Many students received loans to study in the UK based on them working here for two years to pay them back. This will restrict their access to money to pay for their studies, weakening the pool of graduate workers, warned Davies.

Meanwhile, the British economy could lose £8bn a year due to the government’s crackdown on foreign students, universities warned last week.

In a letter to Prime Minister David Cameron, nearly 70 university chancellors, governors and presidents warned that tough new rules on student visas could drive students to study overseas.

The letter stated: “In this Olympic year, when our universities will be hosting athletics teams and media from across the globe, we urge you to send a clear message that genuine international students are also welcome in, and valued by, the UK,”​ according to a report in The Daily Telegraph​.