Brexit and the Resident Labour Market Test

The points-based system of the Immigration Rules changed considerably at the end of 2020. Amongst the changes, the Resident Labour Market Test (RLMT) was abolished for most immigration routes.

The RLMT required sponsors to advertise a position in order to demonstrate to the Home Office that there are no suitable settled workers who are able to fill the sponsored position.

The test, which required sponsors to advertise a vacant role for 28 days and follow strict rules on evidencing recruitment activity, had to be undertaken before sponsoring a non-EEA worker for a role (unless an exemption applied). It was considered laborious by many.

Whilst the RLMT was removed for most routes under the new points-based system, the new guidance stipulated that sponsors should still retain evidence of fair recruitment. For a while there was a lack of clear guidance on what evidence sponsors were expected to retain. This caused much confusion, particularly as the guidance continued to outline the requirements under the old rules.

However, the government recently clarified what exactly sponsors are required to retain. The updated guidance, Appendix D, provides a comparably more flexible approach. There are no longer requirements to retain the applications for those shortlisted for interview or any personal data of unsuccessful applicants. On the whole, the new guidance is far less prescriptive.

Today, the RLMT only remains in place for those wishing to sponsor workers under the T5 (Religious Worker) route.

For those who were sponsored under the old system, via the Tier 2 (General) route for example, it is important to note that evidence required under the old rules should still be retained. Appendix D explains that most evidence should be retained until at least one year after sponsorship of the worker ends, or until the date a compliance officer approved them (if less than one year after sponsorship ended), whichever is earlier.

The RLMT is no longer a requirement for most immigration routes, however sponsors should still be mindful of the requirement to evidence recruitment activity. For instance, you might retain details of where the role was advertised using a screenshot of the website containing the advertisement.

Failure to consider this could result in punitive action being taken by the Home Office against the sponsor and their licence.