New fines for local employers who hire illegal workers and a tough new points system so only the best can work here are among the other measures introduced in the biggest shake-up of the immigration system for 45 years.

Britain's Australian-style points system kicks-off with new rules for highly skilled foreign nationals currently working in the UK who want to extend their stay. The scheme is designed to attract the most talented people with the skills the UK needs to remain a global leader in the fields of finance, business, and technological innovation.

The Government is also introducing a licensing system for employers who want to recruit from overseas and bring skilled workers into the UK. No company will be granted a sponsor's licence without being approved in advance by the Border and Immigration Agency (BIA). Employers bringing in skilled workers under Tier 2 of the scheme which takes effect this autumn can now start applying for that licence.

Home Secretary Jacqui Smith said:

"The introduction of our Australian-style points system will ensure that only those with skills the country needs can come.

"Migrants benefit this country economically, contributing an estimated £6bn to our national output, as well as socially and culturally and it is right that we have a system which is fair but firm, accessible but controlled.

"Today's proposals are part of the biggest changes to British immigration policy in a generation which include a new deal for those migrants seeking citizenship here, a new UK Border Agency to strengthen controls at the border and the introduction of ID cards for foreign nationals."

Alongside the Government's plans to ensure Britain has access to the skills and talents it needs, rogue employers from today face civil penalties of up to £10,000 for each illegal worker they employ. Those found to have knowingly hired illegal workers could incur an unlimited fine and be sent to prison. The change comes as BIA stepped up action in 2007 against illegal working by 40 per cent.

Immigration Minister Liam Byrne said:


"Today sees the start of our points system and the beginning of on-the-spot fines for businesses who employ illegal workers, introduced a day ahead of schedule.

"New £10,000 penalties mean instant justice for those firms who try and undercut others by employing illegal immigrants. With the new compulsory identity cards for foreign nationals later in the year, there can be no excuse for not checking the identity of those applying for jobs.

"The key to shutting down illegal immigration is to shut down illegal jobs. Last year we stepped up our illegal working operations by 40 per cent. Now our enforcement teams have a host of new powers to shut down dodgy bosses who draw illegal immigrants to Britain."

Gill Mortlock, Regional Director for the Border and Immigration Agency in the North West, whose staff will administer the new system in the region, added:
"These changes will have a major effect on every business in the North West which employs migrant workers from outside the European Union. All types of businesses will be affected from takeaways to universities - some of the region's biggest employers.
"Under the new system, migrant workers and their employers will have a much clearer idea what the requirements are to come and work or study in the region.
"We have visited many companies across the North West to explain to employers how the new system works whilst warning of the consequences of failing to comply.
"These massive changes to the UK's immigration system will ensure only workers with the skills to benefit the UK economy come here and continue the long-standing positive contribution that migrants have made to the cultural life of the North West and its economy."
In addition to the new measures, enforcement activity by the Agency against those employers who break the rules has been stepped up.
In the period between April and December 2007, 1150 people who were in the UK illegally were removed from the North West region.
There were also 270 successful operations carried out against businesses employing illegal workers in the region.
As the measures announced today take effect the Government is also taking steps to target rogue employers through new legislation in the Employment Bill. The Bill proposes tough new penalties for businesses not paying workers the minimum wage and agencies which exploit workers and undercut legitimate business.

This year will also see the establishment of a new UK Border Agency to ensure the UK has one of the toughest borders in the world. Further measures include the introduction of a new system to count people in and out of the UK and ID cards to strengthen the UK border and help keep out those who don't have the right to be here.

Notes to Editors

1. The statement of intent for tier 1 of PBS and the Statement of Intent on Sponsorship can be found at can be found at: http://www.bia.homeoffice.gov.uk/sitecontent/documents/managingourborders/pbsdocs/

Tier 1 is the first of five tiers of the PBS due to be rolled out over the next 18 months. Tier 2, targeting skilled workers with a job offer and Tier 5, for temporary workers such as musicians, actors and sportsmen will both come on line in the third quarter of 2008. Tier 4, for students, will follow at the beginning of 2009.

Tier 3, which covers low skilled routes, will only be used if specific shortages are identified that cannot be filled from the UK on domestic or European labour force.

2. The Employment Bill (2007-2008), introduced by the Department for Business, Enterprise and Regulatory Reform, will ensure there is no hiding place for rogue employers who try to exploit vulnerable workers. The aim is for the new legislation to receive Royal Asscent by summer 2008. The key aspects include:

• increasing the penalties for non-payment of the National Minimum Wage. Everyone caught out will face the potential of unlimited fines;

• a shake-up of the currently bureaucratic and burdensome statutory workplace grievance procedure. Disputes will be resolved at an earlier stage with improvements to the way employment tribunals work;

• steps to ensure that no business is allowed to get away with unfairly undercutting legitimate operators by exploiting workers;

• clearer rights for Trade Unions to determine their membership; and

• strengthened investigative powers for the Employment Agency Standards Inspectorate, allowing them greater scope to access financial information to check whether a worker's complaint is an isolated instance, or an example of widespread abuse.