The government's overhaul of UK immigration started last week (29 February) with the introduction of the new points-based system.

The new rules will mean that businesses will face more administration and significantly higher penalties for failing to comply. But what all organisations need to appreciate is that these rules are not just about rogue employers or gangs of illegal workers: they are there to catch everyone.

Q and A on the new rules



What are the current immigration rules?

Until today, there were 80 different ways people could apply to come to Britain for work or study, which many found confusing and complex and which critics said failed to meet government goals.

What's happening today?

The first phase of the government's points-based system (PBS) comes into force. The scheme, based on the Australian system, is designed to ensure only those with skills the country needs can come to Britain to work. Separate measures to clamp down on rogue employers who employ illegal immigrants also begin today.

The home secretary, Jacqui Smith, has said the new system is part of the "biggest shakeup of the immigration system in 45 years". The PBS to control the flow of migrant workers will run alongside plans to introduce "earned citizenship", outlined in a green paper earlier this month, a new UK border agency to strengthen immigration controls at the borders, and the introduction of ID cards for foreign nationals.

What qualifications will people from outside the EU need?

That will depend on which tier of the PBS they apply for. Tier 1, which rolls out today, affects highly skilled people who want to work, train or study in the UK. Applicants who fall into this category do not need a job offer because they are considered to be among those most likely to benefit the economy. They will be awarded points based on their qualifications, previous earnings, UK experience, age, English language skills and available maintenance (funds).

Tier 2, which comes into force in the summer, targets skilled workers with a job offer or a company transfer from overseas. Tier 3 covers low-skilled jobs and will only be used if specific shortages are identified that cannot be filled by either the domestic or European labour force. Tier 4,which comes into force early next year, will cover students applying to come to the UK to study. Tier 5 will cover temporary workers such as musicians, actors and sportspeople, and comes into force in the summer.

What about the role of UK employers in employing overseas workers?

The government is 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.

Rogue employers 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.

What are the reasons for the shakeup?

The government has been under pressure to prove to the public it is tightening its grip on migration and citizenship controls. Local authorities complain the rising influx of immigrants is imposing a burden on public services, while the government has been criticised over its failure to account for the true number of foreign workers in the UK. Last October, the government was forced to admit its estimates on the number of people coming to Britain to work were wrong. The figure of 800,000 was revised up to 1.1m, and some people claimed the actual figure was even higher.

The government also faced embarrassment over illegal workers in Britain after it emerged that about 5,000 illegal immigrants were mistakenly cleared to work as security staff. Some of those wrongly given licences by the Security Industry Authority (SIA) ended up working for the Metropolitan police. Others reportedly found jobs in Whitehall and at ports and airports.

Why is the points-based system seen as controversial?

The scheme has been criticised by small business representatives, who have argued its heavy fines on those employing illegal immigrants are unreasonable. Some businesses say the clampdown on low-skilled immigrants will hit certain businesses hard, such as Bangladeshi-owned curry houses who recruit staff directly from Bangladesh, for example.

The Conservative party say the points scheme does not go far enough and have called for a cap on numbers entering Britain.