Company transfers hurt UK IT workers, claim union and trade body

Unite argues that tax breaks on intra-company transfers encourages firms to favour them over domestic workers

Intra-company immigration is hitting workers in the IT sector particularly hard - and the government has missed a "golden opportunity to root out abuse and misuse by companies" according to the Unite union.

The union attacked the government's decision earlier this week to insert an exemption to its immigration rules for skilled workers earning at least £40,000 who move to the UK through company transfers.

Unite said that tax breaks enjoyed by companies employing migrant workers on intra-company transfers act as an incentive to favour them over domestic workers.

Unite national officer Peter Skyte said: "The measures announced will do little to prevent employers from abusing the system, and manipulating tax and accommodation allowances to undercut UK resident workers.

"The government has also failed to take any action to stimulate job opportunities to reduce the high unemployment rate for skilled computer science graduates and young people in general by providing employers with greater incentives to source labour from the domestic market as envisaged in its original consultation on the migration cap."

Skyte suggested that the one-year minimum term rule for intra-company transfers would encourage employers to transfer workers from outside the UK for less than a year.

Recruitment industry body the Association of Professional Staffing Companies (APSCo) also attacked the exemption on behalf of domestic IT workers. Chief executive Ann Swain said:

"About 80 per cent of non-EU IT workers come to the UK on intra-company transfers. If intra-company transfers are excluded, the immigration cap will largely be an empty political gesture that will do little to restrict the influx of non-EU IT workers to the UK.

"APSCo has written to the Migration Advisory Committee to call for intra-company transfers to be included within the immigration cap. A reduction in the number of intra-company transfers would be compensated for by increased employment within the existing pool of resident IT professionals."

She added: "Intra-company transfers are used because it is easy and saves on employment costs. Employers don't want the expense of hiring UK or EU nationals. The use of intra-company transfers in the IT sector often has little to do with lack of skills in the UK workforce."

Think tank the Institute for Public Policy has warned that the government will not be able to reach its target of halving immigration without damaging the economy and public services.