The UK’s tech and life sciences sectors continue to attract global attention, with innovation at the heart of their growth. As businesses in these sectors (and others) look to relocate skilled talent, the landscape is evolving - driven by changes in immigration policy, global mobility trends, and the ever-present need to get tax, reward, and pay transparency structures right.
Skilled Worker visa: opening doors for global talent
The Skilled Worker visa remains the primary route for bringing overseas talent to the UK. According to the latest Home Office statistics, there were around 6,000 Skilled Worker visa applications per month between June 2022 and March 2024, with tech and life sciences among the top sectors benefitting from this influx. In July 2025, policy changes raised the skill level required from applicants and increased salary threshold criteria.
Visa application requirements and timelines
Requirements:
- Certificate of sponsorship: issued by the employer.
- Proof of skills and qualifications: must meet the job’s skill level (i.e. degree level or above).
- Salary requirement: must meet both the £41,700 gross annual salary threshold and the applicable 'going rate' for the job role.
- English language proficiency: applicants can meet this requirement by having a degree that was taught/researched in English or passing an English language test at the required level or being a national of a majority English-speaking country.
- Financial evidence: applicants must show they can support themselves financially. The employer can also support the applicant in meeting this requirement.
Timelines:
- Preparation: gathering documents and obtaining sponsorship can take two to four weeks.
- Application processing: The Home Office typically processes Skilled Worker visa applications within three weeks for overseas applicants. Processing times can be reduced to five working days (Priority service) or one working day (Super Priority Service) for an additional fee of £500 or £1000, respectively.
- Start date: employees can usually start work as soon as their visa is granted, subject to any notice periods.
Global mobility: the numbers behind the movement
According to AON's 2025 International People Mobility Survey Report, global mobility is on the rise and compliance with local laws, tax implications, immigration rules and labour regulations is becoming more complex, necessitating expert legal guidance. The AON study also indicates a pronounced preference among younger generations to be offered the opportunity to travel for work. Generation Z employees are 36 per cent more likely than their peers to value opportunities to travel; millennials are seven per cent more likely to value this benefit. The most popular reasons for long-term assignments are management and leadership duties, followed by technical expertise.
When it comes to the length of an international assignment, the AON 2025 survey shows that the most common length of assignment increased to two to three years, which is a slight change from 2024 where one to two years was more common. Meanwhile, the trend away from assignments of three years or more continues.
Reward strategies for international hires
Attracting and retaining international talent requires a competitive and tailored reward strategy. Key considerations include:
- Salary benchmarking: ensure pay is competitive both locally and internationally.
- Relocation packages: cover costs such as moving expenses, temporary accommodation, and family support.
- Pension and benefits: review pension arrangements and health benefits to align with expectations of international recruits.
- Long-term incentives: consider performance-based bonuses and equity to encourage retention. Any equity incentive needs to be carefully reviewed on a country-by-country basis as an award that is tax-efficient in one jurisdiction at the time of grant, may generate unexpected tax and social security exposure if the participant subsequently moves to a new jurisdiction.
Employment contract considerations
When hiring international talent into the UK, employment contracts must be robust and compliant. Key points to address include:
- Right to work: contracts should be conditional on the employee obtaining and maintaining the appropriate visa and right to work in the UK.
- Relocation clauses: outline support provided and any repayment obligations should the employee terminate employment within a particular period.
- Tax and social security: clarify responsibilities for tax obligations and social security contributions (including National Insurance contributions in the UK) and consider if any tax equalisation provision is required.
- Governing law and jurisdiction: specify that the contract is governed by English law and subject to the exclusive jurisdiction of the English courts.
- Notice periods and termination: ensure these are clear and compliant with statutory requirements.
Tax and reward: the overlooked essentials
While the visa process is often the first advice requirement, businesses must not overlook the complexities of tax and reward structures. Relocating talent isn’t just about getting people into the country - it’s about ensuring they’re content to stay for so long as needed for the work they are being asked to undertake. The UK’s tax regime can be a minefield for internationally mobile employees, with issues such as double taxation, National Insurance contributions, and the treatment of share options all requiring careful consideration if executives and employees are to maintain their disposable income and desired living standards.
A well-designed reward package is crucial. Employers should review salary benchmarking, pension arrangements, and equity incentives to ensure competitiveness. For example, the UK’s Enterprise Management Incentive (EMI) and Company Share Option Plan (CSOP) offer tax-efficient share option arrangements but the use of restricted, forfeitable, shares might be more appropriate in some circumstances where the participant will be working cross-border or will be in the UK only transiently during the award vesting period.
EU pay transparency regime: what UK businesses need to know
The EU pay transparency directive, which member states must implement by 2026, will require employers to provide greater transparency around pay and eliminate gender pay gaps. Key points to consider for UK businesses that operate in the EU or recruit EU-based talent include:
- Cross-border impact: you’ll need to comply with local pay transparency rules, including providing salary information in job adverts and reporting on pay gaps.
- Recruitment processes: EU candidates may expect upfront salary details and information on pay structures, even for UK-based roles.
- Contractual clarity: employment contracts for EU hires should reflect any local requirements for pay transparency and equal pay.
- Data collection: prepare to collect and report pay data for EU-based employees, which may require changes to HR systems and processes.
- Alignment with UK practice: while the UK has its own gender pay gap reporting regime, businesses should review and align their policies to avoid inconsistencies and ensure compliance across jurisdictions.
Being proactive about pay transparency will not only help with compliance but also support your reputation as a fair and attractive employer for global talent.
Practical steps for EU pay transparency compliance
With the EU pay transparency directive on the horizon, UK businesses with EU operations or recruiting EU-based talent should start preparing now. Here are some practical steps:
- Review and standardise job architecture
- Job descriptions: ensure all roles have clear, up-to-date job descriptions outlining responsibilities, required skills, and reporting lines.
- Job levels: create a transparent job grading system so employees understand progression and pay structures.
- Consistency: apply the same job architecture across UK and EU entities where possible to support fair and transparent pay decisions.
- Benchmark pay ccross markets
- Market data: use reliable salary surveys to benchmark roles against local and international market rates.
- Internal equity: compare pay for similar roles within your organisation to identify and address any unjustified gaps.
- Transparency: be prepared to share benchmarking data with candidates and employees, especially in the EU.
- Update recruitment and HR processes
- Advertise salary ranges: for EU roles, include salary ranges in job adverts as required by the directive.
- Document pay decisions: keep records of how pay levels are set and reviewed, to demonstrate compliance if challenged.
- Regular audits: conduct periodic pay audits to monitor gender pay gaps and take corrective action where needed.
- Train managers and HR teams
- Awareness: ensure those involved in recruitment and reward understand the new requirements and the rationale behind pay decisions.
- Communication: equip managers to discuss pay structures openly and confidently with candidates and staff.
- Align policies across jurisdictions
- Policy review: update pay and reward policies to reflect both UK and EU requirements, avoiding inconsistencies.
- Legal compliance: seek legal advice where necessary to ensure contracts and processes meet local laws.
Taking these steps now will help your business stay ahead of the curve, support compliance, and build trust with international talent.
Looking ahead: a joined-up approach
As the UK continues to position itself as a global hub for innovation, employers must take a joined-up approach to talent relocation. Immigration, tax, reward, and pay transparency strategies need to work hand-in-hand to attract and retain the best people.
For further information contact:
Liz Hunter
Roberta Imperial