The launch of Tiers 2 and 5 of the new points based system has been a hot topic over 2008 and was recently opposed by the Tories as it was thought many employers were not sufficiently prepared. However, last night the UK Government voted in favour of these changes, meaning the launch went ahead as planned yesterday.

Under Tier 2, employers will need to be registered as a sponsor to employ new non-EU nationals and to extend work permits of current employees. Employers will also have reporting duties, although the government has assured that minor breaches or honest mistakes shouldn’t be "immediately" punished.

Under Tier 5, the Youth Mobility Scheme (YMS) will replace the current Two Year Working Holiday Scheme. Nationals from Australia, New Zealand, Canada and Japan can take part. British overseas citizens, British overseas territories citizens and British nationals (overseas) also qualify. However, many employers may have to source their candidates from different countries. These Non-EU Migrants under the YMS can work unrestricted for two years.

We also see changes to the current visitors visa. There are now six different kinds of visitors visa, the business visitor being the most controversial at the moment.

Although there is bound to be some teething problems, by end of next year the new system should be in full swing and we'll see a more structured and transparent application process and an immigration system that can be adapted to meet the needs of the UK economy.