Resident Labour Market Test: 2025 Rules for UK Employers

The Resident Labour Market Test was abolished in 2020 following changes to the UK’s immigration system.

Employers must now ensure that roles meet the eligibility criteria for a Skilled Worker visa, including salary thresholds and skill level requirements.

While the formal RLMT is no longer in place, businesses must still offer genuine vacancies and ensure fair recruitment processes. The Home Office may investigate hiring practices to prevent misuse of the sponsorship system.

 

Resident Labour Market Test (RLMT): Pre-2021 rules

 

The Resident Labour Market Test was a requirement for Points-Based System (PBS) licence holders seeking to sponsor non-EEA nationals for employment in the UK. The test ensured that roles were only offered to foreign workers if no suitably qualified settled worker was available.

 

Advertising requirements

 

Employers had to advertise vacancies in two approved locations for at least 28 days. Acceptable platforms included national newspapers, professional journals, recruitment websites, JobCentre Plus, and company websites (if the organisation was large enough).

Recruitment agencies could manage the process, but sponsors were fully responsible for compliance. Jobs paying above the high salary threshold were exempt from advertising on JobCentre Plus.

 

Mandatory advert content

 

Advertisements had to include:

 

• Job title and location
• Salary indication
• Main duties and responsibilities
• Required skills and qualifications
• Posting and closing dates

 

Failure to include these details could invalidate the RLMT, leading to visa refusals.

 

Record-keeping & compliance

 

Employers had to retain proof of the advertisement, including screenshots showing the posting and closing dates. Home Office officers could request this evidence at any time, including during compliance visits.

 

Candidate selection & interview process

 

When assessing applications, employers had to document reasons for rejecting settled workers, ensuring only the most suitable candidate was selected. If a settled worker met the role’s requirements, they had to be prioritised unless the job was at PhD level, allowing sponsors to select the most qualified applicant.

 

Exemptions to the RLMT

 

Certain roles and circumstances were exempt, including:

 

• Extensions for existing sponsored employees
• Jobs on the Shortage Occupation List
• Tier 4 students switching to Tier 2 (General)
• High earners exceeding the salary threshold

 

 

Genuine vacancy requirement

 

The abolition of the RLMT in 2020 in many ways simplified visa sponsorship, removing mandatory advertising. However, employers must still ensure genuine vacancies and follow sponsorship compliance rules.

The genuine vacancy requirement is a key part of the UK’s sponsorship system, ensuring that jobs offered to foreign workers under the Skilled Worker visa route are legitimate and necessary within the sponsoring organisation. The Home Office enforces this rule to prevent abuse of the immigration system and to ensure that UK-based businesses do not create roles solely to facilitate visa applications.

Under the rules, a genuine vacancy is defined as a position that requires the jobholder to perform specific duties and responsibilities for the employer and that meets all applicable requirements of the Immigration Rules. The role must align with the sponsor’s business operations and be essential to the organisation’s functioning.

The Home Office has the authority to investigate whether a vacancy is genuine, particularly when reviewing sponsorship licence applications, visa applications, and compliance audits. If a role is found to be non-genuine, the employer risks visa refusals, licence suspension, or even revocation.

To satisfy the genuine vacancy requirement, employers must meet several key criteria:

 

Job authenticity

The position must involve real and specific duties that are appropriate to the advertised role. It cannot be created solely to sponsor a migrant worker. The job must require the skills, experience, and qualifications listed in the job description, and the employee must be actively engaged in fulfilling the responsibilities associated with the role.

 

Skill and salary levels

 

The role must meet the required skill level and salary thresholds under the Skilled Worker visa route. For most occupations, the job must be RQF Level 3 or above (equivalent to A-levels) and meet the minimum salary threshold, unless an exemption applies (e.g., Shortage Occupation List roles). The employer must ensure that the job offer complies with these financial requirements to be deemed a genuine vacancy.

 

Organisational relevance

The vacancy must fit within the sponsor’s business model. Employers must demonstrate that the role is essential to their operations and is not artificially created to enable a visa application. The Home Office may request evidence such as an organisational chart, showing how the role aligns with the company’s structure.

 

Documentation required as evidence

 

To demonstrate compliance with the genuine vacancy requirement, sponsors must maintain a strong paper trail and be able to provide documentation if requested during a compliance audit. The key documents include:

 

Job description & employment contract

Employers must provide a detailed job description that outlines the duties, responsibilities and required skills for the role. The employment contract should specify salary, working hours, and conditions of employment to confirm compliance with visa rules.

 

Recruitment process evidence

Even though the Resident Labour Market Test has been abolished, businesses are still advised to keep records of the recruitment process. This may include job advertisements, interview notes, and evidence of how the selection decision was made to demonstrate that the position was filled fairly.

 

Organisational charts & financial records

The Home Office may request an organisational chart showing where the sponsored worker fits within the company. Financial records may also be required to prove that the business is operating legally and has the capacity to sustain the role long-term.

 

Payroll & Right-to-Work Checks

Employers should keep payroll records showing that the employee is being paid in line with sponsorship requirements. Right to work checks must also be documented to confirm compliance with UK immigration laws.

 

Common issues and risks

 

Failing to meet the genuine vacancy requirement can result in serious consequences, including visa refusals, compliance action and loss of sponsorship licence. Some of the most common issues faced by employers include:

 

Non-genuine roles

The most significant risk is creating a position that does not genuinely exist or one that is designed purely to facilitate a visa. If the Home Office determines that a role is unnecessary or misrepresented, the employer’s licence could be revoked, and the worker’s visa application could be refused.

 

Insufficient documentation

A lack of proper documentation is a frequent compliance issue. Employers who cannot demonstrate why a role was needed, how recruitment was conducted, or how a candidate was selected may struggle to prove the legitimacy of the vacancy.

 

Misalignment with business operations

If a role does not logically fit within the company’s structure or seems out of place for the type of business, it may raise red flags during a Home Office compliance check. For example, a small retail business applying to sponsor a highly specialised IT professional without a clear business case could face scrutiny.

 

Managing risk

 

To avoid compliance issues and ensure that a vacancy meets Home Office standards, employers should take the following steps:

 

Conduct genuine recruitment efforts

Employers should always advertise positions and conduct a fair selection process, even though it is no longer a requirement under immigration rules. Keeping records of job postings and interview notes can help demonstrate the legitimacy of the hiring decision.

 

Maintain clear and comprehensive documentation

Every aspect of the job role, recruitment process, and employment contract should be well-documented and easily accessible in case of an audit. This includes ensuring that salary records, job descriptions, and organisational charts align with visa requirements.

 

Regularly review compliance procedures

Sponsorship compliance should be reviewed periodically to identify any risks. Employers should conduct internal audits and keep track of any changes in immigration law to ensure ongoing adherence to Home Office requirements.

 

Need assistance?

 

For specialist guidance on UK visa sponsorship, speak to our sponsor licence experts.

 

FAQs

 

What was the Resident Labour Market Test (RLMT)?

The RLMT was a requirement for UK employers sponsoring foreign workers under the Tier 2 (General) visa route. Employers had to advertise roles for at least 28 days to prove no suitably qualified settled worker was available before offering the job to a non-EEA national.

 

Is the RLMT still required for Skilled Worker visa sponsorship?

No, the RLMT was abolished in 2020 when the UK introduced the Skilled Worker visa route. Employers no longer need to advertise roles before sponsoring a foreign worker, but they must still comply with the Genuine Vacancy Requirement.

 

What is the Genuine Vacancy Requirement?

This rule ensures that jobs offered to Skilled Worker visa applicants are legitimate and essential to the sponsor’s business. The vacancy must require the advertised skills and qualifications and cannot be created solely to facilitate a visa application.

 

What evidence must employers provide to meet the Genuine Vacancy Requirement?

Employers should maintain records such as job descriptions, employment contracts, recruitment process documentation, organisational charts, and salary payment records. The Home Office may request these during compliance audits.

 

Can a company sponsor a foreign worker if they have not tried to recruit from the UK first?

Yes, there is no longer a legal requirement to advertise jobs to settled workers first. However, the job must meet visa eligibility criteria, including skill and salary thresholds. The Home Office may investigate if there is doubt about the legitimacy of the role.

 

What happens if an employer fails to meet the Genuine Vacancy Requirement?

If a vacancy is found to be non-genuine, the Home Office can refuse visa applications, suspend or revoke the sponsor licence, and impose penalties. Employers must ensure roles are real, necessary, and properly documented.

 

How can employers ensure compliance with sponsorship duties?

Employers should maintain detailed records of their hiring processes, conduct internal compliance audits, and keep up to date with immigration rules. Seeking legal advice can also help avoid errors that may lead to Home Office scrutiny.

 

Glossary

 

 

Term	Definition
Resident Labour Market Test (RLMT)	A former requirement for UK employers to advertise job roles for at least 28 days before hiring a foreign worker under the Tier 2 (General) visa, abolished in 2020.
Genuine Vacancy Requirement	A rule ensuring that jobs sponsored under the Skilled Worker visa are real, necessary, and not created solely to secure a visa for a foreign worker.
Skilled Worker Visa	The main UK work visa route for foreign nationals, requiring sponsorship from a licensed employer and meeting skill and salary thresholds.
Sponsor Licence	A permit issued by the Home Office allowing UK employers to hire foreign workers under specific visa routes.
Shortage Occupation List (SOL)	A list of job roles with recognised skills shortages in the UK, allowing sponsors to offer reduced salary thresholds and lower visa fees.
Job Description	A document detailing the duties, responsibilities, and qualifications required for a job role, which must align with the Home Office’s visa eligibility criteria.
Employment Contract	A formal agreement between an employer and an employee outlining terms of employment, including salary, working hours, and responsibilities.
Right to Work Checks	The legal requirement for employers to verify that employees have permission to work in the UK before they begin employment.
Compliance Audit	A Home Office inspection to check whether an employer is following sponsorship duties, including maintaining correct documentation and fulfilling visa requirements.
Organisational Chart	A document showing the structure of a business, used to demonstrate where a sponsored worker fits within the company.
Salary Threshold	The minimum salary a job must offer to qualify for the Skilled Worker visa, currently set at £26,200 per year or £10.75 per hour, unless an exemption applies.
Certificate of Sponsorship (CoS)	A digital record issued by a sponsor to a foreign worker, confirming job details and enabling the worker to apply for a visa.
Home Office	The UK government department responsible for immigration enforcement and visa regulations, including sponsor licence management.
Sponsorship Duties	The legal responsibilities of an employer holding a sponsor licence, including record-keeping, reporting changes, and ensuring compliance with visa rules.
Settled Worker	A UK resident with indefinite leave to remain (ILR), settled status, or British citizenship, who must be prioritised for roles unless a genuine skills shortage exists.