How to carry out a Resident Labour Market Test | Hudson McKenzie

How to carry out a Resident Labour Market Test

Advertising a job, seems easy doesn’t it? However, when it comes to employing a non-EU national under the Tier 2 (General) arrangements, this is when it all becomes complicated.

We come across many employers who contact us to assist with Tier 2 (General) applications and they confirm that they have conducted the Resident Labour Market Test and are all set to proceed, however when we review the adverts they do not meet the guidelines set out by UK Visas and Immigration.

When does the Resident Labour Market Test need to be completed?

The Resident Labour Market Test is an exercise for UK businesses who wish to employ non-EU nationals who are overseas or currently in the UK on a valid visa, which enables them to switch to a Tier 2 (General) visa.

How to conduct the Resident Labour Market Test

All recruiters need to post two adverts, one of which must be advertised using the Universal Job Match service, the only exceptions to advertising on Universal Job Match are:

  • Salary on offer is £73,900 per annum or higher or £72,500 or more where the post was advertised before 6 April 2017;
  • Job in the creative sector providing the Standard Occupation Classification indicates it is not necessary;
  • Pupillage positions for trainee barristers;
  • Jobs which fall within the PhD level SOC code;
  • Jobs where there will be stock exchange disclosure requirements; and
  • Jobs on the shortage occupation list.

Can you only post adverts online?

The answer is no, most employers find it easier to post adverts online as it is quick and they can access the adverts. UK Visas and Immigration accept adverts using the follow mediums:

Online – companies may use their own websites providing they are a multinational/global organisation or if they employ at least 250 staff in the UK or other websites which are applicable to their industry and do not charge the applicants a subscription fee to view or apply for the role.

National Newspapers – must be published at least once a week and marketed throughout the UK.

Professional Journal – Must be relevant to your business and available nationally.

Milk round – annual recruitment fair at Universities etc.

Rolling recruitment campaign – programmes allow companies to pick out skilled individuals who might fill future, undefined vacancies rather than specific ones.

Recruitment agencies and head hunters – can place the adverts as long as it meets the requirements of the RLMT.

What information the adverts need to include

UK Visas and Immigration state in Appendix D of their guidance and the Tier 2 and 5 Guidance what they require at length, failure to comply can become an issue of copies of the advert are requested at any point of an application or when the company is audited.

What many companies ask is what information do they require on the adverts, well most of it are generic things such as the job title and salary, however there are certain things like the date the advert was posted and closing date for applications. As a guide here is what they do want to see on adverts:

  • Job title – this must match the offer letter and contract;
  • Job description – what they will be doing;
  • Skills, qualification and experience required – this helps them understand why the role could not be filled with a resident worker;
  • Location – where will this role be based;
  • Salary – this can be the exact salary, a salary bracket as long as it is realistic or some companies do not want to advertise this at all, in which case they may enter “Competitive Salary”. Employers must note that if they choose to use the terms competitive it matches the current rate specific to that industry;
  • Date posted – what date did the advert go live, we recommend entering this in the body of the advert;
  • Closing date – this must be 28 calendar days from the date it was posted and in the body of the advert, so that applicants know when to apply by.

Recruiters must also take screenshots of the full advert from the view that the user is able to see and not the administrator settings on the date the advert was posted and the date that is closed, which clearly shows the URL and logo of the website it has been posted on, these two things will also be checked.

We advise our client to email us the links for the adverts and we usually take the screenshots for them to ensure they are complying with the guidelines and that they have the correct documents should they be audited.

Exemptions to the Resident Labour Market Test

Not every job needs to be advertised, yes that is correct the Home Office have some exemptions, some of those are as follows:

High-earners – the salary is £159,600 or more;

Extensions – you continue to employ someone and they will continue to do the same job in the UK or the job falls under the same Standard Occupation Classification;

Switching – if the person is switching from a Tier 4 or Post-Study worker visa and they meet the requirements;

Shortage Occupation – the job falls under the Shortage Standard Occupation Classification.

Above we have covered the main points and information which businesses in the UK may find useful, should you have any questions then feel free to call us on 020 3318 5794 or by email on

Author: Amisha Jethwa