New immigration restrictions for SMEs

Small to medium enterprises (SMEs) need to be aware of new rules regarding foreign workers coming into play this week.

That's according to the think tank Tenon Forum, which claims that the number of SMEs employing migrant workers doubled over the past two years, reaching 48%.

Under a new points-based system, workers from outside the European Economic Area and Switzerland who wish to remain in the country must pass an assessment consisting of five tiers.

Andrew Jupp, national head of tax for Tenon, said: "In times of such economic uncertainty, entrepreneurs need to make sure they have procedures in place which will protect their businesses from unnecessary disruption, and staff turnover is no exception."

Mr Jupp added that those SMEs which do not adhere to the points-based system could face fines of up to £10,000 per illegal employee.

Last month, an investigation by jobsite.co.uk revealed that SMEs waste £69 million on bad recruitment every year.