Proposals for new restrictions to cut numbers of low-skilled migrants from Europe following Brexit have been revealed in a leaked Home Office paper.

The 82-page document, marked as “Official Sensitive” and obtained by The Guardian, suggests that new arrangements would be immediately introduced at the point the UK leaves the EU at the end of a transition period lasting at least two years.

Departure from the EU will mean "the end of rights-based, unconditional free movement", with the government adopting powers to take "a more selective approach" to which migrants will be allowed to work and settle in the UK.

Among proposals floated to cut numbers of lower-skilled migrants are a restriction to two years' residency, compared to work permits for a longer period of three to five years for those in high-skilled occupations.

It is understood that the document is a draft version of an upcoming White Paper which has been circulated among senior officials and politicians but has not been agreed by ministers. It is described as "a platform for discussion".

"The Government will take a view on the economic and social needs of the country as regards EU migration, rather than leaving this decision entirely to those wishing to come here and employers," it states.

The document suggests this could involve requiring EU nationals to seek permission before taking up a job, making employers recruit locally first or restrict access to lower-skilled occupations which are not experiencing staffing shortages.

"Put plainly, this means that, to be considered valuable to the country as a whole, immigration should benefit not just the migrants themselves but also make existing residents better off,” the document states.

The leaked paper makes clear that the Government's handling of post-Brexit migration will continue to be driven by the aim of reducing net immigration to "sustainable" levels, previously defined by Prime Minister Theresa May as below 100,000 a year.

Wherever possible, UK employers should "look to meet their labour needs from resident labour", it suggests.

A Government spokesman said: "We do not comment on leaked draft documents. We will be setting out our initial proposals for a new immigration system which takes back control of the UK's borders later in the autumn."

TUC general secretary Frances O'Grady commented on the leaked proposals, "These plans would create an underground economy, encouraging bad bosses to exploit migrants and undercut decent employers offering good jobs."

REC chief executive Kevin Green said, “The UK’s flexible labour market is of huge benefit to our economy and any changes that result in severe reductions in immigration, increased hiring costs or bureaucratic burdens on employers would put that continued success at risk and make all of us worse off.

It’s important that the government talks to recruiters and employers who understand the realities of various sectors of the labour market and that policy isn’t drafted on the basis of broad terms like ‘low skilled’ and ‘high skilled’ which can be interpreted in many different ways. Applying the criteria used in the current visa system for non-EU workers, sixty per cent of the whole UK work force would be classed as ‘low skilled’ as they earn under the qualifying threshold of £30,000. Severely limiting access to such workers from the EU would mean fewer nurses, electricians and chefs – vacancies that our members say are already hard to fill.”