How to prepare your business for Brexit if you have EU staff

Author
Dakota Murphey
Business Growth Consultant
13th September 2018

Last year’s Brexit referendum will have far reaching consequences for businesses who employ EU workers. In fact, while the UK won’t be officially leaving the European Union until 29th March 2019, and with a transition period in place to take us through to the end of 2020, the effects of the political sea change on immigration and the workforce are already being strongly felt.

Take a look at news headlines in any given week and you’ll find plenty of predictions as well as actual data about the so-called ‘exodus’ of EU workers in industries such as hospitality, health, construction and more. Perhaps unsurprisingly given the new reality and the marked increase of crime targeted at EU nationals, many now no longer feel welcome here.

While this may satisfy those who voted to leave the EU on account of immigration, it does rather leave swathes of British companies in the lurch, operationally speaking. While companies up and down the country have no choice but to adapt to the new economic circumstances, and often in the face of existing staff shortages, perhaps it is now high time to focus the thinking on the best ways to encourage existing EU workers to stay, attract new staff and readjust corporate HR policies.

Continued free movement of EU labour

First off, it is worth pointing out that freedom of movement of workers won’t be changing anytime soon. Even after Brexit Day next year, the UK and EU have agreed to retain mutual freedom of movement until the end of the transition period in December 2020.

EU workers who arrive in the UK before that date will have the same rights and benefits as those already living here. EU citizens who are resident here at that time will be able to apply for ‘settled status’ after 5 years’ continuous residence, giving them indefinite leave to remain.

Effectively, this means that UK companies can take advantage of an extended period of free movement of workers, able to reach a European workforce that is likely to be substantially more difficult and expensive to access from January 2021 onwards.

Recruitment of overseas workers

Rather than grappling with a wealth of new and as yet uncertain immigration rules for European workers post Brexit, many UK companies may be tempted to start looking further afield in an effort to recruit for vacancies.

Unfortunately, this process is unlikely to be viable for unskilled non-EU staff since the recruitment process is both complicated and expensive, while the current system is only really geared towards highly skilled employees.

Even if you are looking to recruit worldwide for the most senior roles, the individual concerned will need to apply for a visa while the employer requires a licence to sponsor the overseas employee. It’s a costly and time consuming route that is unsuitable for rolling out on a larger scale.

Retention of existing EU staff

For businesses that rely heavily on the contribution made by EU workers, there’s a clear business case for making every effort to retain existing staff, both now and beyond December 2020. This is not as difficult as it may sound and could include a host of initiatives designed to reassure, support and assist EU nationals to adapt to their unexpected change in circumstance such as

  • EU staff survey to gain a clearer understanding of their concerns and the kind of support that would be most helpful
  • Plenty of HR support and pastoral care options to deal with the emotional impact of the Home Office’s hostile environment policy 
  • Specific legal and immigration advice and practical guidance regarding applications for the new ‘settled status’ and naturalisation as a British citizen
  • Retention incentives, e.g. more holiday, enhanced training opportunities, higher pensions contributions, school fees and other financial incentives
  • Ongoing active engagement with EU staff to reassure individuals that they are valued and fully supported in the business

Employment of EU staff after Brexit

While our post-Brexit future has yet to be defined, it makes it very difficult for businesses to plan their HR requirements beyond the next couple of years. At present, all we know it that negotiations with the EU are ongoing and may or may not yield a deal. The government, meanwhile, is also still in the process of refining its Brexit plans including their ideas for replacing free movement of labour. Nothing is agreed until everything is agreed, as the mantra goes.

The fact is that many industries will continue to require employees – seasonal, long-term unskilled, semi-skilled, skilled – who may not be available domestically, while recruiting from beyond Europe is not a viable prospect. It will be essential for companies to observe closely what the UK government decides to do in terms of policy in this area, and have the ability to respond quickly and with maximum flexibility as necessary.

More on Brexit:

No deal Brexit notices: Business needs more detail

Podcast: What happens to VAT after Brexit

 

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