How Hard is Brexit for Employers?

How Hard is Brexit for Employers?

Brexit Effect And Consequences ConceptWe have been second-guessing the UK approach to Brexit since the referendum outcome, so to have Theresa May confirm that the intended outcome will be a hard Brexit gives some clarity on what issues are likely to face employers in the coming years.

Although there has already been confirmation that those EU nationals already working within the UK will have some level of security and that the fundamental rights and protections available to all UK workers and employees which derive from our EU membership will (largely) be safe, bluntly we are at the early stages of a long game of poker.

With her speech, Theresa May has taken the wind out the sails of her European counterparts, most of whom seemed to be anticipating some sort of cherry picking, or half-in/half-out approach by the UK Government.  It may just be her opening bid, or some sort of bluff, but is there anything that UK employers need to be putting in place now, to make sure that when (or if) Brexit happens, you are prepared?

Ultimately we at the very early stages, and although we have a clearer path, there is not a huge amount of positive action that most employers can take to protect their business, however it is our view that companies keen to make the most of this new era should continue to gather the best talent they can from the wider pool of Europe.

Many businesses rely upon EU nationals, particularly those within the construction, care and service sectors.  With tighter immigration we may see the employment of non UK nationals becoming increasingly difficult unless and until you can establish that you have mined the local talent pool, or there is some other justification for offering this individual employment.   Although the Government have stated that those EU nationals already employed will be protected, this did not come out so clearly in Theresa May’s speech.

It remains likely that there will be protection for those EU nationals employed at the point of Brexit, simply to keep the wheels of industry moving.  There may well be a cut-off point as to when the individual commenced their employment as to their level of entitlement or protection.  Perhaps the triggering of Article 50 will be the cut-off point; perhaps there will be a more phased approach to mirror the more phased approach to our overall exit as set out in Theresa May’s speech.  Use the freedom you have just now to gather your talent from the whole of the EU.  Ensure that those EU workers have the appropriate registration as a qualified person to ensure that both you and your employee can be as safe and secure as possible before any change to the immigration rules.

The most recent figures from the Office of National Statistics would suggest that there are around 1.2 million UK nationals living in another EU country of which 800,000 are working.  On the flip side, there are around 3.3 million people born in another EU country who now live in the UK, of which approximately 2.1 million are working.   I’m not sure that any of the negotiating parties would sign up to a deal whereby everyone has to go through complicated immigration procedures just to stay put.  I’m certain that none of the negotiating parties would want to (or be able to in terms of the Vienna Convention) kick out ‘foreign’ workers.

Having said all that, everything can change as the negotiations proceed.  Watch this space!

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For More Information Contact:
Graham Millar
Mobile: 07841920102
Direct Dial: 0141 530 2023
Email:gmillar@gilsongray.co.uk

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For More Information Contact:
Stuart Robertson
Mobile: 07793 821523
Direct Dial: 0141 433 7752
Email:srobertson@gilsongray.co.uk

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 The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.

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