Brexit – No Deal or Extension of Negotiations – Impact for Employers

Who knows what will have happened by the time you may be reading this? The lack of certainty puts the whole transition period in question after the 29th March.

As we detailed previously on our recent Brexit blog if any deal is struck on or before the 29th March this would mean that EU citizens and family members who arrive in the UK by 31st December would be eligible for pre-settled status. This would enable them to stay until the five-year residency threshold after which they would need to apply for settled status. Those who already met the required threshold would have until June 2021 to apply for settled status.

However, the impact of a no deal (or even an extension to negotiations) means that the date of settled status applications could be closed and no permanent leave to remain would be granted. After this date arrivals into the UK would have three months to apply for European Temporary Leave to Remain (ETLR) which would allow them to stay for 3 years.

The potential Impact for Employers.

They will not be able to utilise incoming EU nationals as part of long-term staffing strategy.

Constraints on talent and confusion for EU migrations. A lack of a longer-term plan and the fact that they are effectively at a disadvantage compared to non-EU nationals who are eligible for longer term visas may put would-be migrants off entering the country.

This amplifies the need for employers with EU staff to prepare and respond.

A no-deal outcome could increase the squeeze already felt by some sectors as a result of Brexit and record low unemployment.

The UK government has stated that they would not particularly interfere with EU employment law. However, if we leave with no deal this may become more of a possibility. The progress on “gig” workers’ rights may be swept to one side and skills funding may need to be reviewed.

Watch this space. For any further advice please contact Clover HR on 01905 824051 or info@cloverhr.co.uk


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