What Does Brexit Mean For HR and Your Business?

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As it currently stands, there is still uncertainty as to the effect Brexit will have on immigration policy and any impact this may have for employers and their workforce. 

The CIPD has taken the stance that it is likely that employers will ‘face new costs and additional administration’ if they wish to continue to employ skilled EU migrants after Brexit. They also commented that there is a likelihood that ‘recruitment of medium or low skills roles into the workforce will face significant limitations’. 

So what can you do to start preparing your business?

  1. Continue to engage with EU nationals in your existing workforce. You can update them on various changes as they developed and take steps to help them attain settled status in the UK.
  2. Concentrate efforts on training your existing workforce to reduce dependence on EU migrants.
  3. Consider hiring from a diverse talent pool (such as older, long-term unemployed people or ex-offenders) as alternatives to hiring EU nationals. 

Ensuring that your business can continue running ‘business as usual’ after Brexit is on the mind of employers as we move forward with our exit from the EU. There are several factors to consider, including continuing operations in the EU, possible staff reduction or higher wage bills (as a result of fluctuating currency) and support available to existing EU nationals.

Here’s some things to consider:

  1. If you are paying EU employees outside of the UK, consider negotiating to pay them in sterling. You will need to consult with employees first and obtain written consent as it does constitute a change in their contract of employment. 
  2. You could consider temporary scaling of your business including lay-offs and short-time working to help avoid redundancies where there is pressure to reduce staffing costs. These provisions are not automatic, and you will need to ensure you have the correct contractual provisions and consent beforehand. 
  3. Support existing EU nationals in your business by ensuring that they have had the opportunity to apply to the Settlement Scheme. As recently as last week, the Guardian reported that although approximately 2.7 million applications have been made so far, close to 900,000 EU nationals living in the UK have yet to apply for Settled Status under the scheme. The Scheme remains open for applications to the Home Office until June 2021. (More information on the EU Settlement Scheme can be found here https://www.gov.uk/settled-status-eu-citizens-families).

Whilst it remains unlikely that our withdrawal from the European Union will, in itself, repeal UK employment laws or immigration rules as a whole, it is likely that areas of law affecting employment obligations and migration of EU and non-EU nationals will see significant reconsideration as our exit plan continues to take shape.