The Impact Of Brexit On Employers – An Update

Covid-19 has resulted in many employers having to focus on the immediate threats facing their business and talk of Brexit and employing non-UK nationals all but disappeared until a few weeks ago when the topic hit the news again. Time is running out to reach an agreement before the UK stops following EU trade rules on 31st December and the Prime Minister Boris Johnson has said there is a “strong possibility” of a ‘no deal’ scenario.

The end of free movement throughout the EU will result in big changes for thousands of employers in the UK in the way that they recruit and employ non-UK nationals. The UK’s transition period for exiting the EU will end on 31st December. Any EU, EEA and Swiss citizens who reside in the UK before that time can rely on their existing passport/national ID card to prove their right to work here until 30th June 2021. However, thereafter they will have to demonstrate from that point that they have achieved Settled Status or Pre-Settled status.

EU Settlement Scheme (EUSS)

The Home Office launched the EUSS earlier this year and encouraged those EU nationals working in the UK to apply in order to secure their right to continue to reside and remaining working here. Both statuses permit people to live, study and work in the UK but Pre-Settled Status is limited to a period of five years and Settled Status provides indefinite leave to remain.

EU nationals who enter the UK from 1st January 2021 will need to apply for a skilled worker visa and have received a job offer from an approved sponsor. This will essentially see EU workers treated the same way as non-EU workers for immigration purposes and it is important that employers who are not currently approved sponsors and anticipate the need to recruit beyond the UK act quickly and apply as soon as possible.

These deadlines have led to a flurry of UK businesses bringing forward their recruitment plans and encouraging the last of their EU staff to apply under the EUSS to avoid becoming embroiled in complicated and costly sponsorship regimes.

It will, as ever, remain crucial that employers obtain proof of an employee’s right to work before they start work. This is a statutory obligation to prevent illegal working. If an employer is found to have people who do not have the right to work in the UK they may face up to five years in prison and/or a fine of up to £20,000 (per employee).

You should always consult the Government guidance and ensure that you obtain, check and properly keep records of the requisite ID for all staff.