Brexit: People Continuity Planning
What do you need to consider?
I think it's fair to
say, whether you're a Brexiter or a Remainer, everyone is tired of the
uncertainty and political infighting. I
have had days when I just don't want to hear anymore. Brexit is a dry subject and it's hard to make
it sound exciting but please bear with me as this blog will help you to think
about the actions you should be taking.
Despite the temptation to be an ostrich, there is a business reality that leaders and business owners need to consider what Brexit means for their people. In February 2019 it was estimated that EU workers made up 7.8% of our working population (ONS). Some industries have a greater proportion of these workers, for example employees from the EU make up nearly a quarter of all jobs in the hospitality industry (BBC, Mar 19). It's not just EU employees you need to think about, if you currently conduct business in the EU and send your UK workers there on business then you currently don't have to give it any thought. With Brexit this could all change. There are a number of people aspects that you need to be conscious of:
Employment Law Changes
Right now, short of having a crystal ball, it's difficult to say what changes will happen in this area. Currently, a large part of our legal system has been influenced by EU law and we adopt changes that are proposed. Some of these have historically been unpopular (think agency workers regulations). Leaving the EU will mean we have future autonomy over our employment law but changes are unlikely to happen quickly and will probably be largely influenced by whichever political party is in power. The Conservatives tend to favour the capitalist systems and Labour is more employee friendly. Keep an eye out for further blogs and we'll update you as changes are announced.
Immigration and Right to Work
Brexit is a quickly moving feast and the goal posts seem to move each day. However, there is one certainty. If Brexit happens, there will be an impact on the visa requirements for EU workers. Plus, there will be visa requirements for British workers visiting EU countries.
For EU workers who started living in the UK by 31 December 2020 (this date could move back dependent on our exit date), the Government are launching an EU Settlement scheme (due to open 30 March 2019). Workers can either apply for 'pre-settled' or 'settled' status; this is now a free applicaiton. Any existing documents will not be valid. Having pre & settled status will give individuals access to education, the NHS and the right to work. The details of this scheme do vary slightly depending on whether we exit under a deal or no deal agreement and once this is confirmed then we'll share more information with you. The key action to take NOW is to inform and educate your current employees (and new joiners) of the scheme and encourage them to send their application off to ensure they have the correct paperwork in place for the right to work in future. The government has created an employers toolkit to support you with this - we'd recommend you follow these guidelines as it is not lawful to provide immigration advice and the toolkit will ensure you stay on the right side of the law. Workers from the Republic of Ireland fall under different rules as we have separate agreements with Ireland; essentially they can continue as normal but some family members may be impacted. Workers from Switzerland, Iceland, Liechtenstein and Norway also fall under slightly different rules.
As an employer, when recruiting be mindful of the date that EU workers entered the UK as this will influence their future eligibility to work. Should we be in a no deal position and we exit on 29 March then all EU workers entering after this date will not benefit from any citizens rights concessions (ie. settled status). If we confirm the withdrawal agreement, then EU workers not in the UK before 31 December 2020 will not benefit from any citizens rights concessions (this dates may move if we extend). For EU workers outside of these rules, the Government have proposed an EU Temporary Leave to Remain (LTR) visa for those intending to stay 3 months or more but few details are available at this stage. The aim is to allow visa holders to remain in the UK for up to 36 months but it will not count towards gaining settlement status. The ultimate aim of the government is to transition away from relying on the EU as a workforce.
Once (if?!) we exit the EU, we will become third country nationals and will no longer retain the right to travel freely in the EU for Business. The EU is not able to legislate for this scenario and each EU country will have to agree their own separate rules - with 27 member states, you will need to ensure that you are aware of the rules for each country you wish to send workers to. Portugal has agreed to provide a visa exemption for trips up to 90 days. At this stage no other agreements have been reached and are often driven by trade agreements so it may take some time to get clarity. Leaders and Business Owners need to ensure they keep up to date with changes so that actions can be taken as soon as possible to ensure that workers can continue to travel for work within the EU. We'll share more information as it becomes available.
Availability of Talent
EU workers are choosing to exit the UK - there are 61,000 fewer EU nationals than a year ago (ONS). Plus fewer EU workers are prepared to come to the UK. This is already impacting on some industries and their ability to recruit people into key roles. As visa restrictions come into play, it is likely that our workforce becomes even more restrictive and it will be harder to attract talent into your business. Given that people are key to business success, it's important that you start to think about how you can attract and retain your people .
Flexible working is becoming a key attraction technique and you may be able to benefit from attracting top talent if you offer this; the Travel Lodge recently announced they are going to offer hours to suit working parents in the hope they can attract from this market. You also need to think about how you can develop the skills you need to reduce your reliance on the external workforce - whether that's through apprenticeships, training and upskilling or adjusting role requirements and automating tasks.
If skills shortages exist, you may also want to consider whether you could attract talent from outside the UK - if this is the case you will need to consider visa implications and you may want to become a licensed sponsor. This is an expensive process and will cost £1000's for just one individual so is unlikely to be popular unless you can not source talent in the UK.
There are lots of things you can look at to improve the employee experience and develop talent - understanding what's important to your employees and what skills you need is key. Then you can ensure that you enhance the right areas. We can help and support you - whether it's understanding what you need better, considering what benefits and flexible working, planning training or looking at your full employment offering.
Reviewing your Salary Bill
It is anticipated that Brexit will lead to increased business costs, and for some businesses there may also be an impact on their sales pipeline. Changes to customs could mean significant delay in the flow of goods. All of these business implications could result in you needing to review you people strategy and labour requirements. We can support you with this planning. Some contracts of employment could mean that you can consider short term reductions through lay-offs and short-time working. You may also be able to reduce your temporary and agency workforce to reduce costs. If you think that reductions need to be considered over a longer period then you will need to think about redundancies. It is important that you are aware of the legal requirements. All of these actions can have a distressing impact on your people and you need to consider how to support them in difficult times. We can help you understand the processes and support you in delivering them in the right way.
What do you need to do now?
As you can see, the future implications on eligibility to work both for EU workers in the UK and British workers entering the EU for business is far from certain at this stage. What is clear, is that the government is aiming to shift us away from relying on EU workers. Brexit is likely to impact on the future availability of talent and depending on your business could impact on future profit. In an environment where unemployment is at an all time low, this will mean talent and labour becomes an increasingly valuable and difficult to find resource. Despite the uncertainty, there are still actions that you can take now to ensure future workforce continuity planning:
- Inform your current (and future) EU workers of the EU Settlement scheme and encourage them to apply as soon as possible. Consider what support your EU workers may need.
- Assess the level of business risk - how reliant are you on talent from the EU, how difficult is it to attract the right people for your roles, how likely is it that your profit and resource needs is impacted by Brexit?
- Stay informed so you can respond and plan for change as soon as possible
- Consider ways that you can develop talent internally - apprenticeships, upskilling, training courses
- Consider creative ways to attract and retain talent to your business
- Review your options should you need to reduce your workforce (whether temporarily or permanently)
If you have any questions in relation to anything above or want support with any people related matters then please get in touch with us (nicole.james@bamboopeoplesolutions.co.uk). We think the workplace should be a great place to go everyday and can help you make sure that's true for your business. We also know that you want to ensure you avoid legal risks and can help you with managing difficult situations or make changes to contracts.
