Firms face EU staff headache
Since the UK voted to leave the EU, businesses have had to deal with the uncertainty surrounding their employees from countries in the European Economic Area (EEA). Shortly after the EU referendum, a Chamber of Commerce survey found that 40 per cent of businesses had been approached by staff with concerns regarding their status, and 5 per cent of businesses received resignations from staff citing Brexit as a factor.
The call by the Prime Minister for a transition period when the UK leaves the EU is a welcome development. However, what is required is certainty about the future of immigration from the EU: businesses cannot continue to wait for developments.
The current rules relating to hiring EEA nationals offer a great deal of flexibility to employers in that they do not need to register with the Home Office or demonstrate a minimum level of skill for a role. They also do not need to meet increasing salary thresholds based on national averages (which places Scottish employers at a disadvantage).
There is universal concern in businesses across the UK, regardless of which sector they operate in, that future immigration routes will operate as a barrier to bringing talent to the UK. The current system for sponsoring visa applications for non EEA nationals is expensive and criticised as being overly complex. Many are concerned that a similar approach could be applied to EEA nationals.
The uncertainty following the vote to leave the EU led many employers to adopt a “wait and see” approach. However, there are numerous examples where that approach has backfired and has led to the loss of key staff concerned about their long term future together with difficulties recruiting new staff from the EU.
In contrast, businesses that have been proactive in their approach with EEA nationals are benefiting with both retention and recruitment.
It is therefore extremely worthwhile for organisations undertake an audit to identify long-term staff who are likely to be able to remain in the UK after Brexit, and staff who may need to qualify for some form of visa once the new rules are announced. Many businesses are now taking positive steps to engage with and reassure existing staff about their future position in the organisation. Some businesses have even gone as far as meeting the cost of Permanent Residence and Citizenship applications for key staff. Similar support is being offered to new recruits in order to attract talent to the UK.
While the proposed transition period gives some comfort to employers that they will not be faced with a cliff edge in 2019, businesses cannot afford to continue to sit back and wait for developments. They should take steps now to protect both their existing and future talent who hail from the EU. ● Stuart Mcwilliams, immigration law specialist, Morton Fraser