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Brexit: an update for employers

22nd January, 2020

With over 2 million EU nationals now part of the UK workforce, it is important that employers stay up to date with any news regarding Brexit and what it might mean for their employees. In this article, Nottingham Chartered Accountants Clayton & Brewill provides an update on what employers should be aware of.

Workers: checking the right to stay

Citizens of the EU, European Economic Area (EEA) and Switzerland, or those with such a family member, living in the UK before it leaves the EU, should check what they need to do in order to stay after Brexit.Brexit for employers

For most such workers, and their family members, this will involve applying to the EU Settlement Scheme (EUSS). The EUSS gives the ability to continue living, working and studying in the UK. However, there is no need to apply where someone has indefinite leave to enter or remain in the UK. Neither do those with British or Irish citizenship – including ‘dual citizenship’ – need to apply.

EU Settlement Scheme

There are different application deadlines for the EU Settlement Scheme (EUSS). This depends on whether there is a no-deal Brexit or a negotiated settlement. With a no-deal Brexit, the deadline for EUSS applications is 31 December 2020. Otherwise it is 30 June 2021. It is free to apply, and it would be wise to do so as soon as possible. Applications can be made online here.

Successful applicants will receive either settled or pre-settled status. This is based on how long someone has lived in the UK: it is not a matter of choice. Broadly speaking, applicants receive settled status when they have lived in the UK for five years continuously. Applicants receive pre-settled status where someone has lived in the UK for less than this. For either status, applicants should have started living in the UK by 31 December 2020 – or the date the UK leaves the EU without a deal. Either status gives access to public services like the NHS, and pensions. Both statuses mean that someone can continue working in the UK, though rights are slightly different for each.

Employers are not obliged to assist, but HMRC’s employer toolkit is designed to facilitate employers providing advice and support to relevant staff.

Employers: other considerations

The government is currently reviewing arrangements for EU, EEA and Swiss citizens arriving in the UK after Brexit as part of its plans for a future points-based immigration system. But, until 31 December 2020, such citizens can continue to enter, live and work in the UK as they do now. For those wanting to stay beyond this, a temporary three-year UK immigration status, European Temporary Leave to Remain, is being planned. Thereafter, application under the points-based system, expected in 2021, would be required.

Employers should be aware of key deadlines and immigration rules applying at any point. This is important, as workers inadvertently breaching immigration procedures could become illegal workers.

Deal or no-deal Brexit, employers should also carry on with normal right to work checks. We expect further Home Office guidance, clarifying when right to work checks will change. It is not anticipated, however, that there will be any change until 1 January 2021. In the meantime, employers can check the current position here.

Stay in touch

Government policy regarding immigration and free movement is a rapidly changing area. To keep up to date, we recommend a regular check of the Brexit preparation pages or signing up for email alerts. The House of Commons Library also publishes useful and clearly written Brexit news items.

These are uncertain times for employers. For help in assessing how Brexit might impact your business and the steps you can take to be prepared, please contact us.

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