Hear from our immigration specialists on the impact of Brexit on EU workers
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Following the Brexit vote, Helen Taylor and Natalie Fuller discuss the impact Brexit will have on EU workers and how companies can ensure they are following the correct procedures when it comes to right to work checks. Helen and Natalie also discuss the EU Settlement Scheme and what this means for EEA citizens wanting to live and work in the UK after we leave the EU in March 2019. They also explain how restricting the number of EEA workers going forward could see many sectors facing a skill shortage, which could have a huge impact on many companies who hire EEA workers. Watch our on-demand webinar for further information on the impact of Brexit for EU workers and how to ensure your company is following the correct procedures.
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Hear from our immigration specialists on the impact of Brexit on EU workers
- 1. Join the conversation @brownejacobsonJoin the conversation @brownejacobson The Impact of Brexit on EU Workers
- 2. Join the conversation @brownejacobsonJoin the conversation @brownejacobson Connect with Helen Taylor helen.taylor@brownejacobson.com +44 (0)115 908 4897 The Impact of Brexit on EU Workers INSERT IMAGE Connect with Natalie Fuller natalie.fuller@brownejacobson.com +44 (0)20 7871 8508 INSERT IMAGE
- 3. Join the conversation @brownejacobsonJoin the conversation @brownejacobson hands up !
- 4. Join the conversation @brownejacobsonJoin the conversation @brownejacobson send in your questions … hands up !
- 5. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • What is the EU Settlement Scheme? • What do we/our staff need to do? • What does our future look like? Topics
- 6. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • Business as usual, for now… • “Nothing is agreed until everything is agreed” • Potential for no deal? Where are we now?
- 7. Join the conversation @brownejacobsonJoin the conversation @brownejacobson EU Settlement Scheme • To enable EEA citizens and close family to live and work permanently in the UK after Brexit • Settled status • Pre-settled status • PR/ILR/BC?
- 8. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • Online application • Requiring: • proof of identity • evidence of residency in the UK • no criminal convictions Application process
- 9. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • Adults - £65 • Children - £32.50 Fees
- 10. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • 1, 15 and 29 November 2018 • 30 March 2019 • 31 December 2020 • 30 June 2021 Key dates
- 11. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • Biggest annual reduction in net migration • Mass exodus of EEA workers • Government committed to reducing migration to the tens of thousands • MAC Report The future?
- 12. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • Consider company policy • Audit current EU staff • Communicate • Review recruitment and training strategies What should employers do now?
- 13. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • Get a Tier 2 Sponsor Licence? • Lobby What should employers do now?
- 14. Join the conversation @brownejacobsonJoin the conversation @brownejacobson • Ongoing obligation to undertake Right to Work checks • A) for those applying under the Settlement Scheme • B) where there is no deal Right to work checks
- 15. Join the conversation @brownejacobsonJoin the conversation @brownejacobson Questions?
- 16. Join the conversation @brownejacobsonJoin the conversation @brownejacobson Connect with Helen Taylor helen.taylor@brownejacobson.com +44 (0)115 908 4897 The Impact of Brexit on EU Workers INSERT IMAGE Connect with Natalie Fuller natalie.fuller@brownejacobson.com +44 (0)20 7871 8508 INSERT IMAGE
Editor's Notes
- Before we can start, I just need to make sure that the IT is working properly and everyone can hear me OK. There is no video stream of the speaker – just a presentation on screen and audio. Could you please click on the ‘hands up’ button on your control panel to confirm for me that you can hear me speaking? [WAIT FOR FIVE SECONDS]
- The audio stream is one way only, so even if you are listening on a headset with a microphone on it, we can’t hear you! So if you want to ask a question, please just tap it into the box marked. Please feel free to ask a question at any time – they can come straight through to me, and I’ll either stop to try to deal with it, or answer it at the end, or it might be best to email you something more comprehensive after the webinar. Finally, we will email you afterwards with access to the resources and information that is mentioned in the session today, together with a recording of the webinar that you may share with your colleagues.
- Hello and welcome With just over 4 months to go until we are due to leave the EU, and a flurry of activity in recent months in relation to the settlement scheme for EEA migrants, we thought it would be an opportune time to update you on the proposals for EEA workers pre and post Brexit, as it currently stands. I will be taking you through the detail of the proposed EU Settlement Scheme, to include the recent developments in the application process and trials that have taken place; and Natalie will be discussing what Brexit might mean for the future and what you and your EEA staff may want to be thinking about now
- So, where are we now? At 11pm on 29 March 2019, we are due to leave the EU The UK Government has published details of a proposed settlement scheme for those residing in the UK prior to the end of the transition period (being from 29 March 2019 to 31 December 2020) Nothing has been agreed in relation to those who are not eligible under the settlement scheme or those arriving after January 2021 – this is still up in the air. And of course, nothing is agreed until everything is agreed. So what we are discussing in today’s session is still subject to a deal being done.
- So what exactly is the settlement scheme? it’s the mechanism which has been proposed by the UK Government for all eligible EEA workers (and their close family) to apply for settlement so that they can live and work in the UK permanently after Brexit with the same rights as they have now. In summary, there are two forms of status: Settled status – which applies to those who have 5 years’ lawful and continuous residency in the UK as at 31 December 2020. “Continuous” refers to a general presence in the UK, so settled status does not require work or study, for example. The general rule is that, as long as the applicant has not been absent from the UK for more than six months in total in any 12-month period, residence is considered to have been continuous. Pre-settled status – is for those who haven’t reached 5 years’ residency at the date of application. This will give them the right to continue to live and work in the UK pending their achieving the required 5 years’ residency. Those with permanent residence will be required to do a swop for settled status, which will be free. Those with ILR/British Citizenship wont have to do anything
- An online application process has been developed which has been piloted since late August it is said to take around 20-30 mins to complete With a decision being promised within a few days It has been billed as being a much more simple and straightforward process than current visa applications. There will also be an app to support mobile applications or a hard copy for those who are unable to access the application online. The application process will involve three main steps: (a) proof of identity (e.g. passport/biometric residence permit and facial photo) (b) Evidence of residency in the UK by providing your NI number (the Home Office will then undertake automated checks with HMRC /DWP). Where information cannot be verified automatically there will be an opportunity to upload relevant documentation such as bank statements; business accounts; a letter from the employer; council tax bills. (c) No criminal convictions – with only serious and/or multiple offences or a national threat to security expected to affect the outcome of the application. This will require a declaration by the applicant, which will then be checked against police and immigration records
- - for those aged 16 or over - the fee will be £65 For children the fee will be £32.50. Given the relatively low costs associated with this, some employers are considering paying/contributing towards these fees.
- The online application has been trialled from late August with EU workers from x12 NHS Trusts in the North West and x3 Universities in Liverpool during phase 1 of the pilot. The findings of this were published at the end of October. We are told that the results were positive, with all applicants being granted the status that they were hoping for. Changes have been made to the application process as a result of the feedback from this phase of the pilot. The second phase started on 1 November and was opened up to a further x15 NHS Trusts and x3 universities in the north west. It will be further extended on 15 November and then 29 November, so by the end of this month, all eligible EU staff in health; Higher Education and specified social care organisations will be able to make applications. The application will be fully rolled out to all EEA workers and their close family members on 30 March 2019. So by that time, any eligible workers who have not participated in the pilot scheme, can start making their application. 31 December 2020 is the cut off date for residency. So, as long as the EU worker is present in the UK on this date, they will be permitted to make an application under the scheme. The arrangements for anyone coming here after this date are yet to be determined. 30 June 2021 is the absolute deadline for applying. So on the face of it, there is plenty of time to apply. As with any online application process, however, there are risks of delays/malfunctions where there are high numbers of applications. With an anticipated 3m EU workers, I would have thought that the majority will want to apply as soon as the scheme opens in March 2020 to avoid delays and uncertainty, assuming its suits their circumstances. Over to Natalie now who is going to discuss what brexit might mean for the future and what you and your EEA staff may want to be thinking about now
- Net migration to the UK from other EU countries has reached a near six-year low. The difference between the number of EU citizens entering the UK and the number leaving sank to 87,000 in the year to March, its lowest level since the year to December 2012, figures from the Office for National Statistics (ONS) show. Net EU migration has continued to decline from a peak of 189,000 in the year to June 2016, a period ending with the vote to leave the EU. The shift has been driven by both a decline in EU arrivals and an increase in EU citizens emigrating. Whether this trend will continue until 2020, in my view, will very much depend on the UK economy. The strength of the pound used to make working in the UK an attractive option for a number of EU nationals however the poor exchange rates and uncertainty on employment, means this is no longer the case, at least for now. Despite a fall in EEA citizens coming to the UK, there has been an increase in non EEA nationals coming to the UK. Having said that, the Government remains committed to reducing immigration. In early October 2018, Theresa May announced she will overhaul the UK’s immigration system ending freedom of movement, to replace it with a new regime treating EEA citizens no differently to those from non-EU countries. In a press release Theresa May said that the focus of the new system will be on the skills people can offer the UK with the aim to reduce low-skilled migration from the EU. This announcement appeared to be off the back of the Migration Advisory Committee report which was published on 18 September 2018. This report was commissioned in order to look at the impact of EEA migration in the UK. The introductory paragraphs of that report confirm the intention to introduce a new migration system for EEA nationals at the end of the implementation period in 2021, which makes it easier for high and medium skilled workers to come to the UK. The recommendations are lengthy but its worth a review. Some of the most interesting points are: That the existing Tier 2 system is a good template which could be extended to EEA workers, extending Tier 2 (General) to cover medium skilled workers (at RQF Level 3) as well as high skilled workers The committee is "not convinced there needs to be a work route for low-skilled workers" from the EU at all, including to fill jobs in industries such as catering or hospitality – although it was conceded that there should be an exception for seasonal agricultural workers (albeit it was recommended that they be paid more to reflect, and I quote, “the privileged access to labour this scheme would give the sector to encourage increases in productivity”.)
- It is clear, therefore, the number of EEA workers will be restricted going forwards which could see many sectors facing a skills shortage. For those employers relying heavily on EEA workers, to do nothing would be concerning. Some of the things that employers should be doing now to try and retain their EU workforce or, failing that, to fill the gap: ensure policies (harassment and anti-bullying) and staff are clear that discrimination against EU migrants will not be tolerated. You may want to consider providing updated diversity training on the matter. Not only is this best practice to avoid claims arising but it will help employers to recruit and retain EEA workers. audit their workforce to see who (i.e. in which roles and what % of staff) is likely to be affected by Brexit. This will enable employers to consider contingencies on a workforce level and also support the individual workers identified. keep affected workers updated on the Brexit negotiations and consider to what extent you are willing to assist them (and their family members) in applying under the settlement scheme. The purpose of this dialogue is to reassure and retain EEA workers, where possible. Examples – poll opinion on concerns and address; set up working groups; keep updated via training/written updates; provide financial and legal support on settled status applications. In light of the inevitable reduction in the retention/recruitment of EEA workers, you may wish to consider how to plug the gap. Some suggestions could be: Working with local colleges/schools/job centres/councils to encourage recruitment into roles filled currently by EEA workers; Consider rebranding to encourage younger workers to join; Consider recruiting from underutilised groups (parents returning from family leave; ex convicts); Consider whether a change in shift patterns or making contracts more permanent would attract candidates; Consider automation and large scale processing if relevant.
- Tier 2 licence This is currently the means by which an employer can recruit eligible non-EEA/Swiss citizens to come and work in the UK. Evidencing your ability to obtain and maintain a Sponsor Licence might assist in any visa applications for EEA workers in the future. Also, with restrictions on EEA migrants coming to the UK, this will inevitably increase the number of non-EEA migrants coming, particularly if Tier 2 is widened to include medium-skilled workers. Employers should therefore be considering applying for a Tier 2 sponsor licence now. The process of sponsoring Tier 2 can be time consuming and so having the licence in place will save a significant amount of time in the future. For employers who have already got a Tier 2 licence, they should consider: how many migrants they may need to sponsor going forwards to enable them to stay in the UK (e.g. those switching from Tier 4 to Tier 2); how many Certificates of Sponsorships they may need to cover current employees and new employees who may need to be sponsored – the renewal date will be coming up soon whether you need to extend your licence to cover other “branches” (e.g. subsidiaries that may want to employ migrants in the future). Lobby As the Brexit negotiations and plans continue, you will have seen more and more business leaders and sector groups lobbying and speaking out about the proposed plans – such as the list of business leaders recently calling for a vote on the Brexit deal. You should consider what action you can take, and who you can contact, to add to the growing pressure. Local politicians? Members of the government? Industry bodies or regulators?
- Right to work checks will apply to EEA workers post Brexit. Employers should therefore be reviewing their records to identify which EEA workers will need to provide updated right to work documents to evidence their status, post- Brexit, and put in place measures to ensure that the correct documents are obtained, copied and kept on record. After 31 December 2020, EEA nationals will not be able to rely on their passports or national ID cards in order to evidence their right to work. Instead they will need to prove they have settled status/pre-settled status/ILR/ or citizenship. We are currently advised that evidence of “digital status” will need to be checked by employers online and so workers will need to provide their user ID and passwords to access this – not the most straightforward of methods and is probably ringing alarm bells for any Data Protection Officers out there. The right to work guidance will therefore have to be amended to reflect EEA workers’ evidence post-Brexit – keep an eye out for this. The exact documentation that needs to be checked in circumstances where there is no deal is still yet to be determined and whilst there has been a difference in opinion in respect of what is going to happen if there is no deal, this has now been resolved and the agreement is that employers will have time to understand what their obligations are and before having to make checks.