Brexit Bulletin August 16, 2016

16 Aug, 2016


The following is a roundup of recent developments concerning Brexit negotiations and the United Kingdom’s withdrawal from the European Union.


Timing of Brexit trigger still undecided

The timing of the U.K. government’s triggering of Article 50 exit procedures remains unclear. British Prime Minister Theresa May is expected to trigger exit procedures early next year, but the Brexit cabinet ministers may need until autumn 2017 to prepare for negotiations, according to The Sunday Times. The U.K. may also wait until after French and German elections next year before triggering Article 50.

Norway on UK’s EFTA membership

The U.K.’s option to join the European Free Trade Association as an alternative to EU membership could be vetoed by Norway, the largest economy of the four-nation bloc, which may not wish to be overshadowed by the larger U.K. economy, according to comments made by Norway’s minister for European affairs.


Rush to file would strain resources

If the roughly 3.5 million European nationals in the U.K. rush to file for permanent residency following the U.K.’s exit, the strain on resources would be significant – equivalent to 140 years of applications in one year, according to a report this month by Oxford University’s Migration Observatory. More than 500,000 EEA nationals living in the U.K. who arrived by early 2016 will not have the requisite five years of presence to qualify for permanent residency if the U.K. completes exit procedures in two years.

Read the full report here.


Post-Brexit economic data due out

This week, the U.K.’s Office of National Statistics will release July economic data, which should provide hard numbers on the effect of the June 23 Brexit vote, including figures on unemployment, inflation, retail sales and the budget. The first of these figures released Tuesday indicates that inflation rose from June and is at its highest since November 2014.

London’s future

Some economists are predicting that Brexit may hit London the hardest economically because of its reliance on banking and financial services in the EU. London Mayor Sadiq Khan has said he is confident that the city will remain part of the single market, but warned that other European capitals are already seeking to woo businesses away.

Things to Know

Employers less optimistic about hiring

A survey released Monday finds that employers have grown less optimistic about expanding their workforces since the Brexit vote. Before the vote, 40 percent of employers intended to hire in the next three months; after the vote, the number dropped to 36 percent. Thirty-three percent of employers anticipate that the Brexit will increase business costs and 21 percent expect to reduce investment in skills development and training as a result of the Brexit.

Read the press release by the Chartered Institute of Personnel and Development here.

Preparing Your Business

Under the uncertainty of Brexit, many businesses with EU/EEA employees and assignees living in the U.K. will be thinking about how to ensure their continued work and residence rights in the U.K. Planning is key to a smooth transition with the least amount of business disruption. BAL can assist with the following:

  • Evaluating EU/EEA employee applications to establish their right to reside in the U.K., along with their family members.
  • Assessing EU/EEA employee applications to document permanent residence, should they qualify.
  • Recording and tracking when employees become eligible for permanent residence via our reporting software.
  • Using our tracking to report the level of impact on a given business as soon as Brexit immigration policies are announced.

Should you have any questions or require more information on how BAL can help with recording and tracking your employees’ eligibility for permanent residence, please contact us at

The Brexit Bulletin has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact

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