No-deal Brexit contingency plan announced

IMPACT – HIGH

What is the Brexit news? The Danish government has released plans on how it would administer the status of U.K. citizens in Denmark in the event of a “no deal” Brexit.

Key points:

• Transition period. If no deal is agreed upon by the second half of February, the Danish government will legislatively establish a “temporary transitional scheme,” which will go into effect March 30. The scheme would ensure that U.K. nationals are allowed to continue residing and working in Denmark until legislation is introduced to address the future status of U.K. nationals. The transition scheme would not cover family reunification as is currently afforded to EU nationals, although it would cover children born or adopted after March 29.
• Residence and work permits. U.K. nationals living in Denmark before Brexit will be allowed to reside and work as normal during the transition period and will be eligible to apply for residence and work permits, although the types of permits have not been determined.
• New arrivals. U.K. nationals arriving in Denmark after March 29 will not be covered under the temporary transition scheme and will need to apply for residence and work authorization in accordance with the national rules for third-country nationals.

Background: The U.K. is set to leave the European Union on March 29, and although the U.K. and the EU have negotiated a draft withdrawal agreement, the U.K. Parliament has not approved it.  EU member states are releasing plans on how they will address the end of EU free movement as applied to U.K. citizens.

Analysis & Comments: The government’s contingency plan provides some certainty to employers and U.K. citizens in Denmark, as the transition period would allow employees to continue working and living in the country while awaiting clarification by the government regarding their permanent status. Though the status of U.K. citizens and their families after the transition period is unclear at this time, they will most likely need to apply for residence permits during the transition period. Employees should register with local authorities and obtain an EU registration certificate before March 29 to prove that their residence status was originally issued in accordance with EU free movement laws.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.