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IMPACT – HIGH
The U.K. government has now confirmed that in the event of a “no deal” Brexit:
In the alternative, in the event that the Withdrawal Agreement (“the deal”) is ratified:
It is important to note that in any scenario, Irish nationals will continue to have the right to enter and live in the U.K. under the Common Travel Area arrangements which pre-date the European Union, and will not need to apply under either the EU Settlement Scheme or for European Temporary Leave to Remain. Moreover, the rules for EU nationals will be applied equally to nationals of EEA countries (Norway, Iceland and Liechtenstein) and to Switzerland.
Analysis & Comments: Employers have known for weeks that, whether or not there is a deal, the EU Settlement Scheme will protect EEA nationals living in the U.K. prior to March 30, 2019. However, the position for new assignees arriving in the U.K. post-Brexit has been unclear until now. Employers are only now in a position to conduct thorough no-deal planning that takes into account the position for both current and future employees from the EU, EEA and Switzerland. This latest announcement confirms that new migrants, while allowed entry to the U.K. on the same terms and at no cost, will have to obtain a temporary visa with a fee in order to stay beyond three months. If they are staying more than three years, they would then need to follow with an application under the U.K.’s new single immigration system once it is launched. Employers must therefore factor in increased costs and process requirements for EU, EEA and Swiss nationals in the short term should “no deal” prevail, and amend recruitment strategies accordingly.
In the event of no deal, employers will for the first time have two sets of Europeans in their workforce: those with residency rights (which may or may not be registered under EU Settlement Scheme) and those with temporary permission to live and work in the U.K., the ETLR permit holders. However, the fact that right-to-work checks will continue to be based on passports, ID cards, and biometric residence cards alone means that employers should not have to adapt right-to-work checks at short notice.
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.
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