What is the update? The Czech government has adopted an act that will administer the status of U.K. nationals in the case of a no-deal Brexit.

  • Effective date: Brexit day.
  • Documents impacted: Visa and residence permit applications.
  • Who is impacted: U.K. nationals.
  • Impact on business: The announcement is positive news for companies, as it allows them to retain U.K. nationals currently living and working in the Czech Republic in the case of a no-deal Brexit.

Key points of the agreement:

  • Phase-in period. The act sets a phase-in period until Dec. 31, 2020, during which U.K. nationals will retain the rights currently afforded to them as EU citizens, given that the U.K. reciprocates and offers the same for Czech citizens residing within the U.K. Current rights will be retained only for those U.K. nationals who either are temporary or permanent residence holders or for those who have applied for temporary or permanent residence prior to the Brexit day.
  • Access to labor market. U.K. nationals currently residing in the Czech Republic will retain access to the labor market. U.K. nationals entering the Czech Republic during the phase-in period will be treated as third-country nationals and will need to obtain relevant work and residence permits. Temporary or permanent residence holders and applicants will keep their free access to the Czech labor market.
  • Dependents. Under the act, dependents will also retain their status in the case of a no-deal Brexit, provided that they obtained the residence permit prior to the Brexit date. If they do not obtain dependent status prior to Brexit, they will need to apply for the relevant permit as for non-EU nationals during the phase-in-period period.
  • After the phase-in-period. During the phase-in period, U.K. nationals will need to apply for a long-term residency permit (i.e., an employee card) to ensure they are able to stay in the country after the phase-in period. Other U.K. nationals will also be allowed to stay, but will have to apply for a correspondent residence permit (for study, business, family ties, etc.). Unlike other third-country nationals, U.K. nationals should be able to apply for residence from the Czech Republic.
  • U.K. nationals on assignment. U.K. nationals on assignments, and not on a local (Czech) employment contract, may be restricted from work after the Brexit date and will need to apply for a separate work permit.

Analysis and Comments: The U.K. is set to leave the European Union and the U.K. Parliament has yet to pass a withdrawal agreement. Although the U.K. has postponed its exit from the EU, it is still possible that the U.K. will leave the EU without a deal. The Czech act provides some certainty to U.K. nationals, as they will retain their rights to reside and work in the Czech Republic until Dec. 31, 2020.

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.