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The following is a roundup of recent developments concerning Brexit negotiations and the United Kingdom’s withdrawal from the European Union.
News Summary
The U.K. Government formally invoked Article 50 on March 29, officially notifying the EU of its intention to withdraw from the bloc and setting off a two-year negotiation period.
Prime Minister Theresa May has reportedly indicated that free movement for EU nationals could continue during a transitional “implementation phase” immediately following the U.K.’s break from the EU in the spring of 2019 to allow companies to plan for new rules.
Scotland’s Parliament, meanwhile, approved a measure in favor of a second referendum on Scottish independence from the U.K., while May continues to suggest she will block such a vote until Brexit is completed.
BAL held a webinar on March 23 to discuss how companies have begun planning for Brexit and immigration changes affecting their EU and non-EU workforces, as well as sharing an analysis from BAL’s Brexit benchmarking report.
Immigration
Brexit formally underway
Brexit proceedings formally began on March 29 when the U.K. delivered a letter of intent to withdraw from the EU. The EU responded by issuing draft negotiating guidelines on Brexit for the EU-27 members. While May has indicated her desire for parallel negotiations on withdrawal and a deal on a new relationship, the EU guidelines make clear that it will take a “phased approach” in which the U.K.’s disentanglement from the EU is first settled before any future relationship can be agreed upon.
Free movement: Post-Brexit transition period?
May indicated that she would not rule out an extension of free movement during a transitional period (which she preferred to refer to as an “implementation phase”) after a Brexit deal is reached, allowing businesses time to adjust to new rules.
“Once we’ve got the deal, once we’ve agreed what the new relationship will be for the future, it will be necessary for there to be a period of time when businesses and government are adjusting systems and so forth, depending on the nature of the deal, a period of time during which that deal will be implemented,” May said to reporters while on a trip to the Middle East.
This signals a recognition that there are many businesses in the U.K. relying on an EU workforce, that a considerable amount of planning will need to go into any new system, and that managing existing and new EU entrants into the U.K. and any controls will need to be balanced against business needs. There are few details on how an implementation phase will operate, but it is thought that the “four freedoms,” including the free movement of people, may continue during that period—particularly since May has suggested that a new trade deal with the EU is unlikely to be finalized until formal Brexit in 2019.
U.K. White Paper on Great Repeal Bill
The U.K. government has published a white paper on the Great Repeal Bill that will eventually repeal some 12,000 European regulations from the British statute book on the day the U.K. leaves the EU. The paper sets out how the government plans to ensure an orderly conversion of EU law into domestic law.
Importantly, the U.K. Government will introduce an immigration bill so that nothing in law will change for any EU national, whether already in the U.K. or moving from the U.K., without Parliamentary approval.
Scotland
Independence referendum
The day before the U.K. triggered Article 50, the Scottish Parliament voted in favor of a second independence referendum by spring 2019 when the terms of a Brexit deal will be clearer. The motion requires approval by the U.K., and May has repeatedly said that “now is not the time” for Scotland to vote on breaking away from the U.K. In 2014, Scottish voters opted by 55 percent to remain in the U.K., but that was before the U.K. voted to leave the EU.
BAL Webinar Highlights
BAL held a webinar for clients on March 23 looking at Brexit and Tier 2 Skilled Worker reforms and their impact on companies. Here are some of the highlights of the webinar, led by BAL Managing Director for Europe, Emily King:
Preparing Your Company
The results of BAL’s Brexit benchmarking survey, released in tandem with the webinar, indicate that many companies have begun taking proactive steps to support their EU employees and to plan for eventual changes to free movement.
BAL continues to provide Brexit-related services at varying levels based on individual corporate needs. Brexit immigration planning may include:
Employees
Employees can also take steps to prepare for Brexit, including making sure they are aware of their legal status in the U.K. and whether there is a basis on which they can claim to be a “qualified person” under EU law. Employees should make sure they possess:
BAL encourages and welcomes feedback on Brexit and Tier 2 changes with the BAL London Team, as we continue to work with Government to prepare for reforms.
Should you have any questions or require more information on how BAL can help with Brexit planning, please contact us at uk@bal.com.
All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – MEDIUM
What is the change? The U.K. Government has set out proposed changes to immigration, visa and nationality fees as well as to fees for premium services.
What does the change mean? The new fees will take effect April 6. Fees for visitors, workers and students will increase by 2 percent. Naturalization fees will increase by almost 4 percent. Fees for settlement and indefinite leave to remain will jump by 22.5 percent, which officials say reflects the benefits associated with these applications (e.g., education, public services and access to the U.K. labor market). Premium services will also see big increases (23 percent). There will be no increases to fees for applications under the sponsorship system, e.g., the fees for certificates of sponsorship and sponsor licence applications will remain the same.
Additional information: Fees will increase across a number of visa categories and immigration services, including the following:
*A £55 discount applies for main applicants under the Council of Europe Social Charter (CESC).
A full list of the visa and immigration fees is available on this U.K. government website.
BAL Analysis: The proposed fee increases will impact business costs for certain applications, e.g., indefinite leave to remain applications. Affected employers and individuals should therefore take note of the fee increases and plan accordingly.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – HIGH
The United Kingdom has provided formal notice of its intention to leave the European Union.
The U.K. invoked Article 50 of the Lisbon Treaty on Wednesday, setting up a two-year negotiation period over both the U.K.’s departure and future relationship with the EU. A six-page letter signed by Prime Minister Theresa May was delivered to European Council president Donald Tusk shortly before 12:30 BST.
“The Article 50 process is now underway, and in accordance with the wishes of the British people the United Kingdom is leaving the European Union,” May said in Parliament, after the letter was delivered. “This is an historic moment from which there can be no turning back.”
Tusk spoke before cameras shortly after receiving the letter.
“There is no reason to pretend that this is a happy day, neither in Brussels nor in London,” he said. “After all, most Europeans – including almost half the British voters – wish that we would stay together, not drift apart.”
The U.K. narrowly voted to leave the EU in June 2016. By triggering Article 50, the U.K. has put in motion a series of events as it moves toward a break with the EU in 2019.
Key dates:
BAL Analysis: The U.K.’s departure from the EU will mean the end of “free movement” for EU nationals and their non-EU family members, and could well trigger an overhaul of the U.K. immigration landscape for all foreign nationals working in the U.K. More will be known about what any future system will look like as negotiations progress, but the invocation of Article 50, while historic, does not immediately change the status of EU nationals in the U.K. or U.K. nationals in Europe. Free movement is set to continue until the day of Brexit in 2019.
For May, the key objectives in the negotiations will include controlling migration outside of the free movement directive for new arrivals and securing reciprocal rights of U.K. citizens currently in Europe against European citizens currently in the U.K. May is under pressure to confirm the right to remain for the 3.2 million Europeans in the U.K. within the first few months of negotiations, but it remains to be seen if this is possible or politically expedient.
May will also have to grapple with a push for a second independence referendum in Scotland, after the Scottish parliament voted this week in favor of holding a vote on independence at some point in late 2018 or early 2019, once the terms of the Brexit deal are known. Scotland voted to remain in the EU and, at minimum, is seeking a differentiated agreement on free movement.
The Scottish parliament has voted in favor of a second independence referendum.
The vote came a day before the United Kingdom invoked Article 50 of the Lisbon Treaty to formally begin the process of leaving the European Union and gave First Minister Nicola Sturgeon authority to negotiate with the U.K. over an independence vote.
Sturgeon remains at odds with U.K. Prime Minister Theresa May, however. Sturgeon has said she will push for a vote at some point in late 2018 or early 2019, before the U.K. leaves the EU but after it becomes clear what the terms of departure will be. May has said “now is not the time” to discuss a second independence referendum.
Key Points:
BAL Analysis: Scottish independence offers a possibility of greater protection for European migrants in Scotland and the continuation of free movement. It also opens the door for a revised immigration policy for all foreign nationals, as Scotland’s specific immigration needs and demand for workers both in lesser populated areas and in key industries such as the North Sea oil and gas industry have often not been met by the U.K.’s more restrictive immigration policies. That said, any potential second independence vote will not occur for at least 18 months, and there are no immediate immigration impacts to the Scottish parliament’s vote Tuesday. While the strength of anti-Brexit feeling may increase the odds of a Scottish independence vote passing, many steps remain before a second referendum can be put before voters.
This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact your BAL attorney.
After a turbulent political period following the Brexit referendum, the U.K. government is due to officially notify the European Union of its intention to withdraw from the bloc on March 29. On that date, Prime Minister Theresa May will formally invoke Article 50 of the Lisbon Treaty, setting off a two-year negotiation period before Brexit can occur in 2019. Negotiations will be guided by 12 key principles, including controlling migration to the U.K. outside of the current Free Movement rules, but also protecting the rights of those already in Europe (and conversely the U.K.).
To view the March 2017 Brexit Global Trends Benchmarking Report, please fill out the form below:
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Copyright © 2017 Berry Appleman& Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
An attack on the Westminster Bridge near the U.K. Parliament in London left at least five people dead, including the assailant, and dozens injured. The attack left parts of London on lockdown Wednesday. Authorities advised U.K. and foreign nationals to monitor their security.
Key points:
BAL Analysis: U.K. and foreign nationals in or around London should exercise caution and expect the possibility of security-related delays when traveling in and around London.
This alert has been provided by the BAL Global Practice group. For additional information, please contact BerryApplemanLeiden@bal.com.
The U.K. government has announced that March 29 is the date it will officially notify the EU of its intention to withdraw from the EU. The U.K. will formally invoke Article 50 of the Lisbon Treaty, setting off a two-year negotiation period before the final separation in 2019.
BAL Analysis: Theresa May is expected to deliver a short statement to parliament shortly after invoking Article 50, in which she is likely to reiterate her key objectives in the negotiations, which include controlling migration outside of the free movement directive for new arrivals and securing reciprocal rights of U.K. citizens currently in Europe against European citizens currently in the U.K. May is under some pressure to resolve the status of the 3.2 million Europeans in the U.K. within the first few months of negotiations, but it remains to be seen if this is possible.
BAL will be holding a webinar Thursday, March 23, on “Making Sense of Brexit and Tier 2 Skilled Worker Reforms for UK Employers,” where we will discuss the impact of Brexit and other immigration changes affecting companies that rely on EU and non-EU workers.
What is the change? The annual statement of changes to the Immigration Rules has been published.
What does the change mean? The statement of changes confirms anticipated structural changes for Tier 2 visas and increased costs for employers via the Immigration Skills Charge and Immigration Health Surcharge beginning in April.
Key changes: The changes represent the second phase of planned reforms first announced March 24, 2016, arising from the Migration Advisory Committee report of that year. Summary of key changes for employers:
Significant changes outside the Tier 2 scheme include but are not limited to:
BAL Analysis: The majority of these changes have been on employers’ radar for some time, but it is helpful to now have confirmation that there are no major last-minute changes. The business community had hoped that the “high value business” provision would allow greater exemption from the RLMT, but the provision clearly does not benefit existing high value multinationals who have been registered for three years or more in the U.K., nor smaller start-ups that cannot match the investment level or prove job creation with sufficient certainty. The major impact will be felt by imposition of the Immigration Skills Charge, both to overall business costs and short-term administrative burdens.
BAL is holding a webinar March 23 on “Making Sense of Brexit and Tier 2 Skilled Worker Reforms for U.K. Employers.” Registration and details are available here. We will also be sharing a Backgrounder on the changes which looks at wider reforms in detail.
What is the change? The government’s Brexit bill passed its final vote Monday night in Parliament, authorizing the government to trigger Article 50 Brexit procedures later in March. Neither of two amendments – one to protect existing EU migrants’ rights to remain in the U.K. and the second to guarantee Parliament a vote on the eventual Brexit deal – have been successful.
What does the change mean? The bill could receive “royal assent,” a final formality in the legislative process, as early as Tuesday. While Prime Minister Theresa May could theoretically invoke Article 50 as soon as assent is granted, she is expected to wait until the last week in March to officially notify the EU that the U.K. is withdrawing from the bloc.
Background: Late Monday evening, the House of Commons voted down two amendments that the House of Lords had proposed with backing from both Liberal and Labour peers as well as other prominent Remain supporters. One amendment would have guaranteed the status of EU citizens already living in the U.K.; the other would have given Parliament a vote on any final deal – or no deal – that is negotiated between the U.K. and the EU before the final separation. The bill then returned to the House of Lords, which recognized its inability to influence proceedings further and passed it without further amendments.
BAL Analysis: Formal Brexit procedures can now begin by the end of the month as anticipated, but defeat of the amendments means that the long-term status of Europeans remains unclear. May’s unwillingness to guarantee the right to remain ahead of official negotiations, despite strong moral and political arguments to do so, offers little comfort to the 3.2 million Europeans currently living in the U.K., although it is hoped that the government will adhere to its stated goal of seeking resolution of their status early in the two-year negotiation process.
Scottish First Minister Nicola Sturgeon has announced she will give Scottish voters a second chance to vote for independence from the U.K., given the strength of anti-Brexit feeling in Scotland.
Sturgeon’s announcement came as legislation that will allow the U.K. to begin formal Brexit negotiations with the European Union was moving through Parliament.
“The U.K. government has not moved even an inch in pursuit of compromise and agreement,” Sturgeon said. “Our efforts at compromise have instead been met with a brick wall of intransigence.”
Sturgeon has indicated the second independence referendum will be held at some point between Fall 2018 and Spring 2019, once the U.K. is able to set out the terms of its departure from the EU. Its aim would be to allow Scottish voters a choice between “hard Brexit” and the end of free movement within Europe, or Scottish independence and a direct relationship for Scotland with the EU.
BAL Analysis: A second Scottish referendum would be timed before the U.K. officially leaves the EU, but after it becomes clear what type of Brexit agreement could be reached between the U.K. and EU. There seems a good chance a second referendum could have a different result than the first, given Scotland’s preference for remaining part of the EU. The immigration consequences would be significant, though many steps remain before a referendum can be approved and put before voters.
Scottish independence offers a possibility of greater protection for European migrants in Scotland, and the continuation of free movement. It also opens the door for a revised immigration policy for all foreign nationals, as Scotland’s specific immigration needs and demand for workers both in lesser populated areas and in key industries such as the North Sea oil and gas industry have often not been met by the U.K.’s more restrictive immigration policies.