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

Political

EU negotiator appointed

The European Commission has appointed Michel Barnier, a former French foreign minister and EU commissioner, as the chief EU negotiator to engage in Brexit negotiations with the U.K.

‘Best possible deal’

British Prime Minister Theresa May continued her European tour, ending with visits to Slovakia and Poland, where she said that the U.K. would seek the best possible deal with the EU on free movement of goods and services while addressing British voters’ desire to limit free movement of people.

Immigration

Immigration surge?

Uncertainty about EU-U.K. migration and the status of EU nationals working and living in the U.K. could cause a surge in migration in anticipation of stricter migration rules, according to a report by the U.K. Home Affairs Select Committee. The committee said EU nationals in the U.K. “must be told where they stand” in terms of the Brexit and “should not be used as bargaining chips.” In order to avoid an immigration surge, the committee recommends that the Home Office set a cutoff date – either the date of the vote, the date exit procedures are triggered or the actual exit date – and allow EU nationals who were already settled in the U.K. as of the cutoff date to become permanent residents.

Read the committee’s conclusions and recommendations here.

Read the full report here.

May on EU migrants in the U.K.

During her stop in Poland, May reiterated her position that Polish and other EU nationals currently living and working in the U.K. would be allowed to stay only if U.K. citizens living in the EU were assured their rights to remain.

Business

Economic stimulus

The Bank of England slashed its interest rate Thursday to the lowest rate ever and will push a stimulus plan amid concerns over consumer confidence and slumping economic indicators since the Brexit vote.

Things to Know

Russians more bullish on Brexit than Britons

Fifty-four percent of Russians think Brexit was the right decision for Britain, compared with only 39 percent of Britons, according to a poll published Thursday surveying 16 countries. Among the findings: more than half of Poles, Spanish and Swedes think Brexit will be bad for their respective countries; Italians are the mostly likely to boycott British goods and avoid holidays in the U.K.; Swedes are the saddest to see the U.K. leave, while the French are the least sad to say au revoir to the U.K. and the most likely to think the U.K. should be offered an unfavorable exit deal.

Read the full poll results here.

Preparing Your Business

BAL can assist businesses with the following services to prepare for a formal Brexit:

  • Assessment of a company’s EU-dependency, including the proportion of EU employees, their roles and whether they would be eligible for sponsorship under national U.K. law.
  • Tracking of existing employees and ongoing EU hires.
  • Strategies on sponsoring EEA permanent residence applications, including:
    • Preparing employers for continued compliance with the U.K.’s right-to-work regime.
    • Ensuring the continuity of employment for key staff.
    • Avoiding issues caused by breaks in employment.
  • Exploring employee options, such as:
    • EEA Registration Certificates. While some providers are recommending that EU nationals secure EEA Registration Certificates now to document their status, BAL would advise that this is an individual choice. It is not mandatory. Whether or not employees choose to obtain an EEA Registration Certificate, it is more important that they keep evidence of their presence in the U.K./EU country pre-referendum.
    • Permanent residency and British citizenship. BAL can track and manage data on when a company’s EEA national employees and their family members will qualify for permanent residence and/or British citizenship and ensure that dependent family members apply under the correct routes.

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

Copyright © 2016 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 – MEDIUM

What is the change? On Monday, the British consulates in the U.S. will introduce a pilot program to significantly streamline the U.K. visa application process for visitors and points-based applicants, such as skilled workers, intracompany transfers, students and investors.

What does the change mean? Visitor and points-based visa applicants applying in the U.S. at a British consulate or through a Premium Application Centre will generally only need to submit their passport, first page of their application and priority receipt. Supporting documents will not need to be submitted in most cases.

  • Implementation time frame: The trial period will begin Monday and is expected to run for at least one month, after which the consulates will seek feedback.
  • Visas/permits affected: Visitor visas, all points-based visas and dependent visas.
  • Who is affected: Applicants for the above visas applying at a British consulate in the U.S. or at one of the four Premium Application Centres in the U.S.
  • Impact on processing times: The process aims to simplify the filing of applications, and ease processing by U.K. Visas and Immigration.
  • Business impact: The trial program should reduce the administrative burden on companies and eliminate redundant document filings.

Background: The consulates are seeking ways to make the process more efficient ahead of the peak season. Under the pilot program, visitor visa applicants only need to submit the passport, front page of the online application form and priority receipt. They will not need to submit supporting documents, except for an applicant’s criminal convictions or a child’s birth certificate and parental permission.

Visa applicants under all points-based categories, such as Tier 2 skilled workers or intracompany transfers, should submit only the passport, first page of the online application form, and priority receipt (and Academic Technology Approval Scheme certificates where required for Tier 4 students). Some foreign nationals may need to include proof of English skills and sufficient funds. Degree certificates, NARIC letters and criminal convictions may be submitted. Family dependents should submit copies of marriage and birth certificates as supporting documents.

BAL Analysis: The trial program is a welcome initiative that should greatly reduce duplicate filings and administrative headaches for employer sponsors and individuals, especially as the busy season approaches.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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.

The United States Embassy in London is opening an enrollment center for a 60-day period for U.K. citizens applying for the Global Entry program. The trusted traveler program allows preapproved, low-risk travelers to avoid long immigration queues at participating airports and use automated kiosks instead. Global Entry interviews are normally only available at enrollment centers that are primarily located at U.S. airports.

Key dates and details:

  • The London location will be open for Global Entry interviews during a 60-day period beginning Sept. 26.
  • Interviews must be prebooked and slots will only be available Monday through Wednesday, 8 a.m. to 4:30 p.m..
  • Applicants who have been conditionally approved may now schedule an interview at the London location by going to the Global Online Enrollment System (GOES) website.
  • Applicants who have not yet applied must first apply through the U.K. Home Office website and receive a U.K. access code before applying on the U.S. GOES website. If the application is conditionally approved, they may then schedule an interview with a U.S. Customs and Border Protection officer, who will make a final decision.

Background: The U.K. was added to the Global Entry program in December. Members benefit from expedited clearance at 49 U.S. airports. The U.K. Home Office application fee is £42, and the U.S. government fee is $100 for a five-year membership.

Under a reciprocal agreement, U.S. citizens who are frequent travelers to the U.K. are eligible to apply for the U.K.’s Registered Traveller program, which allows members to use automated gates in the U.K. The U.K. government application fee is £70 with an additional £50 per year thereafter.

BAL Analysis: During the temporary enrollment period, London will be a convenient location for U.K. applicants. Individuals wishing to attend their interview in London are encouraged to schedule their appointments as soon as possible for the popular program.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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.

The United States Embassy in London is opening an enrollment center for a 60-day period for U.K. citizens applying for the Global Entry program. The trusted traveler program allows preapproved, low-risk travelers to avoid long immigration queues at participating airports and use automated kiosks instead. Global Entry interviews are normally only available at enrollment centers that are primarily located at U.S. airports.

Key dates and details:

  • The London location will be open for Global Entry interviews during a 60-day period beginning Sept. 26.
  • Interviews must be prebooked and slots will only be available Monday through Wednesday, 8 a.m. to 4:30 p.m..
  • Applicants who have been conditionally approved may now schedule an interview at the London location by going to the Global Online Enrollment System (GOES)
  • Applicants who have not yet applied must first apply through the K. Home Office website and receive a U.K. access code before applying on the U.S. GOES website. If the application is conditionally approved, they may then schedule an interview with a U.S. Customs and Border Protection officer, who will make a final decision.

Background: The U.K. was added to the Global Entry program in December. Members benefit from expedited clearance at 49 U.S. airports. The U.K. Home Office application fee is £42, and the U.S. government fee is $100 for a five-year membership.

Under a reciprocal agreement, U.S. citizens who are frequent travelers to the U.K. are eligible to apply for the U.K.’s Registered Traveller program, which allows members to use automated gates in the U.K. The U.K. government application fee is £70 with an additional £50 per year thereafter.

BAL Analysis: During the temporary enrollment period, London will be a convenient location for U.K. applicants. Individuals wishing to attend their interview in London are encouraged to schedule their appointments as soon as possible for the popular program.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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.

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

Political

  • Prime Minister Theresa May’s newly formed cabinet includes a Brexit department headed by David Davis, a prominent Brexiter who will serve as Secretary of State for Exiting the European Union.
  • Labour Party leadership will be decided in September in a contest between current leader Jeremy Corbyn and challenger Owen Smith. Smith has called for a second referendum allowing voters to approve a UK-EU Brexit deal.
  • On the international stage, May met with German Chancellor Angela Merkel, French President Franҫois Hollande, and EU Council President Donald Tusk. May said that the U.K. seeks a “sensible” and “orderly” exit, and that the U.K. will decline its rotating turn as president of the EU Council previously scheduled for 2017. Hollande said the U.K. should begin exit negotiations “the sooner, the better” for the respective economies.
  • A special session of the British-Irish Council was convened to discuss implications of the Brexit vote and the participation of the devolved administrations of Scotland, Northern Ireland and Wales in Brexit negotiations. Read the Council’s communiqué here.

Immigration

  • The European Union is reportedly considering giving the U.K. a seven-year exemption from free-migration rules while allowing continued access to the single market, according to an article in the Observer citing unnamed senior U.K. officials.
  • The new Home Secretary Amber Rudd, who supported the Remain campaign, has said she will seek to reduce migration to “sustainable levels.” Among other policies, Rudd will decide whether to adopt a points-based immigration system for EU nationals seeking to work in the U.K., a system the U.K. currently uses for non-EU nationals.

Legal

  • A trial concerning the Brexit vote will be heard in October. The legal challenges, brought by several law firms on behalf of British citizens, claim that the referendum was merely advisory and that exit procedures cannot be triggered without Parliamentary assent. The government asserts that the prime minister has authority under executive powers to begin exit procedures. Article 50 of the Treaty of Lisbon, which controls EU withdrawal procedures, states that a member state “may decide to withdraw from the Union in accordance with its own constitutional requirements.”
  • May has stated that she will not trigger exit procedures before the end of the year. Under Article 50, a member country triggers withdrawal procedures by notifying the EU of its intent to withdraw.

Things to Know

  • A survey by the Institute of Directors after the Brexit vote found that almost a quarter of firms surveyed said they planned to freeze recruitment of new staff, one third would continue hiring, and 5 percent would make cuts.
  • Weak economic data has led economist Martin Weale, a member of the Bank of England’s monetary policy committee, to change his mind and favor an immediate stimulus and possible interest rate cut, according to Financial Times.
  • Last season, England’s Premier League registered 432 European players, of whom only 23 would have qualified for work permits if free movement were removed, according to a BBC study.

Copyright © 2016 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 – MEDIUM

What is the change? New rules took effect Tuesday with respect to employers’ obligations and liabilities in checking employees’ right to work legally in the U.K.

What does the change mean? The rules now make it a criminal offense for an employer to hire an illegal worker and “knows or has reasonable cause to believe” that the individual lacks permission to work. This is an extension of the offense of “knowingly” employing such a person. Employers will no longer be protected from criminal sanctions even if they did not explicitly “know” that an individual was working illegally. The maximum sentence for the offense has also increased to five years. The Home Office has released an updated guidance for employers containing important information on how to properly conduct right-to-work checks.

  • Implementation time frame: Immediate.
  • Visas/permit affected: All documents demonstrating the right to work legally in the U.K.
  • Who is affected: AllK. employers.
  • Business impact: The grounds for prosecuting employers have been expanded to include circumstances where an employer should have reasonably known that an individual is not authorized to work. Civil penalties can reach £20,000 per illegal worker, and the new criminal offense carries a maximum term of imprisonment of six months. Wages may be seized as proceeds of a crime. In addition, the government has introduced extended powers to impose sanctions as well as close businesses that continue to employ illegal workers.
  • Next steps: Employers should review the new guidance, which lists the steps that employers can take to be statutorily excused from civil penalties. The new guidance is available here.

Background: The new rules were passed under the Immigration Act 2016 and took effect July 12.

In addition to expanding the employer offense of hiring an illegal worker, the Act creates an offense for individuals who perform any type of work without the proper work authorization.

BAL Analysis: Employers in the U.K. should be aware of the new stricter rules on illegal working offenses and review their right-to-work policies and practices to ensure that they are in full compliance. Employers may wish to contact their BAL professional with questions.  

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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 – MEDIUM

What is the change? A streamlined visa application called “Access UK” has launched for individuals applying in the United States for U.K. visitor visas.

What does the change mean? The system has several improvements, including a more concise form, online payment, online biometric appointment booking, translations into more languages, mobile-device compatibility, and integration with priority and super-priority services.

  • Implementation time frame: Immediate.
  • Visas/permits affected: Standard Visitor Visas, Visitor (Marriage & Civil Partnership) and Visitor (Permitted Paid Engagement) Visas.
  • Who is affected: Applicants for visitor visas applying in the U.S. and other countries where the service is available.
  • Impact on processing times: The new system will improve the overall application process but will not directly impact government processing times.
  • Business Impact: Business visitors will benefit from a more convenient process.
  • Next steps: More information is available at the Access UK website. The system will not affect applications already submitted through Visa4UK. Eventually, affected users will be redirected to Access UK.

Background: After a successful introduction in China and India, Access UK is being introduced in additional countries, including the U.S. The system has also recently been introduced to applicants in the Philippines, South Africa, Thailand and Turkey, and to visitors in the U.K. who want to extend their visas. It is expected to be available worldwide by the end of the summer.

Visitor visa applicants may use Access UK to fill out the application form, book a biometrics appointment and pay the government processing fees using standard service, priority or super-priority visa service where available. The application forms are available in several languages, including Arabic, Chinese, Russian, Thai, Turkish, Urdu and more to be added, although the form must be filled out in English.

BAL Analysis: The new online system will simplify the application process for visitors, including business travelers, allowing them to complete all necessary steps through a single portal rather than having to navigate multiple websites.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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 – MEDIUM

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

Political

  • Home Secretary Theresa May will become the next British prime minister after a rival candidate dropped out of the race, avoiding a political campaign. David Cameron will step down on Wednesday. May had campaigned for the U.K. to stay in the EU, but said today that “Brexit means Brexit, and we’re going to make a success of it.”
  • The House of Commons voted to give approximately 3 million EU nationals living in the U.K. the right to remain. The vote is a political declaration, rather than an act of Parliament.
  • Donald Tusk, the president of the European Council, has said that formal Brexit negotiations will not begin until the U.K. invokes Article 50 of the Treaty of Lisbon, which controls withdrawal procedures.

Immigration

  • Tusk also indicated that there will be no “à la carte” access to the single EU market without the U.K. accepting all four EU freedoms, including the free movement of people.
  • The U.K. Cabinet Office, Home Office and Foreign & Commonwealth Office released a joint statement indicating that when the U.K. does leave the EU, “we fully expect that the legal status of EU nationals living in the U.K., and that of U.K. nationals in EU member states, will be properly protected.”
  • May’s stated position on the status of EU nationals in the U.K. is that it will depend on whether British citizens in the EU are similarly assured their rights to remain.
  • There has been a surge in demand for Irish passports by U.K. citizens seeking to retain EU nationality.

Legal

  • A legal challenge to the Brexit referendum has been filed claiming that withdrawal from the European Union is unconstitutional without a vote by Parliament. The law firm bringing the challenge asserts that Parliament must debate and approve a decision before the U.K. may invoke Article 50 withdrawal procedures.
  • The government has rejected a petition signed by more than 4 million individuals seeking to force a second Brexit referendum.

BAL Analysis: While the change in leadership has been accelerated, Brexit procedures have not yet formally begun. There has been no immediate change to the immigration status of EU workers in the U.K. or to British workers in the EU. BAL will continue to update clients on significant developments as Brexit negotiations proceed.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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

What is the change? British voters head to the polls Thursday to vote on whether to “Leave” or “Remain” in the European Union.

What does the change mean? If the “Leave” campaign prevails, U.K. immigration policy will change and employers that rely on U.K. nationals working in Europe and European nationals in the U.K. will need to manage expectations immediately after the vote and strategize for potential disruption in the long term.

  • Implementation time frame: If Britain exits the EU, a deal must be negotiated which is likely to take at least two years. During this transition period, the U.K. must continue to observe EU treaties and laws.
  • Who is affected: K. companies and European companies recruiting, hiring or assigning workers between Britain and the rest of Europe, and anyone using a European route to stay in the U.K. (including EU nationals and their family members) will be affected. However, all visas and permits, including sponsorship under the Points-Based System (Tier 1 high-skilled, Tier 2 skilled workers, Tier 4 students and Tier 5 temporary workers)could also be affected in the long term.
  • Business impact: Companies will need toassess their workforce to determine the level of impact on their business and review their recruitment practices to plan for affected employees beyond the two-year transition period. A “Leave” vote would likely bring new restrictions and additional processing, and businesses should plan for increased immigration costs.
  • Next steps: BAL has produced a backgrounder to explain the Brexit landscape, the four possible contingencies should Britain leave the EU, and how employers can address affected employees and strategize for long-term changes in U.K.-EU immigration policy.  

Background: The Brexit referendum is the culmination of long simmering political pressure by Eurosceptics. Immigration and the free movement of migrants, which come with EU membership, are at the heart of the debate and, as such, if Britain leaves the EU, more restrictive immigration measures will be introduced.

BAL Analysis: In the event of a “Leave” win, it is critical that employers immediately address their workforce and begin contingency planning as early as possible. Please click here to read BAL’s detailed analysis.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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 – MEDIUM

The British electorate will vote Thursday on whether the United Kingdom should leave the European Union. During the final countdown to the “Brexit” referendum, campaigning for both the “Leave” and “Remain” camps will intensify, but current polls show the “Leave” campaign has the majority.

Employers should anticipate that it is more likely than not that the U.K. will leave the EU and, from an immigration perspective, is unlikely to continue to be subject to European rules on free movement of people.

Political Background

The stakes in the Brexit referendum are huge, as it will define Britain’s legal relationship with its European allies, its position on the global stage, and will impact the ongoing stability of the EU. Immigration policy has been a key issue during the Brexit debate, due to the immediate refugee crisis, but also because of longer term social changes and pressures in the U.K. that many attribute to migration. The legal rights of free movement of goods, services and people that underpin the EU’s creation of a single market will most likely be lost in the U.K. if the U.K. chooses to leave the EU. Going forward, U.K. employers may not have the ability to move employees freely as assignees or to deliver specific contracts or take advantage of helpful rulings from the European Court of Justice that allow great immigration flexibility against restrictive national legal regimes. Employers should take steps to evaluate their exposure in event of Brexit, and be prepared to communicate with affected employees as any changes take place.

Who is affected?

The immigration impacts of leaving the EU will be felt on four employee populations:

  1. Current “European” employees working in U.K. (i.e., EEA nationals and their family members).
  2. Future or seasonal U.K. labor force, to the extent it would typically be supplied by “European” employees.
  3. Current British employees in European offices.
  4. British nationals who employers anticipate would work in Europe, e.g., on assignment, secondment or as part of rotation.

Next Steps 

It is essential that employers prepare for managing their response to the referendum result and devote some time to strategize how recruitment and employment practices (among other economic, legal, social and political factors) would be impacted by a “Leave” vote. BAL recommends that employers take all practical steps to prepare for the Brexit result next week, including:

  1. Assessing the extent to which their business in U.K. relies on European labor and free movement into Europe – this will be sector and role specific.
  2. Reviewing current recruitment strategiesand contingency plans for those who might not qualify in the future.
  3. Analyzing HR systemsfor the number of employees who currently:

Work in the U.K. on basis of European passport and have a long-term right to work, and so may not currently be tracked.

Work in the U.K. on an EEA Family Permit/Residence Card and have a time-limited right to work, and so should already be tracked.

Work within Europe on the basis of a British passport, but are managed from the U.K.

  1. Ensuring contact informationis up to date for any future communications with affected employees.
  2. Communicatingwith employees:

Employers can consider whether “leave” or “remain” will best serve their business and future job security for their employees, and whether it is appropriate to communicate the company’s position with employees.

Employers may want to prepare an all-office press release for either eventuality, to reassure both British and European employees. The aim should be to reduce panic and manage any transition. BAL can provide suggested text.

  1. Anticipating costsfor any future employment and migration law changes.

Additional information: BAL is running a seminar on the immigration impacts of Brexit on Monday and can provide advice on communications and strategy to minimize business and employee disruption in the event of a Brexit.

This alert has been provided by the BAL Global Practice group in the United Kingdom. For additional information, please contact uk@bal.com.

Copyright © 2016 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.