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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.
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:
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.
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.
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:
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.
Legal
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.
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.
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.
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.
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.
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.
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.
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:
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:
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.
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.
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.