The United Kingdom’s departure from the European Union, commonly known as Brexit, has significantly altered the landscape of global mobility, particularly for businesses operating between the UK and EU countries. HR professionals must navigate a complex web of new regulations, administrative hurdles, and potential challenges when moving employees across borders. This article will delve into the key changes that have resulted from Brexit and provide actionable insights for HR teams to ensure compliance and minimize disruptions.
One of the most profound impacts of Brexit is the termination of the freedom of movement within the EU. This means that EU citizens can no longer freely move to and reside in the UK without obtaining a visa or work permit. Similarly, UK citizens require appropriate documentation to relocate to EU countries.
The UK has implemented a new points-based immigration system, which aims to attract skilled workers and reduce reliance on low-skilled labor. This system has introduced various visa categories, including the Skilled Worker visa, the Global Talent visa, and the Health and Care visa. HR professionals must carefully assess the eligibility criteria for these visas to ensure that their employees meet the necessary requirements.
For EU citizens and their family members who were residing in the UK before the end of the Brexit transition period, the EU Settlement Scheme offered a pathway to secure settled status or pre-settled status. However, the deadline for applying under this scheme has passed. Those who did not obtain settled status or pre-settled status may face restrictions on their rights to work, access public services, and remain in the UK.
The rules governing social security coordination between the UK and EU countries have also changed. This affects matters such as pension rights, healthcare coverage, and unemployment benefits. HR professionals must understand the new regulations to ensure that their employees are protected under the appropriate social security systems.
Brexit has introduced new tax implications for individuals and businesses involved in cross-border mobility. These changes may include adjustments to income tax, corporation tax, and VAT. HR teams must consult with tax experts to understand the potential tax consequences of moving employees between the UK and EU countries.
Before relocating an employee, HR professionals should conduct thorough due diligence to assess the eligibility requirements and obtain the necessary visas or work permits. This includes understanding the specific rules for the employee’s nationality, occupation, and duration of the assignment.
A comprehensive global mobility policy can provide clear guidelines and procedures for managing international assignments. This policy should address issues such as visa and work permit applications, tax compliance, social security contributions, and employee benefits.
Engaging immigration specialists can help HR teams navigate the complex immigration landscape and ensure compliance with the latest regulations. These experts can provide guidance on visa applications, documentation requirements, and potential challenges.
The immigration landscape is constantly evolving, so HR professionals must stay informed about any changes to regulations and requirements. This can be achieved through regular monitoring of government websites, industry publications, and consulting with immigration experts.
In some cases, alternative arrangements, such as remote work or international contractors, may be a viable option for businesses seeking to maintain a global presence while minimizing the complexities of employee relocation.
Brexit has significantly impacted global mobility between the UK and EU countries. HR professionals must adapt to the new regulatory environment and implement strategies to ensure compliance and minimize disruptions. By conducting thorough due diligence, developing effective global mobility policies, and utilizing expert advice, HR teams can successfully navigate the challenges posed by Brexit and maintain a competitive edge in the global marketplace.
