As the deadline for the United Kingdom’s departure from the European Union approaches in October, the impact of Brexit on businesses is becoming increasingly clear. Amidst the ongoing uncertainty and confusion, companies employing remote workers are particularly concerned about their future success. It is essential to consider how this separation may affect their operations, as any modifications to trade agreements with other nations could directly impact an organisation’s ability to recruit remote staff from overseas and the prospects of those currently in remote roles. Therefore, companies need to be aware of the possible implications of Brexit and well-prepared to adjust to any changes in order to remain competitive.
Brexit has far-reaching implications for the working world. Among the many complex issues that arise from this separation is the need to renegotiate current contracts. After the UK’s post-Brexit trade agreement negotiations are finalized, numerous corporate contracts will require updates to conform with the new changes. This is a formidable task that will need significant effort and resources to resolve.
Furthermore, once the UK is independent of the EU, its work regulations may undergo changes. Many of the country’s existing laws, such as the Working Time Directive, were inherited from the EU. Therefore, significant alterations to pay and conditions after Brexit may be expected.
Historically, a substantial portion of the United Kingdom’s (UK) workforce has been made up of EU migrants, providing the country with considerable benefits. Nevertheless, in recent times, the number of EU workers in the UK has significantly decreased. This situation has consequences for both employers and employees. Companies may face challenges in filling skill shortages, while staff may experience decreased job security and heightened competition for available positions. Consequently, it is crucial to examine the possible impact of this decline in EU migration on the UK’s employment scene.
Several Questions Still Lack Answers
Despite more than three years passing since the UK voted to exit the European Union, and with only four months left until the latest extended departure date, a substantial amount of uncertainty still exists about what Brexit will entail. The uncertainty is made worse by the lack of agreement among the UK Parliament on a plan supported by a majority of MPs. Hence, there is a possibility that the UK could exit the EU without a formal agreement.
At the same time, a growing trend to abandon Brexit is emerging in the United Kingdom. The Labour, Liberal Democrat, and Green parties are advocating for a second referendum on the conditions of the UK’s exit, with the option to remain being presented as an alternative. It remains possible that the UK might not ultimately depart from the EU.
Due to these factors, making predictions is challenging at best. With a trade deal in place between the EU and the United Kingdom, the amount of paperwork required will be significantly decreased. However, if the UK exits without one, the situation will be significantly different.
UK Human Resources
The number of European Union nationals coming to the UK to work has declined by a massive 95%. Besides the decline in diversity, the subsequent result is that there are now fewer candidates per job opening. This reality has led to a skills shortfall that the UK is heading into, with 44% of employers reporting difficulties in recruitment.
Due to the present market conditions, companies are raising salaries to entice and retain staff. They are also providing more flexible working hours to help with employee retention. While a considerable portion of EU workers are engaged on a temporary basis, a significant number of highly skilled personnel are also coming from Europe. Approximately half of job applicants are applying for medium-skilled positions, and one-quarter are applying for high-skilled roles, as calculated.
To tackle the skills shortage, UK companies may need to consider novel methods. One option could entail hiring workers from abroad to fill any vacant roles without raising immigration figures. Additionally, there might be a rise in the number of ‘test-and-hire’ schemes, enabling potential employees to engage in remote work for a period before being officially hired.
Teleworking UK Businesses
Membership in the European Union (EU) had a significant impact on employment law in the United Kingdom. Many of the laws that improved the lives of employees, such as working hours and parental leave, were directly derived from the EU. However, will this change after Brexit? It is entirely conceivable. The nature of any changes made to support either workers or businesses will be determined by the composition of the government in power.
As the European Union has already entered into trade agreements with over fifty nations, the United Kingdom will have to negotiate its own arrangements when it departs. This has the potential to create a lucrative opportunity for the legal industry, as companies will need to review their contracts. Unfortunately, it could pose certain challenges for those offering remote staffing services in the gig economy.
Currently, businesses in the European Economic Area (EEA), the European Union (EU), and Switzerland have a contract that enables them to hire ‘Frontier Workers’ – i.e., staff who reside in a different location than the business but in the same geographical region. This implies that it is permissible for a firm in the United Kingdom to hire workers from the European Union, and for EU businesses to employ UK staff.
Despite this, there is still a lack of transparency regarding the future of this agreement, particularly in light of Brexit. It is probable that some form of registration process will be required to guarantee that UK citizens residing overseas and EU citizens living in the UK will still be permitted to reside in the UK.
Possible Contributions by Works
At Works, we are dedicated to assisting businesses in locating and hiring top talent from anywhere. We conduct extensive initial interviews to ensure that potential hires not only possess the required technical skills but also align with the company’s culture. Our services, however, go far beyond that. As Human Resources may not be well-versed in the legal and technical aspects of recruiting from foreign backgrounds, we can provide assistance and handle all necessary paperwork for you.
Are there going to be significant concerns with Brexit? Consider us your personal aspirin for this issue. Because we are a Canadian firm, no trade agreements need to be negotiated between us and the UK (and even if they were, it would be extremely polite). It doesn’t matter where the person works, we will continue to alleviate all of the stress associated with the situation.
If the United Kingdom’s departure from the European Union has resulted in a shortfall in your staff and you require top-notch technical expertise to fill the void remotely, please don’t hesitate to contact us right away. Both my colleague and I are eager to provide help.
