Recruitment on Brexit

Let’s face it, if the deal is done or not, will this really change much in the way of recruiting your next staff member?  The recruitment industry isn’t fazed; we know that if you plan to hire, it’s because you don’t have the capacity within the business to deal with work demand and by not having a fully equipped team in place only reduces productivity, which means sales revenue goes down.

Recruitment is always needed and if anything it’s the likes of the media adding fear into the mix, however, there are some pre-Brexit implications that need to be considered immediately:

Recognition of professional qualifications

At the moment we have a mutual alignment of professional qualifications within the EU member states, but if there is a ‘no-deal’, this will come to an end and to be honest may cause a few challenges.  However, the government will put a new UK recognition system in place for incoming EU nationals, and for people with UK qualifications you will need to check on the policies of the host country, which is vital for those hiring into Europe if there is a ‘no-deal’ situation.

At the moment we have a mutual alignment of professional qualifications within the EU member states, but if there is a ‘no-deal’, this will come to an end and to be honest may cause a few challenges. However, the government will put a new UK recognition system in place for incoming EU nationals, and for people with UK qualifications you will need to check on the policies of the host country, which is vital for those hiring into Europe if there is a ‘no-deal’ situation.

Freedom of movement

EU citizens currently have freedom to move around the EU, but this is likely to change and we will become less attractive for EU workers.  Deal or not, there will probably be a period of transition for a new immigration procedure coming into effect from January 2021.

Data Flow

Cloud-based services, European operations, any EU trade (incl. business partners) and outsourced functions that currently have data inbound and outbound using uniform standards of handling data will be effected without a deal.  Our government have announced that they will allow data outbound to continue to flow without additional measures, but businesses with data coming inbound from the EU will need to take guidance to make necessary steps in preparation.  Guidance plans from The Information Commissioners Office to help if there’s a ‘no-deal’ here.

Workers’ rights

Existing legislation will remain but will change to British law so need to worry in the short-term, however, these will likely change depending on which political party comes into power.  Companies with EU nationals in UK-based jobs should help their staff, if not done so already, by ensuring they have applied to the EU Settlement Scheme as shown here – it is free.  Those that meet the criteria the cut-off date is 30 June 2021; if there is a no-deal scenario then this needs to be completed by 31 December 2020.

Invoicing

A ‘no-deal’ dilemma will mean when invoicing to EU member states, the VAT will be impacted.  It does depend on your industry, for example recruitment benefits from zero rating whereby UK VAT is not charged at the point of sale.  This will unfold in the future but short-term we are unsure how, even if there’s a no-deal.

If you are looking to be bold in Brexit by hiring a new team member, but unsure how or even when, Gotcha is here to help.  Call us 01256 355522.