Post-Brexit HR and Employment Changes: What Employers Need to Know

The EU-UK Trade Agreement was finalized on 30 December 2020, marking the end of the UK’s transition period out of the European Union. This agreement covers key areas like trade, fishing, agriculture, aviation, and transport, ensuring the continued relationship between the UK and the EU. It also addresses future dispute resolution and sets new rules around intelligence-sharing between UK and EU security agencies.

One of the main concerns after Brexit is its impact on UK employment laws. Many worry that with the UK no longer bound by EU regulations, workers’ rights might be weakened. These EU laws have protected UK workers for years, and there is fear that these protections could be reduced under new post-Brexit rules.

How Brexit Affects UK Employment Law

Before Brexit, the UK had to ensure its laws followed EU regulations. However, going forward, the UK will have more freedom to make its laws. Still, employers must consider how any legal changes might affect their relationship with the EU.

The withdrawal agreement ensured that EEA nationals (those from the European Economic Area) living in the UK before the end of the transition period would continue to have their rights protected. However, under the new EU-UK trade deal, EU nationals can no longer freely move to the UK. They will now be subject to UK immigration laws, just like other non-UK nationals.

What HR Managers and Employers Need to Do

This is an important time for employers to understand how Brexit affects their workforce, especially in terms of retaining current EEA employees and hiring new ones from abroad.

1. Check the Status of Current EEA Employees

If you already employ EEA nationals, make sure you review their right-to-work status. EEA nationals living in the UK before Brexit had to apply for “settled” or “pre-settled” status under the EU Settlement Scheme by the 30 June 2021 deadline. Without this status, employers cannot legally employ them after this date. If your employees have not applied yet, they must do so immediately.

2. Hiring EEA Nationals After Brexit

From 1 January 2021, EEA nationals can no longer be hired from overseas without a visa. If you want to hire EEA workers, you will need a sponsor license from the UK Home Office. To get a sponsor license, you must prove that your job offer meets the required skill level and salary thresholds.

Make sure your HR team is ready to apply for a sponsor license if you don’t already have one. Having this license allows you to sponsor EEA nationals who do not have free movement rights to come to the UK and work.

Brexit has brought significant changes for HR teams and employers in the UK. It’s crucial to stay updated on new immigration rules and ensure that you are complying with the latest employment laws. For assistance with hiring or retaining EEA nationals, or to apply for a sponsor license, you can contact Law and Visas for expert guidance.

By staying informed and taking the right steps now, you can ensure that your business continues to thrive in the post-Brexit landscape.

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