The Brexit news we had all been waiting for was finally delivered on Christmas Eve. The EU-UK Trade and Co-operation Agreement (TCA) signalled the start of a new relationship, so how will the trade deal affect recruitment agencies?
The Brexit news we had all been waiting for was finally delivered on Christmas Eve. The EU-UK Trade and Co-operation Agreement (TCA) signalled the start of a new relationship, so how will the trade deal affect recruitment agencies?
Although the dreaded ‘no deal’ scenario was averted, there will still be challenges ahead. Here, we cover the most important areas:
Did the Brexit deal cover recruitment?
Much of the TCA framework focused on goods or products, rather than business services which account for around 80% of the UK economy. This means that much of the detail affecting the recruitment industry has yet to be ironed out.
The Brexit deal has been described as a framework, with Chancellor Rishi Sunak revealing the need for deals on financial services to be added in the future.
Can UK firms continue to trade in the EU?
There is plenty of scope for operating on the continent without the need for an office in an EU state. For example, rules around travelling as a business visitor appear generous, as long as stays do not exceed 90 days in any 180-day period.
Multi-national agencies may require staff to work for extended periods in EU states, so they will have to record this time to avoid the 90-day threshold. It won’t be as easy as simply transferring staff to a European arm.
The TCA bans temporary stay provisions where a contractor has been ‘parachuted’ in by a UK company. Workers needs to be employed for 12 months before being parachuted, or to be engaged on a self-employed basis. Stays can only last as long as the project, up to a 12-month time limit, and workers must possess a minimum amount of experience.
How will EU workers in the UK be affected?
All EU nationals currently in UK-based employment are being urged to sign up to the EU Settlement Scheme. For those who meet the stated criteria the deadline is June 30, 2021. The UK Government has committed to protecting workers’ rights, both for EU nationals in the UK and for British workers on the continent.
Essentially, right to work rules remain the same until July 2021. Recruitment agencies will need to prepare for changes when the deadline expires.
To find out more about workers’ rights in post-Brexit Britain, read our blog: Workers’ rights post-Brexit: what will happen?
Can UK firms still hire EU staff?
Employees of an overseas service supplier and self-employed contractors from the EU can work in the UK if they comply with the following:
To find out more about how freedom of movement will change, please read our blog: Freedom of movement: what will happen after Brexit?
What other areas are covered by the Brexit deal?
As you will have seen during coverage of the Brexit news, the framework leaves as many questions as answers, but here is what we know so far:
What next?
If you have any questions surrounding any Brexit news, the UHY Hacker Young Recruitment Business team are always on hand. We are specialist accountants who offer recruitment and employment businesses dedicated expertise in area such as accounting, finance, taxation and business growth.