BREXIT WHITE PAPER: POST-BREXIT 2021 - Talent Mobility Considerations
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BREXIT
WHITE PAPER:
POST-BREXIT 2021
Talent Mobility Considerations
1
BGRS
CONTENTS BREXIT AND THE U.K. TALENT MOBILITY LANDSCAPE
Brexit and the U.K. Talent Mobility Landscape ................................3 From its first quarter, 2020 has brought The year of 2020 finally brought the promise of
transformational shifts for businesses and employees clarity as Prime Minister Boris Johnson led the
U.K. Business Readiness .............................................................3 in practices and behavior. Such new approaches may technical exit of the U.K. from the EU member body.
have otherwise taken years or decades to develop at The U.K. entered the transition period set to expire
COVID-19 Impact .......................................................................4 the normal pace of change. While businesses rapidly on January 1, 2021, when the impacts of the
pivoted to cope with impacts, the act of doing so has referendum decision will be conclusively realized.
Talent Mobility Delivery Changes .................................................5 brought fresh perspectives and opportunities to That left 2020 for negotiations to determine the final
rewrite the rulebook on established practices. With the terms of which legislation and rights could be
Immigration (Newland Chase) ....................................................5 presence of the COVID-19 global pandemic lingering, mutually agreed to continue, to be agreed by
we are all settling in to a “new normal,” and businesses November 2020.
EU Citizens Entering the U.K. ..................................................7 now need to turn to future focused activities. In the
United Kingdom (U.K.), this means re-engaging in As we will explore in the COVID-19 Impact section,
U.K. Citizens Entering the EU .................................................10 preparations for the imminent impacts of Brexit in the pandemic disrupted this schedule and superseded
January 2021. Brexit’s impact with its own immediate effects.
Brexit’s anticipated impacts on economic security,
Schengen Status ...................................................................10
While Talent Mobility functions globally have personal freedoms and movement, and perspectives
experienced unprecedented disruption in delivery, on data have all shifted in context of pandemic
Extended Business Travelers (EBTs) and Posted
those enabling programs into or out of the U.K. now adjustments.
Workers Impact .........................................................................12 need to ensure they are preparing for the end of the
Brexit transition period and the impacts still to be Immediate business reactions to Brexit following the
Extended Business Travelers (EBTs) ........................................12 realized. Brexit will drive a new immigration referendum revealed great concern from key U.K.
framework, compliance barriers and obstacles, cultural industries, with telecommunications, utilities,
Posted Worker Status .............................................................12 shifts, and evolving talent practices that will bring financial, and consumer services industries all having
delivery challenges and changes. revenue exposure levels of more than 50% to the
Social Security Changes ..........................................................12 EU1. In particular, the finance sector reacted strongly,
In this white paper we explore the role corporate as under all scenarios except the Single Market, it is
Intercultural Impact ...................................................................13 organizations can take in engaging with these changes expected to lose financial “passporting” rights,
and how they can support their people, specifically enabling it to operate in other EU member states,
What an Expat Coming into the U.K. Should Know....................13 through the value Talent Mobility can add. prompting members of this sector to engage in
contingency planning steps.
What Someone from the U.K. Moving to Mainland ...................14 U.K. Business Readiness
Europe Could Find These impacts have influenced Talent Mobility
Brexit has been a dirty word for many in the U.K. functions’ preparations for large-scale population
since the outcome of the referendum in 2016, when movement from the U.K. to EU in contingency
Diversity Impact ........................................................................14
voting to leave the European Union (EU) was planning — addressed in our Group Moves section.
concluded on an exceptionally close (51%) majority. Industry reactions varied, and BGRS has seen smaller
Virtual Working .........................................................................14
Since then, adjustments have been slow and initial volumes implemented in group moves than initially
reactions have been superseded by a series of planned within our client base. More recently, reverse
Group Move Profiles ..................................................................15
escalating business impacts. Public frustration directional moves (from the EU to the U.K.) have
followed due to delays in the negotiation of terms for been announced as planned or in consideration from
Data Treatment .........................................................................15
the U.K.’s departure from the EU, adamant political Netherlands-headquartered firms Unilever2 and Shell3.
positioning, three successive Prime Ministers and Whether or not directly influenced by Brexit
Conclusion ...................................................................................16
parliamentary cabinet reshuffles, and looming preparations, these intentions have been welcomed
restrictive impacts to come across all areas of as positive by the U.K. marketplace in light of
Preparedness ...............................................................................16 industry and legislation. concerns of businesses departing the U.K.
1 https://insight.factset.com/which-uk-industries-will-likely-be-impacted-by-brexit
2 https://www.dutchnews.nl/news/2020/09/unilever-nv-shareholders-vote-overwhelmingly-for-move-to-london/
3 https://uk.reuters.com/article/us-royal-dutch-shell-headquarters/shell-ceo-does-not-rule-out-moving-headquarters-to-britain-idUKKCN2450AI
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COVID-19 Impact A fifth are operating with internal business travel bans While respondents’ ability to forecast move volume Key points to bear in mind are:
allowing only business-critical moves, with just over indicates a confident perspective and preparedness,
half expecting these to relax by January 2021. While U.K. research institute, the Confederation of British n Free movement rights will officially end at 11:00
Talent Mobility delivery has significantly altered
there is no planned easing date for some, a quarter of Industry (CBI), has reported 20% of U.K. businesses p.m. GMT on December 31, 2020.
through the COVID-19 pandemic and changed
corporate travel bans in place are allowing for Talent consider they are less prepared for Brexit now than in n EU nationals living in the U.K. before December
predictions of both Brexit-related volume and impact.
Mobility exceptions, often with security or board-level January 2020 due the compounding effects of the 31, 2020, who intend to remain in the U.K., must
This reaction produced a different landscape than
approval. pandemic4. Regardless of preparedness, inbound and apply for pre-settled or settled status under the
expected on the exit date in January 2020. To measure
outbound U.K. moves are expected to be more EU Settlement Scheme.
the pandemic’s future impact, BGRS recently assessed
challenging due to reasons we will explore in this
our client base’s current delivery predictions and Surprisingly, nearly half (43%) predicted move volume n The deadline to apply under the scheme is June
white paper.
sentiment for the remainder of 2020. Almost a third for the remainder of 2020 to be comparable with 30, 2021.
(31%) emphasized that Talent Mobility remains critical previous years, either because initiations have n EU nationals traveling to the U.K. after December
for business strategy and enablement of talent. Cost continued or because surges in deferred volume were TALENT MOBILITY 31, 2020, will need to obtain a visa in advance for
scrutiny or reductions are starting to impact delivery, still expected through Q4 or into the new year. Some all activities except short-term visitor visits (for
with 14% citing focus in this area and a further 16% reported focusing more on repatriations until the end DELIVERY CHANGES business or tourism).
expecting to utilize alternative international move of 2020. However, a third (32%) expected volume to
Immigration n EU nationals will need to present a valid passport
types rather than the traditional long-term assignment decrease in comparison to the previous year, due
with at least six months’ validity when entering
(LTA) as a cost-avoidance measure. Permanent largely to the impact of backlogged moves. Volume
the U.K. and will not be able to rely on their
international transfers (PIT) were the preferred option, decreases are due to business decline from pandemic This section was prepared in partnership with Newland national ID cards.
but voluntary move types, increased self-service, impact or in line with overarching strategic changes to Chase Global Immigration Services.
extended business travelers (EBTs), short-term focus on hiring and developing local talent. A small
assignments (STAs), lump sum moves, and core/flex minority (5%) expected increases in volume based on
programs were all noted as assignment types being positive business impact from COVID-19 or due to
utilized to decrease costs associated with Talent pushing ahead with strategic goals despite pandemic-
From an immigration perspective, Brexit represents
Mobility in response to the pandemic. related setbacks. Around one in five were unsure or did
the ending of free movement for the U.K.
not specify predictions.
Talent Mobility delivery has also been significantly EU membership allows nationals of any member state
impacted by the physical shift to working from home of the EU to be employed in another member state on
5%
and virtual work capabilities, explored in our Virtual the same conditions as the nationals of that particular
Working section; however, while there has been high member state. Leaving the EU removes the U.K. from
interest in the evolving potential of virtual this arrangement.
assignments, only a very small portion (3%) reports 20%
implementing these so far. Domestic programs have 43% What happens to U.K. citizens already resident in the
been largely unaffected or are due to increase in EU, or EU nationals already resident in the U.K.?
volume as a reaction to pandemic business impact. A
small portion (3%) mentioned business plans focused While free movement technically ended on January 31,
on structural changes to succession planning and 2020, under the EU-U.K. Withdrawal Agreement, the
32%
talent pipelines in a domestic or regional approach rights of EU citizens resident in the U.K. and those of
rather than relying on Talent Mobility to solve talent- British citizens resident within the EU have been
sourcing challenges. extended and protected through December 31, 2020.
This means that — provided EU and U.K. nationals can
demonstrate they have become resident in the U.K. or
Corporate travel bans have not been unilaterally
an EU member state — there will be a route to apply
applied in internal policies, and many respondents Predicted move volume in 2020 to be for a long-term status leading to permanent residency
expect moves to naturally resume as countries are comparable with prior years
(extending also to close family members).
reopening. In fact, some reported initiating U.S.
Predicted volume to decrease vs prior years
domestic or intra-EU moves, focusing on where travel
For existing EU citizens already in the U.K., what next?
can happen rather than dictating where it cannot. Did not provide a prediction
Predicted an increase in volume for 2020 EU nationals can live, work, visit, and study in the U.K.
until December 31, 2020. They will continue to enjoy
free movement rights during the current transition
period and will not require immigration permissions
until January 1, 2021.
4 https://www.ft.com/content/efb74956-fb8f-41cc-a823-277346788fc9
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For U.K. citizens already in EU member states, up until EU Citizens Entering the U.K. The new framework provides changes to some existing
December 31, 2020, the EU Freedom of Movement route requirements and a new range of options,
(work and resident rights in EU countries) continues to including a new Skilled Worker visa and changes to
For EU citizens due to enter the U.K. from January
apply to U.K. nationals, whether they are currently some existing route requirements:
2021 and beyond, a new immigration process will
residing, cross-border commuting, seconded, or
apply. As a result of the end of free movement, the n Skilled Worker
moving to the EU.
U.K. has had to architect a new post-Brexit n Intra-Company Transfer (ICT)
immigration framework which treats EU nationals as
n Graduate
The Withdrawal Agreement approved by the EU and third-country nationals who will become subject to the
the U.K. aims to protect the residence and working n Youth Mobility
same immigration rules and restrictions as other
rights of U.K. nationals and their family members foreign nationals — a huge shift from the rights EU
residing or cross-border commuting in the EU before nationals have enjoyed over the past 40 odd years. Skilled Worker
the end of the transition period (December 31, 2020)
Highlights of the new Skilled Worker route:
and also extends these rights after the transition
The New U.K. Immigration Framework Skill level: The minimum skills threshold for qualifying
period through registration schemes that vary between
EU member states. As detailed above, the Withdrawal roles has been lowered from RQF 6 (degree level) to
Agreement registration scheme for EU nationals (EU From January 1, 2021, the U.K. will be implementing a RQF 3 (A level or U.K. school leaving qualification).
pre-settle and settlement scheme) was opened in the new Points Based System (PBS), styled on the This means that more roles will qualify for
U.K. last year; however, at the time of writing similar Australian PBS, which makes provision for points to be consideration, including business support and
parallel schemes for U.K. nationals have only been assigned for specific skills, qualifications, salaries, and administrative roles. It should also be noted that it is
launched in a few EU countries. Unfortunately, the shortage occupations. If not already registered, the role itself and not the applicant that needs to meet
COVID-19 pandemic has contributed to a delay in the employers must register as sponsors with the U.K. this skill level; therefore, an applicant may be qualified
implementation of such schemes for U.K. residents in Home Office online to be granted the ability to apply through formal qualifications or equivalent prior work
most EU countries. for immigration visas. These will then be awarded to experience.
those who gain enough points. On the surface, the new
system looks favorable in contrast to the current Tier 2 Minimum salary level: The minimum salary for the role
On July 9, 2020, the European Commission published sponsorship scheme, which is the main route for
an overview of the implementation of these schemes5 has been reduced from £30,000 to £25,600, although
companies to employ foreign nationals. However, there are role-specific salary thresholds (known as the
for U.K. nationals and their family members under the hiring of EU nationals from the U.K. will now be
Citizens’ Rights part of the Withdrawal Agreement. “going rate”) that must be met, and these may be
subject to the new framework, and as such, requires higher than the minimum set out in the rules. For
This additional information clarifies whether the some changes of employers.
scheme is constitutive or declaratory, deadlines for example, the “going rate” for a Solicitor is £34,300
applications under the constitutive schemes, and links whereas a Logistics Manager needs only to be paid
to national websites per EU member state. The Key adjustments to make in support of EU nationals £25,600.
minimum timeline to apply for the new residence based in the U.K.:
document protecting existing rights of U.K. nationals Resident Labour Market Test (RLMT): Previously,
will be June 30, 2021, and the maximum deadline n Employers must be registered for a Sponsorship sponsors had a time- and resource-consuming
varies across each EU member state. The national License with the U.K. Home Office to apply for requirement to advertise most roles in order to
websites of member states with a constitutive scheme the relevant visa. demonstrate there is not a suitable settled worker
provide information on the opening of their respective before they could hire a foreign worker. Under the new
n Additional cost for both visa fees and professional
applications. scheme, the RLMT is going to be abolished, removing
services support must be factored into future
employment costs. advertising requirements of 28 days and the burden of
However, this is where free movement ends, and a much more protracted recruitment process. This will
n Timelines for hiring of EU nationals will need to
immigration changes quite drastically. be welcome news to recruiters.
be adjusted to incorporate immigration
applications.
n Evidence of English language fluency should be Annual immigration cap suspended: Currently, the
assessed for moving candidates in support of the U.K. provides an annual limit of 20,700 Certificates of
application requirements. Sponsorship (CoS) available for companies to issue. At
least initially, there will be no restrictions on the
n Changes to hiring or application processes need
number that can be issued. This is positive news for
to be made to accommodate the PBS.
employers; however, the cap is only suspended,
n Education should be provided to business suggesting the government may re-impose a limit as
stakeholders to raise awareness of the new they deem appropriate should the political landscape
requirements and ensure the compliance risk is change. The cap was initially implemented to reduce
understood. net migration figures in line with the government’s
overall desire to reduce net migration to the tens of
thousands.
5 https://ec.europa.eu/info/sites/info/files/brexit_files/info_site/overview_ms_residence_rights.pdf
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Costs: The new scheme looks appealing at first glance, Graduates
but immigration into the U.K. comes at a cost. The new This re-introduces the previous Post Study Worker
policy confirms that both the Immigration Skills Charge route which was closed some years back. It is expected
(ISC) and the Immigration Health Surcharge (ISC) will to launch in the summer of 2021, this route will allow
remain in place. Costs to hire a non-EU national for five international students to extend their stay in the U.K.
years on a Tier 2 visa would be approximately £9,000. for a 24-month period (or 36 months if a PhD)
Add a spouse and children, and costs grow even higher. following the completion of their studies. Employment
For some organizations, this may be prohibitive and can be sought at any skill level, and graduates can
have a negative impact on hiring talent from abroad. switch into a sponsored work route. Highlights of this
particular “new” visa are:
English language requirement: Applicants will now
need to meet a basic level of English language n Unsponsored
proficiency. As EU countries are not deemed majority
n Can work at any skill level
English speaking, their applicants must provide
evidence of either an academic qualification (a degree n No maintenance requirement
taught in English) or an approved English language n No additional English language requirement
test. This could slow applications from EU states as n Can switch into work routes if eligible
applicants either need to have relevant qualifications
n Undergraduate and master’s degree students:
confirmed as suitable or sit and pass an English
maximum visa duration of two years
language exam.
n PhD students: maximum visa duration of three
years
Intra-Company Transfer Route
Youth Mobility Scheme
The Intra-Company Transfer (ICT) route will remain the
The Youth Mobility Scheme (YMS) is a temporary route
same as the current Tier 2 category. In order to be
which provides young people from participating
eligible, the applicant must have been employed for at
countries with an opportunity to experience life in the
least 12 months (or three months if a graduate intra-
U.K., enabling them to work and travel for up to two
company trainee) at the overseas sending company
years. The YMS is a reciprocal scheme, with its terms
before being transferred to the U.K. business on a
negotiated and agreed between the two participating
temporary basis.
countries, which enables young British citizens to
benefit from similar opportunities overseas. While
The U.K. role must be at a certain skill level (RQF 6) there have been some suggestions that this route will
and meet the minimum salary threshold of £41,500 include EU countries in the future, as noted, it is based
per annum (or £23,000 per annum for a graduate on a reciprocal agreement; therefore, it remains to be
intra-company trainee). There is no requirement for seen whether the scope of the YMS will include some
the applicant to evidence their English language or all EU countries under the post-Brexit framework.
ability. The question is whether this route will continue
to hold any appeal to U.K. businesses, as the eligibility
As business travelers, EU nationals will be given little
requirements are at a higher threshold than those of
preferential treatment over non-EU nationals. They
the Skilled Worker route. Also, and quite
will, however, be considered as non-visa nationals for
fundamentally, the route will not lead to settlement.
business purposes, and on account of this, are able to
The key differences under this new route are that:
travel freely to the U.K. on short-term business trips
without requiring prior entry clearance. On arrival, they
n ICT migrants will be allowed to switch into the will be allowed to stay in the U.K. for up to six months
Skilled Worker route from the U.K. (if eligible), and will be comfortably supported in typical business
which was previously prohibited. This includes trips of a few weeks. While this is good news, it is a
those already holding an ICT under the rules in change to the current free movement of EU nationals
place before January 1, 2021. who will have to satisfy U.K. Border Force Officers that
n ICT migrants can only hold an ICT visa for a they are a genuine business visitor. Travelers will be
maximum period of five years in any six-year asked standard questions concerning their intentions,
period (unless a high earner, which permits nine activity while in the U.K., duration of stay, and
years). frequency of travel. This may be a new concept to EU
nationals who have traveled freely to and from the
U.K. for many years without coming under such
scrutiny.
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U.K. Citizens Entering the EU n Despite already residing in an EU country, freedom The EU is also launching a new travel authorization
to travel across the EU/Schengen Area may also requirement due mid-2022 called ETIAS6 (similar to
be affected. Therefore, we recommend that the the U.S. ESTA requirement) to track travelers (separate
U.K. nationals moving to EU member states in the
new residence document certifying protections is to immigration requirements). Falling under the
future will be subject to the terms of each member
always obtained. This document will not only visa-free regime means that U.K. nationals will likely
state’s immigration requirements and treated as
protect U.K. nationals’ current rights in the EU also need to apply for ETIAS travel authorization
third-country nationals. U.K. nationals wishing to enter
country of the document issuance, but it will also before a trip to the EU once this new EU travel
an EU member state for work post-transition period
assist them to travel in and out the Schengen authorization is implemented.
will need to apply for work authorization like other
Area.
third-country nationals. They may qualify for short-
term work permit exemptions where available. Various Key adjustments to make in support of U.K. nationals
EU-wide policies and directives available to third- Any further enhancements to current U.K. residents’ based in the EU:
country nationals, in some cases not previously rights post-transition period may form part of the new
applicable to U.K. nationals, will now apply, including: EU/U.K. partnership but are unknown at this time.
n Consider work permit costs and timing if they are
required to work in or relocate to the EU after
n Blue Cards, national (for local hires), or national January 2021.
high-skilled immigration routes
Schengen Status
n Ensure U.K. citizens are properly registered in the
n Intra-corporate transfer permits (likely the best EU country where they are currently residing to
option for U.K. nationals on U.K. employment Beginning January 2021, U.K. citizens will be able to benefit from the new residence document
contracts working in more than one EU country stay in the whole of the Schengen Area on tourism or certifying their rights protection post-January
over the same period of time) business status for up to 90 days out of each 180-day 2021. Note: They can only work in their current EU
cycle. While no visa is required for this, there are country of residence. If working in several EU
n Van der Elst case law (for U.K. nationals residing in
specific entry requirements for U.K. citizens to the countries, a work permit may be needed for each
an EU country requiring to work in other EU
Schengen Area after the transition period: additional EU country where they do not currently
member states as part of a provision of service
contract) reside.
n Passports must have a validity of at least six n U.K. nationals frequently commuting to the same
months. EU country must be tracked and assessed to
Every country has its own immigration system, so
n Passports will be stamped at time of entry to and ensure their work is protected by the Withdrawal
Talent Mobility functions will need to ensure a process
departure from the Schengen Area and other EU Agreement after the transition period.
of checking inbound U.K. nationals into each particular
EU member state going forward. countries to keep track of the allowed 90 days out
of the 180-day period. There are positive aspects to the new rules as they
simplify some elements of the prior U.K. immigration
Going forward, despite the EU schemes for U.K. Travelers must:
framework, but there are also downsides for both
nationals currently residing or regularly commuting to Justify the purpose of travel
n employers and migrants. There is little that is positive
or within the EU, there are likely to be two important
n Show financial means for their stay for EU nationals given the loss of free movement rights
changes affecting their rights post-transition period:
n Have an itinerary for their stay and additional burdens of visa processing delays and
fees. And for U.K. nationals moving into or remaining
n Have comprehensive sickness insurance
n The right to work and/or residence protection as in the EU to work, there will certainly be additional
per the Withdrawal Agreement is, in principle, n Be able to prove the stay will not exceed 90 days administration, monitoring, time, and cost impacts.
only granted in the EU country where the new in any 180-day cycle in the Schengen Area Most importantly, there is the need for a mindset shift;
document certifying protection is obtained. U.K. the ending of free movement brings requirements that
nationals will only be authorized to work in their both employees (EU and U.K. nationals) and their
current EU country of residence and a work permit employers have not had to consider previously.
may be required in other EU countries where they Schengen Area Travelers and organizations will need to take time and
do not currently reside. Therefore, if an employee Schengen Area members have officially abolished all cost into account when looking at movement to and
has the right to work in Belgium but needs to passport and all other types of border control at their from the U.K. after December 31, 2020.
mutual borders. Members consist of the following
conduct work in another EU member state, they
countries: Austria, Belgium, Czech Republic, Denmark,
may need to apply for the right to work there Estonia, Finland, France, Germany, Greece, Hungary, For more immigration information on Brexit, please
separately. Iceland, Italy, Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, the Netherlands, Norway, Poland,
visit the Newland microsite,
Portugal, Slovakia, Slovenia, Spain, Sweden, and https://newlandchase.com/brexit/.
Switzerland.
EU countries not belonging to the Schengen Area are
Romania, Bulgaria, Croatia, Cyprus, and Ireland. In these
EU countries, stay per country would be 90 days in any
180-day period per country.
6 https://etias.com/what-is-etias/who-needs-etias
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Extended Business Travelers (EBTs) and Posted Those organizations that have a proactive approach Intercultural Impact Differences in regional culture and perception are a
Workers Impact will avoid increases in cost and time as well as risks of function
THEof these economic
BRITISH differences.
ISLES, UNITED KINGDOM, GREAT
increased penalties, compliance rulings against both BRITAIN, AND ENGLAND
Brexit has already impacted U.K. culture, and it is likely
Following the end of the transition period (December their organization and the individual employees in
to shift further as the profile of inbound travelers and The British Isles: Consists of the islands of Great Britain,
31, 2020), U.K. nationals will become third-country breach, and resulting serious damage to the market
immigrants changes over the coming years. U.K. Ireland, and over six thousand smaller isles. In total, 67
(non-EU) nationals. High-travel profile employees who and employer reputation. Talent Mobility sits at the
employment hubs, such as London or Manchester, are million people.
have enjoyed freedom of movement will lose the crux of tax, payroll, travel, and expenses. It is uniquely
some of the most diverse in the world, but traveling
ability. Employers will have to track and measure positioned to both recognize this risk and act on it Great Britain: The larger of the two main islands in the
further afield in the U.K. can be a different experience.
frequency, volume, and length of stay between the given the function’s process and data management British Isles accounting for 90% of the population (60.8
For minorities in the U.K., Brexit has brought questions million). Divided into three countries — all of whom are
U.K. and EU, which will require capabilities not position.
of identity to the fore, potentially creating a more part of the United Kingdom:
currently available in many organizations.
uncomfortable climate.
Posted Worker Status While it is important to avoid stereotypes, core trends
Extended Business Travelers (EBTs) in cultural values help us better understand the way
that people may react to and interact with one
Posted workers are those who are sent to carry out another, and such understanding contributes
Preparations for U.K. nationals currently residing in the work on behalf of their employer in another country significantly to relationship building and business 28% of the
U.K. but frequently working in different EU countries but continue to maintain employment terms and success on assignment. Individuals may behave population Scotland
(1.8 million)
are particularly challenging since they are neither entitlements as they would in the origin country. They differently, but certain cultural norms can be used to of the
9% of the
population
residents nor cross-border commuters to the EU and are covered under the Posted Workers Directive help understand behavior and strengthen working
island of (5.3 million)
Ireland
are not covered by the EU-U.K. Withdrawal (1996)7, which was revised in 2016 with updated relationships. BGRS’s Intercultural training programs
Agreement. EBTs make up the bulk of most companies’ reporting obligations. U.K. nationals will still be aid in establishing and deepening high-performing
travel profiles and risk arises when an employee’s subject to posted worker rules when posted to the EU. working relationships for the assignee and their team. N.Ireland
travel pattern breaches tax, social security, or The only difference being that a posted worker Programs deliver tailored support at the individual
immigration regulations. Determining who fits into a notification may not always be required in advance of assignee level and the program level, mapping existing
risk category can be challenging, and will require a the posting due to the fact that some EU countries cultural awareness levels to future needs profiles for 86% of the
Republic of population
systemic approach to capture all travel profiles with only request such notification for assignments from the assignee and their family. Training content can be Ireland (53 million)
the ability to identify risk factors and plot traveler within the EU. This translates as an advantage to delivered virtually and integrates coaching principles
profiles over time. Capturing individual data needs to U.K.-based employers posting workers in the future, as for sophisticated development of cross-cultural
extend to systemized reporting to provide intelligence it removes administration requirements of notifying Wales England
leadership capabilities. Such support will ensure your 72% of the
to and oversight of risk populations. local EU member states (but not the obligation to business travelers feel confident and equipped to population
(4.6 million) 5% of the
comply with the other requirements of the legislation). integrate into the U.K. culture, even as it may shift of the population
island of (3 million)
Governments are increasing their data-management over time. Ireland
capabilities as quickly as organizations. The anticipated
pandemic-driven economic downturn will be directing Social Security Changes
focus to cost reduction opportunities like corporate What an Expatriate Coming into the U.K.
Should Know United Kingdom: A fully independent sovereign state
compliance with tax and immigration regulations to Social security coordination post-Brexit is being made up of the three countries in Great Britain plus
eliminate penalties and additional processing fees. discussed as part of the new EU-U.K. partnership. If a Northern Ireland, reflected in its full name: United
BGRS’s proprietary TripWise solution provides tracking trade agreement is reached, there may be minimal An incoming assignee needs an awareness of the Kingdom of Great Britain and Northern Ireland.
of all business travelers and identifies immigration and impact to current processes. If no trade agreement is variety and drivers of prevailing identities in the U.K.
tax compliance risk at the point of determining travel. reached, or the new EU-U.K. trade agreement does not They need to have an appreciation of the constituent Everyone from England, Scotland, and Wales is also
This technology integrates with human resource include social security clauses, prior bilateral social nations of the EU, some knowledge of the impact of British, but not people from Northern Ireland who are
information systems (HRIS), travel, immigration, and security agreements signed by the U.K. and some of the history of how it has evolved, and ensuing Irish (despite also being U.K. citizens). People from the
tax partners’ systems through API connections, the EU countries would need to be reconsidered, or tensions. There are differences in the devolution of Republic of Ireland are simply Irish. None of these
allowing real-time analysis, tracking, monitoring, and new bilateral social security agreements would need to powers, resentments that accompany these, and groups, except for people from England, should be
reporting of the traveling workforce. be reached by the U.K. and each EU specific country consequences for a sense of national U.K. culture and referred to as English.
where no social security bilateral agreement exists. identity (for example the repeated question of Scottish
There is a bottom-line impact for businesses that do This area needs to be monitored carefully to assess risk independence). Since becoming a republic in the 1940s, the Republic of
not proactively maintain a culture of compliance, impact, and we advise Talent Mobility functions to Ireland (which shares a border with Northern Ireland) has
The U.K. has strong regional differences based on
which requires active measuring and adjusting of engage with their tax and social security provider operated as a sovereign state of its own. Though it is
history, and these are reflected in the economy. Service
should no agreement be reached. physically close to the U.K., the Republic of Ireland has
practice to adapt to changing tax and immigration industries dominate the richer cities and southeast of its own relationships and memberships with the United
regulation. the U.K. IT hubs have developed in London, Nations, the European Union, and other international
Cambridge, and Bristol, but the North can still organizations.
sometimes be viewed as characterized by large-scale
manufacturing, low skills, and unemployment.
7 https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1414663758884&uri=CELEX:31996L0071
12 13
BGRS BGRSUnderstanding the cultural values that underlie The framework has been announced without an initial Group Move Profiles However, should these decisions not be concluded
communities across the U.K. and those that connect cap of maximum application volumes; this will be before the end of the transition period, alternative
more diverse populations can be very useful in paving watched very closely politically as immigration transfer mechanisms would need to be in place to
One of the first reactions to Brexit in Talent Mobility
the way to successful interactions in business. Even volumes and control was an emotive driver for many ensure that data, including personal data from EU/EEA
program design involved building requirements to
amid the turbulence caused by Brexit, these values voting to leave the EU. Recent research shows the businesses, can continue to legally flow from the EU/
support mass moves of strategic groupings of
continue to include the concepts of fair play, impacts of immigration on the U.K. talent market and EEA to the U.K. For many organizations, the most
employees into potential relocation areas across the
understatement, humor, and anti-elitism (among many economy have been largely positive8, evidencing relevant of these mechanisms will be Standard
EU. These reactions came from concerns of industry
others). Due to English being the global lingua-franca immigrants earning proportionately significantly higher Contractual Clauses (SCCs) in order to legally receive
and regulatory restrictions or predicted shifts in
and Britain’s historical visibility, expats can sometimes than non-immigrants; however, public perception has personal data from the EU.
market volume and access due to Brexit departure
make assumptions and overlook deep cultural yet to align with this reality.
terms. As we enter the final quarter of 2020 and the
differences that impact attitudes to work time, self-
finalized terms of Brexit remain elusive, many Additionally, concerns have recently been raised that
promotion, relationships with colleagues, and those
Within diverse representative groups, the U.K. industries have moved forward with contingency the EU-U.S. Privacy Shield fails to protect EU citizens
higher or lower in the hierarchy. These differences may
promotes some of the world’s leading practices in legal planning of alternative talent sourcing, or less dramatic from U.S. government surveillance in the Schrems II
be exacerbated now that domestic politics and
protections and support across areas such as mental phased-move approaches based on most effective case raised at the European Court of Justice (CJEU or
attitudes have shifted under the pressures of a new
health and disability but open recognition of scenario planning. ECJ). The July 2020 ruling of this case invalidated the
British identity. Investing the time and effort in
challenges providing an environment of equitable Group moves may involve support from Talent Mobility standing adequacy decision with immediate effect -
intercultural training and research will be valuable for
representation for women, sexual orientation, race, soliciting interest of potential move populations, meaning this framework can no longer be relied upon
any expat coming into the U.K.
and ethnicity. As global representation widens due to selecting the appropriate candidates, scoping of for personal data transfers to U.S. businesses and
the anticipated broadening of trade, ties are requirements and services, and providing educational organizations. As the EU is still reviewing the U.K.’s
anticipated to strengthen with legacy Commonwealth data practices and confirming how EU standards of
What could someone moving from the U.K. awareness to employees considering their options to
relationships, likely increasing racial and ethnic move. Under Brexit, the Talent Mobility industry data protection must travel with the data when it goes
to the EU find? diversity. As employees come into contact with a overseas, this judgment has wider implications than
initially saw high concerns around the capacity of
broader range of people and cultures, BGRS’s programs service lines to support increased volumes, with an just the invalidation of the EU-U.S. Privacy Shield. It is
A British business expatriate may encounter can provide both individual perception and adjustment initial rush on service provisions such as housing a judgment that confirms the importance of safeguards
puzzlement by the Germans, disdain from the French, tactics, diversity-focused training, and awareness availability. The extended timeframe and ambiguous for personal data transferred out of the U.K.
and indifference by the Italians. The roots and drivers support across teams and local structures. nature of the expected Brexit changes has significantly
of these responses reflect the cultures of the different reduced this pressure, and a more phased movement BGRS has taken steps within our supply chain to ensure
nations of Europe, which are not homogeneous. A Virtual Working occurred as businesses took stock of their unique data compliance and effective continuity of delivering
German client of our intercultural trainers commented needs. our Talent Mobility support services. Any similar
that he could not believe that the British were Our workplaces have transformed over the past ten suppliers should be conducting the same contingency
prepared to joke about Brexit, as in Germany the months, and the move to normalizing virtual working plans to ensure compliance through the transition
response would have been extreme angst. Many practices has created new possibilities but also Data Treatment period. The culture of attention to data management
Europeans have expressed shock, and some have demands new capabilities as organizations have been and protection is clearly increasing globally and
expressed a belief that the U.K. was irrational to vote forced to adjust their models and behavioral practices. requires ongoing engagement to ensure the upcoming
to leave the EU. Britain is likely to become less EU data protection laws, including the General Data
The hiring of “Head of Remote Working” roles is on the rulings related to Brexit are addressed in Talent
significant to Europe as a result. However, the U.K. Protection Regulation (GDPR), have continued to apply
rise, a title most had not encountered before Mobility service delivery changes.
market also cannot be ignored due to the size of its throughout the transition period alongside the U.K.’s
experiencing lockdown. Should distancing continue
economy. Data Protection Act 2018. After the transition period,
through early 2021, new arrivals into the U.K. or across
GDPR will be retained in U.K. law with technical BGRS continues to monitor the current EU review
Europe may find themselves joining remote
amendments to ensure it can function in legislation, closely and will provide further updates to Talent
workplaces, and decisions may be needed on whether
Diversity Impact and the U.K. government has stated it is committed to Mobility stakeholders as decisions are forthcoming on
physical relocation is beneficial. Talent Mobility
high data protection standards. any actions necessary to protect compliant transfer of
functions are rapidly moving to adapt value in
data in relation to Brexit impacts.
Talent Mobility leaders tailoring their programs to assignments in response to the new balance of remote
support a culture of diversity, equity, and inclusion working or virtually designed assignments. They are The EU’s data adequacy assessment of the U.K. is
(DEI) should take note of these shifts affecting U.K. translating developmental value, along with underway, and the U.K. government is confident that
move profiles. From the indications above, there may knowledge and relationship-sharing benefits, into new adequacy decisions can be concluded by the end of the
be stronger — and possibly more negative — reactions assignment structures. The increasing need for data transition period. This would allow for the free flow of
in the U.K. to immigrants. While the new immigration capture and monitoring of movement due to Brexit personal data from the EU/European Economic Area
framework applies increased structure and procedural changes will be even more important to capture in (EEA) to the U.K. to continue without any further
control of EU travelers, it will also expand access to virtual work arrangements, which may be more fluid action by organizations.
work in the U.K. more easily to a wider global migrant and could see repeated return activity, creating
population. increased risks in immigration and social security
breaches.
8 https://www.theguardian.com/money/2020/sep/20/about-a-quarter-of-the-uks-top-earners-are-migrants-data-shows
14 15
BGRS BGRSCONCLUSION n Adjust processes to capture new steps of
increased time required for processing,
n Business travel processes
n Virtual or remote working processes
touchpoints, vendor relationships, and internal
January 2021 will likely bring some short-term impacts
communication steps to address the change in
in supply chain delivery. BGRS continues to monitor REPORTING AND DATA:
process for EU and U.K. nationals.
those impacts and will provide specific advice through
late 2020 as we approach the transition date. Overall, n Prepare communications for your process n Consider what types of data you already have
Talent Mobility functions have demonstrated stakeholders and business to alert them to the available that will help you reach out to the
remarkable resilience through an unpredictably coming changes in process and how their roles will appropriate stakeholders to demonstrate the case
disruptive year, and great steps have been made in evolve. for changes needed. Such data may include:
moving delivery forward through confusing and n Reassure any EU nationals already in the U.K. of n Volumes of employees
difficult periods. their rights via the settlement scheme and direct
n Cost of increases
them to the U.K. government websites for
comprehensive guidance. n Time cost of processing increases
The impact of Brexit will largely be determined by
n Reassure U.K. nationals already resident in EU n Risk profiles of penalties
market reaction and internal preparedness levels. You
can have confidence that the Talent Mobility industry countries of their reciprocal rights and the n Demographics most impacted
is well geared to support businesses through requirement to register in their local country. n Understand which data is currently captured and
additional waves of change and that it will capitalize any gaps that need to be addressed due to the
on the opportunities the changes present. Below we BUSINESS TRAVEL: new requirements around Brexit:
outline key steps to guide your Talent Mobility strategy
n Assess current business travel tracking capabilities n Ensuring nationalities and immigration
in preparation for Brexit in January 2021.
and consider increased risk potential based on status is captured
your organization’s travel patterns. n Multiple nationalities
As always, BGRS welcomes the opportunity to partner
n Beginning January 1, 2021, British nationals going n Working locations
with you in developing your delivery objectives. Please
to the EU or inbound EU nationals to the U.K.
engage with your BGRS representative or reach out to
need to meet business visitor criteria or obtain
us for tailored advice if needed. COMMUNICATIONS:
work authorization. Employers need to be
prepared to demonstrate a duty of care and n Many organizations have operated a cross-
ensure employees feel safe and able to comply functional response to Brexit preparations due to
PREPAREDNESS with any health screening or quarantine measures. the wide-ranging impacts. If your function has not
n Reach out to BGRS for more information on our been engaged cross-functionally, reach out to
IMMIGRATION:
TripWise solution to support your entire business leadership across your Communications, HR,
n Check that you have a U.K. sponsor license to traveler population manage increased compliance People, Talent, DEI, Tax, and Finance functions to
apply for visas under the new immigration requirements. work collaboratively.
framework. Delays are expected given the volume n Ensure increased risk areas are addressed. In some
of new applicants; however, current Home Office cases (e.g., business traveler practices), behavior
processing has accelerated due to pandemic TALENT PLANNING:
of either business stakeholders and/or employees
border restrictions, so now is a good time to take n Engage Talent Mobility in your organizational will need to change. Communications should be
action. workforce planning by reaching out to talent developed to help raise awareness of the changes
n Assess the new U.K. visa types available to stakeholders and alerting them to the impact of to risk profiles and the responsibilities within the
understand how your talent needs can best be changes regarding availability of talent sources business to adapt.
accommodated and what changes are needed in and additional costs. Skills shortages should be n Consider where processes are changing, including
preparation for the new requirements. assessed to capture any gaps in adapting to specific touchpoints with stakeholders. Consider
n Assess EU member state requirements and post-pandemic working structures and capabilities how changes will be communicated (e.g., policy
timelines for U.K. citizen moving to or taking up that Talent Mobility can support. amendments, trainings, process guides/manuals).
residence in the EU. n Engage with diversity, equity, and inclusion Consider multiple channels for communications to
n Ensure budgets are adjusted to account for stakeholders internally to consider the cultural ensure the message reaches stakeholders
increased costs in your visa volume due to the new changes expected to impact Talent Mobility effectively.
U.K. framework. delivery and how move profiles of inbound talent
may change and impact internal programs.
KEY AREAS TO WATCH IN A NO-DEAL
GOVERNANCE: OUTCOME:
n Consider changes needed in approval processes or n Social security status for U.K. outbound travelers
stakeholder engagement given the evolving risk n Data protection
landscape, including the value of applying cross-
functional approvals to:
16 17
BGRS BGRSABOUT BGRS BGRS develops and implements comprehensive talent mobility solutions for corporate and government clients worldwide. Our Talent Mobility Consulting practice empowers clients to leverage their investments that bridge Global Mobility and Human Resources. By combining deep industry experience and unparalleled insights on the future of talent mobility, we enable our clients to design mobility programs that empower them to attract, retain, and develop top performers. With more than 1,400 people across six continents, we blend global perspective with local market strength. To find out more, visit www.bgrs.com Legal Disclaimer BGRS does not provide legal or tax advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for legal or tax advice. Please consult your own legal and tax advisors should you have questions related to anything contained herein. To find out more, visit www.bgrs.com ©2020 BGRS. All rights reserved. 18 BGRS
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