The European Union’s cumbersome withdrawal process that seems to have stalled the UK’s secession plan ahead of 29 March 2019 deadline.
Amid Brexit uncertainty — as Theresa May’s parliament is yet to agree on terms and conditions for exiting the political union, a report from Acumen International (a global employer of record) shows that non-UK residents such as Americans and other nationals doing business in the affected regions will face problems from:
EU-derived laws: Legal developments on how employers of labour in the UK and EU will pay holiday allowances highlight serious Brexit issues. This is more so because lawmakers are yet to resolve or harmonize employment terms and conditions. Therefore, workers on both sides of the divide will suffer Brexit consequences depending on their choice of location and/or if they choose to switch from one employer to another.
Impact on Companies with businesses in the UK
Foreign nationals who operate businesses in the EU and UK will have problems with movement of people and goods across borders in Scotland, Wales and Northern Ireland because voting outcomes in these countries will affect employment laws, court systems, immigration laws and employment tribunal.
- Mergers and acquisitions: The “Agency-Worker Regulations” in post-Brexit UK and EU will affect how temporary workers are sourced from employment agencies, for example, companies registered with the European Works Council (EWC) will lose certifications to hire UK citizens and vice versa.
- Visa issues: Foreign expats working in either of the two regions will need visas at the borders.
- Fund transfers: Movement of funds and goods between the two sides will be costlier with unnecessary checks, tariffs and quality control.
- Sales: Products manufactured in eurozone, for example, may no longer appeal to the UK consumers which make up over 60% of the market for EU products.
- To properly protect their organizations, international businessowners in post-Brexit Europe should consider timely review of all workplace-related policies on discrimination, bullying and social media usage.
- Employers and workers should study existing immigration laws and monitor employment-related developments to control Brexit consequences.
- Data protection laws should not be taken for granted.
Solutions by Acumen International
According to the global employer of record, UK’s status as a business hub in Europe makes it a strategic location for American companies. Thus, a stronger bond with the US will reduce Brexit consequences if Britain:
- Strengthens and consolidates its banking and legal systems
- Improves its business environment by reducing taxes
- Adopts US employment laws
- Maximizes the availability of a diverse workforce
- Finds a perfect “soft Brexit” to ease access to EU markets
*Written by Meziesblog in October, 2019