03 November, 2016
After the decision to leave Europe in June, employers and individuals alike are still in a period of uncertainty surrounding the affects the decision will have on both their business, and their global mobility schemes.
Whilst the results and outcomes of the vote are still not clear, and there are further changes anticipated over the next two years, there are many things for employers to consider at this point:
Until the official exit date, EEA nationals can continue to live and work in the UK and vice versa. However, it’s important to offer support to your EU workers and ensure that they are clear on their status in the UK. Eligible European citizens who have been working in the UK for more than 5 years are advised to apply for permanent residency now, securing their right to live and work in the UK indefinitely.
Exchange Rate Queries
Assignees may have noticed a drop in their take home wages since the Brexit announcement, due to movement in the market exchange rate. They may look for an additional level of compensation for this, or request that they are paid in their home country currency. The employer should establish what level of protection is available, and explore whether increased allowances for assignees is viable for the business.
There is still much uncertainty surrounding the impact of leaving the European Union on social security, for EU nationals living the UK and UK nationals living in EU countries. It is impossible to predict what will happen in the medium to long term, but in the short term, all current social security arrangements will remain as they are. It is possible that the UK could follow Norway’s approach, where free movement of people has to be accepted by the UK. The other option would mean leaving the EAA and involve a complete renegotiation with all countries individually.
The Government will no longer be required to provide the UK personal allowance and other tax reliefs to EU nationals whilst they are working here; these may be restricted to UK nationals and residents only.
If you have concerns about how the Brexit decision will affect your employees, contact us today.
Clearview Relocation’s expert team of relocation consultants will provide practical guidance on how to best deliver the perfect relocation package, keeping in mind any concerns that have arisen since the Referendum.
Visit our website www.clearviewrelocation.com or call us on 01635 239040