New Tasks And Opportunities For Companies Post-Brexit
Recent news shows that while the extension to figure out a Brexit deal may be welcomed by some, this isn’t the case for the business world. The UK’s services sector has seen a slump, and the ongoing uncertainty on what exact form Brexit will take is largely to blame. However, in business, it pays to be proactive. Here are some of the things that business with UK operations can do in the wake of a looming Brexit.
How to React
How exactly companies choose to react to Brexit is largely based on their relationship with the UK. Here are examples of some of the main categories of professionals and what they need to focus on.
EU Nationals working in the UK: This will largely depend on whether we see a “Deal” or “No Deal” Brexit. In the event of a “No Deal,” which seems more likely, given recent events, residents before Exit Day will have the right to work, but must be settled or pre-settled by December of 2020. For those who arrive after Exit Day, they will have a temporary right to work. A “Deal” will result in a flat right to work until December 2020, and these people need to be settled or pre-settled by June 2021.
Businesses in the EU: Many businesses in the EU need to adapt for the sudden loss that they will experience when Brexit occurs. For example, statistics show that Brexit is going to cost Germany 10 billion euros per year. Brexit could mean losing customers/clients, so businesses need to have a backup plan now. In addition, for UK businesses, British entities have been allowed in the UK up to this point. That may change now.
US Businesses: The UK made for a great entry point into the EU due to common languages and similar regulatory systems. However, with Brexit taking this off the table, American businesses may need to think about an alternative country, or whether business in the EU makes sense at all.
There are a few common steps that all companies should take with Brexit on the horizon as well. Some of these include:
- Prioritizing staff to move and secure immigration status for
- Looking at mobility provisions in current staff contracts
- Preparing for a temporary service gap
- Looking for changes in immigration law across the EU
For various reasons, one of the most difficult tasks that may accompany Brexit for a lot of businesses is the decision to be proactive and leave the UK altogether. Statistics show that one out of eight German firms is planning to leave the UK, with Brexit as a primary reason.
However, for some companies, the decisions may not be as easy. There’s the potential risk of a language barrier, as well as the compliance barriers that make it long and difficult to hire expats across the EU. Some companies get around this by setting up an entity, but for companies trying to relocate post-Brexit, this isn’t a time-efficient option.
The ideal alternative in this regard is using a Global Employer of Record (GEOR) to facilitate your relocation or reorganization. No matter what EU country you decide to move operations to, you can skip a lot of the bureaucracy and move all your top employees to your new location. To make this happen, the GEOR serves as the registered legal employer for the worker. This means that they take on the responsibility of
- Immigration requirements/compliance
- Maintaining foreign employment, in any country
However, your company maintains control in the most essential areas, including:
- Assigned Duties
In the wake of Brexit, many companies are scrambling to find a more stable place to do business. A Global Employer of Record solution is the best way to accomplish this, and Acumen International is the best GEOR on the market. Whether you want to relocate as a bridge option while you continue to plan, or have permanent plans to establish roots in Germany, the Netherlands, or other countries, we can help. Don’t let visa/immigration processes hinder the scaling of your business.
Since Brexit developments are happening day by day, we know speed is important. Because of this, we make it possible to onboard expats in the EU as fast as 72 hours after submitting your initial request. This means:
- Lower employment risk
- Quicker speed for projects
- An emergency employment option-in any country