As Theresa May swears in to take up the job that no one else really wants, the British Exit (or “Brexit”) from the European Union (EU) is set to move inexorably ahead. So, it’s high time we accept the facts and look at the possible impact Brexit may have on hiring, talent management and overall workforce management best practices for the UK as well as the EU.
The UK will not allow other EU nationals to enter the UK without immigration permissions to work in the UK and vice versa. If the Europeans who already form a huge part of the skilled and unskilled workforces currently in the UK are forced to leave, the businesses in the UK may find it hard to manage the time, cost and effort required to replace them, unless the UK and EU negotiate an agreement that doesn’t affect the movement of employees in and out of the UK. Then there would be no real impact of Brexit on the recruitment and workforce management practices and talent strategies of either region.
Unless the Brexit contract negotiates an agreement which allows free movement, the effect of Brexit could prove severely restrictive on the contingent and agency workers in the UK and the businesses which depend on the right skills to ensure their growth and success.
Many of the current laws related to contingent workers and agency workers were based on EU legislation. Post-Brexit, the UK may or may not retain some of them; while there are some local HM Treasury laws, such as the recent value-added taxes on the staffing sector, which may stay affected. Same is the case with the national minimum/living wage and pension system as well as the 2003 Conduct Regulations and Employment Agencies Act of 1973 which regulates who and how much staffing companies can charge.
Some EU-derived laws and market conditions, as detailed below, may suffer setbacks:
As of now, one in eight of the workers in the UK are EU nationals. As incidents of racial discrimination destroy the expectation that EU citizens who are already in the UK, before the Brexit vote, can continue to remain in the UK legally. The magnitude of change required by Brexit gains some perspective when we consider the plight of the 257,000 EU nationals who moved to the UK over the last 12 months – and many more like them on both sides of the English Channel!
What other implications on the workforce do you foresee occurring with Brexit?
Mail (will not be published) (required)
+ nine = 17
Thanks for Subscribing to DCR Blog.