Employing People from the EU after Brexit

Post Author:

Rona Burns

Date Posted:

March 26, 2021

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Categories:

Brexit , Company News

What you need to know

As a result of Brexit, the rules for hiring people from EU countries have changed. Some of the key issues for employers and employees/workers are considered in this blog.  

KEY POINTS

Staff employed in UK before 1 January 2021

  • The rights and status of EU, EEA and Swiss citizens who were living in the UK by 31 December 2020 will remain the same until 30 June 2021.
  • If they apply to the EU Settlement Scheme successfully, they will be able to continue living and working in the UK after 30 June 2021.
  • On application they will get settled or pre-settled status depending on how long they have been living in the UK.
  • Settled status
    • If the employee has lived in the UK for a continuous 5-year period (known as ‘continuous residence’)
    • They can stay in the UK as long as they like if they get settled status.
  • Pre-settled status
    • If they do not have 5 years’ continuous residence when applying, they’ll usually get pre-settled status
    • They can stay in the UK for a further 5 years from the date they get pre-settled status
    • They can then apply to change this to settled status once they have 5 years’ continuous residence, but must do this before their pre-settled status expires.
  • Apply
    • Employees can apply now. It’s free to apply. The deadline is 30 June 2021.

Staff employed from EU after 31 December 2020

  • There is now a points-based immigration system. This means that:
  • You will need a sponsor licence to hire most employees and workers from outside the UK
  • Anyone you recruit from outside the UK will need to meet certain requirements
  • You will need a sponsor licence if you hire someone from outside the UK unless they fall into one of the following groups:
    • Irish Citizens
    • Anyone with settled or pre-settled status under the EU Settlement Scheme
    • Anyone with indefinite leave to remain in the UK.

WHAT SHOULD I DO AS AN EMPLOYER?

Employees who are already employed by you

  • You need to check their right to work in the UK
  • Until 30 June 2021, they can prove their right to work by supplying sight of their passport or national identity card (EU, EEA and Swiss Citizens)
  • Until 30 June 2021, Non-EU, EEA or Swiss Citizen family members can use an immigration status document listed in the right to work checks employer guide
  • Until 30 June 2021, EU, EEA and Swiss Citizens and their family members can use the online right to work checking service
  • After 30 June 2021, they will be required to show you the EU settlement scheme status but do not have to show you before this date unless they choose to do so.

Hiring someone from outside the UK

If you are hiring a new employee who does not already have a status under the EU settlement scheme then:

  • You need to check their right to work in the UK
  • You need to apply as a sponsor
  • Sponsor and monitor the employee.

(Full details are explained below.)

EU SETTLEMENT SCHEME DETAILS

If your employees are EU, EEA or Swiss citizens, they and their family can apply to the EU settlement scheme to continue living in the UK after 30 June 2021. The scheme is open to apply to now and it is free to submit an application.

The deadline for applying is 30 June 2021 and the employee must usually have started living in the UK by 31 December 2020.

The deadlines are different in some situations for example if:

  • They are applying to join a family member
  • They are a family member of a British citizen
  • They stop being exempt from immigration control.

If their application is successful, they will either get settled or pre-settled status.

They will obtain settled status if they have lived in the UK for a continuous 5 year period. This means that for 5 years in a row they have been in the UK, the Channel Islands or the Isle of Man for at least 6 months out of any 12 month period. In certain circumstances additional time outside the UK may be allowed for important reasons (childbirth, serious illness, study etc), compulsory military service, serving as a crown servant or in armed forces.

Your employee may be considered to be resident in the UK on 31 December 2020 and may be eligible for settled status if they have:

  • Lived in the UK for continuous 5 year period in the past; and
  • Have not left the UK for more than 5 years in a row since then.

With settled status they can stay as long as they like in the UK and may also be able to apply for British Citizenship if they are eligible.

If they have not lived in the UK for 5 years in a row known as continuous residence (see above), they will usually get Pre-Settled Status.

Your employees must have started living in the UK prior to 31 December 2020 unless they are applying as the existing close family member of an EU, EEA or Swiss Citizen who started living here prior to that date.

They can stay in the UK for a further 5 years from the date they get pre-settled status and can apply for settled status once they have 5 years Continuous residence.

If they have Settled or Pre-Settled Status they will be able to:

  • Work in the UK.
  • Use the NHS for free
  • Enrol in education or study in the UK
  • Access public funds such as benefits or pensions if they are eligible
  • Travel in and out of UK.

Who should apply?

Anyone who:

  • Has indefinite leave to enter the UK
  • Has indefinite leave to remain in the UK
  • Is an EU, EEA or Swiss citizen and moved to the UK before it joined the EU
  • Works in the UK but does not live here (‘Frontier worker’)
  • Is exempt from immigration control.

More information can be found at:

Apply to the EU Settlement Scheme (settled and pre-settled status) – GOV.UK (www.gov.uk)

SPONSOR LICENCE

In order to get a licence, an employer cannot have unspent criminal convictions for immigration offences or certain other crimes, such as fraud or money laundering and have had a sponsor licence revoked in the last 12 months.

The employer will also need appropriate systems in place to monitor sponsored employees.

A sponsor may get a visit after their application to ensure that that they are trustworthy and have adequate controls in place.

The type of sponsor licence depends on whether it is a permanent/long term offer of employment (workers licence) or temporary employment offer (temporary workers licence).

The temporary licence has different time spans for different areas including charity, creative or sporting worker, religious and seasonal workers. These range between up to 6 months for seasonal to 2 years for other areas.

A suitable person must be appointed within the business to manage and control the sponsorship process.

All applications are done online – see below.

UK visa sponsorship for employers: Apply for your licence – GOV.UK (www.gov.uk)

The fee for a small business (turnover less than £10.2m, total assets less than £5.1m and less than 50 employees – two out of three conditions must be satisfied) is £536 for a worker or temporary worker.

The fee for a medium or large business is £1,476 for a worker or £536 for a temporary worker.

A separate application is required for each worker.

The sponsor licence does not mean that the worker has a right to work in the UK and therefore checks are still required for this.

FURTHER INFORMATION AND SUPPORT

Since Brexit, this will affect many employers and you need to ensure that you are operating correctly.  If you have queries then please do not hesitate to contact us.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Rocco Dipoppa on Unsplash

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