Brexit and Recruitment in 2021

The United Kingdom officially left the EU on the 31st of December 2020. This means the way we do business with Europe has changed. There are now new rules and regulations to follow regarding imports and exports, tariffs, data and even hiring. 

The biggest changes we will face come in the form of immigration law. We are facing the end of free movement and the new Immigration Bill. As of the 1st January 2021, people from European countries now no longer have the automatic right to come to the UK to work. 

So, what will this mean for businesses who currently hire from outside of the UK or will plan to in the future? For now, we can only speculate. But here is what we know so far. 

“There will be no doubt a lot of poring over the detail over the coming weeks, but we are relieved that there is now a deal to be ratified by the UK and EU Parliaments. The journey is not over but the largest hurdle is, at least, overcome.” - Tania Bowers, Legal Counsel and Head of Public Policy at APSCO (The Association of Professional Staffing Companies).

End of Free Movement

The main thing your business will need to be prepared for is the end of free movement. This is the freedom to work and live between the UK and the EU. Anybody you wish to recruit from outside of the UK, excluding Irish citizens, will now need to meet certain requirements and apply for permission first. These permissions will differ depending on the type of visa. 

There are some key points to note regarding hiring in 2021. 

• From 1 January 2021, you need to register as a licensed sponsor if you want to hire eligible candidates from outside of the UK. 
• There is a new criterion for hiring people from the EU. 
• There is a new points-based system which will transform the way in which employed recruit from outside of the UK. 

The New Criteria & Points System  

There is a new criterion (on top of what you’re looking for in a job candidate) when looking to hire from outside of the UK. This may mean that your potential recruits will be limited to UK citizens, EU nationals with Permanent Residence (or settled status) and Settled workers. 

The requirements are as follows: 

1. They will need a job offer. 
2. A specific salary. 
3. They need to be able to speak English. 

This could lead to slim pickings with the UK labour market already quite tight. Filling vacancies on your own, whilst simultaneously dealing with new legislation, will be much harder in 2021. Similarly, many companies that already recruit from the EU may turn their attentions back to the UK labour force due to ease. This will inevitably increase competition, possibly making it harder for you to fill your vacant positions. 

There is also a new system described as a ‘points-based’ system to grant visas to those with enough points. Within this, each visa category will have a fixed set of requirements that the candidate will need to meet. This is said to make the hiring of both UK nationals and EU nationals more equal. 

Sponsorship

If you want to hire new staff from overseas, you will need to be a Home Office approved sponsor. The process is already lengthy, so if you weren’t using the tail end of 2020 to prepare - you may be facing a long wait. As well as the inspection and fulfilling certain requirements, there are also several financial implications to consider.

In not having the power to hire talent from overseas, it may have a negative impact on the scaling and running of your business. In as unpredictable an environment like the one we are currently in, time is of the essence. Not being able to employ those with the desired skill set as and when you need them would certainly have its implications. 

In what is already a competitive labour market, working with a recruitment agency is a great way to ensure you’re prepared for any recruitment challenges you could face due to Brexit this year. Over the years, Cameron Kennedy has developed a large pool of talent to deliver the ideal candidate for your companies. We don’t plan for that to change and are closely following updates in rules and regulations to ensure we keep the process as simple as possible for you. 

Visit our website today, or give us a call on 0044 (0) 20 7337 0011 to find out how we can help you moving forward.