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Brexit will Impact Free Movement Between UK and EU

Brexit will impact the free movement of people between the United Kingdom (UK) and the European Union (EU). The UK’s upcoming exit from the EU is increasingly looking to occur as a no-deal Brexit scenario. Many EU nationals are no longer looking for work in the UK. Although EU nationals are declining in the UK workforce, over 3 million, or 5% of the UK’s total population of approximately 64 million are from Europe.

UK Government to End Free Movement with Brexit

The UK government has announced that free movement will end on October 31. EU nationals who currently reside in the UK might have some uncertainty about how this will impact them. Currently EU nationals do not require documentation to live and work in the UK, other than having a valid passport. Following Brexit, EU nationals will need proof of legal status in the country for a wide range of issues such as employment, finance, and health insurance. With no current documentation yet in place to prove legal status, EU nationals in the UK prior to Brexit may not be distinguishable from those who arrive post-Brexit.

UK Government Assures EU Nationals are Welcome to Stay After Free Movement Ends

The UK government has issued assurances that EU nationals and their families are welcome to stay in the UK and apply for the EU Settlement Scheme. The UK government is currently determining how EU nationals will provide proof of their current legal status in the UK following a no-deal Brexit that also ends free movement. It has also reaffirmed the Settled Status for EU nationals and their family members even as the deadline for Brexit has been extended to October 31. As a result, the government is urging EU nationals to apply for the EU Settlement Scheme.

How can EU Nationals in the UK Apply for the EU Settlement Scheme?

The UK government has created an online portal for EU nationals who want to apply for the EU Settlement Scheme. Applicants for the new Settled Status must prove their identity and nationality. They must also demonstrate proof they live in the UK, and must declare any criminal convictions on their records. Under a no-deal Brexit scenario and the end of free movement, the deadline for EU nationals to apply is December 31, 2020.

Acceptable documents to prove identity and nationality include:

  • Current passport
  • Identification card
  • Recent photograph

UK Government Assistance for EU Nationals and their Families with the EU Settlement Scheme

The UK government is offering a wide range of assistance and support to help EU nationals and their families with the EU Settlement Scheme and application process, including:

What Does This Mean?

The UK government is working to determine how to provide EU nationals with documentation of their legal status. Also, it has set October 31 as the date for Brexit and the end of free movement, either with a deal or with a no-deal Brexit scenario. However, the UK government has also reaffirmed that EU nationals and their family members are welcome to stay in the UK. It has also encouraged EU nationals and their families to submit applications for the EU Settlement Scheme.

Of particular importance, the UK government notes that for those who have not applied by the date free movement ends on October 31, they will be able to continue living and working as they do now. EU nationals will be able to obtain employment, benefits, and services using the same method they currently employ to confirm their status and entitlement to receive such benefits. EU nationals should verify that all of their current documents such as passports and identification cards are valid and have not expired.

What Should Employers do About Free Movement Ending with Brexit?

Employers in the UK that have EU nationals as employees should provide guidance on the UK government’s efforts to assist them with applications for the EU Settlement Scheme. The UK government notes that over one million people have already received Settled or Pre-Settled Status under the Scheme. Employers should encourage EU national employees to verify all of their current documents such as passports are valid and in order, as well as for their family members.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond effectively to changing government regulations especially as they apply to visa and immigration issues. Our team can help your company understand how to communicate important points such as the end of free movement that may impact your EU national employees and their family members. We can also assist your company in identifying helpful guidance to provide your EU national employees regarding steps to take under Brexit such as applying for the EU Settlement Scheme.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning how to communicate issues regarding Brexit and the end of free movement to your employees, or give us a call at 800.617.1904 or 480.922.0700 today.

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British Workers Fill Jobs As EU National Job Seekers in the UK Decline

As the United Kingdom’s (UK) economy continues to grow even while facing the prospect of a “no-deal” Brexit, British workers fill jobs since European Union (EU) nationals are declining in the workforce. Migration to the UK from the EU continues to fall as it has been doing since 2018. In our 2019 Industry Update – Talent Mobility, Real Estate, Household Goods, and Immigration white paper, we present several Brexit scenarios that may impact global mobility. Whether the UK can reach a deal with the EU or not, the UK economy still needs workers, and British workers fill jobs that otherwise would have been filled by EU nationals.

Declining labor force participation from EU nationals in turn creates openings for unemployed British workers. As a result, employers in the UK have been adjusting their talent recruitment programs to fill job openings. UK unemployment has fallen to lows not seen in the country since the 1970’s, and job openings have risen to record levels. According to the UK Office for National Statistics:

  • UK employment increased by 179,000 workers in the three months to February 2019
  • Total employment of 32.72 million workers is a record high
  • Employment growth is mostly due to increasing labor force participation by women
  • UK unemployment rate of 3.9% and economic inactivity rate of 20.7% represent a joint record low

Service Industry Sectors Where British Workers Fill Jobs

The first part of 2019 saw several service industry sectors in the UK experience high growth, including:

  • Computer Programming
  • Healthcare
  • Retail Trade

Manufacturing Industry Sectors Where British Workers Fill Jobs

Additionally, UK manufacturing output rose due to strong demand for computer and electrical components. Computer, electronic, and optical products manufacturing in the UK tend to be of products with higher value. They are also not as price-sensitive as lower cost commodity-type items. Within the UK, the manufacturing sector:

  • Employs 2.6 million workers
  • Contributes up to 11% of Gross Value Added (GVA), the measure of the value of goods and services produced in the UK
  • Represents 44% of total UK exports
  • Accounts for 70% of UK business research and development (R&D)

What Does This Mean?

Despite the uncertainties surrounding Brexit, UK wages and employment continue to grow. UK business sentiment remains strong and steady, and manufacturing appears to have rebounded. Some of the growth in manufacturing is due to acceleration in the growth of raw materials held as stock. As a result, raw materials, work in progress, and finished goods held as stock has risen. Part of this growth may be due to manufacturers anticipating production glitches due to Brexit. Business confidence in the UK increased to -13 in the second quarter of 2019, from the prior quarter’s reading of -23. All of these trends provide positive momentum and help British workers fill jobs as the UK economy expands.

Job seekers in the UK should investigate opportunities in the service sector for openings in computer programming, healthcare, and retail trade. They should also investigate opportunities in the manufacturing sector for openings at companies that produce computer, electronic, and optical products. Job openings may vary by region, so job seekers should be open to global relocation opportunities that let British workers fill jobs. They should also utilize the best online job sites in the UK, including Adzuna, Indeed UK, and Monster UK. Job seekers should utilize professional career services to enhance their job search and achieve success in their career objectives.

What Should Employers do?

Employers in the UK should examine their employment needs. Economic growth fosters competition for job seekers with requisite skills and training. They should review their relocation program to determine if it benefits their talent acquisition goals and corporate objectives. Employers should work with a Relocation Management Company that has the knowledge and expertise to help them design a relocation that promotes global talent acquisition. RMCs with knowledge and experience will provide expert guidance on designing a relocation program to attract qualified new hires and relocating employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers in the UK. Our team can help your company determine how to attract job seekers looking for employment opportunities. We can help British workers fill jobs that EU nationals no longer pursue.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s recruiting, hiring, and relocation program needs in the UK to help British workers fill jobs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Immigration Rules Visas and International Travel

EU Citizen Rights: Arriving in UK During Post-BREXIT Transition May Not Secure Same Rights

EU citizen rights are not secure for those arriving in the UK during the post-BREXIT transition. Prime Minister Theresa May indicated EU citizens arriving post-BREXIT may not receive the same rights as those who arrived prior to the vote. Prime Minister May said while the details were a matter for negotiation with the EU, she is clear that there is a difference between the EU citizens who were in the UK prior to the vote, and those who arrive afterward, knowing the UK is leaving the EU.

What is the question on EU citizen rights?

Prime Minister May believes the government is doing what the British people asked the government to do, which is to deliver on the promise of BREXIT. As such, complete freedom of movement for EU citizens into the UK post-BREXIT is not supported during the transition period.

Prime Minister May has stated that EU citizens who arrive during the post-BREXIT transition must not have the same rights as those EU citizens within the UK prior to the vote. Prime Minister May has been very appreciative of the contributions EU citizens residing in the UK have made, and has clearly stated that “EU citizens living lawfully in the UK” will be able to stay in the UK post-BREXIT.

Who does this EU citizen rights issue affect?

  • Employers who have EU citizen employees currently residing in the UK.
  • EU citizens who arrive in the UK during the post-BREXIT implementation period and who are seeking residency.

What should employers and citizens expect from this EU citizen rights issue?

There may be an increase in applications for residency in the UK in response to Prime Minister May’s comments. Although the European Parliament believes citizen’s rights during implementation are in full effect and are not negotiable, Prime Minister May’s statements indicate negotiations on this point have not been finalized in her view. EU citizens may want to expedite their applications for residency with the expectation that a firm deadline will be negotiated.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients manage relocation to the UK, as well as understand how BREXIT will impact their programs. We can help your company understand the impact of this EU citizen rights issue, and how to submit applications for residency in the UK. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

What Does the UK Economy Look Like for 2018?

While BREXIT (the departure of the United Kingdom from the European Union) consumed nearly all of 2017’s economic headlines for the UK, what does it portend for the 2018 UK Economy? Employers with plans to relocate employees to the UK, and those transferees currently in the process of relocation, should be aware of economic implications that might impact their plans.

UK Economy and Manufacturers Benefit from Eurozone and Global Growth

Despite predictions, there was no post-BREXIT referendum recession. Global growth and a vibrant Eurozone continue to benefit British manufacturing companies. However, the Organisation for Economic Co-operation and Development (OECD) predicts a further drop in UK economic activity, from 1.5 percent in 2017 to 1.2 percent in 2018. The OECD also predicts another drop to just 1.1 percent in 2019 when the UK is expected to leave the EU.

British Pound Weakness Benefits Exports for 2018

A recovering global economy helps sustain UK exports since the British Pound lost value after the referendum. This growth in UK exports will lead to a stronger British Pound for 2018.

British Pound Weakness Hurt Citizens But May Temper in 2018

The weak British Pound led to higher inflation for imports, while wages did not keep pace. However, the low level of unemployment and lower immigration rates may lead to higher wages across the board. Also, as the government’s position is looking more secure, this supports the value of the currency.

UK Employers are Optimistic about UK Economy Job Growth

Surveys indicate UK employers are optimistic about generating jobs in 2018, with over half of all firms planning to increase employment. Employers in the North East UK are reporting a four-point increase in the Manpower Employment Outlook Survey.

UK Employers Worry About Skills Gap

A majority of UK employers note a skills gap is a major threat to the UK’s market competitiveness. Lower immigration rates will further hamper the skills gap. The Institution of Engineering and Technology (IET) 2017 Survey of 800 UK employers with technology and engineering staff report a lack of skills in the market. The IET also reports a shortage of engineering and technical skills among professionals presenting a major challenge.

Conclusion

The global relocation experts at Global Mobility Solutions (GMS) have helped thousands of our clients manage relocation to the UK. We have the knowledge and expertise to help your company determine the best plan forward as the UK Economy continues to evolve with BREXIT issues, currency fluctuations, and global economic challenges.

Contact our team of experts online to discuss how we can help your company’s global relocation plans for the UK, or call us directly at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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New Documentation Requirements for Household Goods Moves into the United Kingdom

The United Kingdom has pushed forth changes and new regulations for shipping household goods to England, Northern Ireland, Scotland, and Wales. The UK has implemented these changes, even though their exit from the European Union is not complete, thus making the old C3 (Relief) form no longer valid.

Now, in order to obtain Relief under the Transfer of Normal Residence (ToR) to the UK, a transferee and his or her personal effects need to meet the following criteria:

  • Transferee must have resided for at least 12 months in country of origin outside the EU, prior to shipment packing date
  • The consignment consists of all normal, household effects that have been used by the transferee for at least 6 months prior to shipment packing date.
  • Transferee is moving his or her normal home to the UK
  • There are no effects which would be liable to duty or tax
  • The effects are expected to arrive no more than 6 months prior or 12 months after the transferee’s arrival date in the UK
  • The transferee intends to reside and use all effects for at least 12 months in the UK

The Relief does not apply to:

  • Taxable or dutiable goods such as alcohol, tobacco, business materials
  • Furnishings from secondary home
  • Inheritance goods

In order to apply for tax relief on household goods, one must complete the ToR1 form, which can be obtained by visiting this link: https://www.gov.uk/government/publications/application-for-transfer-of-residence-tor-relief-tor01 


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What this means for relocation managers and transferees

At Global Mobility Solutions (GMS), we strive to get you the latest information to help you relocate your mobile workforce from point A to point B as easily, efficiently, and stress-free as possible. The new rule for shipping household goods to the UK will determine what items are eligible for tax relief. This will affect the final cost of a relocation to the UK and can influence what a transferee may decide to bring along to his or her new assignment. Be aware, applying for the ToR takes a lot of time and goods can’t be imported without the ToR, so plan accordingly by speaking with your relocation management company and household goods providers.

To ensure that your relocation policies are up-to-date and take into account the new documentation requirements on household goods for the UK, ask for your complimentary policy review today!

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