British Prime Minister Theresa May has made it clear that post-Brexit, in March 2019, EU workers moving to the UK will have to register until a permanent immigration policy is put in place. In September 2017, a leaked Home Office paper revealed that the UK plans to cap the number of low-skilled EU migrants – confirming an end to free movement after Brexit.
Freedom of movement allows EU citizens to live and work in and, in certain circumstances, access the welfare system of any other EU country. The government document, originating in August 2017, spelt out dramatic plans to radically cut the number of Europeans coming to Britain.
Whilst BRADFORD JACOBS will continue to monitor developments in employment policies affecting foreign nationals in Britain as it prepares to leave the European Community, there is a strong possibility that UK bosses may be forced to recruit British workers first before looking abroad for staff. The Government may restrict new work permits to occupations where there is a shortage of skilled workers.
The employment labyrinth of Brexit: how this is may affect the future of non-UK job hunters
However, UK Ministers have repeatedly said that although Brexit will give the government the power to control immigration, that does not mean they want to stop it entirely, and that they want to continue to allow companies to hire skilled workers from the EU and indeed elsewhere. The word is that any new system would not involve a set number of work permits being issued for EU workers coming to the UK to work in particular employment sectors.
BRADFORD JACOBS understands that the immigration plans being published later this year will set out the Government’s proposals for a new, long-term system. Different rules may apply during the transitional period that is likely to be imposed after the Brexit negotiations. Although EU citizens will not need a visa to cross the border and enter the UK after Brexit, it does not amount to the continuation of free movement, which refers to the right of EU citizens to work in another member state.
Under a revised immigration system, it’s very possible that the existing Resident Labor Market Test (RLMT), currently used for non-EU citizens, will apply to EU citizens too – thus increasing administration costs and forcing HR departments to plan recruitment needs much further in advance. The RLMT requires companies to advertise a vacancy within the UK before recruiting an EU member, so UK workers with the relevant skills can apply for the role first and so demonstrate they meet the job criteria.
Putting a robust monitoring system in situ that closely tracks current and all future skills gaps as well as role requirements, will be essential to ensure that job applications are advertised and filled in line with the company’s manpower needs.
Companies that hold a Sponsor License are allowed to hire non-EU workers in the UK and it’s certainly possible that the same or similar work sponsorship system will be introduced for European workers. However, the disadvantage of this is that it will come with higher levies and surcharges for employers, not to mention license requirements and restrictions on employees.
With the introduction of the UK Immigration Skills Charge in April 2017, supposedly created to reduce Britain’s so-called reliance on non-EU workers, Tier 2 visa applications include a mandatory £1,000 fee for medium and large businesses per sponsored employee per year of sponsorship. However, for smaller businesses as well as educational, charitable and other similar institutions, a concession is granted which reduces the Immigration Skills Charge to £364. The charge is not applicable to a worker’s dependents, however.
Whilst full details at the time of writing are yet to emerge, a new visa could cost anything up to £5,000 more for non-EU citizens which, as predicted, will cost employers thousands of pounds on top of the existing fees. If the sponsorship requirement is extended to EU workers, companies may have to apply for a separate license. Again, the fee for this is still as yet unknown. Given reports earlier this year by the London-based Chartered Institute of Personnel and Development on EU worker shortages, these extra costs are likely to fan the flames of the skills crisis even further, and particularly impact the small and medium-sized businesses market in the UK.
Should the UK Government follow its current guidelines for non-EU worker family members, then EU citizens entering Britain could well be restricted to bringing over married or unmarried partners, and child dependents under 18. Extended family, such as parents or grandparents, could be exempt from entering the UK unless they apply themselves. This is a significant change from the current ‘freedom of movement’ regime, with many EU citizens likely to rethink their future in the UK should the restrictions apply post-Brexit.
Campaigners throughout 2017 have called upon Prime Minister May to guarantee the rights of EU citizens to remain in the UK after Brexit. Until that time, HR professionals are best to encourage any ‘qualified persons’ who have been in the UK for under five years to apply for a Certificate of Registration. If they have been in the UK for at least five consecutive years they’ve been advised to apply for permanent residence to prove their right to live and/or work in the UK, and help mitigate the impact that any new immigration legislation may bring.
As mentioned, BRADFORD JACOBS are following events pre the UK’s departure from Europe and are ready to help and advise PEO clients worldwide looking to expand into the UK. Despite all that’s going on with Brexit, so often confusing to those outside the UK, we promise to make that process painless and easy.
We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws – all without the expense of setting up a branch office or subsidiary. Our helpful British agents and our worldwide Employer of Record Platform combine to provide you with peace of mind, allowing you to concentrate on running your business.
With BRADFORD JACOBS’ in-country legal experts and our experienced and trained staff, we can guide you smoothly through the many of complex laws and regulations of hiring staff in the UK. When negotiating terms of an employment contract and sending a job offer letter to an employee in the UK, it is a legal requirement to put a strong employment contract in place, in British as well as English, which sets out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in the UK should always state the salary and any compensation amounts in Euro rather than a foreign currency.
Here’s some hugely attractive reasons you should use Bradford Jacobs’ agency services in the UK:
- You have a contractor overseas and you want to take them on full-time as a company employee.
- As they’re a contractor, your company is currently in a non-compliant relationship with them.
- Your company wants to invest in these resources and show your commitment to them by offering then full-time work under your company banner.
- The contractors are asking for the improved status afforded by full-time employment.
- You’re seeking cost-effective solutions in upgrading contractors to employee.
- Legal complications need to be avoided when converting contractors to employees.
- Avoid the costs and risk of maintaining a foreign corporate entity. You see that the compliance and financial perspective as it stands is too high in terms of investment and just does not tie-in with your long term goals.
- It needs to be done quickly. You’d like to hire today, but are in need of an interim solution while setting up your foreign entity.
Well, our single answer to all of these dilemmas is – no problem!
For companies wishing to hire employees in the UK, our expert advisors can walk you through the nuances of employment and hiring in the UK – and indeed in every other European state. Within just 24 hours following your initial call to us, BRADFORD JACOBS will send you a customised proposal to match your exact specifications and requirements. You can have your employees up and running within a few days of the paperwork being signed and sealed.
Remember, whether foreign national expatriates or local national hires, BRADFORD JACOBS can assist with British business visas, work permits, local payroll, taxes, and general employment support. Our services will drastically decrease your time to market, fully compliant and without the hassles and headaches.
If you’re considering engaging a PEO, we suggest you first check out what BRADFORD JACOBS Consulting can offer…
How it works
Our aim as the Employer of Record for your international employees is to provide specific payroll, HR and ‘in-country’ compliance services.
In the first instance, BRADFORD JACOBS professionals will consult with you to understand your specific requirements and timeframes and assess the best model to provide our services. As these are co-employer and employee arrangements, there will be some important conditions for you to consider so that the PEO model remains accurate, timely and – most importantly – compliant with the rules and regulations governing staff employment in a specific country.
The most important thing we do is protect our clients and their workforce – which makes BRADFORD JACOBS the reliable partner you would want to work with.
PEO in The UK
BRADFORD JACOBS Consulting provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary say, as an example, in the UK. Your candidate is hired via BRADFORD JACOBS agencies in the UK in accordance with local labor laws and can be set up within a few days. One of our experts is assigned to work with your team, representing your company exactly as if he or she were your employee and working to meet your requirements in that country.
Our PEO service enables clients to run payroll in the UK while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As global PEO professionals, we manage employment contract best practices, as well as severance issues and even termination if required. We also keep you up to date of any changes to local employment laws in the UK.
Establishing a branch office or subsidiary in the UK to engage a small team is time consuming, expensive and complex. British labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Our global partners make it problem-free and an easy exercise to expand into the UK. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws – all without the burden of setting up a British branch office or subsidiary outfit.
Features and Benefits
- Solutions available for all nationals.
- Employment and business support provided by local professional partners.
- AUG license to lease employees to UK based clients.
- Contractors benefit from the highest legitimate retention through the use of tax and social security treaties, expatriate tax regimes, pension schemes, double taxation agreements and tax claimable expenses.
- Value for money and flexible fees – inclusive of British tax return and expenses claims. These are charged only when the contractor is starts working. If contractors wish to use their own accountants to file income tax returns, we pay their accountants’ fees up to the amount charged by our own accountant.
- EUR 5,000,000 cover for employers’ and business liabilities.
- Single point of contact, so contractors can focus on their job.
- Extensive expertise in British tax and social security issues.
For the Employer
- Fast international employee engagement solution.
- Controls operating budgets as all employer costs are provided at the outset to ensure full transparency.
- Time efficient with minimal paperwork required compared to the red tape often encountered when setting up your corporate entity.
- Professional assistance with employment and compliance matters.
- Reduced legal and accounting costs.
- All statutory professional insurances are provided as part of the BRADFORD JACOBS service.
For the Employee
- Compliant local employment contract.
- Payroll on-time and 100 percent accurate.
- Professional HR assistance with employment related enquiries.
- Up-to-date information on tax regulations and compliance.
Contract of Employment
- Each worker is issued with a comprehensive contract of employment in dual language – in this example case, in English and in that spoken by the applicant, should he/she require.
- An overview of the statutory provisions in the UK will be made available to you prior to contract offer. BRADFORD JACOBS will appraise you of all the salient in-territory HR rules to ensure you have a thorough understanding of British laws and protocols.
- In conjunction with in-country expert advisors, BRADFORD JACOBS will recommend where these provisions can easily be enhanced enabling you to provide a fully competitive salary and benefits package for all your employees.
- Salary, commissions/bonuses and all benefits are agreed with the ‘workside’ employer and are contractually included.
- Fully managed service to assist with routine HR tasks such as absence management and expense processing.
- Guidance on in-territory compliance requirements – such as any legal obligation to record time and overtime provisions.
- Ad-hoc support available around the clock to support you when you need it most in the event of any disciplinary, grievance or other HR matters requiring urgent attention.
- Regular updates provided and advice available to ensure that you are made aware of not only significant changes to existing laws but also to ensure ongoing compliance with all aspects of British employment law.
- BRADFORD JACOBS will bring any issues to your early attention and, where appropriate, work with you to ensure internal policies and handbooks are updated accordingly.
- Accident insurance covering occupational accidents, commuting accidents, and occupational diseases as required by British law is provided as standard.
Payroll & Settlement
- Fully compliant international payroll funding process ensuring that employees and competent authorities are paid on time, electronically into the relevant bank accounts
- Statutory filing, submissions and end of year reporting completed as standard.
- Liability payments made in line with local territory requirements to the respective competent authorities well in advance of deadlines.
- Staff payments made to employees on a fixed weekly/bi-weekly/or monthly basis as required in local currency.
- Electronic pay slips provided to employees.
- We hope that you enjoy a long and mutually beneficial relationship with all your employees. If your employee decides to move on, however, you can rest assured that all leaving documentation required by him or her will be issued efficiently. According to the labor law of THE UK, your employees will be at risk of having their work permit revoked if they (i) do not perform the works for which they are employed and (ii) lose vital qualifications that are required to execute the job.
- Our BRADFORD JACOBS’ employment solutions helps you have your mobile workforce officially employed in the UK by our company instead of setting up your own legal entity there. You just choose the right candidate that you need to have working for you in the UK and then leave it to us to handle all the rest – fast and hassle-free
Once the contractor registers with us, we take care of all work-related permits and registration formalities. He or she sends us completed time sheets and any approved expenses. We invoice the end client. When the invoice is settled, we deduct all contributions due to the British authorities and transfer the remaining salary into the contractor’s bank of choice.
Finally, at the end of the financial year, we prepare the year-end accounts and, at the end of the assignment, we de-register the contractor.
We appreciate each situation and business is different. That is why BRADFORD JACOBS offers a consultative and bespoke solution to every client. Personalised job specifications, job offers and benefits packages are all agreed with you during the set-up process. We know one size does not fit all and rest assured we can accommodate all bespoke requirements.
Sounds good? Then do a contact us to arrange an initial Professional Employer Organisation consultation with our team.