At 11:00pm on 31 December 2020 free movement between the United Kingdom and the European Economic Area and Switzerland ended. Free movement has been replaced in the United Kingdom by the domestic immigration system, including the new points-based immigration system. EEA and Swiss nationals (excluding Irish nationals) who want to work in the United Kingdom now need some form of visa permission, depending on when they arrived in the country. This change has significant implications for UK employers. Employers must ensure that they understand:
- how the rules will affect their business;
- whether their recruitment plans and budgets are affected; and
- whether their staff have the correct status to allow them to continue working both in the United Kingdom and abroad.
Inform current EEA employees about EU Settlement Scheme deadline
Current EEA employees and their family members who are in the United Kingdom must apply under the EU Settlement Scheme by 30 June 2021. If they fail to do this, they risk losing their right to live and work in the United Kingdom. This would cause disruption to their lives and business and result in significant added cost to resolve the situation. Employers should ensure that employees are aware of their eligibility for pre-settled or settled status, particularly in the run up to the deadline and offer support for those who need it (for further details please see "Six pitfalls to avoid with EU Settlement Scheme").
Get to grips with new points-based immigration system
Employers must understand how the new visa rules under the points-based immigration system affect their business, particularly if they want to continue to recruit EEA nationals.
The previous routes for sponsoring workers have been significantly reformed (for further details please see "Home Office provides consolidated details of new immigration system"). For skilled workers, some requirements such as formal resident labour market testing have been removed and the skill and salary thresholds have been lowered (for further details please see "Skilled Worker visa provides new options for foreign workers").
There are also new visa options such as the frontier worker permit which will assist European cross-border workers who travel to the United Kingdom regularly for work to continue to do so now that free movement has ended (for further details please see "New frontier worker route launched").
Employers must have up-to-date sponsor licence if they anticipate recruiting
Employing nationals from the European Economic Area and beyond will require a sponsor licence going forward. Employers should consider applying for a sponsor licence now so that they are ready to use it when they need to recruit. Sponsor licence applications can take up to eight weeks to process so it pays to act in advance.
If employers currently have a sponsor licence, they must ensure that it is up to date and accurately reflects their organisation's current structure. Employers may need to make updates to the Home Office or ensure that their HR processes are in good shape to meet their growing sponsor licence duties.
Consider implications of end of free movement on right-to-work checks
All UK employers have a responsibility to ensure that their employees have the right to work in the United Kingdom before they start work and throughout their employment. The end of free movement will necessitate changes to the right-to-work check system; however, the Home Office has indicated that right-to-work checks will remain the same until 30 June 2021, due to the six-month grace period that EEA nationals have to secure their status under the EU Settlement Scheme (for further details please see "Right-to-work checks for EEA nationals during first half of 2021"). The continuation of existing checks leaves employers open to unwittingly employing someone who does not or who may soon not have status which allows them to work in the United Kingdom.(1)
Know what EEA nationals can do as visitors in the United Kingdom
EEA nationals visiting the United Kingdom must now do so on the same basis as all other visitors. Visitors' allowed activities have been expanded; however, the position is significantly restricted in comparison with free movement. EEA nationals and their employers will need to adjust to the new restrictions and ensure that they are complied with.
What about UK nationals visiting or working in Europe?
The end of free movement affects not only EEA nationals who work in the United Kingdom, but also UK nationals who live in, commute to or may want to work on the continent.
If employers have a workforce which spans Europe, they must factor in the new rules on visiting and working in Europe. UK nationals may now need a visa to work in Europe, which requires local visa support and additional time and financial input.
Endnotes
(1) Further information is available here.
