The UK officially left the EU on 31 January 2020 and on 1 January 2021, the new rules took effect, limiting the freedom of movement between European Economic Area (EEA) and British citizens.
The changes have affected how businesses and individuals operate, which is especially visible in the areas where the two intersect, such as employment.
Immigration - data & research
Doors are now closed for many immigrants unable to obtain a working visa in the country. EU, EAA, or Swiss citizens who were UK residents before 31 December 2020 could apply to the EU Settlement Scheme, but for others, an employer-sponsored visa is required.
The chief condition is the minimum salary threshold set as £25,600, or the average rate for the applicant’s job, whichever is higher. Other available programs introduced by the British government include the global talent scheme, which is open to highly-skilled scientists and researchers holding EU, EEA, and Swiss citizenship who can now come to the UK without a job offer.
In addition to that, international students who have completed a degree in the UK from summer 2021 are eligible to work, or look for work, in the UK at any skill level for up to 2 years, or 3 for PhD graduates.
Recruitment - data & research
Making immigration more difficult for applicants means more obstacles for employers who can only sponsor visas for jobs that require the RQF3 skill level or above, with the annual salary of £25,600 or the average rate for their job, whichever is higher. This threshold can be waived in some instances when the applicant meets specific criteria, but the salary can’t be less than £20,480.
Furthermore, employers need to ensure that the person they want to sponsor has a good command of English, as per the United Kingdom government. For intra-company transfers, those thresholds have been raised, both in terms of salary and the required skill level.
GDPR - data & research
After Brexit, the United Kingdom will no longer be subjected to the EU’s GDPR ruling. To replace the legislation, the UK GDPR was introduced. It closely resembles the Data Protection Act 2018, which once supplemented the GDPR. The legislation was since updated with technical amendments to work in a UK-only context.
In practice, it means that no significant changes occurred. Data can still be freely transferred between companies in the EEA countries, with the GDPR transfer rules applying to any information flowing into the UK, as stated by the Information Commissioner’s Office report.
Worker rights - data & research
According to the Department for Exiting the European Union, UK’s domestic legislation exceeded EU-imposed employment protections. Therefore, the decision to leave the EU will not influence worker’s rights in any way.
It includes employment benefits, such as the annual leave, which stands at 5.6 weeks for the UK, compared with the EU-imposed requirement of 4 weeks, and various health and safety rulings, which were governed independently by The Health and Safety at Work etc. Act 1974.
AEL's perspective
Immigration will always be a complex topic, and AEL does not hold an opinion in this regard. We do, however, see merit in attempting to attract top talent to the UK. AEL also acknowledges the possible difficulties for global companies with a sister or parent organisations in other countries, which will now be unable to benefit from the expertise, culture and cutting-edge practices. This, in turn, may harm the UK business, but this remains to be seen.
It is comforting to know that the GDPR largely remains unchanged. AEL strongly believes that having the EU oversight provided strengthened protection to the UK workers and hopes that the country won’t make a U-turn on the laws created under our relationship with the EU, such as family-friendly rights and the Equality act. In any event, AEL will support both employees and businesses if they have any concerns or wish to develop a strategy to ensure self-preservation in the future.
