about 2 years ago by Meg Fenner Jamieson

How's your Contingency Planning for Brexit?

Contingency Planning for Brexit Blog

As Brexit approaches, and a deal is not yet done, many businesses have made contingency plans to manage the uncertainty and prepare for a “deal or no deal” scenario. 

The draft text of a Brexit deal was announced yesterday, but it’s not yet known if Parliament will approve it.

CMD Recruitment Operations Manager, Dan Barfoot said, “We hope a deal is confirmed soon, giving us the clarity that businesses need. We’re ready to support employers and employees with contingency planning, and I’m convinced that our best practice approach means we’re well prepared for anything.”

We’ve investigated what might be coming soon for employees and employers in the UK after Brexit, deal or no deal. 

Workplace rights won’t change

According to Government Guidance, in the event of a no deal Brexit, workers rights won’t change. EU rules such as the Working Time Directive and Family Leave Entitlements are incorporated into UK law, and there are no plans to change these rules.

EU citizens can stay in the UK after Brexit (probably)

According to The Home Office Statement of Intent, after Brexit, people from the EU will be able to stay in the UK if they can meet the following criteria:

  • Prove their identity
  • Prove they’ve lived in the UK for 5 years

However, EU citizens may have their applications refused based on serious criminality or other public policy considerations or in case of deception.

The Home Office said, “To make the process as simple as possible for the great majority of EU citizens, we will check employment and benefits records for proof of residence.”

The Association of Professional Recruiters explained how this could work:

“To confirm residence in the UK, applicants will be asked to provide their National Insurance number so that the Home Office can use existing government data to evidence employment or receipt of benefits, for example, HM Revenue & Customs (HMRC) and Department of Work and Pensions (DWP) records. The Statement of Intent also includes a draft list of alternative documents that can be used to demonstrate five years’ residence (such as bank statements, P6Os and employer letters) where this cannot be demonstrated through HMRC or DWP records.”

We think it’s likely that employers won’t usually need to provide evidence of employee addresses to support these applications, although until details are confirmed by the government no one is sure exactly how it will work.

Financial Regulator says ‘prepare for deal or no deal’

The Financial Conduct Authority said they are preparing for all scenarios and that firms should do the same. 

"You know your businesses best, and you will be doing your own contingency planning. In our discussions and communications with firms, we have been reiterating this point and making sure that firms are taking steps to ensure they are prepared, whatever the outcome."

The Road Haulage Association says ‘prepare for no deal’

The RHA issued guidance for UK International operators, and they are very concerned about the likely impact of no deal. 

“Haulage operators, their staff and their customers will have to make significant changes to working practices in the event of a no-deal Brexit. These changes will have to be undertaken very quickly and in a complicated and rapidly changing environment”

In the event of no deal, operators will need to apply for licences to operate in the 
EU,and can do so from 26 November.

Contingency Planning - deal or no deal

The government has advised that a deal is the most likely scenario, and it’s possible that a deal will be confirmed soon. However, the time for a deal to be ratified by Parliament and the EU27 is limited. Businesses are being advised to have contingency plans in case of a no deal Brexit. 

Professional associations and trade bodies are a great source of information on how to develop contingency plans for your sector. Businesses that take a best practice approach will be best placed to face the future. 

To find out more about CMD Recruitment and how we can help you prepare, contact our friendly team.