Insights

No-deal Brexit looms - time to dust off your plans

27/08/2020

Nine months ago, the prospect of a no-deal Brexit seemed like the toughest crisis the UK would need to face in the near future. It turned out that 2020 had other plans.  Although the fallout from the COVID-19 pandemic is undoubtedly still dominating the business agenda, businesses need to ensure that they are prepared for Brexit too.  With the UK Government having decided not to ask for an extension to the transition period and negotiations between the EU and UK reportedly at a standstill, at this point a no-deal Brexit seems likely.   Key issues for HR and senior management include:

  • ensuring that EU-national staff and their families are aware of the need to apply for pre-settled or settled status.  Although the final deadline for doing so is 30 June 2021, it is advisable to do this by 31 December 2020 to ensure that there is evidence of the EU national living and working in the UK pre-Brexit;
  • if the EU does not issue an 'adequacy decision' for the UK in relation to data protection before 31 December 2020, EU-based businesses (including groups which have UK and EU entities) will need to put in place additional protections if transferring personal data from the EU to the UK.   Use of the EU-approved model contractual clauses or binding corporate rules offers a solution but businesses should assess the best option for them and ensure that this is in place before December; 
  • reviewing social security arrangements for UK staff who will be working in EU member states post-Brexit; 
  • working out what impact travel and import disruption in the event of no-deal will have on the business and putting in place contingency plans; and
  • considering the impact that a no-deal Brexit will have on demand and staffing requirements (particularly when coupled with COVID-19) and ensure that this is factored into workforce planning. 

It's possible that, with many UK workers still working from home and economic woes already here, a no-deal Brexit will feel less disruptive and less significant than it might have done pre-COVID.  But with many businesses facing tough times, few can afford another hit.   Time invested now in planning for the immediate aftermath of Brexit will be time well spent. 

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