How a Brexit deal will affect HR in your company

Payroll Services Alliance 1st May 2019

With the Brexit negotiations still up in the air, many employees are now wondering what their future careers are going to look like and whether their jobs will be heavily affected by the outcome. Though we know there will now be a delay until October 31st in the UK’s official exit from the European Union, HR personnel should now be considering how their employees around the world may be affected and what kind of infrastructure should be put in place to make the transition as easy and painless as possible. Whether a deal actually goes through after the extension or not remains to be seen, but companies can begin exploring contingency plans that not only protect their assets but their employees as well.

Before you begin planning, understand that if a deal is accepted by the European Union and the Houses of Parliament, the UK will not leave the EU immediately. A period of transition, which will last approximately 18 months, is put in place while the UK negotiates trade deals and new versions of common legislation from the EU Courts. For employees, this means that not only will they still benefit from working practice laws that have come from Europe, but those who are EU citizens working in the UK will still be protected under the legal system of the European Union. The only significant thing to change during the transition process is that the UK will no longer be involved in decision making in the EU.

One of the first parts of any HR Brexit plan is to establish a clear overview of a company’s workforce, so they understand where UK citizens and EU citizens are working and whether this will need to change, post-Brexit. Cross-channel employees will be protected during the negotiations and free movement will only end once a deal has been agreed upon, but it is worth knowing exactly where your company’s employees are – especially if you have offices spread out across Europe – so you can prepare them for any potential change. Because negotiations are a slow process, it’s likely that HR managers will have around two years to prepare for this. You should also consider international payroll systems to ensure that employees in the EU and worldwide are supported.

Brexit is bringing significant uncertainty to all UK and European businesses, as well as those worldwide with footprints in this region, so it’s important to have systems in place to protect your employees. Foreign travel after the UK leaves the EU is going to be much more complicated and, if unprepared, could have a significant impact on the well being of your employees and the success of the company overall. Human Resources has an important role to play here so if you outsource your HR make sure you are partnered with a company that works globally and is set up to accommodate any disruptions and legal changes.

Payroll Services Alliance is a group of HR and payroll providers formed to fulfil the needs of international companies for harmonised global payroll. Think global and act local with Payroll Services Alliance. Get in touch today with our member, SD Worx to support your international HR and Payroll team with Brexit planning

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