Revision as of 10:58, 26 March 2016

The Effects of Brexit on Human Resources

The UK Referendum (23rd June 2016) on whether to stay in or leave the European Union can potentially have many effects. By starting the preparation, the issues will be easier to deal with when the decision is imminent or has happened.

I will keep this page updated as we go through the process and plans become clearer about the legislative ramifications of a vote either way. Currently the events of the vote are uncertain and preparation would mainly be gathering the right information ready for swift movement at the right time.

I am building a list of potential impact areas and trying to gauge their urgency as well as what measures may or may not be needed.

Visas

If the UK does leave the EU, visas are likely to be the most immediate issue.

Visas for EU Nationals in the UK

It is likely that after a leave vote, the UK Government would want to keep the status quo, and so there is likely to be a period where the current arrangements would stay in place while the details of any changes would be hammered out.

Visas for UK Citizens Working within the EU

However, the same would not necessarily be true of EU member states who may apply non-EU visa rules as soon as they can.

Effects on Non-EU Citizens Working in UK

The UK government will want to provide stability and so the most probable scenario, at least in the short term, is maintaining the current arrangements.

Effects on UK Citizens Working in Non-EU Countries

Where a country has specific agreements with the EU rather than the UK, the visa arrangements may change depending upon the relationship of the U.K. With that country.

Longer Term Effects

Immigration is one of the main factors in the referendum. This implies that a government post-Brexit would have pressures to curb immigration. A points system, such as the Australian one, could provide a more sound and stable footing for immigration policy.

Staying in may also have some long term effects. Non-EU countries that thought they may get preferential treatment after Brexit may be disappointed and look elsewhere for strategic alliances.

Data Protection

There are a few Acts of Parliament that cover data protection. Some parts of these acts have been European and internationally inspired. In the interests of stability, changes to these acts would be widely discussed and consulted prior to being changed. However, the status of the UK will have changed overnight and so mitigations such as safe harbour etc. may well need to be considered.

It is a good idea to do some leg work prior to the vote to ensure you are ready to act.

Where is Your Data Stored?

I have to state up front that I am not a lawyer and for the issues covered here, you may need to seek legal advice. In general, the data covered by these Acts is personally identifiable information - people data. There are three regions you data could be stored in:

• Within the UK
• Within the EU
• Outside the EU

The UK could change from being inside the EU, to being outside the EU. This could have effects on Safe Harbour agreements written to cover EU countries and may require new Safe Harbour agreements and processes for data held within the UK.

Where is Your Data Processed?

The UK Data Protection Act covers both where data is held and who processes the data, so the places where the data are being accessed also needs to be considered.

Who do You Hold Data About?

Which nationalities and territories data are being held? This may imply that further Safe Harbour measures are required if data held or processed in the UK.

Currency

Particularly in the time prior to the referendum, the currency markets will be fluctuating wildly. Great for speculators, not so great if you are managing the costs of a multi-currency payroll and multi-currency contracts.

Effects of Uncertainty

During the run up to the referendum, each opinion poll is likely to have an effect on the currency markets. The level of the pound is already depressed and may remain so.

Even after the referendum, there is likely to be a period of instability in the money markets whilst the implications of the result are digested.

Will the UK be Coerced into Joining the EuroZone?

If the vote is to stay in, there may be pressure to join the EuroZone. This pressure would not be explicit, it would be by increasing the decisions made by EuroZone countries only, and the forming of an "inner circle" within the union.

Health and Safety Legislation

One of the key #Brexit advantages would be that the UK can start to undo the EU imposed health and safety legislation. However, unpicking the good from the bad would take time and would not give any short term results.

However, if you are considering a new health and safety module of your HR system, it might be wise to prioritise another issue currently.

EU Subsidies

If your company currently gains EU subsidies or benefits from European schemes then you may need to start planning what to do without the subsidy.

For instance, if you have French VIE interns, it may be worth considering alternatives for new hires and plan what to do with your current intake.

Scotland

Should the UK vote for #Brexit, the SNP have requested a re-run of the Scottish Independence referendum, so that Scotland would be free to rejoin the EU.

Multinationals that hold their European headquarters in the UK may start to build up their presence in Scotland or Ireland for an English speaking EU alternative.

Government Contracts

EU governments are currently obliged to consider all EU based tenders for contracts. If the UK leaves, these contracts are in jeopardy as the EU government would no longer be obliged to choose a UK supplier in preference to their own supplier. Replacing leavers with temporary staff would be prudent at this time.

On the flip side, the UK government would no longer need to consider EU contractors above homegrown talent any more. Although the UK government would be looking for stability, there may be one or two contracts that will be decided after June 23rd.

Conclusion

There are many impacts of #Brexit and some planning to mitigate the more immediate issues could help an organisation take advantage of the huge opportunities that an independent Britain may have.

Further Reading

PeopleSoft Nationality Data