Various changes are expected to occur in the UK as a result of the Brexit negotiations. Business owners anticipate that developments will affect labour and employment regulations across the country. While there will be no change to the rights and status of EU citizens currently living in the UK until at least 31 December 2020, employers are already raising questions and preparing for changes. One major issue is the UK Right to Work, as a no-deal result could impact the labour supply of projects in some industries. So who can work in the UK right now, and how might that change?

UK Right to Work at present

In general, citizens of the United Kingdom, Switzerland or one of the following European Economic Area (EEA) countries, have the right to work in the UK: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.

These citizens need to produce documents that prove their nationalities, such as their passport, Biometric Residence Permit, or adoption certificate. EU nationals will need to prove their right to work in the UK through, for example, a valid UK National Insurance number. Nationals of certain countries, such as Romania, Croatia, and Bulgaria, may require special permission.

Citizens of countries not specified above usually need to apply for a visa to be able to work in the UK. There are various types that include long-term, short-term, investors, entrepreneurs and talent visas. In most cases, a certificate of sponsorship from a licensed employer is required before you can work in the UK.

Read more: Brexit Business Impact: How to Future-proof your Trade

Employer’s responsibility to check

Employers are responsible for complying with migrant work legislation. They need to ensure that none of their employees are working illegally in the UK. To this end, the Home Office launched an online Employer Checking Service. According to immigration minister Caroline Nokes, “This service enables UK employers to check the current right to work, in real time, of a person who holds either a biometric residence permit or a biometric residence card, and to see whether they are subject to any restrictions.”

The online service will benefit employers, as employing illegal workers has dire consequences. Employers can face a civil penalty with a maximum fine of £20,000 for each illegal worker. It can even affect their ability to sponsor migrant workers.  Employers can avoid the civil penalty only if the online check backs up their decision to hire.

UK Right to Work post-Brexit

According to immigration minister Caroline Nokes, in case of a no-deal Brexit, employers will be expected to check whether EU nationals have the right to work in the UK. “If somebody hasn’t been here prior to the end of March [2019], employers will have to make sure they go through adequately rigorous checks to evidence somebody’s right to work,” she said. EU citizens in the UK must apply for a ‘settled status’ in order to remain in the country. The registration process that will affect around 3.5 million EU citizens is currently being tested.

Because the negotiations are ongoing, it is impossible to tell whether the no-deal Brexit scenario will take place. According to Furley Page Solicitor Tessa Robinson, the current immigration system will apply to EU workers arriving in the UK until 31 December 2020. Individuals who arrive by the end of 2020 can apply for the EU Settlement Scheme until 30 June 2021. Regulations and procedures beyond this depend on the Brexit negotiations.

What employers should watch out for

There is plenty of speculation surrounding the possible effects of Brexit. Investor confidence remains unstable after the pound failed to recover from its nosedive after the Brexit vote. Two years ago, the currency dropped 10% to its 31-year low of $1.33 to a pound. It has hovered there since. This financial climate has contributed to a skills shortage in many sectors, notably construction and hospitality. Given this, employers need to watch out for pressing challenges, as well as opportunities.

It is too early to tell what the real impact on labour will be. However, all trends indicate that recruitment is going to become a challenge. Employers can future-proof their business by putting systems in place to remain compliant with new regulations. They also need to ensure a steady supply of qualified labour. Beyond the usual recruitment strategies, employers can source a contingent workforce and invest in management software. They can do these changes now to avoid the negative effects of Brexit.