How Brexit will impact Irish business - worker mobility and contracts

As the Irish business community is keenly aware, Ireland is particularly exposed to Brexit given the volume of trade with the UK. Almost 15% of Irish goods and services are sold into the UK. In certain industries, such as agri-food, that figure is as high as 40%. Moreover, almost two-thirds of Irish exporters use the UK landbridge to access continental markets. What is certain is that Ireland's trading relationship with the UK is set to change while conversely, the relationship rest of the EU is set to become ever more critical.

In the first of a series of articles, we take a look at how Brexit is set to effect the Irish market and how businesses in Ireland might prepare to mitigate these effects. We begin with a look at how companies and employees operating across Ireland and the UK may be effected from a HR perspective.

How will Brexit effect Irish, other EU and UK citizens working across Ireland and the UK?

Will Irish Employers be able to continue to Employ UK Citizens without an Employment Permit?

Thanks to the Common Travel Area (CTA), it seems set that Irish employers will be free to hire UK citizens follow the end of the transition period on the 1st January. The CTA will protect a number of prescribed rights that Irish and UK citizens currently enjoy including the right to work, travel, studay and other wise live in the other State. 

For the time being, the Irish and UK governments have reaffirmed their commitment to maintaining the CTA after Brexit. Similarly Irish workers will continue to be able to work in the UK without the need for further immigration permission.

Things become a little more complicated for non-Irish EU employees you may have working in the UK...

Following the transition period EU, EEA and Swiss citizens will require immigration permission to work in the UK. The rights and status of such citizens already living in the UK will remain the same until 30 June 2021. The purpose of the "EU Settlement Scheme" is to give citizens already living in the UK permission to remain and continue working after the transition period. Those who have already resided in the UK for a period of five years can apply for indefinite leave to remain and those who have not yet accrued the necessary five years can apply for limited leave to remain until they reach the five year threshold.

For EU, EEA and Swiss citizens who intend to commence work in the UK after 1 January 2021, a new points based regime will apply, according to a policy paper released by the UK government.

Other areas remain unclear - Posted Worker, Employment Contracts, Jurisdiction Rules and Future employment laws.

Certain specific areas remain may well be subject to change as the nature of the conclusion of Brexit becomes clear. For example, workers employed in one country and temporarily posted to another within the EU enjoy certain protections which it is unclear how they will change if posted to a post-Brexit UK. Employment contracts which which restrictions on competition and solicitation covering the UK market will need to be examined. However, UK common law will apply in the UK. There may well be increased conflict over where a dispute should be heard the EU regime will continue to apply in Ireland and throughout the EU. Such legal considerations may impose an extra legal cost on Irish businesses which should be considered as part of Brexit planning. 

Conclusion

Irish and UK employees' worker mobility into each other's respective States will not be affected due to the CTA. However, Irish-based employers should review their workforce requirements and consider whether any EEA or Swiss citizen employees are likely to be required to move to or from group companies in the UK. Those that relocate before the transition period ends may benefit from the EU Settlement Scheme.

Further Resources

Visit Enterprise Ireland Brexit Preparedness site for further advice and planning suggestions. At MHR we are committed to continuous un-interrupted business across our Irish and UK operations and remaining ahead of legislation as the new relationship between the EU and UK is more clearly defined. Whether your business operates solely in Ireland, trades with Britain or anywhere else in the world we are ideally place to become your HR and Payroll partner whatever the future holds. Click below to arrange a consultation.