Category Archives: Brexit

Brexit, Employment Law, News

Trade association responds to Retained EU employment law reform proposals

The Association of Professional Staffing Companies (APSCo) has welcomed the new consultation on Retained EU employment law reforms which includes the simplification of annual leave and holiday pay calculations that the trade association has been long calling for.

However, APSCo has warned that the different requirements of highly skilled self-employed contractors and gig workers also needs to be accounted for.

Tania Bowers, Global Public Policy Director at APSCo comments:

“We are pleased to see the proposals around merging the current annual leave entitlements and introducing rolled-up holiday pay as part of the consultation. This is a solution that we have long called for in relation to Umbrella employment. However, it is disappointing that the Agency Worker Regulations will remain unchanged under the proposals.

“These regulations add an unnecessary level of administrative burden to highly skilled self-employed contractors who do not require the same protections as gig workers. APSCo stands by its views that there needs to be accommodations written into law that clearly define the unique needs of the individual groups that make up the flexible labour market. We will be highlighting why this is necessary in our response to the consultation and are happy to work with the Department for Business and Trade (DBT) to help further steer the proposals in the right direction.”

Brexit, Employment, Employment Law, HR, News, Wales

Employers in Wales must be prepared to tackle post-Covid, post-Brexit and other challenges for years to come

Key Welsh employers attend first ever ‘Future of Work’ conference to discuss best practice in light of the pandemic, the cost of living crisis, climate change and more

Businesses in Wales must get ready to tackle ongoing challenges arising from the cost of living crisis, climate change, Brexit and post-Covid changes to the workplace for years to come.

This was one of the outcomes of the first ever ‘Future of Work’ conference, held in Wales this week to support employers in sharing best practice and experiences as a means to navigating new ways of working in the post-pandemic world.

Launched by the Wales HR Network in partnership with UK recruiter Acorn by Synergie and law firm Darwin Gray LLP, the Conference looked at issues affecting HR decision makers following the Covid-19 pandemic and other global events arising in recent years. 

Fflur Jones, Darwin Gray LLP’s Head of Employment and Managing Partner, said the Conference had been a resounding success in bringing together a wide range of experts who provided invaluable insight into what the future workplace could and should look like in Wales as a result. 

Fflur said: “It is clear to all of us who attended the Future of Work Conference that organisations should apply strategic foresight to their workforce and workplace planning going forward, and to utilise the lessons we have learnt from how we adapted to the challenges of the pandemic.” 

“Doing so will allow employers to prepare for the inevitable future challenges posed to our working world by issues such as Brexit, our significant costs of living increases, and climate change too”.

Taking place in Cardiff Bay, experts speaking at the inaugural event covered wide ranging HR related topics including the challenges of hybrid working, maintaining wellbeing, diversity and inclusion, leadership, data and more.

Delegates heard how Principality Building Society has recently transformed its workspace for hybrid working and from Sunil Patel, Director of Operations at No Boundaries, on how the trainer and consultant is working to close the gap on inclusivity in the workplace. 

Ruth Llewellyn, Head of HR at Merthyr Valley Homes, also told those gathered of their experiences in introducing a four day working week, and also heard from Annette Mason, Head of Talent and Inclusivity at Dŵr Cymru.

Speakers also included representatives from the University of South Wales, workplace design company Orangebox, and Paul Rance of Acorn by Synergie, who all appeared alongside television presenter Sian Lloyd as compere at the event.

Bernard Ward, Managing Director at Acorn by Synergie, said: “We’re absolutely delighted with the outcome of the first ever Future of Work Conference to be held here in Wales, and what we have achieved as key employers and businesses by coming together collectively to discuss what  the working world looks like today, and how it needs to be shaped for the future.”

“It’s no secret that two heads are better than one, and in standing together and sharing our lived experiences, it is our hope as businesses that workplaces across Wales and beyond will continue to thrive following this event and the discussions that have taken place as a result.”

“We are really grateful to all of the organisations that stepped forward to be a part of the first ever Future of Work Conference, and also to Darwin Gray in working with us to help give us all space as employers based in Wales to deal with ongoing changes affect the entire UK marketplace together,” Bernard added.

Brexit, EU, Europe, News

How Has Brexit Impacted UK Businesses?

Brexit, or the UK’s formal withdrawal from the European Union, has been a divisive issue ever since it was put to a national vote in 2016. After Vote Leave’s narrow victory, the withdrawal process began proper – met with widespread protest centred on the potential economic and cultural damage the agreement would cause.

The withdrawal agreement came into effect formally on the 1st February 2020, with negotiations having drawn out across nine months of extensions and delays – after which, the true economic cost of the poorly-designed withdrawal package has slowly but surely been revealed. As the UK teeters on the precipice of recession, with the pound at its lowest value in decades, how did we get here – and how have businesses in particular been impacted?

Withdrawal, and Barriers to Trade

In withdrawing from the EU, the UK lost a key seat at the negotiating table regarding the design and implementation of EU law. But the agreement did not stop with leaving the EU; the agreement did not see the UK apply to remain in the single market, a trading zone incorporating the EU and four non-EU nations that enables the free movement of goods, services and people.

This decision was a political one, as right-wing parties and organisations fought for Brexit on the principle of reducing immigration as much as seeking independent prosperity. A concession to remain in the single market meant keeping doors open to migrants – even if migrant workers formed an essential part of the UK’s economy, particularly in agriculture and medicine.

The addition of red tape to trade, as a result of trading from outside the single market, has drastically increased costs relating to both import and export. In so doing, it has disincentivised international businesses to attempt trade. This has crippled the UK’s economy, and had a real impact on the emergence of the inflation crisis that threatens profit margins and household budgets alike.

Trading With Europe Today

But while Brexit has introduced manifold barriers to trade with Europe, international trade agreements are still possible for businesses with the right infrastructure and approach. The key difficulty arises from dealing with the import and export laws of individual nations, as opposed to enjoying the regulatory freedoms of a united trading bloc.

This essential difficulty means that businesses require in-depth legislative knowledge to properly remain compliant during trade; in order to facilitate a positive and regulatorily sound business relationship with international clients, partners or suppliers, a business might utilise the expertise of a global legal firm to navigate relevant legal requirements.

This is, unavoidably, another cost to add to the balance –further rendering international trade as a less profitable venture than before the withdrawal agreement. However, it also illustrates that there are solutions that enable continued trade with the European continent.

Government Action

With the dire situation laid bare, more pressure is mounting on the government to act. Businesses are floundering as a result of untenable costs from navigating arcane shipping legislation, while exports to Europe are decreasing to the extent that businesses are closing. In-roads are being made with Northern Ireland, which has been a key sticking point for relations with the EU – and after which re-negotiations may be possible.

Brexit, Business, EU, Export, News

BCC research finds little love for EU Trade Deal

71% of UK exporters say EU trade deal is not enabling them to grow or increase sales and only 1 in 8 think it is helping them grow or increase sales

New research carried out by the British Chambers of Commerce of more than 1000 businesses has highlighted a host of issues with the UK’s trade deal with Europe. The BCC believes urgent steps should be taken to address these problems so the UK Government’s ambition to increase the number of firms exporting can be met.

Overall, just 8% of firms agreed that the Trade and Co-operation Agreement (TCA) was ‘enabling their business to grow or increase sales’, while 54% disagreed. For UK exporters, 12% agreed that the TCA was helping them while 71% disagreed.

There is similar discontent with the deal among Welsh businesses, of which 51% trade with countries inside and outside of the EU and 10% solely export products and services to the EU.

Only 9% agreed that the TCA was enabling their business to grow or increase sales, while 59% somewhat or strongly disagreed. When asked which market the UK should pursue trade deals with, 46% of businesses in Wales suggested that the UK Government should prioritise modifying the current deal with the European Union.

Paul Slevin, President of Chambers Wales South East, South West and Mid, said: “It is clear from this latest research that SMEs in the UK are feeling the brunt of issues arising from the new TCA with the EU, and particularly in Wales where almost two thirds of businesses trade with the EU in some way.

“To rectify this and increase the number of firms exporting, steps will need to be taken to improve the trade deal and reduce the impact on SMEs. While the current agreement is in place, we are offering specialist trade training courses to guide businesses through trading with the EU post Brexit.”

William Bain, Head of Trade Policy at the BCC, said: “This is the latest BCC research to clearly show there are issues with the EU trade deal that need to be improved. Yet it could be so different. There are five relatively simple steps that UK and EU policymakers could take to ease the burden placed on businesses struggling with the trade deal.

“Nearly all of the businesses in this research have fewer than 250 employees and these smaller firms are feeling most of the pain of the new burdens in the TCA.

“Many of these companies have neither the time, staff or money to deal with the additional paperwork and rising costs involved with EU trade, nor can they afford to set up a new base in Europe or pay for intermediaries to represent them.

“But if both sides take a pragmatic approach, they could reach a new understanding on the rules and then build on that further.

“Accredited Chambers of Commerce support the UK Government’s ambition to massively increase the number of firms exporting. If we can free up the flow of goods and services into the EU, our largest overseas market, it will go a long way to realising that goal.”

 

The Five Key Issues for UK Exporters

The BCC’s five key issues, and the solutions needed, to improve EU trade are:

 

1. ISSUE: Export health certificates cost too much and take up too much time for smaller food exporters.

SOLUTION:  We need a supplementary deal on this which either eliminates or reduces the complexity of exporting food for these firms.

 

2. ISSUE: Some companies are being asked to register in multiple EU states for VAT in order to sell online to customers there.

SOLUTION: We need a supplementary deal, like Norway’s with the EU. This exempts the smallest firms from the requirement to have a fiscal representative and incur these duplicate costs.

 

3. ISSUE: As things stand CE marked industrial and electrical products will not be permitted for sale on the market in Great Britain from January 2023. The same is true for components and spares.

SOLUTION:  We need action from the Government to help businesses with these timelines. Many firms are far from convinced about a ban on CE marked goods in Great Britain.

 

4. ISSUE: UK firms facing limitations on business travel and work activities in the EU.

SOLUTION: Government needs to make side deals with the EU and member states to boost access in this area as a priority for 2022.

 

5. ISSUE: Companies starting to be pursued in respect of import customs declarations deferred from last year.

SOLUTION:  We need a pragmatic approach to enforcement to ensure companies recovering from the pandemic do not face heavy-handed demands too quickly on import payments, or paperwork.

Brexit, News

Brexit two years on: Over 75 per cent of project managers are concerned

Research by Association for Project Management (APM) has found over three quarters of project professionals still have concerns about Brexit’s impact on projects, with increased costs, disruptions and shortages among the main sources of worry.

A national survey of 1,000 project managers found that 78 per cent have current concerns about Brexit, most notably: increased project costs (38 per cent), disruption to collaboration with EU partners (37 per cent) and materials and equipment shortages (37 per cent).

Challenges foreseen

The same survey showed participants’ worries are mostly consistent with the challenges they anticipated before Brexit happened, pre-January 2020. Increased project costs and disruption to collaboration were the most commonly cited concerns at that time. Key shortages ranked fifth in their predictions (36 per cent), however, behind complications due to legislation and legal issues (37 per cent) and reduced access to skills and knowledge (36 per cent).

Among project managers who still have concerns over Brexit, those working in construction say disruption collaborating with EU partners is their biggest Brexit-related worry. In manufacturing, shortages of materials or equipment is the main concern. Those working in healthcare point to project delays as the main anxiety.

An optimistic outlook

Despite current Brexit-related concerns, a similar survey commissioned by APM in July 2021 revealed the effects of Britain leaving the European Union as the second biggest opportunity for the project management profession, after new ways of working.

The recent survey found the most anticipated opportunities from Brexit, pre-January 2020, to be improved access to materials and equipment (37 per cent), reduced complications with legislation and legal issues (36 per cent), revamped supply chain management (36 per cent) and quicker project delivery (36 per cent).

Adam Boddison, chief executive of APM, comments: “Through years of expertise, collated in APM’s latest study, Dynamic Conditions for Project Success, we know the ingredients for a job well done, and they’re what have helped and continue to help the profession navigate the impact of Brexit, among the many other challenges added into the mix since January 2020.

“Challenges are more manageable with strong leadership, clear communication, a diverse team, a sustainable mindset and agility. Therein lies part of the lesser recognised opportunities from Brexit: a chance to overcome adversity and be better at what we do as a result.”

Brexit, News

Improving trade with non-EU nations to boost British exporters

Written by Mr. Kunal Sawhney, CEO, Kalkine Media

The cross-border trade to and from the United Kingdom has been a victim of multiple adversities including the ever-evolving problems due to the coronavirus pandemic and its aftermath, supply side disruptions, shortage of hauliers and the induction of new trade arrangement between the UK and European Union post termination of the Brexit transition period.

The present calendar year has been quite volatile for international trade as the domestic exporters felt the double distress in January-February period with the Downing Street announcing the third national lockdown and the businesses adjusting their operations according to the administerial modifications in the ongoing processes following the zero tariff and zero quota agreement with the bloc.

Since the last couple of years, the government of the UK has been increasingly trying to magnify the proportion of exports and imports linked to the non-EU countries, especially the nations where the penetration of UK-based goods is relatively low.

Augmenting the broken trade ties with countries outside the Euro Area will certainly diversify the so-called dependence on a handful of international markets and, at the same, British exporters can offset the potential losses incurred in the recent past by increasing the trade volumes, effectively helping the administration to narrow the gap trade deficit.

According to the latest trade data publicised by the Office for National Statistics (ONS), the net trade deficit in the three months to August of 2021 rose to £6.6 billion, registering an increase of £4.5 billion as compared to the preceding three-month period. During the corresponding stretch, the quantum of exports reduced by £0.8 billion to £144.8 billion, while imports surged by £3.7 billion to £151.4 billion.

Marginal improvement in the exports volumes and the frequency of partners looking for British-made goods is not going to help the trade deficit to narrow in the upcoming months as the businesses continue to face the industry-wide operational challenges due to the extended course of Covid-19 and regional troubles in various international markets. In the month of August itself, the total exports shrank by £1.3 billion.

Considerable increase in the number of export orders, more countries willing to import British-made goods, and friendly cross-border arrangement for the domestic traders remain the primary driving factors that can collectively ameliorate the net exports from the UK to EU, as well as non-EU regions, productively helping to reduce the burdening trade deficit.

Prime Minister Boris Johnson has recently clinched a free-trade agreement with the New Zealand counterpart PM Jcinda Ardern, fulfilling the broader objective of increasing the potential number of international trading partners other than the countries under the umbrella of the European Union.

The all-inclusive trade arrangement and the newly agreed terms between the UK and New Zealand will help reduce red tape for the domestic enterprises involved in exports of goods, at a time when it will become easier for UK professionals to live and work in New Zealand. Alongside this, the technology and services corporations will be better equipped for creating thousands of new opportunities, effectively complementing the down-trodden employment landscape as a result of the acute limitedness of the workforce.

With the UK and New Zealand agreeing to cut red tape and tariffs on the goods exchanged, the domestic exporters and a plethora of small-to-medium scale businesses stand to benefit greatly in terms of volume and overall profitability. Led by the negotiators of the Department for International Trade for 16 months, British PM Johnson and New Zealand PM Ardern agreed on the terms that are highly likely to enhance trading volumes for both the nations.

In 2020, the total trade between the UK and New Zealand stood at £2.3 billion. Subsequent to the new trading arrangement, the quantum of trade will improve in the upcoming quarters as domestic businesses from both the nations are looking forward to maximising the benefit of tariff-free trade, at a time when the largest economies struggle with reciprocatory trade practices.

With the deeper cooperation on climate change and digital trade, there will be a number of opportunities for the UK citizens to live and work in New Zealand with the help of the new trade deal. Furthermore, the trading arrangement will make it easier for the smaller corporations to reach out to potential international customers in the New Zealand market.

Both the nations have a mutual admiration for each other’s traditional products as the local consumers in the United Kingdom will be able to enjoy Manuka honey, exotic fruits including kiwi and Sauvignon Blanc wine at a much cheaper price as compared to the previous market prices.

On the other hand, the British exporters will be able to capitalise on the removal of 10% tariff as the volume of products from buses to bulldozers, ships to excavators and clothing to footwear can be increased as New Zealand market remains a major consumer of branded products sourced from various international partners as it is poised to grow nearly 30% by the end of 2030.

Not only this, both the nations have committed to explore the possibilities of deepening the people-to-people links across the nations as UK-based workers will benefit from the improved business travel arrangements.

Professionals including lawyers and architects will be equipped to work in New Zealand more easily as compared to the working conditions now as the UK companies will be allowed to set up shop and bring the best talent with them. For instance, the insurance and financial services corporations based out of Edinburgh will have wider access to New Zealand’s market following the easing of business travel and digital trade.

Automobile corporations situated in Wales will materially benefit from the tariff-free exports as they exported nearly £3.4 million worth of road vehicles to New Zealand in the Covid-laden 2020. The vehicle sales across the world is on track of improvement and will see a sharp spike in the first quarter and forthcoming period of 2022, the countries manage to contain the coronavirus activity, while increasing the proportion of immunised citizens.

The manufacturing companies including K-form and Zip-Clip will also benefit from the removal of 5% tariff on construction products and metal goods as construction activity remains a key driver for many nation’s overall economic output. With Covid-19 witnessing a substantial fallback and New Zealand’s supremely protective stance against the pandemic, the construction orders are expected to go up in the near term.

Brexit, Farming, News

‘The farming community was most definitely split on the [Brexit] vote’ – Gareth Davies, CEO, Wynnstay Group speaks to Cardiff Business Club

CEO of Wynnstay Group, Gareth Davies, addressed guests at the final Cardiff Business Club webinar of the 2020/21 season, speaking about the impact of both Brexit and the pandemic on the agricultural sector in Wales.

Gareth, who grew up as the youngest of ten children on a beef and sheep farm near Builth Wells, began his career in commercial agriculture as a fertiliser salesman before joining Wynnstay in 1999. Rising through the company from Sales Manager to Head of Agriculture, Gareth was appointed CEO of the company in 2018.

Based in Llansantffraid, Powys, Wynnstay Group is a £400M business, employing over 900 staff across its operations and specialising in four strategic units: feed, arable, agricultural depots and subsidiary businesses.

Working with both arable and livestock farmers, Gareth has witnessed the challenges the sector has faced due to the Brexit vote. He said: “The EU was the biggest trade partner for food products and £3.1billion of agricultural support came from Common Agricultural Policy so membership was important. The farming community was most definitely split on the vote; beef and sheep farmers rely on European support and markets while poultry, pig and dairy farmers were less reliant, looking for less bureaucracy and more opportunities.

“As a business, it was a difficult period. We had four years of uncertainty, not knowing whether it would be a hard Brexit or a deal, which certainly stifled investment in our business and farms. As new trade deals, like Australia this week, are announced, I would like to see more detail around providing a level playing field and ensuring that our farmers are not negatively impacted.”

Speaking about how the Covid pandemic has affected agricultural supply, Gareth said: “This is an interesting one. The initial lockdown in March 2020 was a severe blow for the company and industry. The closure of the hospitality sector and certain shops overnight forced lamb and beef prices down by 20%, milk was poured away, abattoirs reduced throughput and export markets fell so not a good start.

“In the wider industry, while the closure of hospitality was an initial blow there was a rise in home cooking, sourcing products locally from butchers and retailers, which increased the demand for UK agricultural products. When we look back at the last 12 months, we have seen an increase of upwards of 10% on the spend of home-produced lamb and beef, and a significant increase in demand for eggs and cheese.

“Our business was deemed an essential supplier, and whilst we adapted to operating within Government guidelines all our manufacturing and distribution operations continued to function.”

The full address and Q&A can be viewed at the following link: https://youtu.be/1KLBMBKuhPA

To keep up to date with the latest information on Cardiff Business Club’s upcoming 2021/22 season, visit https://www.cardiffbusinessclub.org/

Brexit, Immigration, News

Free webinars offer advice on the EU Settlement Scheme

The first of two free webinar events advising EU citizens on how to apply to live and work in the UK will take place on Wednesday 16 June between 1pm-2pm.

It will be followed by a second webinar on Thursday 24 June which will also take place 1pm-2pm. To access the webinars, use the links above or email wgprojects@citizensadvice.org.uk for support.

With just two weeks left to apply to the EU Settlement Scheme before the deadline expires on Wednesday 30 June, the webinars are part of a package of support that is being offered to EU citizens.

To find out if you need to apply, visit the UK Government’s EU Settlement Scheme webpage. If you are eligible, remember that each member of your family must complete an application, including children and anyone under the age of 21.

Vulnerable residents can get help with their applications, and the website also offers links to free, independent and confidential support from a range of community partners such as Citizens Advice, Mind Cymru, Newfields Law, Settled and TGP Cymru.

The settlement scheme, which is part of the UK’s new post-Brexit immigration system, is designed to offer citizens of the 27 EU member states the right to keep living and working in the UK. The scheme is also available to citizens of Switzerland, Norway, Iceland and Liechtenstein.

All EU, EEA and Swiss citizens and their family members who were resident in the UK by 31 December 2020 are urged to apply without delay.

Applications are free, but they must be submitted by the deadline of 30 June 2021. More information is available at the council website.

Brexit, News

Last chance approaching to apply for EU settlement scheme

There’s now less than 30 days until the EU Settlement Scheme deadline of 30 June 2021.

The scheme, which is part of the UK’s new post-Brexit immigration system, offers citizens of the 27 EU member states, as well as Switzerland, Norway, Iceland and Liechtenstein, the right to keep living and working in the UK as they did when the country was part of the EU.

All EU, EEA and Swiss citizens and their family members who were resident in the UK by 31 December 2020, should apply without delay. Applications are free but must be submitted by the deadline of 30 June, 2021.

Apply to the scheme to continue to work, study, access free healthcare and benefits in the UK

 

So far, 1,500 applicants have been granted settled status in Bridgend County Borough and 620 applicants granted pre-settled status, depending on how long they have lived here.  Council Leader, Cllr Huw David said: “If you are an EU citizen who has made your home here and are contributing to the life of Bridgend County Borough, we want you and your family to be able to continue to live, work and access services here.

“In order to do this, you must apply to the EU Settlement Scheme before the deadline of 30 June 2021 – time is now running out so please don’t delay if you haven’t applied already.

“Over 2,000 applications have already been concluded so far, allowing residents who are originally from countries including Germany, Poland, Italy and France to remain here as part of our communities.

To check if you need to apply to the EU Settlement Scheme, visit the UK Government’s EU Settlement Scheme. If you need to apply, each family member must complete an application. This includes children and anyone under the age of 21.

Vulnerable residents can get help with their applications by visiting the EUSS support webpage.

For more information about how to apply, visit Bridgend County Borough Council’s Preparing for Brexit webpage.

Brexit, News

XpertHR reminds organisations of the next critical Brexit deadline

A poll carried out by XpertHR at its recent webinar, ‘End of the Brexit transition period – what does this mean for HR?’ found that more than half (58%) of attendees said that removal of the freedom of movement of EU nationals as a consequence of Brexit would have a ‘somewhat’ or ‘very’ significant impact on their business.

Jeya Thiruchelvam, Managing Editor at XpertHR says, “Now that the right of free movement between the EU and the UK has ended, HR professionals will find organisations looking to them to navigate the new immigration system and stay compliant from an immigration perspective. The next major deadline is 30 June 2021 – existing employees who are EU nationals must apply for “settled” or “pre-settled” status by this date. In a nutshell, settled status gives an employee the right to live and work in the UK indefinitely and pre-settled status can be converted into settled status once an employee meets the relevant criteria.

“The 30 June deadline is critical and many eligible employees have yet to make an application under the settlement scheme. Failing to do this will have far-reaching consequences for an employee and their family because they will no longer have immigration permission to stay in the UK, something that will also clearly affect their employer. It is imperative that organisations do all they can to ensure their employees make an application under the settlement scheme in time, many organisations are supporting their employees to do this by offering things such as immigration surgeries, Brexit workshops or legal advice around the application process.

XpertHR’s recent webinar, which was presented by Huw Cooke, a senior associate in the employment team at Burges Salmon, focused on how businesses can comply with the new immigration rules and the other employment issues might arise out of Brexit, including how business travellers will be affected, worker mobility and working from home overseas. The webinar is available to listen on XpertHR.

XpertHR has also published an extensive range of Brexit content available on its website to help businesses understand and navigate the changes after Brexit. New resources include a podcast, Getting to grips with Brexit following the end of the transition period, where immigration solicitor, Louise Haycock outlines the key things employers need to know.

Other new content includes the new business visitor rules for EU/EEA countries and Switzerland, and what employers need to know about employees working remotely in other countries. Plus there is information on Brexit and UK employment law and the impact Brexit may have on employment law, as well as the rules on GDPR after Brexit.

For XpertHR’s complete Brexit: Resource Round up click here.

For more information on XpertHR visit: www.xperthr.co.uk