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Mind the gap

Employment law issues seem to be rife with gaps at the moment. We have already reported on the gender pay gap, brought to the fore by the UK’s new reporting regulations for gender pay that took effect on April 6, 2017. However, it looks like we are now dealing with another gap: the skills gap that commentators believe will be one of the consequences of the UK exiting the EU. In fact, we are already seeing the effects, as potential migrant workers are reluctant to come to the UK at a time of such uncertainty. As a result, there is a significant shortage of workers to fill such typical blue collar jobs as drivers, electrician assistants and construction workers. Sectors such as healthcare, retail and construction are among those feeling the squeeze, as they are heavily reliant on EU migrant workers. A study by the Recruitment and Employment Confederation (REC) points out that EU migrants are over-represented in low-skilled jobs, filling 15 percent of them, compared with 7 percent by non-EU migrants and 78 per cent by Britons.

Furthermore, Brexit has led to curbed planned growth and investments for one in four small and medium-sized enterprises (SMEs), according to the latest “UK SME Confidence Index” from Vistage. And the shortage of workers has forced employers to raise starting salaries. According to the REC study, in August salaries increased at the fastest pace in nearly two years. This trend may not be sustainable over the long haul if it impacts too negatively on profitability and business sustainability.

In the meantime, automation and digitalization have been proposed as possible solutions to bridge the gap. However, whether replacement of people with machines is quite what voters intended back in June 2016 when the referendum took place is questionable at best.

 

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Mind the gap

MAC to examine the role EU nationals play in the UK

The UK government has tasked the Migration Advisory Committee (MAC), the government’s independent advisers on migration, to examine the role EU nationals’ play in the UK economy and society.

Amber Rudd, the Home Secretary, engaged the MAC to look into the British labor market, the overall role of migration in the wider economy, and how a modern industrial strategy should align with the UK’s immigration system. The MAC will consult with a wide cross-section of businesses, employer organizations and EU citizens working in the UK.

The importance of this initiative should not be underestimated, as free movement will end when the UK exits the EU. The government is working on plans to develop the flow of migration from Europe. (See: The rights of EU citizens in the UK, The Global Mobility Review, July 13, 2017 blog post). The UK and the European Commission had key discussions at the end of July, and the next round of negotiations is scheduled for late August 2017.

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MAC to examine the role EU nationals play in the UK

The rights of EU citizens in the UK

The UK government has published a policy paper setting out its offer to EU citizens and their families residing in the UK regarding their right to remain in the country post-Brexit. The offer differs depending on how long a person has been in the UK.

People who have been continuously living in the UK for five years will be able to apply to stay indefinitely by getting “settled status.” A settled status residence document will be issued to prove an individual’s permission to continue living and working in the UK. Those already with an EU permanent residence document will be required to apply. The application process should come online before the UK leaves the EU, hopefully in 2018. The government has pledged to make the process as streamlined and user-friendly as possible.

Other EU citizens in the UK will be subject to a “cut-off date” after which they will no longer be automatically entitled to stay. The date is still to be negotiated, but may fall at any point between March 29, 2017 (the date that Article 50 was triggered) and the date that the UK leaves the EU.

EU citizens who arrived in the UK before the cut-off date, but who have not been here for five years when the UK leaves the EU, will be able to apply to stay temporarily until they have reached the five-year threshold, at which time they also can apply for settled status as set out above.

EU citizens who arrive in the UK after the cut-off date will be able to apply for permission to remain after the UK leaves the EU, under future immigration arrangements for EU citizens. The arrangements have yet to be determined, but the government stated that there should be no expectation by this group of people that they will obtain settled status.

Please visit The Global Mobility Review next month for further information on this development.

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The rights of EU citizens in the UK

Global Employment Lawyer – Volume 2, Issue 2 – Fall 2016

Brand-36-Global-Employment-Blog-Banner
What Happens If You Really “Break A Leg!?”

According to the Cambridge Idioms Dictionary, “Break a leg!” is something you say to wish someone good luck, especially before they perform in the theatre. Although there are many theories, the derivation of this term is unclear. The expression reflects a theatrical superstition that wishing a person “good luck” is actually considered bad luck. But is it really bad luck if you “break a leg?”

In this month’s edition, we feature articles from eight different countries Australia, Canada, China, France, Germany, Israel, UK and US. As always, we thank you for you readership.

Read the complete issue

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Global Employment Lawyer – Volume 2, Issue 2 – Fall 2016

Dual nationality may be an option for Brits who live or work in the EU

EU passport GBThe German vice chancellor has called on certain EU countries (including Italy and France) to offer young British citizens who live or work in those countries the opportunity to apply for dual nationality. This follows the speculation and confusion after the UK referendum to leave the European Union. This would allow those British citizens a chance to remain EU citizens.

Some countries (EU and otherwise) permit dual nationality, sometimes under limited circumstances, while others do not. France allows naturalization without renouncing foreign citizenship, as does Italy. The UK, US and Germany, on the other hand, generally does not and only fairly recent created an exception that requires German citizens to apply for a waiver before naturalizing in another country.

Recent opinion polls showed that more than 70 percent of UK young citizens voted to remain in the EU and there is increasing concern from UK citizens about their long-term status in other EU countries. Many fear the UK’s exit from the EU will remove the existing free movement of people, or make this ability limited with excessively burdensome and restrictive procedures. Therefore, it is likely that many Britons will want to explore this alternative and hold on to the opportunity to live and work in the other 27 countries that form the EU.

Residents of Germany can apply for citizenship after eights years on the condition that they pass a German language skills test and a naturalization assessment (among other things). Further, German law requires non-EU citizens to give up their existing nationality when applying for German citizenship. However, the German ministry has suggested that it would like to allow British individuals to hold on to their UK citizenship even if they apply for naturalization after the UK subsequently leaves the EU.

For all of the positive aspects of dual nationality giving the right to live and work in an EU country, it is worth pointing out that there are obligations that may accompany taking on another country’s citizenship. Some EU countries have mandatory military service that would probably be more likely to impact the “young” Brits. And while tangential to the topic of dual citizenship, it should be noted that many EU countries have exit taxes on unrealized capital gains that might be imposed if an individual changes their residence for tax purposes or moves taxable assets from one country to another.

For now, while leaders negotiate the exit strategy, the UK remains part of the EU and British citizens still have full rights to work or study in other EU countries. Only time will tell whether they will continue to have this opportunity in the post-Brexit world.

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Dual nationality may be an option for Brits who live or work in the EU

Brexit, a global perspective in the immediate aftermath…

Brexit Immigration

Following the UK’s EU referendum, the UK has a clear mandate for exit from the European Union. There is doubt, however, about what the future may look like for the UK and its relationship with Europe or the rest of the world. It is likely that there will now be a prolonged transition period, with the next UK government needing time to plan, prepare and negotiate the UK’s future.

Some key thoughts in the meantime:

  • For UK nationals living elsewhere in the EU, and EU nationals living in the UK, there will be no immediate change. Protection of citizens already established in those states is likely to form part of negotiations between the UK and the EU.
  • Free movement of EU citizens is expected to be negotiated as a condition of any trade deal between the UK and the EU. However, if ultimately the UK decides to no longer share in the EU’s right to free movement of labor, then citizens of other member states will not enjoy an automatic right to work, travel and live in the UK. Similarly, UK citizens will not enjoy EU citizenship rights. Prior to the referendum, the UK had already made it more difficult for EU citizens to gain permanent residence in the UK. However, the UK government will be aware that imposing fundamental limits on the free movement of labor at this time could make the UK a much less attractive destination for international businesses and skilled and educated migrants.
  • Nationals of other countries working in the UK, such as from the US, should see no imminent changes. The UK government is saying that the UK is open for business on a global scale. This is an opportunity to grow and strengthen relationships across the globe. At present the UK is not seeing any large-scale recruitment freezes or job losses.
  • Trade and investment are good for the UK’s employment growth and stability. The UK government will want to keep a level playing field with the UK’s European counterparts, and look for opportunities across the globe, at this crucial time. One key area where it will want to display its good practice is data protection. Realistically, a trade deal between the UK and the EU may also mean the UK continuing to be subject to key EU legislation.
  • The UK has a body of homegrown legislation protecting UK employment law rights. The fundamental right that exists in the UK to claim unfair dismissal will not be affected by its withdrawal from Europe. The UK also had discrimination laws in place before its ascension to the EU; EU aims and legislation are so established in UK good employment practice that they are likely to remain fundamentally the same for now. While moving to a US-style system, where employees receive lower overall protection, is possible, it is unlikely in the short term, given the broader cultural change needed to accept the US norms.
  • Subject to the above, EU rights, or improvements in those rights, in the UK may eventually be diminished or lost. However, it seems likely that grand proposals will eventually be reduced to a few smaller, less significant changes. If the UK is not required to keep EU legislation in these areas as part of a broader deal, the government may review and make changes to the current position in a number of areas, such as: (i) harmonization of terms following a TUPE transfer, (ii) limits on bankers’ bonuses, (iii) working time controls, (iv) collective redundancy consultation, (v) agency workers’ rights and (vi) the absence of a cap on discrimination awards.
  • If the UK is no longer subject to the jurisdiction of the European Court of Justice, UK case law may develop in a slightly different direction. This may mean a gradual parting of ways between the UK and EU states.

On balance, it is most likely that the next government will want to preserve the status quo, at least in the short term, and wait for the dust to settle before looking for opportunities to make more fundamental and valuable changes. Dentons will keep you posted as the picture evolves.

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Brexit, a global perspective in the immediate aftermath…

Free movement a thing of the past?

passport home office 2

The “Brexit” debate will be on the minds of EEA nationals who have moved to the UK for work. Those who have been here for some time will be concerned that they could lose their right to remain in the UK. A change in the regulations governing the rights of European nationals is fueling this concern. In November 2015, European nationals lost the automatic acquisition of permanent residence after five years exercising treaty rights in the UK.

Now a European national must make an application for confirmation of permanent residence if he or she wishes 12 months later to apply for naturalization as a British citizen. This means the national will have to make two applications and wait 12 months between each application.

Although this extra burden could be unfavourable to any Europeans wanting a British passport, the likelihood is that protecting the Europeans who are in the UK will form part of the negotiations of any Brexit. Similarly, thought will need to be given during negotiations to those British nationals who are living in other European countries.

Since there is some ambiguity, we recommend that European nationals act now to secure confirmation of their status.

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Free movement a thing of the past?

Information on recent amendments to Russian migration rules

Employment and Labor

Federal Law No 199-FZ on Amendments to Articles 18.10 and 18.15 of the Administrative Penal Code and the Federal Law on the Legal Status of Foreign Citizens in the Russian Federation of June 29.06.2015 (the “Amendment Law”) was published and entered into force on June 30, 2015.

The Amendment Law requires foreign employees who change their name or passports to apply to the migration authorities to enter the appropriate changes to their work permits (i.e. to indicate the new name or new passport details in the work permit):

  • within 7 days of such change (if the name was changed or the new passport was received in the Russian Federation); OR
  • within 7 days of entering Russia (if the name was changed or the new passport was received outside the Russian Federation).

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Information on recent amendments to Russian migration rules

Global Employment Lawyer – Issue 3

Summer 2015

Global Employment Lawyer

The third edition of the Global Employment Lawyer provides you with practical content to keep you current on developments that effect your business goals around the globe. Our lawyers look at questions of religious accommodation as well as the unpleasant income tax consequences of temporary visas in the US; managing “difficult employees” in Canada; reducing workforce due to redundancies in China; imminent changes to Polish labor law; recruitment of non-resident foreign workers in Angola; employing foreign workers in Israel and whistleblowing in the UK.

Read more

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Global Employment Lawyer – Issue 3

One week away: Critical employment issues facing multi-national employers

Labour-2-(ThinkStock)

With one week left, click here to register for our CLE program on Critical Employment Issues Facing Multi-National Employers.

December 10, 2014
04:00 PM – 07:00 PM EDT
1221 Avenue of the Americas
50th Floor
New York, NY
United States

Dentons Global Employment and Labor group is pleased to invite you to an interactive program bringing together Dentons lawyers from around the globe to present on several critical employment issues facing multi-national employers. The three-panel program will be followed by networking cocktails where you will have an opportunity to mingle and connect with professionals in the industry.

Panel topics and speakers:

Moderated by Brian Cousin

Privacy Panel (4:30 p.m.–5:30 p.m.):
Andy Roth (US), Barbara Johnston (Canada), Michael Bronstein (UK), Katell Deniel-Allioux (France),Todd Liao (China by video), Neil Capobianco (US)

Global Mobility Panel (5:30 p.m.–6:00 p.m.):
Matt Schulz (US), Michael Bronstein (UK), Todd Liao (China by video)

Restrictive Covenants Panel (6:00 p.m.–7:00 p.m.):
Richard Scharlat (US), Adrian Miedema (Canada), Michael Bronstein (UK), Katell Deniel-Allioux (France), Todd Liao (China by video)

Register Now

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One week away: Critical employment issues facing multi-national employers