Most UK firms ‘not ready’ for post-Brexit drop in EU workers from 2021

Well over half of companies are unaware of proposed restrictions on EU immigration from 2021 and as many say they do not have enough information to start planning

(PA)

British firms are “not ready” for the introduction of new restrictions on EU immigration planned for January 2021, new research has revealed.

The report by CIPD, the professional body for HR specialists, says few organisations are equipped to deal with a reduced inflow of EU workers after Brexit, as a result of little awareness of the proposed new rules among firms, a lack of planning and political uncertainty.

The CIPD’s recent discussions with employers across the UK confirmed its earlier findings that firms typically recruit EU migrants because of a shortage of UK-born applicants.

The government is currently collecting responses to its white paper on controlling the number of workers from the EU, which is largely based on extending the scope of the points-based system used for non-EU citizens.

A CIPD survey of over 2,182 employers found that 58 per cent do not know anything about the white paper, while 35 per cent said they know “a little” about it. Again, over half – 56 per cent – said they do not have enough information to start making decisions about their post-Brexit recruitment strategy, with just 27 per cent happy to make decisions based on existing information.

The institute also found that since the 2016 vote to leave the EU most employers have focused on retaining existing EU staff, rather than on planning for immigration restrictions.

"Very few employers are ready for the end of free movement and restrictions on immigration in just over a year. Worse still, many seem both daunted and alarmed by the range of restrictions planned and the costs they are likely to incur,” said Gerwyn Davies, senior labour market adviser for the CIPD.

“It seems inevitable that the rate of inflow of EU citizens into the UK from 2021 will fall compared with recent years,” he added.

The CIPD urged the government to bring in immigration restrictions gradually to give firms more time to adjust and to avoid harming UK competitiveness.

It recommended introducing a two-year visa system for unskilled workers and making an exception for some jobs with labour shortages by lowering the proposed £30,000 salary requirement for foreign workers.

One engineering firm in Scotland told the CIPD that the average salary of a skilled manufacturing worker is £28,000. “That’s a significant issue for us,” the employer said.

The British Chambers of Commerce also highlighted lingering gaps in government guidance on the status of EU migrants despite the fast-approaching Brexit deadline of 31 October.

“The implications of unclear government advice, and gaps in the system, could be costly for businesses that may feel they need to access professional help,” the group said on Friday.