How Brexit Affects Hiring Non-Residents in UK and EU

Since the United Kingdom (UK) officially left the European Union (EU) in 2020, its immigration and hiring policies have undergone significant changes, especially when it comes to hiring non-residents. Brexit has reshaped the labor market on both sides of the Channel, introducing new challenges for businesses that previously relied on the free movement of workers within the EU. As the UK and EU adapt to this new reality, understanding the impact of Brexit on hiring non-residents is essential for companies aiming to attract top talent from outside their respective borders.

The New Immigration Landscape: Post-Brexit Challenges.

Brexit led to the introduction of a points-based immigration system in the UK, which treats EU and non-EU nationals the same. As of 2024, the UK has adopted a more stringent approach to hiring foreign workers. Companies now must secure work visas for any non-resident employee from outside the UK, including EU nationals. On the EU side, member countries have adjusted their immigration policies to address labor shortages, but the free movement of workers has ceased, making the process more complex for employers and job seekers alike.

In the first half of 2024, the number of work-related visa applications in the UK decreased by 12% compared to pre-Brexit years. The UK Home Office attributed this to the increased difficulty of securing work visas and the slower processing times. On the EU side, however, countries like Germany and the Netherlands saw an increase in applications from workers in countries outside the EU, who previously could have found work in the UK more easily due to the country’s membership in the union.

The Impact of Brexit on UK Hiring.

Before Brexit, the UK operated under EU free movement rules, allowing workers from all EU member states to move freely for employment. This access to the EU labor market significantly helped UK companies fill roles across various sectors, from agriculture and hospitality to healthcare and technology. Since Brexit, UK employers have faced new challenges.

The UK’s post-Brexit points-based immigration system requires employers to sponsor workers from outside the UK, including EU citizens. These workers need to meet certain criteria, such as a minimum salary threshold and a job offer from an approved sponsor. In 2024, over 60% of job vacancies in the UK in sectors like healthcare, agriculture, and hospitality remain unfilled due to the inability to secure foreign talent under the new system. The UK government also introduced an “Immigration Health Surcharge” for workers, further adding to the cost of hiring non-resident workers.

Jon Purizhansky, CEO of Joblio, notes: “The shift in immigration policies post-Brexit has made it increasingly difficult for UK employers to attract workers from the EU. Many sectors, especially in agriculture and hospitality, are feeling the shortage. Companies are turning to platforms like Joblio, which helps streamline the recruitment and visa process and ensures compliance with the latest immigration laws.”

The EU’s Approach to Non-Resident Hiring Post-Brexit.

On the EU side, Brexit has led to the cessation of free movement between the UK and the rest of the union, which has impacted hiring practices across several member states. Many EU countries have introduced or expanded talent programs to attract skilled professionals, particularly in areas where there are significant labor shortages. Germany’s “Skilled Worker Immigration Act,” which aims to attract professionals in sectors such as IT, healthcare, and engineering, is one example of how EU countries are compensating for the labor gap left by the UK’s exit.

In 2024, the EU labor market is expected to face a shortage of about 800,000 workers in high-demand sectors. Many of these positions were previously filled by UK nationals, but the reintroduction of visa and residency requirements for UK citizens has created additional hurdles for EU employers seeking talent.

EU employers must now navigate additional bureaucracy and paperwork when hiring UK nationals, which affects both the hiring time frame and administrative workload. Countries like Spain, France, and the Netherlands have seen a slight drop in UK nationals applying for jobs, with figures declining by approximately 9% in the first quarter of 2024 compared to 2023.

Key Changes to the Hiring Process Post-Brexit.

1.  New Work Visa Requirements for UK Employers

UK employers now need to apply for work visas for all non-resident employees, including those from the EU. This adds significant administrative complexity, as businesses need to sponsor foreign workers and meet specific salary thresholds. The salary requirement for a general work visa in 2024 ranges from £25,600 to £30,000, depending on the role.

2. EU Nationals Need Work Visas for the UK

EU nationals are no longer able to freely live and work in the UK. Instead, they must apply for a work visa through the same system as non-EU nationals. This has created an additional barrier for both employees and employers, as it takes longer to process these applications, and the visa fees are substantial.

3. Increased Demand for Skilled Workers in the EU

In response to the labor gaps left by Brexit, many EU countries have introduced or expanded skilled worker visa programs, such as the Blue Card program, to attract non-EU workers. Countries like Germany and France have streamlined their visa processes for professionals in high-demand sectors like technology, engineering, and healthcare.

4. Cost and Time Investment for Employers

The application process for work visas in the UK and EU has become more time-consuming and expensive, as employers now must sponsor their workers and comply with the specific requirements of each country’s immigration policies. In 2024, visa processing times have increased, and employers are also dealing with higher costs related to sponsorship, legal advice, and administrative fees.

Recommendations for Employers.

1. Invest in Recruitment Platforms

Employers should consider using recruitment platforms like Joblio, which specialize in helping businesses navigate the complex post-Brexit immigration landscape. These platforms can simplify the visa application process and ensure compliance with the changing immigration rules, ultimately reducing delays and errors.

2. Plan for Extended Hiring Timelines

With the new visa requirements in place, employers must account for longer processing times and the complexity of visa applications when planning their hiring strategy. Companies should start the recruitment process earlier to avoid delays in filling key positions.

3. Diversify Talent Pools

Employers in both the UK and EU should look beyond the traditional talent pools and expand their hiring efforts to non-EU countries. Countries like India, Brazil, and the Philippines offer a wealth of skilled talent that can fill gaps left by Brexit. Targeting these countries with active recruitment programs can provide businesses with a broader range of candidates.

Brexit has introduced a number of challenges for businesses in the UK and EU that are trying to hire non-residents. From the UK’s new points-based immigration system to the EU’s new visa requirements for UK nationals, navigating the post-Brexit landscape has become a more complicated and time-consuming process. However, companies can overcome these obstacles by investing in recruitment platforms, diversifying their talent pool, and understanding the specifics of the new immigration policies.

Jon Purizhansky concludes, “Brexit has undoubtedly shifted the hiring landscape, but businesses that are proactive and utilize the right tools to simplify the process will be best positioned to thrive in this new environment. By staying informed and leveraging ethical recruitment platforms, employers can continue to access global talent without compromising on compliance.”

Originally Posted: https://jonpurizhanskybuffalo.com/how-brexit-affects-hiring-non-residents-in-uk-and-eu/