As the United Kingdom (UK) has completed its withdrawal from the European Union (EU), businesses are now facing new challenges and uncertainties in relation to the management of their workforce. Employer of Record (EOR) and Professional Employer Organization (PEO) services are among those that have been affected by Brexit. In this blog post, we will explore the impact of Brexit on EOR and PEO services in the UK, and how businesses can navigate these changes.
Employment Law Changes
One of the most significant impacts of Brexit on EOR and PEO services is the potential changes to employment laws. The UK is no longer bound by EU laws, which means that the government now has more flexibility to change employment laws and regulations. This could result in new compliance requirements for EORs and PEOs, and businesses that rely on these services will need to stay informed of any changes and ensure they are compliant.
Immigration Restrictions
Another impact of Brexit on EOR and PEO services is the potential changes to immigration policies. The UK has left the EU’s single market and customs union, which means that EU citizens will be subject to the same immigration rules as non-EU citizens. This could make it more difficult for businesses to hire and retain EU workers, which could have an impact on EOR and PEO services that provide employees on a temporary or project basis.
Currency Fluctuations
Brexit has also led to fluctuations in currency exchange rates, which could have an impact on EOR and PEO services. The value of the pound has dropped since the Brexit vote, which means that businesses that rely on EOR and PEO services may face increased costs. This could make it more expensive for businesses to hire employees through these services, and could also affect the cost of benefits and other expenses.
Access to Talent
The UK has also left the EU’s single market which could limit the access to talent for businesses in the UK. This could be particularly challenging for businesses that rely on EOR and PEO services to provide employees on a temporary or project basis. With the UK no longer part of the single market, businesses may face more difficulty in hiring EU workers, which could affect the flexibility and availability of employees provided by these services.
Conclusion
Brexit has brought a number of changes and challenges for businesses in the UK, including those that rely on PEO and EOR services in UK. Businesses will need to stay informed of any changes to employment laws and immigration policies and be prepared to adapt to fluctuations in currency exchange rates. Additionally, businesses should consider the access to talent as a result of leaving the EU’s single market. Ultimately, it’s important for businesses to work closely with their EOR and PEO providers to ensure that they are compliant with the new regulations and that they have access to the necessary resources and support to adapt to the new post-Brexit environment.