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30 January 2019
On January 15th, 2019 the British parliament has rejected the proposed deal, and as we are approaching the deadline, the chance of a No-deal Brexit is increasing.
The potential outcomes between today and 29 March 2019 vary from a No-Deal, to a new referendum to a postponement. Regardless, Brexit can have negative consequences for the EU and for EU organizations doing international business, like Atlas Professionals.
Impact of Brexit
Given the circumstances at this stage Atlas needs to plan for a scenario of maximum (negative) change. With today’s knowledge, Atlas Professionals expects impact of Brexit in four main areas:
- Logistics, Visas, Travel between UK and EU: Without a Brexit-deal it is expected that travel (flights) between the UK and EU will potentially be hindered by custom formalities. It is advised to place orders for longer assignments before 29 March, so that we are able to offer those professionals an employment contract for a longer period. Professionals with existing labor agreements should face less challenges than professionals with a labor agreement starting after 29 March.
- Immigration: In the event of a no deal, there would be no specific arrangement on the future rights of EU citizens in the UK and UK citizens in the EU, border checks would have to be re-imposed, and transport between the UK and the EU would be severely affected. The UK would become a "third country" with substantially less access to the EU single market. We expect that impact for professionals who work offshore and on vessels in international waters is very limited. Professionals who work in harbors and within the 12 miles territory are more likely to be impacted by new immigrations restrictions.
- Social securities: It is possible that existing bilateral Social Security Agreements between the UK and certain EEA countries may come back into force to determine the social security liability and access to benefits. However, these Agreements are dated, very limited in scope and coverage, and generally not fit for purpose in today’s business environment. These additional costs will be reflected in the cost price as well as the sales price to clients.
- Recognition of Certificates: Under a no-deal scenario new seafarer certificates may not automatically receive the same level of acceptance as the current ones. Seafarer Certificates in place on 29 March will remain valid until expiry, hence EU seafaring professionals working in the UK or UK professionals working in the EU with a certificate due to expire this year should be recommended to extend these – if possible – before 29 March.
Updates
Atlas maintains informed through multiple channels such as governance websites, regular advisors and consultants in our network and associations to ensure a solid update and action plan if and when further implications become evident.
For questions and for information, please be in touch with your dedicated Account or Business Manager from Atlas.