Navigating the new landscape: Post-Brexit regulations for UK businesses

The UK's departure from the European Union brought with it a wave of changes for businesses across the country. While some effects were immediate, many others have continued to unfold, reshaping the regulatory landscape. For those leading organisations and developing skills in the workplace, understanding these shifts isn't just good practice – it's essential for staying compliant, competitive, and successful. This article will help you get to grips with the key areas you need to consider, from how you trade to how you handle data and manage your workforce.

Trade rules and customs

One of the most immediate and impactful areas of change for many businesses was trade. The new relationship with the EU replaced frictionless trade with a system that includes customs checks, declarations, and new rules of origin. For businesses that import from or export to the EU, this has meant a significant increase in administrative burden and, in some cases, new costs.

What's changed?

• Customs declarations: Businesses now need to complete customs declarations for goods moving between Great Britain and the EU. This can be complex, requiring accurate commodity codes, valuations, and details of origin.
• Rules of origin: To benefit from zero-tariff trade under the UK-EU Trade and Cooperation Agreement (TCA), goods must meet specific 'rules of origin'. This means proving that a certain percentage of a product's value, or specific processing, originated in the UK or the EU. Without this, tariffs may apply.
• Border checks: Depending on the type of goods, new sanitary and phytosanitary (SPS) checks, and other product-specific regulations, are now in place, potentially leading to delays at the border.
• VAT and duties: While VAT rules for services remained largely stable in many areas, the movement of goods now involves different VAT treatments and potential import duties. Businesses may need to register for VAT in EU countries if selling directly to consumers there.

Practical advice for businesses

1. Review your supply chains: Understand where your raw materials and components come from, and where your finished goods are going. Can you simplify routes or source more locally to avoid origin complexities?
2. Get professional advice: Customs agents, freight forwarders, and trade consultants can help navigate the intricacies of declarations and duties.
3. Invest in training: Ensure your logistics and administrative teams understand the new customs procedures, commodity codes, and rules of origin.
4. Digitise processes: Look for software solutions that can streamline customs declarations and help manage documentation.

Data protection

Before Brexit, the UK followed the EU's General Data Protection Regulation (GDPR). After leaving the EU, the UK incorporated GDPR into its national law, calling it 'UK GDPR'. While much of it remains similar, there are nuances, particularly concerning international data transfers.

Key considerations

• UK GDPR: This is largely aligned with the EU GDPR, meaning the core principles of data processing – lawfulness, fairness, transparency, purpose limitation, data minimisation, accuracy, storage limitation, integrity, and confidentiality – still apply.
• International data transfers: Sending personal data from the UK to the EU (and vice-versa) is generally permitted. The EU has granted the UK 'adequacy' status, meaning it recognises the UK's data protection standards as equivalent to its own. The UK has also maintained its own adequacy regulations for transfers to the EU.
• Transfers outside the UK/EU: For transfers of personal data to countries that don't have an adequacy agreement, businesses still need to use appropriate safeguards, such as Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs). The UK has also developed its own international data transfer agreement (IDTA) and an addendum to the EU's SCCs, which took effect in March 2022.

Practical advice for businesses

1. Update privacy policies: Ensure your privacy notices clearly state your legal basis for processing data and how you handle international transfers.
2. Review data flow maps: Understand where personal data originates, where it's stored, and where it's transferred, particularly cross-border.
3. Appoint a DPO if needed: If your organisation processes large amounts of sensitive data or undertakes systematic monitoring, you may still need a Data Protection Officer.
4. Stay informed: The Information Commissioner's Office (ICO) provides up-to-date guidance on data protection in the UK and new international agreements.

Employment law and immigration

Post-Brexit, the free movement of people between the UK and the EU ended. This has led to substantial changes in immigration policy and, by extension, how UK businesses can recruit from abroad.

What's changed?

• Points-based immigration system: Most EU citizens now need a visa to work in the UK, similar to non-EU citizens. The main route for skilled workers is the Skilled Worker visa, which requires sponsorship from an employer with a sponsor licence.
• Right to work checks: Employers must now conduct right to work checks for all new employees, ensuring they have the legal right to work in the UK, regardless of nationality. This includes checking documentation like passports, visas, or settled status grants.
• EU Settlement Scheme (EUSS): EU citizens and their family members who were living in the UK by 31 December 2020 should have applied to the EUSS to secure their immigration status. Employers should be aware of employees holding pre-settled or settled status.
• Impact on labour supply: Sectors that historically relied heavily on EU labour, such as hospitality, healthcare, and agriculture, have faced recruitment challenges due to the new immigration rules.

Practical advice for businesses

1. Consider sponsor licence: If you anticipate needing to recruit from outside the UK, apply for a sponsor licence far enough in advance. It can be a lengthy process.
2. Robust right to work checks: Implement thorough and consistent right to work checking procedures for all new hires to avoid penalties.
3. Support existing staff: Ensure any EU staff who should have applied for the EUSS have done so and understand their status. Provide support where needed.
4. Review recruitment strategies: Diversify your recruitment pipeline. Explore local talent pools, apprenticeships, and skills training initiatives to fill vacancies.
5. Understand skills needs: Keep an eye on the government's Shortage Occupation List (SOL), which highlights roles where it's easier to sponsor overseas workers.

Conclusion

Navigating the post-Brexit regulatory environment is an ongoing challenge, but it's one that businesses can overcome with careful planning and proactive measures. The key is to understand the specific changes that affect your operations, engage with expert advice when necessary, and ensure your teams are equipped with the knowledge they need. By staying informed and adaptable, UK businesses can not only comply with the new rules but also identify new opportunities in this evolving landscape. For leaders in further education and skills development, this also means ensuring that curriculum and training reflect these real-world business needs, preparing the workforce of tomorrow for the challenges and complexities of today.