On Tuesday 15 January the House of Commons voted to reject the Withdrawal Agreement Theresa May had negotiated with the European Union. This means that there is an increased likelihood of the UK leaving the EU on 29 March 2019 without a deal in place. This will have a significant impact on citizens and businesses in both the UK and the EU, who are expected to face possible delays at the border, uncertainty as to residence and labour restrictions and other issues in respect of people mobility.
With the House of Commons rejecting the deal the Prime Minister had agreed with Brussels, it is not clear on which terms the UK will be leaving the EU on 29 March 2019. Possible scenarios include a renegotiation of the Withdrawal Agreement, an alternative ‘soft’ Brexit or even no Brexit at all. However it is to be expected that today’s vote will have a significant political impact.
While the UK has not published any ‘no deal’ scenario planning, the Dutch Minister of Foreign Affairs issued a statement to the Dutch Parliament on 7 January 2019 confirming which transition measures the Netherlands would put in place in case no transitional arrangement was in place between the UK and the EU on 29 March 2019. In essence the statement outlined the following:
The aim of this transitional arrangement is to soften the immediate impact of a ‘no deal’ Brexit. However employers in the Netherlands will need to take into account that British citizens coming to the Netherlands after 29 March 2019 will be subject to immigration and labour restrictions. It is expected that this will have the most significant impact on new arrivals in the Netherlands, including short term business travelers, commuters and project workers.
We advise employers to assess whether they employ British citizens in the Netherlands or EU citizens in the UK and, if so, whether they will be impacted by changes to existing rules. If so, PwC advises to monitor all developments and make the necessary preparations for all possible scenarios.
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