SCOTTISH businesses are unprepared or not aware of the potential employment difficulties they could face in the event of a no-deal Brexit – and it could leave them facing huge skills shortages.
The warning comes from accountancy and financial services group French Duncan, which said firms only have months to ensure they are Brexit ready.
An estimated 235,000 people from the EU currently work in Scotland and French Duncan said this, coupled with our low unemployment rate, could mean that any major shift of this population back to their home countries could pose serious problems filling their vacancies.
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Sectors such as hospitality, retail and agriculture employ a disproportionately high number of EU citizens, so finding UK-born replacements could be a costly and difficult exercise and a major concern, given their typically high levels of staff turnover.
Louise McCosh, HR services director with French Duncan, said: “From March 29, 2019, all EU nationals who have lived in Scotland for five years or more can apply for ‘settled status’ while those who have lived here for less than five years can apply for ‘pre-settled status’.
“The cost of applying for this status is £65 per adult and £32.50 per child so for a family of four it is just under £200.
“While it is the responsibility of the individual to apply for this status it may be in the interests of employers to encourage their workforce to do so with information or even with financial incentives.”
She said employers had to prepare for a range of options, such as encouraging existing EU staff to remain by helping them with their status applications. They could also plan for a fall in the number of EU employees by advertising posts more widely, increasing wages and highlighting pension options to attract UK applicants.
“Business owners need to recognise the potential difficulties that lie ahead particularly if their business is heavily dependent upon EU workers. It is not an option to wait and see what happens.”
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