Towards the end of June Prime Minister Theresa May outlined the government’s proposals on the status of EU citizens once the UK leaves the European Union.

In short, EU citizens who have lived legally and continuously in the UK for five years will be able to apply for “settled status”. This will not be available automatically and anyone who wants to stay in the UK after Brexit will have to specifically apply for inclusion on a “settled status” register.

EU citizens who have already applied for permanent residency status since the referendum in June 2016 will have to apply again, however the process for these individuals will be streamlined.

Although these are merely proposals at this time, with negotiations ongoing over the exact terms of Brexit, the issue over EU citizens' rights will impact UK businesses in a big way. Many workforces will include those affected directly (and indirectly) by the proposals, and any final agreement.

What about workers without five years of residency?

EU citizens who have not accrued five years of legal and continuous residence in the UK may lose their right to live and work in the UK. Businesses could be hit by skills shortages and will have to factor in potential extra costs, such as for skills training for non-EU workers.

The only thing for certain right now is that everything is uncertain, but it is incumbent upon employers to have the difficult conversations with their EU workers now, if they haven't already, to assess what may happen once the UK formally leaves the European Union.

Brexit Impact Review

Buckinghamshire Business First is conducting a survey to assess the current and future effects on businesses of the UK leaving the European Union.

This survey will be released soon and you will have your chance to respond to it. In the meantime, if you have any initial thoughts about the impact of Brexit on your business, please send your comments to our Economic Research team at research@bbf.uk.com.