What happens if the UK leaves the EU without a deal?

In an ideal world, no-one will need to read or act on the content of this blog as the UK will successfully negotiate a deal with the EU that clearly sets out the rights and restrictions that will apply to Britain's future trade relationship with the EU. However, whilst we can hope for the best, we also need to plan for the worst - which in this case would be a no deal Brexit. In the event that we do leave the EU at the end of the year without a deal in place, here's some of the key things you need to know.

(More detailed advice can be found in the government's guidance.)

Trading Under WTO Rules

Currently, as part of the EU, the UK is party to EU international agreements with third countries, including 40 Free Trade Agreements (FTAs). In the event of a no deal Brexit these FTA's will no longer apply to the UK from 1 January 2021. The UK will instead trade with those countries under WTO rules.  WTO rules state that any member of the WTO must apply the same trading terms to all other WTO members. This applies to all trades, including the provision of professional services such as recruitment, unless there is a specific trade agreement in place between countries.

There are some trade agreements the UK has signed with non-EU countries and that will remain in place. Find more information at this link. 

Recognition of Qualifications

From 1st January, anyone who works in a regulated profession will need to ensure their qualifications are recognised in any EU countries where they plan to work. UK qualifications will also need to be officially recognised by the relevant regulator in any country where you intend to sell or provide a service. This requirement applies even if you are providing temporary or occasional professional services.

Business Visas

Where UK nationals are looking to provide services in EU countries after 1st January, then you will also need to check what type of visa, work or residence permits are required. This may vary from country to country, and you will also need to comply with the specific immigration controls for each country where you provide services. You will need to consider this for both your own staff and temporary workers who may need to travel into Europe or elsewhere to complete jobs. The government has published advice about travelling to specific countries, including travel entry requirements and how to stay safe while you are there.

Data Protection

Whilst the UK remains in the EU, the GDPR allows personal data to flow freely back and forth between the UK and the EU. However, where we have a no deal Brexit, the UK will become a "third country" for the purposes of personal data transfers between the UK and EU, this means the international transfer provisions of the GDPR will be applicable.

The UK has confirmed that it will recognise all EU countries as "adequate" under the GDPR. This will allow UK based businesses to continue to transfer personal data to EU countries even in a no deal scenario. However, in order to receive data from the EU, the European Commission would need to recognise the UK as adequate also. The Commission has stated that it will not confirm an adequacy decision for the UK until after Brexit. This means that, at least initially, you will be able to transfer personal data to the EU, but may not be able to receive personal data from EU countries. This will have important considerations where you have offices in the EU or source candidates from overseas.

In order to be able to continue to operate, you should consider different safeguards for data protection. The European Commission has created some Standard Contractual Clauses for data protection that have been adopted by the ICO. The ICO has created an interactive tool that identifies the circumstances in which businesses could use the SCCs for transfers from the EEA to the UK, and these can be adopted into your terms of business.

More information on data protection and international transfers after Brexit can be found in the REC's legal guide.

In addition to the resources above, we also recomend these the UK government  tools to help guide you and your business through Brexit including personalised laction list:

 Brexit checker tool   EU trading webinars   Business support helpline