18 February 2019
The clock is ticking on the UK’s exit from the European Union on 29 March 2019. But we still don’t know the terms of its departure or what impact Brexit will have on employment both in the UK and the 27 remaining EU member states. Faced with this level of uncertainty, HR and payroll teams need to start their HR Brexit planning right now.
HR teams must first make sure they have a clear overview of their company’s workforce. This clarity is currently missing in many companies, according to a recent survey by SD Worx, a leading global HR and payroll services provider, and 3Gem, a global research company. The survey of 1,000 HR and payroll professionals from seven European countries found that over a quarter (27.5%) of respondents do not know how many British employees they have working in the EU. A slightly smaller proportion (25.9%) do not know how many EU employees they have working in the UK.
To find out exactly who works where, HR needs to literally make a list identifying which employees fall into each of the following three scenarios:
Employees in all three categories should be classified as working “cross-channel”, as opposed to “cross-border”, suggests Sven Reynders, Regional Manager, Tax and International Employment, SD Worx. “The first thing that companies should do as part of their contingency planning is to prepare an inventory of where they have people working cross-channel,” he says. “The question is, ‘do we have any staff that fit the EMPLOYEE A, B or C scenarios? If so, how many? And where are they currently?”
The impact of Brexit on each type of cross-channel employees will depend on how the UK ends up leaving the EU. If the UK Parliament votes for a version of the Brexit deal hammered out between Theresa May’s government and the EU, transitional arrangements will kick in on 30 March 2019. These will protect the existing rights of EU citizens in the UK and vice versa, and allow the free movement of people to continue until the end of 2020. Employers will have almost two years to prepare for new post-Brexit immigration rules in both the UK and the EU.
If, on the other hand, there is a hard Brexit and the UK leaves the EU without a deal, UK citizens would immediately be treated like those of other non-EU states and vice versa. People in the Employee A category – those who currently work in several different EU states – are likely to be hit especially hard. For example, a UK citizen based in France who regularly travels to Belgium and Germany on business might find it difficult to do so after a “no deal” Brexit. He might get permission to continue working in France but that would not necessarily cover his trips to the other two countries.
With or without a deal, the end of free movement will inevitably reduce the flow of workers between the UK and the EU. So, to meet their business objectives after Brexit, companies with cross-channel employees must develop plans to ensure they have the right people in the right places. And there is no time to lose. As Sven Reynders says: “Emergency legislation is being drafted all over Europe. But if you wait to see what that legislation looks like before you start preparing, it will already be too late.”
HR and payroll professionals are aware of the scale of the challenge they face. The SD Worx/3Gem survey found that 63% of respondents believe preparing for Brexit will be difficult, and 18% believe it will be very difficult. The biggest difficulties for respondents are understanding changing legislation (44%), moving staff and/or headquarters (35%) and finding in-house skills to manage changes caused by Brexit (29%).
However, help is at hand. Well over half (60%) of business without the necessary HR and payroll skills to adapt to the changes that Brexit will bring are turning to third-party providers for expert tax and legal advice.
No business should attempt to unpick the complexities of Brexit alone. There is a myriad of other employment issues to consider before, during and after Brexit: dual nationality, remote workers, whether to recruit local or international staff. SD Worx can support and guide companies through each step.
SD Worx provides insights, legal advice, guidance and consulting to address the key HR, payroll and workforce management issues impacted by Brexit, such as the post-Brexit immigration landscape, visas, work permits and residency. We can even provide an audit assessment to see if you have systems that can cope with international HR and Payroll compliance changes as a result of Brexit.
Visit SD Worx to accelerate your Brexit planning.
The summer months can sometimes be quiet for the payroll department, as employees enjoy well deserved breaks. However, with the final quarters of the year approaching, it’s time to get back to work—payroll never takes a break, after all.
Here are three ways to ensure that the department is as productive as ever as it prepares for the busy second half of the year.
In today’s business landscape, organisations are facing uncertainty as they plan for the future. When managing this business change, leaders don’t always think to look to the HR and payroll departments for the answers. However, working with a Global Payroll Provider can open up opportunities that could ensure it thrives and grows despite the challenges of today.4 September 2019
Brexit. It doesn’t matter whether you’re an employee or employer, there is little clarity over exactly what it means. While the British Government scrambles for an outcome, organisations sit patiently, doing what they can to prepare for all eventualities. Considering that there is no certainty and a myriad of possible outcomes, it makes it extremely challenging for organisations to put plans in place.
When the time comes for a company to expand into new territories and take operations global, it can mean a significant increase in workload for the HR and payroll departments – so, how can expanding businesses manage this transition with ease?20 June 2019
Twelve months ago, HR and payroll teams around the world were preparing for the changes that the new General Data Protection Regulation (GDPR) was set to bring to the industry. So, how are they coping with compliance today?23 May 2019
SD Worx explains the importance of balancing global and local payroll operations for expanding international businesses and how a multinational payroll provider can help keep this balance.14 May 2019
Running global payroll for an organisation operating in multiple countries can, at times, become somewhat overwhelming. With various rules and regulations to comply with and huge data sets to handle, many payroll professionals would welcome a helping hand. Today, with advancements in HR and payroll technology, that hand doesn’t have to be human—in fact, embracing these technologies can unlock the power of payroll within an organisation.4 April 2019
What will Brexit mean for the social security rights of UK nationals currently working in other EU states, and of nationals of the remaining 27 member states now in the UK? Will these cross-channel workers benefit, for example, from state pension contributions they made in the UK and vice versa if they return to their countries of origin?14 March 2019
Today’s business world is becoming increasingly international as technological advancements make it easier for organizations to operate in multiple regions, or even globally. However, when it comes to modern international payroll, many businesses struggle to run their payroll on a global scale.12 February 2019
With the festivities over and the new year well underway, as we return to work, many may have already given up on their new year’s resolutions for 2019. However, when it comes to new year resolutions in the HR and payroll industry, there are many resolutions that HR and payroll teams should commit to which will ensure that their payroll is powerful and running efficiently throughout the year.10 January 2019
The SD Worx team has returned from another great annual UNLEASH conference. Over 5,000 attendees gathered at the RAI Exhibition and Conference Centre in Amsterdam – the site of the first conference seven years ago.7 November 2018
Payroll is the lifeblood of an organization, so getting it right is crucial. When organizations branch out into new geographical locations, the risk of payroll mistakes heightens. It’s a scary thought for HR and payroll professionals.
30 October 2018
On 31st October, SD Worx is hosting an exclusive webinar, in collaboration with Ascender (also a member of the Payroll Services Alliance), to discuss the General Data Protection Regulation (GDPR) and how it affects organisations outside of the EU19 October 2018
If no agreement between the UK and the European Union is reached at the EU summit on 18 and 19 October, the transitional period that would have applied until the end of 2020 will expire. As a result, on 29 March 2019, the UK’s membership in the EU will end, and EU law will no longer apply. If your company employs people in or from the UK, this change could be far-reaching. So, take the bull by the horns and avoid unpleasant surprises caused by a ‘no deal’ scenario by making the right preparations.16 October 2018
September: the month that children dread as they make their return to school after the freedom of the long summer months. But for adults, especially those in the payroll industry, after the quiet summer period September should be a time to be motivated and to adopt that ‘back to school’ thinking. It’s important for teams not to be stagnant. In the ever-developing payroll industry, adaptability is key and so learning shouldn’t stop just because you’ve left school—in payroll and HR it’s all about continuous learning.18 September 2018
The multinational payroll industry is set to be worth 4.8bn by 2021, yet, despite the evident power of payroll, only a third of multinational organizations have a global payroll provider. Instead, they rely on a disparate selection of multiple local providers and therefore have no access to collated data or a clear insight into their employee attrition, engagement, or retention.30 August 2018
Is your HR and payroll team feeling the heat this summer? With the weather heating up, most of us want to get out and enjoy the sun or escape on a holiday. However, with more staff members out of the office, this can mean that the payroll team might be running on reduced numbers. And, typically, less team members results in a higher workload for those in the office. This is where HR and payroll technology can help, giving HR teams a well-deserved summer holiday.3 August 2018
The HR and payroll industry is in a constant state of change. New laws and regulations are introduced around the world, some of which—including GDPR—change the way the whole organization handles its processes and services.26 July 2018
Payroll data. How often do we stop and think about how important it is to a business? Although payroll is often viewed as a back-office function, it is an essential part of any organisation, and is much more than just payslips.5 July 2018
The multinational payroll market is growing at an impressive rate, with the entire payroll services market expected to reach 4.8 billion by 2021. The demand for international payroll services are increasing, due to the heightened need for compliance to local laws and legislations, and a demand for more comprehensive technology. However, even though the payroll market is growing, many organisations still aren’t unlocking the power of payroll.3 July 2018
The results of SD Worx’s recent international survey are in! With 1,500 respondents from nine European markets, the survey reveals that up to 87% of business leaders are now asking for employee data to inform business decisions—HR and payroll data is now being regularly used by business leaders.11 June 2018
Payroll, and the importance of payroll, is everywhere. Whether in Italy, France, or in Belgium, payroll is a crucial part of any organisation. Employees are the heartbeat of an organisation, so ensuring that they are paid on time and correctly is essential17 May 2018
With just six months to go until the General Data Protection Regulation (GDPR) takes force, payroll departments need to ensure they know what’s coming, or risk paying for it later. The stakes are high, as businesses that fail to comply with GDPR could face fines of up to 4% of their total annual revenue.14 May 2018
The HR and payroll industry is in constant change, with digitalisation, GDPR, and the gig economy effecting the HR and payroll department in organisations around the world. So, how can you ensure that both your HR department and employees are able to keep up with the pace of change? It’s time to unleash the flexibility of your HR.26 April 2018
With the 25th May deadline only a month away, it is more important than ever for HR and payroll departments to ensure that they are GDPR compliant. If organisations are not compliant the penalties are significant, with fines of up to €20m or 4% of global revenue, and companies will undeniably suffer from significant brand damage.
So, what should HR and payroll teams do during the next month to ensure that they are compliant and ready by the deadline?9 April 2018
Payroll is a vital part of any organisation, whether it’s a local business or a multinational corporation. A simple payroll error can cause a large amount of damage, so getting it right is essential.
30 March 2018
With just three months to go until the General Data Protection Regulation (GDPR) comes into force, the clock is ticking for HR and payroll managers to get the systems and processes in place to ensure compliance. The regulation, coming into effect on 25 May 2018, updates data rights for today’s networked world and organisations ignore it at their peril. A major infringement could cost a company up to 4% of its global revenue while there is a penalty of 2% of global revenue if records are not in order or a supervising authority and data subjects are not notified within 72 hours when personal data is exposed in a security breach.19 March 2018
Once GDPR takes effect on 25th May 2018, organisations that fail to process data correctly, report security breaches within a set time period, or comply with data regulations, will face fines and brand damage. These legislative changes emphasise how HR and payroll professionals need to be more security-conscious than ever before.14 March 2018
PAREXEL provides best practice examples to international organisations.
With the General Data Protection Regulation (GDPR) coming into effect in May 2018, all organisations who handle data of EU citizens will need to comply with new guidelines. By nature, HR departments hold personal and sensitive employee data, including payroll data. However, with an increasing amount of payroll and HR departments adopting automated payroll processes, the question arises: how do you become compliant in a digital world, especially if you are an international company?12 March 2018
If you want to learn best practice in handling data in light of the General Data Protection Regulations (GDPR), you can do no better than to look at DuPont. Now part of science giant DowDuPont following a merger last year, data is part of the DNA of the organisation and it has a long history of embedding data protection into its culture.12 March 2018
With more and more employees relying on technology and flexible working than ever before, the world is becoming increasingly connected and globalised. However, with this new reliance on global working, what do HR and payroll teams need to consider when implementing payroll for multinational companies?7 March 2018
The end of the payroll year is typically a very stressful time for payroll teams. With an extensive amount of tasks to be completed within tight deadlines, any mistakes can be costly.
However, the end of year process can be drastically simplified by engaging with tailored payroll software. This technology can be utilised to assist payroll professionals throughout the year, but how can it help payroll teams in April each year?27 February 2018
Technological advancements are helping to turn a vision of digitally accessible, automated payroll processes into reality. Here’s five predictions for the future of payroll:5 December 2017
A recent survey carried out by SD Worx revealed that out of 4,000 European employees surveyed, 44% had been paid late by their employers and 48% of those that had been paid late had also been paid incorrectly. The research exposes several risks for businesses associated with not paying their employees correctly: let’s explore the top three.13 November 2017
If someone was to ask you how much your payroll operations cost, would you know the answer? It seems like a straightforward question, yet the answer for many HR professionals is often hard to pinpoint. Understanding – and therefore being able to make future projections – about how much your payroll costs requires a clear appreciation of various business components.10 October 2017
The objective for payroll professionals used to be simple: all they had to worry about was paying employees accurately and on time. As organisations increasingly look beyond local domestic boundaries, the complexity of payroll operations has expanded and evolved so that the level of payroll sophistication has increased As a result, the needs and requirements of organisations globally have become more complex.6 August 2017
With Britain voting to leave the EU last June, 2016 was a big year for pan-European news. And, while the full implications of Brexit remain to be seen, it is clearly creating much discussion amongst business leaders who are already starting to plan ahead for the legislative changes that will no doubt impact both their operations and compliance.
One of the business areas most likely to be affected is international HR and payroll, so with that in mind, ‘Brexit and Business’ will be one of the key themes at our upcoming 2017 SD Worx European Conference. This year’s event will be bigger and better than ever before, taking place on the 8th February at London’s Hilton on Park Lane.