Looking forward to 2021: Key employment issues for UK Hotel & Leisure employers

New UK Immigration Rules

With the end of the Brexit transition period on 31 December 2020 and the UK’s official exit from the EU, there are significant immediate implications for immigration and right to work requirements.  Given the importance of this area for recruitment and staffing in the Hotels and Leisure sector, employers will need to take action now. 

The new UK Immigration Rules are designed  to attract ‘skilled workers’ and therefore  it will be much more difficult and expensive to recruit and employ workers from overseas. 

• From January 2021, EU nationals will require a work visa under the new Immigration Rules if they want to work in the UK and are not eligible under the EU Settlement Scheme.  Staff should already be aware of these changes, but regular, clear communication will be key to managing both affected staff and meeting the needs of the business.
• Under the new rules, the skill level for the Tier 2 (Skilled Worker) route has been changed – for the Hotels and Leisure sector, this means that many of the lower-skilled roles will not be covered so cannot be filled by EU nationals who do not have a pre-existing right to work in the UK.  Employers will need to look deep into the resident labour market to fill these roles.
• As of January 2021, UK nationals will need to count the days spent in a Schengen zone for business trips as there is a limit of 90 days’ stay in any given 180 day period.
• We are seeing a number of employers permitting remote working from overseas locations or looking at virtual mobility programmes in light of Covid limitations.  Both of these present a number of employment, immigration and tax challenges which should be examined carefully.  

Given the complexities, we have prepared a series of articles and short videos providing the key information that you need to plan ahead and protect your business.

• Policy implications of the new UK Immigration Rules for Employers
• Immigration compliance risks: are you ready for the end of the Brexit transition period?
• The new UK Immigration rules: a Home Office tale
• The impact of EU-UK Trade and Cooperation Agreement on UK nationals

Covid: Furlough and the Coronavirus Job Retention Scheme 

The government has issued a new Treasury Direction and updated guidance regarding the Coronavirus Job Retention Scheme (“CJRS”), which is likely to be of importance for employers in the Hotels and Leisure sector.

The Treasury Direction largely formalises the previously announced details of the extended CJRS, now set to run until 31 March 2021, and sets out further details of how the scheme will operate until 31 January 2021. A further direction covering the period February and March 2021 is expected shortly.

For further details, see our dedicated In Focus page.  If you would like to be added to our regular Covid briefings, giving you an update on Covid-related developments around the world, please contact your usual Bird & Bird contact.

IR35 & off-payroll workers

Reforms to the IR35 rules on off-payroll working in the private sector come into force on 6 April 2021, having been delayed by a year due to the coronavirus crisis. The rules were introduced to ensure that individuals who work like employees are subject to broadly the same employment taxes as employees, and apply to anyone who provides their services via an intermediary, such as a personal service company.  

For further details of the changes, and the implications for your business, please see this guide.

Minimum wage and other statutory rates: Updates

From April 2021, the rate of the national minimum wage and national living wage will rise as set out below.  The qualifying age for the national living wage is changing from 25 and over to 23 and over, so this higher rate will cover a larger cohort of workers.