The Brexit Effect on Payroll and HR

By Payescape
October 2018

As Brexit negotiations continue, it is “business as usual” for most companies operating in the UK. But for HR and finance teams managing payroll, the uncertainty of Brexit is causing some stress. There are several potential changes with the implementation of Brexit that could have huge impacts on human capital management and payroll.

Data management will be the largest hurdle for payroll and HR teams. If you have employees in the EU and UK, reconciling the legislative changes and ensuring compliance each year will be a concern. GDPR regulations will most likely remain similar in the UK post-Brexit, but managing employee privacy will be more difficult if there are additional or different rules.

Employee labor will also be a challenge. If EU workers have visa requirements or are required to leave the UK, this could cause a shortage of skilled labor, or an additional expense for UK companies to pay more for the same skills. HR teams will have to manage logistics and potential visa issues for employees, and it could present a huge problem for UK companies with a large labor force from the EU.

The best way for companies to prepare for Brexit is to ensure the current payroll and HR procedures and systems are in place to make the necessary changes. Do you have up to date records and employment contracts for all employees? Are you in compliance with GDPR? Do your HR and payroll systems talk to each other and update in real-time? These are all questions that your HR and finance teams should be asking before Brexit is complete. Being prepared is the best way to avoid a scramble when Brexit goes into effect.

If you are worried about the potential effects of Brexit on your business, integrated payroll and HR solutions can help ensure a smooth transition. Our web-based payroll software is GDPR-compliant, with real-time reporting and integration capabilities with HR and Time management software. Contact us for a demo, and see how easy payroll and HR administration can be!


Steven Jones

Mobile: 07904711299



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