Brexit May Mean Fewer EU Contracts for UK Contractors

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Brexit
Brexit may affect UK Contractor's opportunities in EU

Brexit and UK Contractors

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According to CXC Global, UK contractors opportunities to work in EU countries may be severely limited by a Brexit decision at the EU Referendum in June.

Many permanent IT workers have found that it is very difficult to jump straigh from a permie job to a contract role as those companies who hire contractors don’t want to wait till their month’s notice is up to take them on.

Clients want contractors ‘yesterday’ in general.

Normally a contractor will start at a company on the Monday morning after the week where they were intereviewed and selected for the role.

Getting a Good Contract Rate from an agency
Getting a Good Contract Rate from an agency on a contract

This is awkward for contractors as it means that they usually have a few weeks between contracts which impacts their annual income.

Brexit Red Tape

According to CXC Global, though, there will be an increasing amount of red tape if the UK votes for a Brexit.

As a result, EU companies, who have previously hired UK Contractors, may be more reluctant to do so if the contractor has to get a work permit first and has to go through other red tape barriers.

It would be easier for them just to take a contractor from another EU country.

Affecting UK Contractors

Jon Clarke of CXC Global, says:-

“If the UK was to leave then one group that might well be affected would be UK contractors operating in the EU.

“One of the main benefits to firms utilising contractors is that they can provide almost immediate expertise and generally be on site within a matter of days.

“However some commentators suggest this could be affected by the UK leaving the EU.”

“In addition, the changes could also potentially lead to issues over eligibility and work permits which could mean the end client has to become more involved.

“This might negate one of the major advantages of employing a contractor, that they’re ready to work and don’t require much supervision or management.

“There’s a chance that contractors might suffer were a Brexit to take place”.

Contracting Work
Contracting Work – how to get it

UK Contractors Comment

When I first saw th press release I thought “Ah! Another scare story from the ‘Innies’ to scare contractors, this time, into voting to stay in.”

However, on second thoughts it does seem to hold true. I’ve worked in Holland, Germany and France as a contractor.

Many UK contractors have found work in the EU – especially when times were tight here.

The rates in some of the countries are well above those here too – especially for specialists.

EU Contractors

I suppose that it might be balanced by EU contractors finding it more difficult to get work in the UK.

It all depends on whether there are more EU contractors working in the UK or more UK contractors working in the EU.

My experience has been that it is the latter. Why would Germans, Belgians, Scandinavian and Dutch contractors come to work in the UK for less money?

Contractors here have had more to worry about from competitors from the developing countries outside the EU.

Financial Problems of Contractors
Contractors Financial Trouble

Will Brexit Hit UK Contractors?

So, is it true that a Brexit will hit UK contractors?

I think that t probably would but it would be difficult to work out how much till one saw what red tape will be put in place to keep UK Contractors from working in Europe.

Priority would be given to contractors in EU countries one would presume.

What do others think? Will a Brexit be good or bad for UK Contractors?

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