Back in February, just after the UK had departed the EU, and before Covid-19 had such a devastating impact on the UK travel industry, Abta held an event looking at employment in travel after Brexit.
A particular focus of the event was the EU Posted Workers Directive (PWD), and the importance for outbound travel companies of maintaining flexible, temporary, arrangements to move staff into the EU.
At the time, the Political Declaration signed by Boris Johnson offered some comfort, with provisions envisaging mobility arrangements that would go beyond typical trade deals.
However, the government’s stance has since shifted, and just two months from the end of the transition period, employment is one area where things now look set to change markedly.
While trade talks remain delicately poised, the imminent disappearance of the PWD and lack of a direct replacement, regardless of whether there is a Free Trade Agreement or not, will present a significant challenge.
As many will know, the PWD has been used by many travel companies, notably tour operators, for many years to move vital support staff around the EU to assist UK holidaymakers in-resort.
These staff fill a variety of roles and the industry estimates that around 15,000 workers were hired annually under the regime in recent years, and as many as 20,000 each year before the EU referendum in 2016.
The end of the PWD is already influencing the industry’s employment practices. Abta’s Brexit guidance has suggested members consider local hires for this coming season if workers are in destination before the end of the year.
Doing so should enable staff to benefit from protections in the Withdrawal Agreement, whereas the ending of the PWD means it is unclear whether workers would have the right to remain in EU destinations beyond 31 December on A1s (the legal mechanism behind the directive).
While there has been some recent movement from the French government to offer stability for posted staff, putting in place temporary unilateral measures for coming winter season – which follows excellent engagement activity by the Seasonal Businesses in Travel (SBIT) group with the French government – even then, whether or not the system is suitable will depend on the longer-term plans of the staff member concerned, and the associated requirements under French law.
However, longer-term the picture for employment appears uncertain. Many of the alternative routes used to date, including local hires, will be closed-off for UK staff.
The ability to hire in Europe will be dictated by whatever is secured under provisions for temporary workers (Mode IV) in any EU-UK Free Trade Agreement, as well as national immigration and visa rules.
Even if a Free Trade Agreement is secured, under the Mode IV provisions it is likely that an element of goodwill could be required to get around maximum length of stay provisions, which are ordinarily three months for trade agreements struck in line with WTO rules for trade in services.
In the absence of a deal, conditions will be dictated entirely by each member state.
Abta has also been urging the UK government to consider other routes that could enable travel workers to move easily between the UK and EU, which includes the extension of the Tier 5 visa system, otherwise known as the Youth Mobility Scheme (YMS).
The YMS enables citizens of signatory countries to move between the two countries for a period of up to two years, if the application is processed before their 30th birthday. The UK already has reciprocal YMS programmes in place with Australia, Canada, New Zealand, among others, and the UK government has expressed a willingness to consider opening the agreement to EU countries.
It is important to remember this is not about longer-term immigration. The opportunities offered to young people through a period of living and working overseas are self-evident, and many travel industry leaders have served seasons as travel reps or ski guides.
We also know that the UK inbound sector would find the ability to continue attracting young people to the UK similarly useful, especially because of the valuable language skills many EU nationals bring to support tourists visiting the UK.
With that in mind, we have been working with a wide range of partners on this effort, including those in the wider UK travel and tourism industry. One of those partners, SBIT, has a petition available on this topic – which you can see here.
Abta will continue our work to encourage ministers to move as quickly as possible to get the Tier 5 visa system extended to the EU, and we will provide regular updates as the situation develops.