No post-Brexit commuting, US banks tell London staff
US banks will not pay for London staff to commute weekly to offices in Europe after Brexit, thereby encouraging permanent to relocation to Frankfurt, Paris, Dublin and other EU cities.
2 January 2019US banks have warned London-based staff that they will not be paid to commute from their UK homes if their jobs are relocated to new European hubs after Brexit, according to a report in the Financial Times.
Follow the link for official communication explaining the UK Government's Brexit Deal.
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Employees expected to move to new cities
Instead, those affected will be expected to settle in new homes in Frankfurt, Paris, Dublin or one of the other European cities where, in the short term, several hundred are poised to be moved in the coming months.While Morgan Stanley, Goldman Sachs, Citigroup, JPMorgan and Bank of America have all declined to comment on the report, the FT said the banks had told staff that commuting from London to European cities was “not a long-term option” after Brexit and that financial support for travel and accommodation would be withdrawn within months of their jobs being transferred.Follow the link for official communication explaining the UK Government's Brexit Deal.
Bankers reluctant to relocate families abroad
"Daunted by the prospect of quitting London’s cultural and shopping attractions, many bankers, traders and executives had hoped they could keep their families in the UK capital and commute weekly to wherever their job was moved," the FT reported."A person familiar with Morgan Stanley’s plans said the bank would offer short-term support for those who wanted to commute 'but we want them to live in Frankfurt, Paris, etc'.- US bank to switch FX trading from Moscow to London
- Investors eyeing post-Brexit opportunities in UK
- Foreign investors shunning Brexit fears
Not being able to move during the year leads to commuting
"Financial support for short-term commuters is intended to help people who do not want to move their children in the middle of the school year, or have other logistical reasons for not being able to move immediately."At JPMorgan, these benefits, which include smoothing tax differences between two countries, and housing and travel, would typically be phased out six months after an employee transfers, two people familiar with the plans said."However, the report said that sources at Citigroup indicated the bank would provide no commuting support for the 63 people due to move from London in the first quarter, mainly to Frankfurt, although they would receive the standard relocation package to cover the cost of moving and setting up home.But the FT added that Bank of America, which has already moved about 100 staff from London to Dublin and is shifting others to Paris, "had not decided to discourage commuting."Visit our Brexit pages for all the latest Brexit news.
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