Employees of US banks whose functions have moved to European cities from London because of Brexit could risk losing their jobs after being informed that commuting is not a “long-term option.”
According to a report that was released by the Financial Times, the financial allowances for travel and living arrangements post-Brexit will not be provided for longer than a few months after the jobs are relocated.
As part of the preparations for Brexit, multinational banks have been relocating jobs to the continent from London, and there are some plans to move more functions to various financial hubs such as Frankfurt, Paris, and Dublin.
The sceptics of Brexit have predicted that tens of thousands of financial and banking jobs would be relocated away from London once financial institutions in the city lose the unfettered access to the markets of the European Union, however, the final implications are not yet clear. So far, US banks including Goldman Sachs, Morgan Stanley, J.P. Morgan, Bank of America, and Citigroup, are already planning to take a few hundred employees each to the continent from London.
The Financial Times reports that Morgan Stanley would expect its employees to live in the same city as their job. This matches the wishes of the EU regulators that those who are heading up financial and other institutions should live in the countries that they influence. The different banks are making their own decisions regarding how long to offer support. Bank of America has already transferred 100 positions from London to Dublin, and will also move some employees to Paris.
The support is intended for the affected workers who do not wish to move their children out of school with little notice in the middle of the year. They are also offered for other practical reasons that hinder immediate relocation.