More than two-fifths of British businesses say that their EU employees in the UK have expressed concerns over the uncertainty of their position post-Brexit, according to research by the British Chambers of Commerce (BCC).
41% of the more than 800 businesses surveyed said that staff are worried about their ongoing residency status, with 5% having already had EU workers resign following the referendum result.
A further 10% have had employees state their intentions to leave the UK.
In response, the BCC is calling for the Government to provide clarity on the residence rights of existing EU nationals in Britain - a move which 60% of firms said would have a positive impact on their business.
Adam Marshall, BCC Acting Director General, said: "Since the referendum many firms have expressed concern over the future status of their existing EU workforce.
These ardworking people are absolutely vital to the success of businesses, and must be retained - we cannot afford to lose talented and skilled workers.
"Theresa May should reassure them as soon as possible that they will have the right to remain in the UK, to provide much-needed certainty both for EU employees and UK employers."
The BCC have also raised concerns over how businesses should approach hiring new employees from EU countries during the Brexit transition period.
"The Government must also clarify how new EU hires will be treated, as many businesses also say they are uncertain about whether the people they wish to recruit will be able to continue working with them in future," said Mr Marshall.
"A sensible immigration policy that allows businesses to plug difficult skills gaps should go hand in hand with sustained investment in training UK workers for the jobs of the present and the future."
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