The Insider Issue Six

The Insider Issue Six

Brexit, what does IT mean for YOUR businesses? HE INSIDE ISSUE SIX

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WHAT DOES BREXIT MEAN FOR UK BUSINESSESS AND THEIR EMPLOYESS

It’s been in the headlines for months but, now that Britain has voted to leave the EU, what does it actually mean for businesses? Many current workplace regulations originated in the EU and employers and employees alike have voiced concerns over what position they could now be in. One thing is clear – everyone will be affected by the change. We also know that there will be no immediate break from the EU. The transition will require enormous negotiation and potentially several years to implement. While it’s impossible to predict exactly what impact the vote to leave is going to have on UK business, it’s likely that the UK will now go down one of two very distinct paths: • Repeal unfavourable laws immediately and keep the remainder • Keep the current EU laws and regulations in place, and gradually repeal or restructure those which are less favourable over time It is unlikely that the UK would simply repeal all EU related employment law as this would create a state of chaos for employers, who would be unsure what laws do and don’t apply. Enrique Garcia is a consultant with ELAS, specialising in employment law. He took a look at all the issues and suggests that the second path seems most probable. One of the areas of concern for employers and employees alike is that of EU workers. Many businesses currently employ citizens from across the EU and could be questioning their future eligibility

to work – or continue working – here in the UK. In the short term at least, the chance of EU workers being affected by the vote is slim. Potential future EU migrants are the ones who could be affected by the changes. If the UK chooses to stay in the European Economic Area (EEA), it is likely that EU nationals would retain their right to work in the UK; however the UK government would have the freedom to implement whatever it chooses, and could require EU citizens who wish to work in the UK to have a work permit or visa in the same way as non-EU citizens do currently. It is important that businesses stay up to speed with any changes to legislation, particularly those which originated from EU regulations, in order to stay compliant with any changes. While we can safely assume that the government will not introduce any radical changes to current employment law, it’s undeniable that the UK employment landscape will alter. Both the government and UK businesses will want to avoid the legal and commercial chaos that could come from repealing current laws. National Minimum Wage – This is very much a British idea and regulations are not required by European law. Furthermore, the UK National Minimum Wage is significantly higher than that in similar European systems and the UK Government recently introduced the National Living Wage. Transfer of Undertakings (TUPE) – The UK has gone further than the EU in terms of TUPE and when it applies so there are unlikely to be any changes. According to Emma O’Leary, the areas which are unlikely to change include:

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Unfair dismissal and tribunals – Legislation relating to unfair dismissals and tribunals will almost certainly remain the same. Much of it did not originate from the EU, for example the fees system which was introduced to stop spurious claims. Discrimination – While many of the UK laws regarding discrimination derive from the EU, it’s unlikely that there would be any major overhaul. Many UK discrimination laws have their origins pre-EU. The government could also face serious backlash and uproar, and there would be wider social implications if these laws were to be repealed. When it comes to issues such as the gender pay gap it’s impossible to know how they will be shaped, however they will probably remain unchanged for the foreseeable future. >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8

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