2017 - Brexit and the likely impact on employment

When we made the decision to leave the EU back in June last year, many questions were thrown into the air around what affects this would have on everyday life in the UK and most importantly what changes we need to be ready for.

In this article we discuss the possible implications Brexit will have on employment and what employers should be doing to prepare.

Changes in the law

Although a large majority of our current UK employment laws have been shaped by the EU, when we leave, it is hoped that many of these will either remain the same (with the exception of the freedom of movement of labour) or the changes will not have a significant impact on employment in general. Many of our laws in the UK are considered good practice, for example legislation around discriminating against race, gender, age etc. and it is likely that the Government will want to retain these either in their present form or along similar lines.

However, the complexity of current UK employment legislation already causes confusion for some UK employers and it is hoped that the Government won’t make any unnecessary changes to the basic framework of current legislation, unless it is to simplify; if they do, our fear is that they will create further confusion in what is already a time of unease and apprehension for some businesses.

It is worth bearing in mind that some of our employment legislation was already in place before we joined the EU, for example equal pay rights and the law relating to sex and race discrimination. Although the EU’s influence built on these to a degree, it is doubtful that the UK Government would want to alter them significantly. Similarly, some UK legislation goes even further than what is required by the EU, for example holiday entitlement, which in the UK is a minimum of 28 days (inclusive of bank holidays), as oppose to the EU Working Time Directive 2003/EC requirement of 20 days annual leave.

One of the main concerns to arise from the decision to leave the EU has been the implications this will have on trading; our Government knows it needs to attempt to maintain a strong relationship with the EU for this and having firm employment systems and policies in place will, we feel, make this more feasible.

Leaving the EU also provides us with an opportunity and we hope that our Government will reconsider legislation that has not proved popular in the UK but that had to stay in place due to EU legislation. This could include TUPE, the laws regarding Agency Workers and holiday pay.

What should you be doing?

Although we do not yet know what the outcome of Brexit will be in terms of employment legislation, we would encourage employers to do the following to ensure they are fully prepared for any changes that may occur…

Audit your workforce:

If you have any employees already working / based outside of their home country, they could potentially be affected by the post-Brexit immigration laws.

Employees from the UK working in the EU or from the EU working in the UK may be eligible to apply for permanent residency and / or dual citizenship which, if approved, would mean they would be able to maintain their current working rights and potentially be able to move freely between the UK and the EU.

Deterring Bullying and Harassment:

Make sure there are strong systems in place to deter and combat workplace bullying and harassment. With the rise in reported cases of EU nationals and minorities being made to feel unwelcome since the vote to leave the EU was made, employers need to make sure their employees feel safe and protected.

Your current harassment and bullying policies (where you have them) should be reviewed and training courses considered for management, HR teams or anyone else that may need it. If you don’t have these policies in place, now is a good time to prepare them.

Redundancy:

If leaving the EU impacts negatively on trade, even for the short term, some employers may be facing the difficult task of making people redundant. Having a well thought out Redundancy Policy will prove to be invaluable in these circumstances.

How can we help?

At Su Allen HR we can help in a variety of ways, from drafting new Policies to assisting with employment audits.