Brexit implications for employers and employees

Posted 13/07/2016 By: Jessica Piper

The historic outcome of the Brexit referendum has left many questions on the implications of this decision for employers and employees. Jessica Piper, a solicitor at Ashtons Legal, comments on pertinent issues from an employment law perspective:

• Although much of UK Employment Law comes from the EU, it is ratified and binding in the UK through Acts of Parliament. As a result, there will be no wide-scale change in the event of Brexit itself, although we could see an unpicking of the legislation on a piecemeal basis going forward. Much of this will depend on the government of the day, and whether their focus is on businesses or workers themselves, but the legislation considered most at risk are aspects such as the Working Time Regulations, or the Transfer of Undertakings (Protection of Employment) Regulations.

• Due to the anticipated downturn in the economy, it is likely that some employers will need to make decisions in relation to reorganisation and/or redundancy. It may be that some businesses will face the unfortunate prospect of insolvency. In such scenarios, consulting with the workforce is a crucial aspect to ensure that the business makes fair dismissals and is not further disadvantaged by facing Employment Tribunal claims. If employers are making more than 20 people redundant in any 90 day period, the more onerous collective consultation procedure must be followed.

• Immigration will remain a large feature of the Brexit discussions and the question over whether free movement of people across Europe will have to remain in order for the UK to remain in the single market is certainly up for debate. Until a decision on that point is made, EU nationals continue to enjoy rights of free movement and to work in the UK without penalty. If barriers are placed on immigration from EU countries in the future, it is considered likely that new tiers will be required to assist with the levels of low-skilled workers required in this country.

• While EU nationals remain part of your workforce, and with tensions in some part of the country high in relation to immigration, it is important to remember the protection afforded to individuals on the basis of nationality under the Equality Act 2010. Employers are under a duty to ensure that current and prospective employees and workers are not discriminated against or harassed due to their race, which includes nationality (although likely not immigration status) and religion. Employers should ensure that their equality and diversity, and harassment and bullying policies are up-to-date, that all staff know what behaviour is expected of them, and provide training as required. Employers should ensure that they take the action required against any employee or worker who is seen to be harassing or discriminating against another on the grounds of a protected characteristic, as they could be vicariously liable in the event of a claim.

For individual advice, please contact Jessica Piper from the Ashtons Employment Team on 01603 703073 or email jessica.piper@ashtonslegal.co.uk . Alternatively, complete one of our online enquiry forms.