Steps that Employers can take now

On 23 June 2016 the UK voted in favour of Brexit, i.e. withdrawal from the EU. Theresa May has replaced David Cameron as Prime Minister, and has appointed David Davis as “Brexit Secretary of State”.

Is it business as usual? For the most part it is, but there are a few things you might be doing to help your organisation to deal with the forthcoming employment issues. We suggest that employers and HR professionals should consider the following.

  1. If the organisation trades overseas, form a Brexit team
    Some businesses are appointing specialist teams to research the information on our exit and assess the practical implications for them. If we are going to be able to trade more easily with the rest of the world, what does that mean to you?
  • Review the immigration status of your workforce
    An audit will enable you, if you are reliant on a significant proportion of EU workers, to identify who may be affected if and when the current immigration rules do change.A recent survey by the CPD says that 70% of employers have received concerns from staff about their right to work in the UK. So they need to be reassured. You could confirm to your EU workers that those who have been in the UK for at least five years are entitled under EU law to apply for permanent residence in the UK, and that after six years they could apply for UK citizenship. Those who have been in the UK for fewer than five years can apply for a Registration Certificate, evidence of their right to live in the UK.

    If your organisation is highly dependent on EU labour, draw up a business plan to estimate the cost of not being able to employ EU workers, including further recruitment from the UK market, and the implications of these EU workers in the future being subject to a points-based immigration policy that prioritises skilled, rather than unskilled labour which already applies in the UK to non-EEA applicants.

  • UK employees working in the EU
    If you have seconded employees from the UK to other European countries, review the terms of the arrangements and any associated mobility policies to understand how these might be affected when the UK leaves the EU.
  • The importance of dignity and respect in the workplace
    A particularly unattractive aspect of post-Brexit Britain has been the reported increase in incidents of racial abuse. It is therefore appropriate, for employers to remind employees and workers of your policies on equal opportunities and dignity at work, including a reminder that discrimination and harassment will not be tolerated on any grounds, including on the basis of race, nationality or national origins. Employers have a duty of care to their employees and must ensure their working environment is fair, welcoming and tolerant for all. Line Managers have a key role in nipping conflict in the bud and making sure that ‘banter’ does not cross the line and become offensive or discriminatory.As there may also be divergent views on the outcome and significance of the Referendum vote, it may also be worth reminding staff of the importance of tolerance and respect for others views within the workplace.

    UK employment law derived from EU legislation is unlikely to change in the short-term. Much will depend on the deal that the UK is able to negotiate with the EU once Article 50 has been invoked. European leaders have continually stressed since the Referendum that access to the single market is likely to be dependent on the UK to signing up to the free movement of people and the remainder of EU social and employment policy. In the longer-term, the UK may be able to change employment law in ways which are currently prohibited by EU law, e.g. changes to TUPE, holiday pay, discrimination law or the abolition/amendment of the protection given to agency workers. It is safe to assume that any plans for immediate change in employment law will be put on hold, whilst the Government focusses on Brexit.

    The guidance provided in this article is just that – guidance. Before taking any action make sure that you know what you are doing, or call us for specific advice.