The UK is starting to
come to terms with the
brave new world of Brexit
and the Government
has a huge amount of
work to do to make the
UK an attractive place
to work and do business
amid the uncertainty
that will prevail until new
agreements are reached.
Withdrawing from Europe is unprecedented,
and is likely to be a hugely complicated and
lengthy process. The exit rules provide that
countries have a minimum of two years’ to
achieve this and time starts to run from the
date the Government serves formal notice
to exit the EU. Notice to leave the EU does
not have to be issued immediately after the
referendum and the timing of it is strictly a
political decision for the UK Government.
Teresa May has said that she will not trigger
Article 50 until there is an agreed UK wide
approach (also backed by Scotland) and
clear objectives for negotiation. Senior
Government officials have been told to work
to a timetable under which Article 50 is
expected to be triggered by the end of the
year.
There is still much that we don’t know (and
probably will not know for a while yet) and
speculation is almost at fever pitch, but we
thought it would be helpful to start with what
we do know:
-
The UK will continue to be bound by EU
laws until another agreement is reached
or we unilaterally withdraw from the EU
(which cannot be earlier than two years
from the date the exit notice is served).
- Businesses will have to continue to follow
all existing UK laws that derive from the
EU during this two year period. European
Directives, such as those regulating
working time and holidays, TUPE,
collective redundancies, discrimination
and agency workers have been
implemented via primary legislation in the
UK and the UK Government will have to
decide whether to amend or repeal these.
They will not fall away automatically,
simply because of Brexit. However, EU
laws that have direct effect in the UK
without the need for implementing
legislation will fall away unless the UK
Government passes new legislation
transposing these into UK law. Similarly,
the 5,000 statutory instruments passed
by the EU may also fall away unless new
legislation is introduced by the UK to
replace them.
- In the context of employment, any rights
that have contractual effect between
employer and employee will (at least for
the time being) remain unaffected by
Brexit, embedded as they are in our UK
law. Employers will not therefore suddenly
be able to insist that their staff work over
48 hours per week or take fewer holidays.
- The European Convention on Human
Rights which was incorporated into
domestic law by the Human Rights Act
1998 will continue to apply (unless it is
repealed) as it is not an EU instrument
and is enforced by the European Court of
Human Rights in Strasbourg.
However, there is a lot we don’t know. The
reason why there is so much uncertainty is
because we don’t yet know what agreement
the UK Government will reach with the EU.
The leave campaign advocated a number
of trade models, some or which require
the contracting countries to adopt certain
EU freedoms, such as the free movement
of goods, services, persons and capital. If
negotiations fail, or the Government decides
to go it alone, the UK will remain a member
of the World Trade Organisation and will be
subject to trade tariffs but will not be subject
to any EU laws.
Many businesses are concerned about what
will happen if the UK ultimately pulls up the
drawbridge and imposes strict immigration
controls using an Australian style points
system (which is already in place and severely
restricts the ability of non EU residents to live
and work in the UK).
The borders will not automatically be
closed to non UK residents and transitional
arrangements will have to be negotiated as
part of a post Brexit regime. Depending on
the outcome of those negotiations, there
may be no automatic right for UK citizens
to travel and work outside the UK, or for UK
businesses to freely recruit staff from the EU,
which will potentially cause major problems
for some UK businesses already struggling to
fill certain skills gaps.
We may also see a surge in the numbers
of EU workers already working in the UK
applying for indefinite leave to remain in the
UK so that they can avoid any immigration
restrictions that are imposed. Currently, they
will need to demonstrate that they have lived
in the UK for at least five years, although it
is possible that the UK will increase these
requirements.
Individuals who wish to work in the UK may
have to satisfy immigration controls imposed
by the UK Government and UK citizens who
wish to work in the EU may have to satisfy
the immigration policies adopted by the
country in which they wish to work.
Summer 2016
Download Summer 2016 issue (pdf)
For general enquiries
0808 291 3524
Or we can call you back at a time of your choice
Phone lines are open 24/7, 365 days a year
