What Impact Will Brexit Have On Employment Law?

25th Jul 2017

Brexit (along with Donald Trump) remains the most topical headline in the news. I have yet to watch a BBC breakfast show that doesn’t mention the word Brexit (or Donald Trump come to think of it).

But most business owners and employees are concerned about the impact Brexit will have on employment rights.

The impact of Brexit requires a certain degree of crystal ball gazing into the European Union community and the rest of the world.

Is it possible though to consider the impact of Brexit without some consideration of politics? Probably not. The only thing certain is that the current Government must do all they can to ensure stability.

The Beecroft Report commissioned in 2011 gives us some insight into the current governments thinking. Of particular note is a cap on discrimination awards.

We have already seen a cap applied to unfair dismissal awards. The Beecroft Report also recommended the imposition of Employment Tribunal Fees which haven’t worked out quite as planned.

Irrespective of any deals that are made with the European Community and the wider world, it is fair to say that there are likely to be changes to the following areas:

  • Working Time (namely, the ruling regarding holiday pay)
  • Agency Workers
  • TUPE

These areas in particular have produced results unfavourable to the business community. And of course, the rules surrounding migrant workers and immigration will have to undergo some change.

Of particular note is the impact on small businesses of the holiday pay ruling. Employee’s holiday pay should be calculated to include any relevant overtime and results based commission payments. For the small business, this could be enough to make the business insolvent.   

So what do employers and employees do at present? Well firstly, don’t panic. Employment Legislation will not change immediately. The Great Repeal Act that will come into force will convert all EU law into British law.

The status quo is likely to be kept for a significant period yet subject to the rules surrounding migrant workers and immigration.

For advice, assistance or for more information, please telephone our office on 01202 512227.