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QUESTION: What does BREXIT mean for employment law?

27 Jun 2016

ANSWER: In the short-term, very little.

WHY: There isn’t likely to be sweeping reform when considering many of the UK’s employment laws are more generous than the EU requires. It is doubtful the government will want to repeal most existing employment protection although some changes are thought likely.

Possible changes:

  • Collective redundancy consultation: the law which requires collective consultation if 20 plus employees are to be made redundant may be watered down.
  • Holiday pay: legislation may reverse some of the cases, which decided that holiday leave should accrue during long-term sick leave and that holiday pay should include commission and overtime.
  • The maximum 48-hour working week: might be abolished.
  • The Agency Workers Regulations: may be repealed. These require employers to offer equal terms and benefits to agency workers once they have been working for 12 weeks.
  • Transfer of Undertakings (Protection of Employment) Regulations 2006: it is likely that TUPE will be ‘tweaked’ making it easier for employers to harmonise terms and conditions of employment.

Note: Even if legislative changes are made, your employees may be contractually entitled to certain employment rights. Full advice should therefore be sought before any changes are implemented.

If you would like to discuss any of the points raised in this article, please contact Neil Dwyer, Sarah Hall or Sarah Furness, Partners in our Employment team.