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Chris Shaw
Editor |
Cleaning up the mess of Brexit
24 August 2016
Tar Tumber, HR consultant at International Workplace, identifies some of the main employment issues that may change as a result of Brexit over the coming months and years
On 23rd June 2016, 51.9% of the British electorate voted to leave the European Union (EU) leading to a state of shock – Brexit was a reality – the votes were in and we were heading out of the EU.
This result has pushed the UK economy and businesses into a period of uncertainty – exactly what does the reality of ‘Brexit’ mean for businesses in the UK? With our new Prime Minister repeatedly saying that ‘Brexit means Brexit’ what changes will organisations have to face at the end of the two year negotiation period post Article 50? I have detailed below some of the key employment areas that may ultimately change as a result of Brexit.
Employing workers from the EU
A huge part of the ‘leave campaign’ focused on immigration and a block on free movement. In the future, EU workers wishing to work in the UK may need work permits and more employers will have to become ‘sponsors’. We may also have an Australian style points system where visas are points-tested based on personal attributes and ability to contribute to society.
A survey published by the British Cleaning Council (BCC) in May 2016, highlighted that the UK cleaning industry relies on migrant labour more heavily than other sectors, with over 24% of workers having a non-UK nationality. Therefore any changes to the immigration will have a significant impact here.
What about the EU nationals who currently live and work here already? The Home Office has confirmed that their rights will not be affected in the short term, but there is no clarity longer term – so what can you do to allay concerns?
- EU audit – many employers are conducting audits to understand where, and how many EU nationals they employ to understand any resourcing risks.
- Staff support – some employers will be encouraging their EU staff to apply to the Home Office for proof of residency rights (when they have lived in the UK for 5+ years). Currently unnecessary for EU nationals in the UK, this could help them apply for British citizenship if rules change in the future.
- Communication – employers can reassure their staff with regular and open communication. Currently, the message is simply that no-one knows exactly what will happen, but staff will be advised when matters become clearer. Communication should be regular, simple and factual and confirm that any form of harassment or discrimination will not be tolerated.
Working hours
The Working Time Directive sets a 48 hour working week limit, although the UK version allows UK employees to opt out of this. There is a possibility the 48 hour limit could be scrapped – meaning employers may be required to ensure staff work ‘reasonable’ hours without setting a concrete limit.
Annual leave
The Working Time Regulations cover annual leave, although the UK has increased the EU requirement of 4 weeks up to 5.6 weeks' paid holiday per year so there will be limited change following Brexit.
However, the European Court of Justice (ECJ) makes decisions on employment cases which have directed UK employers to include regular overtime and commission into holiday pay. Post Brexit, the UK may look to reverse these decisions and only provide basic pay during time off. The ECJ ruling that holiday would continue to accrue during long term sickness absence may also be reversed.
TUPE
The EU Acquired Rights Directive led to the Transfer of Undertakings (Protection of Employment) (TUPE) Regulations coming into effect. Organisations in the professional cleaning industry frequently TUPE transfer staff in and out as a result of service provisions changes, so any changes here in the future would undoubtedly be of interest.
The UK’s TUPE version is very much ‘gold plated’ and therefore more onerous on UK businesses than the original EU directive intended. Given this is a UK decision, it is possible that TUPE may remain as it currently stands.
So in short, the next two to five years are likely to create a lot of uncertainty, but we will let you know what’s happening, as soon as we know! In the meantime, if you have any queries visit www.internationalworkplace.com.
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