Employment Webinar: Brexit What Now for HR and Legal? 1 July 2016
Today s Presenters David Whincup Partner Labour & Employment Janette Lucas Partner Labour & Employment Supinder Sian Partner Labour & Employment 2
Who stays, who goes Impact on immigration status and rights to work for your current workforce
BREXIT - Immigration 3 million EEA nationals living and working in the UK 2 million British nationals working abroad in EEA countries Net migration: 333,000 YE 2015 Of which EU citizens estimated to be 184,000 No change in the short to medium term The UK are still members of the EU Too early to predict long term outcome of Brexit The current Government or the Leave campaign have not laid out any immigration reform 2 years to negotiate exit once Article 50 of the Lisbon Treaty has been filed once exited the UK can begin negotiation on what relationship it will have with the EU 4
BREXIT - Immigration Possible impact: Repatriation policy very unlikely Restrictions could be imposed on further EEA immigration to the UK Transitional arrangements likely to regularise immigration status from EEA to UK rules: May require proof of qualified person status (worker, self-employed, self-sufficient, student) The future will be dependent on exit model: The UK leaves the EU and the single market which may mean that EU/EEA nationals will have to comply with domestic UK immigration laws (Points Based System) The UK leaves the EU but signs up to the EEA option i.e. stays in the single market in which case free movement for EU nationals could continue. 5
BREXIT - Immigration What can EEA national employees do now? Apply for a Registration Certificate Less than 5 years residence or cannot qualify for permanent residence Not essential to have BUT provides evidence of lawful status in the UK as a qualified person i.e. worker, self-employment, self-sufficiency or study May be beneficial for any transitional arrangements Apply for a document certifying permanent residence Resident in the UK as a qualified person for at least the last 5 years Applications can take up to 6 months to process Apply for British nationality Resident in the UK as a qualified person for at least 6 years; and Hold a document certifying their permanent residence status What about British Citizens living in other EU Member States? 6
BREXIT - Immigration HR/Global Mobility teams should plan for change in the UK. Initial steps should include: Remain calm The UK is and will always be open to business. Collect data Reviewing details of current EU population in the UK and any UK employees who may be on assignment in the EU. Important to know who is in-country and what their immigration status is. Anticipate costs Likely that post-transition immigration between the UK and EU will be significantly more expensive. Plan for delays Global Mobility teams should plan for possible processing slowdowns as future developments come forth. 7
BREXIT - Immigration The current UK Points Based System: May be subject to significant review / change to cater for greater volume: Restricted CoS allocation Skills shortage occupations Tier 1 highly skilled workers without a sponsor Exceptional talent, Entrepreneurs, Investors Tier 2 skilled workers with a sponsor and job offer General & Intra Company Transfers Tier 3 low skilled (never used) Tier 4 students Tier 5 temporary workers and youth mobility Points assessment on variety of attributes including skill level of role, salary, qualifications, English language ability and maintenance 8
Potential changes in UK employment law What and when
Potential changes in UK employment law Unlikely that there will be significant changes in UK employment law - more likely to be tinkering around the edges Leaving the EU will not by itself change our domestic employment law No immediate changes to TUPE, works councils, collective information and consultation rules, the Agency Workers Regulations, the Working Time Regulations 1998 or any of our EU-derived health and safety rules 10
Potential changes in UK employment law Will the UK Government amend any employment law? Whilst a significant proportion of the UK's employment law comes from the EU, other aspects of our employment legislation are purely domestic, such as unfair dismissal, statutory redundancy pay, national minimum and living wage There would be a need to maintain a relationship with the EU could include a requirement that the UK adheres to some or all EU employment and social policy Some EU laws subsumed existing UK laws, e.g. equal pay, race and disability discrimination laws Would there be public support for any changes? 11
Potential changes in UK employment law What is the UK most likely to change? Working Time Regulations and accrual of holidays while on extended sick or maternity leave? Limiting the calculation of holiday pay to basic pay? Agency Workers Regulations? Discrimination cap on compensation? TUPE making it easier to harmonise terms and conditions following a TUPE transfer? 12
Potential changes in UK employment law Some unpopular / unnecessary employment law reforms are not a result of EU legislation: Gender Pay Gap Reporting; Modern Slavery Act; Shared parental leave for grandparents. When would the changes take effect? Leaving the EU will be a lengthy process and take at least 2 years. The Government could then gradually repeal EU-derived employment laws, or at least (which is probably most likely) modify them to make them more palatable to UK businesses 13
Impact on recruitment, now and later
What now for transfers of your employee data within and outside the EU
A new spin of the holiday pay wheel
A new spin of the holiday pay wheel EU law has been central to the recent holiday pay claims ECJ s decisions in Williams and Lock UK courts have sought to give effect to these decisions by reading words into the Working Time Regulations 1998 Controversial and unpopular decisions For now Working Time Directive continues to apply and ECJ decisions are still binding One area where there is likely to be change If you haven t yet made changes to your holiday pay arrangements, this is another reason not to 17
The Farage Effect Managing workplace relationships across the Brexit divide
Global Edge - Our one stop shop to Global Labour Law Aimed at in-house lawyers & HR professionals, Global Edge offers a one stop shop to global labour law, ultimately saving you time & money Key features include: Presently covers 30 countries and 22 topics, with more to come On the Horizon (what s in the pipeline) and News features Updated quarterly Enables users to produce bespoke reports in under 30 seconds Compatible with mobile devices (Apple ios and Android compatible). Written in plain English without the legal jargon To arrange a demonstration, please contact the Director of Global Edge Olivia Mardon (olivia.mardon@squirepb.com) 19
Questions and Answers David Whincup Partner, Labour & Employment T +44 (0)207 655 1132 E david.whincup@squirepb.com Janette Lucas Partner, Labour & Employment T +44 (0)207 655 1553 E janette.lucas@squirepb.com Supinder Sian Partner, Labour & Employment T +44 (0)207 655 1741 E supinder.sian@squirepb.com 20
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Disclaimer The information contained in this presentation is for general information purposes only and should not be construed as giving the ground for any action or omission in connection with the above material. This presentation should not be construed as professional advice on legal or any other matters. The examples given in this presentation are described with a level of detail that does not provide for their implementation without additional comprehensive review with due regard to specific relevant facts and circumstances. The application of laws and statutes may vary depending on particular circumstances. Squire Patton Boggs does not assume liability for any damage that may be caused to anyone as a result of any action (or omission) on the basis of the information contained herein. 22
Employment Webinar: Brexit What Now for HR and Legal? 1 July 2016