employment webinar: brexit – what now for hr and legal? · exceptional talent, entrepreneurs,...

Employment Webinar:Brexit – What Now for HR andLegal?

1 July 2016

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Today’s Presenters

David WhincupPartner

Labour & Employment

Supinder SianPartner

Labour & Employment

Janette LucasPartner

Labour & Employment

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Who stays, who goes – Impact on immigration statusand rights to work for your current workforce

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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



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 toUK 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.



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?



HR/Global Mobility teams should plan for change in the UK. Initial steps shouldinclude:

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.



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


Potential changes in UK employment law – What andwhen


Potential changes in UK employment law

Unlikely that there will be significant changes in UK employment law - morelikely 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 andconsultation rules, the Agency Workers Regulations, the Working TimeRegulations 1998 or any of our EU-derived health and safety rules



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 unfairdismissal, statutory redundancy pay, national minimum and living wage

There would be a need to maintain a relationship with the EU – could include arequirement 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 disabilitydiscrimination laws

Would there be public support for any changes?



What is the UK most likely to change?

Working Time Regulations and accrual of holidays while on extended sick ormaternity 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 TUPEtransfer?



Some unpopular / unnecessary employment law reforms are not a result ofEU 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 atleast (which is probably most likely) modify them to make them more palatable toUK businesses


Impact on recruitment, now and later


What now for transfers of your employee data withinand 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 theWorking Time Regulations 1998

Controversial and unpopular decisions

For now Working Time Directive continues to apply and ECJ decisions arestill binding

One area where there is likely to be change

If you haven’t yet made changes to your holiday pay arrangements, this isanother reason not to


“The Farage Effect” – Managing workplacerelationships across the Brexit divide


Global Edge - Our one stop shop to GlobalLabour Law

Aimed at in-house lawyers & HR professionals, Global Edge offers a onestop 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 EdgeOlivia Mardon ([email protected])


Questions and Answers

David WhincupPartner, Labour & Employment

T +44 (0)207 655 1132E [email protected]

Janette LucasPartner, Labour & Employment


Supinder SianPartner, Labour & Employment


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Disclaimer

• The information contained in this presentation is for general informationpurposes only and should not be construed as giving the ground for anyaction or omission in connection with the above material.

• This presentation should not be construed as professional advice onlegal or any other matters.

• The examples given in this presentation are described with a level ofdetail that does not provide for their implementation without additionalcomprehensive review with due regard to specific relevant facts andcircumstances.

• The application of laws and statutes may vary depending on particularcircumstances.

• Squire Patton Boggs does not assume liability for any damage that maybe caused to anyone as a result of any action (or omission) on the basisof the information contained herein.

Employment Webinar:Brexit – What Now for HR andLegal?

1 July 2016

employment webinar: brexit – what now for hr and legal? · exceptional talent, entrepreneurs,...

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