Brexit and Employment Law

So what does Brexit mean for employment law? What happens to UK employment laws based on EU laws and what will happen to these on Brexit:-

Importantly, the out vote will not mean that there is any immediate change to the UK’s laws. Depending upon the deals made, and the invocation of Article 50 and the exit process there will be a period for negotiations to be entered into with the EU on exit terms.

The issues surrounding employment laws are not straightforward. Some UK legislation which implements EU law is made directly under the European Communities Act 1972 (ECA) (the legislation which made the UK part of the EU). Theoretically if the ECA was repealed, legislation made under it would cease to have effect unless action is taken specifically to preserve it. However, some provisions, the Equality Act 2010 for example, are not made under the ECA and will remain in place even on Brexit.

These are the areas of employment law that are connected to EU law:-

The Agency Workers Regulations 2010 – providing equal treatment in certain employment terms and conditions for agency workers, compared to staff of the client they are supplied to.

The Working Time Regulations 1998 – providing health and safety based rights such as the right to paid annual leave, rest breaks, rest periods and limiting a worker’s working time to 48 hours per week (in the absence of an opt out agreement).
Discrimination legislation – some provisions in the Equality Act 2010 relate to EU laws although the UK had legislation in place regarding equal pay and both sex and race discrimination before joining the EU. But other areas such as protection against discrimination because of age, sexual orientation and gender reassignment, is connected to EU law.

Transfer of Undertaking (Protection of Employment) Regulations 2006 (aka TUPE) – protects employee rights when the business they are employed by is sold/transferred. It also applies when there is a service provision change such as an outsourcing exercise, or a change of contractor already providing an outsourced service. This can affect recruiters when they win or lose a contract to supply staff. It allows employees to transfer to the new employer, largely preserving their employment rights.

Posted Workers Directive and related enforcement provisions – ensure that workers who ordinarily work in one EU state but are posted to work temporarily in another member state (host country), are guaranteed to have the benefit of the employment rights applicable in that host country

Other Legislation Effected:
Legislation that prohibits employers from treating part time workers or employees on fixed term contracts less favourably.
Some other health and safety provisions.
Provisions that require employers to consult with employees e.g. in relation to redundancy.

Moving forward the government and Brexit teams will need to engage with business on the future of these regulations; but in the meanwhile it is business as usual.

Source: Emplyment and Recruitment Confedeeration (REC)
13.07.2016

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