Employment Webinar: Brexit What Now for HR and Legal? 1 July 2016 - - PowerPoint PPT Presentation

Employment Webinar: Brexit – What Now for HR and Legal?

1 July 2016

2

squirepattonboggs.com

Today’s Presenters

David Whincup

Partner Labour & Employment

Supinder Sian

Partner Labour & Employment

Janette Lucas

Partner Labour & Employment

squirepattonboggs.com squirepattonboggs.com

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

4

squirepattonboggs.com

4

squirepattonboggs.com

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

5

squirepattonboggs.com

5

squirepattonboggs.com

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.

6

squirepattonboggs.com

6

squirepattonboggs.com

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?

7

squirepattonboggs.com

7

squirepattonboggs.com

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.

8

squirepattonboggs.com

8

squirepattonboggs.com

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

squirepattonboggs.com squirepattonboggs.com

Potential changes in UK employment law – What and when

10

squirepattonboggs.com

10

squirepattonboggs.com

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

11

squirepattonboggs.com

11

squirepattonboggs.com

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,
• ther 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?

12

squirepattonboggs.com

12

squirepattonboggs.com

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?

13

squirepattonboggs.com

13

squirepattonboggs.com

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

squirepattonboggs.com squirepattonboggs.com

Impact on recruitment, now and later

squirepattonboggs.com squirepattonboggs.com

What now for transfers of your employee data within and outside the EU

squirepattonboggs.com squirepattonboggs.com

A new spin of the holiday pay wheel

17

squirepattonboggs.com

17

squirepattonboggs.com

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

squirepattonboggs.com squirepattonboggs.com

“The Farage Effect” – Managing workplace relationships across the Brexit divide

19

squirepattonboggs.com

19

squirepattonboggs.com

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)

20

squirepattonboggs.com

20

squirepattonboggs.com

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

21

squirepattonboggs.com

Abu Dhabi Beijing Berlin Birmingham Böblingen Bratislava Brussels Budapest Cincinnati Cleveland Columbus Dallas Denver Doha Dubai Frankfurt Hong Kong Houston Kyiv Leeds London Los Angeles Madrid Manchester Miami Moscow Newark New York Northern Virginia Palo Alto Paris Perth Phoenix Prague Riyadh San Francisco Santo Domingo Seoul Shanghai Singapore Sydney Tampa Tokyo Warsaw Washington DC West Palm Beach Israel Mexico Panamá Peru Turkey Venezuela

Global Coverage

Africa Argentina Brazil Chile Colombia Cuba India Office locations Regional desks and strategic alliances

22

squirepattonboggs.com

22

squirepattonboggs.com

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

• f the information contained herein.

Employment Webinar: Brexit – What Now for HR and Legal?

1 July 2016