How Brexit could affect you and your employees?

With the referendum date fast approaching, employers need to be prepared for any HR implications or changes to employment laws that might take place in the event of a ‘leave’ winning vote.

Although the development of employment laws in Britain has been significantly influenced by the EU legislation, it’s unlikely that the UK government would seek full repeal of existing laws. However, any final decision would depend on agreements between the UK and the EU after it leaves (if it does leave).

What could have a higher impact on employers is how Brexit may affect EU workers’ freedom of movement. Restrictions to the flow of immigration into the country could leave EU employees in the same position as a non-EU worker. They would have to comply with stricter UK immigration laws and potentially apply for visas, which could be capped under new laws. As a result, employers could potentially see a decrease in the number of employees and even lose some of their top talent. Also, potential restrictions on EU migrants’ benefits at work could have an effect on employees.

In a recent survey carried out by APSCo, 59% of recruitment professionals stated that they will vote to stay within the EU, with 43% of professionals saying that a decision to leave would affect their business significantly.  Rolls-Royce Motor Cars, for example, has stated that an exit would mean a drive up in import and export costs which could negatively affect their employment base; skilled men and women from most EU countries who work at the home of Rolls‑Royce Motor Cars at Goodwood in England.

It’s difficult to predict which way the UK will choose to go. However, if Britain’s exit from the EU materialises, there would potentially be a two year period notice for HR professionals to get prepared for the changes.


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