Aside from morale, what does Brexit mean for Employers?

Here we speculate on some of the implications, of Brexit, for employers.

Employment Law

Much of the law that originates from Europe is already enshrined in Regulations and case law. English law relies on precedent and even if European directed law, such as the Working Time Regulations could be “ditched”, Judges would still need a point of reference for decision making.

What Brexit does mean is that, going forward, new European precedents will no longer apply automatically to the UK. Judges will have more freedom over interpretation of, for example, how holiday pay should be calculated. Expect some change, or at least, reasonable clarification.

With a more local approach to employment we may see improved balancing of employers versus employee rights. A space worth watching?

Labour and skill shortages

If all those with European but no British passport were to be returned then our care sector, for one, would be in a sorry state. That seems unlikely to happen.

Nonetheless if freedom of movement is restricted then we might expect labour shortages across the market. Not only will an unskilled labour supply be obstructed but many skilled employees from Europe will either choose to return or no longer be available to us. It is worth noting that there are more French living in London than in Bordeaux.

Employers may need to look towards better employer branding, improved staff retention and in-house training.


The impact of Brexit on trade may, if the worst forecasts prove to be correct, have a negative impact on trade. So despite the risk of labour and skills shortages there is the opposite risk of downsizing.

This means it is time to have your redundancy policy and procedures ready. No matter if they are not needed. Better to have them and not need them than need them and not have them. Contact Employer Solutions for a straightforward policy.

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