In our previous Brexit update, we looked at what employers might expect following the 'leave' vote. Now, with a new prime minister and a new cabinet in place, has anything changed? In brief, the message is that it's still 'business as usual': EU law will continue to be influential on UK employment law for some time. The new 'Minister for Brexit', David Davis, has made it clear that he has no desire to reduce the impact of EU employment law in the UK. The repeal of laws that have promoted equality and diversity is unlikely; however, there are areas of EU-derived employment law that could be on the agenda for repeal, in the years to come:
- certain aspects of the Working Time Regulations 1998, possibly those involving holiday rights for workers on long-term sick leave and inclusion of commission and overtime payments in holiday pay;
- the Agency Workers Regulations 2010, which gives equal treatment to agency staff who have been with the hirer for 12 continuous weeks in a given job; and
- caps on bonuses in the financial services sector, which the UK unsuccessfully attempted to challenge in 2014.
However, this is all subject to negotiation with the EU; any agreement with the European Union involving access to the single market or free trade is likely to require the continued adherence to key EU employment rights.
What Should Employers Do Next?
We'll keep you updated with relevant developments as negotiations take place over what form the UK's exit from the European Union will take.