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How Brexit Makes An Impact On The Employment Law In Uk?

By Author: Hudson Mckenzie
Total Articles: 49

It has become clear now that the outcome of the EU referendum on June 23 is that UK should be set apart from the EU. After this made clear, now it’s time to have a look at the implications on the employment law in the UK and how law firms in London would deal with this change.

Parliament is not legally destined by the result of the referendum, but it seems highly improbable that there would be any action.

Certainly, the new Prime Minister, Theresa May, has already assured that Brexit will go as planned – further indicated by her appointment of a Secretary of State for Exiting the EU in David Davis.

In order to separate from the EU, the UK will have to inform the European Council of its decision in accordance with Article 50 of the Treaty on the European Union. This step has not yet been taken – David Cameron indicated that it wouldn’t happen before the new Prime Minister had been appointed. We shall now have to wait and see what Theresa May proposes as to the next steps.

There will be no immediate impact on UK legislation. At present all UK legislation, whether EU-derived or not, remains in place.
The future influence of Brexit on the legislation will rely on the terms of its future relationship with the EU, which is doubtful to become clearer until the end of the year. However, in theory, the withdrawal will enable the UK to repeal or modify any UK employment legislation derived from EU law.

Withdrawal will also make an impact on the standing of European Court rulings on employment concerns. Past decisions of the UK courts which have followed European decisions will remain binding on them - employment tribunals won’t be able to depart from existing case law unless or until there is a change in the underlying legislation.

However, future decisions of the European Court won’t be binding – although they are still likely to be influential where the UK courts are applying the EU-derived law which is retained.

The free movement and working rights of EU citizens, for the time being, would also remain intact. As recently guaranteed by the Cabinet Office in a press release, the referendum has not changed the rights or status of EU citizens currently living and working in the UK or those of UK nationals in the EU.

It is necessary for law firms in London to keep abreast of these changes while adopting a new case of the employment matter. A careful and through a look at these changes would result in the precise handling of those cases.

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