We set out below our best guess on where this leaves employees, management and HR in the UK.
Firstly as we have all heard repeatedly today, nothing is going to change immediately and that is the same for employment law. It will be years before any changes are made and for the time being, everything remains the same and critically, no one has to leave.
Much of our employment law is just that – employment law driven solely by the UK. We then have laws that have been enacted into UK law as a result of European directives – so those laws are the ones that may, at some point in the future, be targeted. Our guess at Orrick is that changes where they happen will be focused on consultation rights, holiday pay and working time. Worker involvement has never had the same traction in the UK that it has with our European counterparts and the UK has always viewed employee consultation with a degree of skepticism. For this reason, we think it may eventually be a focus for change.
The Transfer Regulations (TUPE) which work to automatically transfer all employees on the sale of business will remain for now. It is a UK law from a European directive so it may eventually be changed or watered down. The consultation rights may be targeted and possibly the restriction on the right to change terms and conditions of employment on a transfer. But when we implemented TUPE 2006, we went further with the protections than were required by the directive, so the indications are that we would not remove it altogether. Notably, although the previous government suggested removing this ‘gold plating’, when it came to their review, their changes were minimal and they left the ‘gold plating’ in place.
Continue reading here.