Implications of Brexit for Small and Micro Employers

Employment Help for the Very Busy – Summer Edition 2016

Implications of Brexit for Small and Micro Employers

The implications of Brexit for small and micro employers will take a long time to emerge – years not months. It is important to emphasise that the UK’s move to initiate Article 50 and start its negotiation with the EU to draw up its Withdrawal Agreement will not take place before a new Prime Minister is in post and the minimum 2 year period for extraction may also be further extended by agreement with the UK and EU.

When the Withdrawal Agreement does come into force, all UK employment legislation which was brought into effect by EU laws will continue to be law. It will take additional transition time (likely to be years) for individual laws to be analysed and assessed before any changes are decided. Although it is possible that a partial repeal of the European Communities Act 1972 could occur before the full Article 50 process has been completed ie reducing the impact the EU can have on influencing UK law, the impact on our existing employment laws is thought to be minimal. This is because much of UK employment legislation already exceeds EU minimums and the long-established principle of workplace protection is unlikely to be altered.

Kay’s comment: The biggest immediate challenge for employers is to reassure staff that any significant changes in employment rights and rights to work in the UK are unlikely to happen in the short to medium term. For those where the implications of Brexit may be more significant such as a relocation of offices or operations from the UK to elsewhere in Europe, it is important to establish early and meaningful communications and consultation with staff. There is no significant threat to the rights of EEA workers already in the UK, so EEA workers should be reassured that they face no risk to their job security.

Rest assured, I will update you over time as implications of any future employment reforms or changes become clearer. If you have specific questions or concerns regarding your employees and Brexit, please just call or email me: 01952 246612 or

Psychoactive Substances (26th May 2016)

The Psychoactive Substances Act has finally been introduced, but many believe its prohibitive approach will be unenforceable. Employers are being encouraged to be more aware of ‘legal highs’ and the effects that such substances can have on their employees. For further details see the updated ACAS Information.

National Minimum Wage changes (1st October 2016)

The National Minimum Wage will increase as follows: 21-24 year olds to £6.95 per hour; 18 to 20 to £5.55 an hour; 16 to 17 year olds to £4.00 an hour and the apprenticeship rate to £3.40 an hour. The mandatory ‘National living wage’ (NLW) only applies to workers aged 25 and over and is currently £7.20 per hour.

Working Grandparents’ Leave (2018)

Consultation on proposals to extend shared parental leave (and pay) to working grandparents is still expected to take place this year. It is aimed at assisting working parents to return to work more quickly and to minimise childcare costs by sharing responsibilities across extended families.

RECOMMENDED READSThe Sandwich Generation ; 10 Things Employers can do to Help Employees with ASD (Autism Spectrum Disorder) Part 1 and Part 2 ; The Dyslexia Awards



Please Note: The information contained in this e-newsletter is provided for your general use only.  It should not be treated as a substitute for obtaining professional employment advice on specific issues.

Tags: , , , , , , , , , , , , , , , , , ,