May 23, 2016

Hot topic-the legal impact of the EU referendum

The result of the UK’s EU referendum to be held on 23 June 2016 will have an impact on every major business in the UK. Even if UK stays in the EU, there is no doubt that Europe is changing fast.

 

If there is a vote to leave there would be no change in the rules for at least two years. The Article 50 TEU process would commence which means the EU/ UK would seek to discuss and reach an agreement setting out the arrangements for the UK withdrawal. During that period, the current laws would continue to apply. Therefore nothing will change overnight.

 

However, much of our employment law comes from European directives. If UK left, there would be scope to change those aspects that are not popular or not liked. However, this would be dependent on what UK’s decision is going to be going forward in the event there is a vote to leave, for example, whether it were to join the EEA or emulate Switzerland’s position.

 

On a practical level, businesses and individuals have worked around and arranged themselves around existing laws in some cases at great expense. If these were to change drastically or dramatically this would cause a huge uncertainty.

 

There is however consensus that unpopular legislation will be tweaked/amended.

  

None of the topics covered above constitute legal advice. Formal legal advice should be taken before acting on any of the matters set out above. Please get in touch with Hardeep Kular for more information.