In the post-EU world, does your business need a Brexit consultant?

Theresa May is very close to triggering Article 50, marking our irrevocable intention to leave the EU. While the direct implications of the potential fall-out remain unknown, there are certain elements which will undoubtedly change and have an impact on b

Marlies Hoecherl, Corporate & Commercial Partner “ONCE the notice to leave the European Union is triggered, the Brexit discussion will shift from mainly political and macroeconomic issues towards the reality of preparing businesses for the exit, whatever form it may take.

“Brexit will affect pretty much all business, but mostly those which export to or import from Europe. Whether a specific Brexit consultant is required largely depends on the size of the organisation, the nationalities and skill-sets of staff and the extent of import or export trade carried out.

“In the first instance, we would advise all business-owners to seek legal and accountancy guidance to make sure they are prepared for an initial period of turbulence and fluctuation. “It is unclear what our withdrawal agreement will be and how it will impact trading. Whatever the outcome, it is clear that trading with Europe won’t be as smooth and easy as it is now. Additional documentation will be required, there will be delays at customs, possibly even checks and tests before goods can be released – all of which will lead to extra costs and time delays.

“To prepare for this level of change, businesses need to make sure they have the skills and processes in place to manage the paperwork, but they also need to factor the additional costs into their business forecasts and check their agreements with their European business partners now.

“There are several practical steps they can take to ensure that their contracts will not leave them high and dry as and when Brexit bites – ranging from the ability to terminate a contract to putting the burden of any costs on the other contracting party, or making sure they are not in breach of contract if there are delays caused by customs.”

Richard Thomas, Employment Partner “THE legal implications of such a withdrawal for the UK’s current laws are considerable. For example, all the treaties, directives and regulations (and rulings of the European Court of Justice) will cease to apply in the UK, unless their affect is specifically preserved by UK national law. Furthermore, the EU Court will no longer have jurisdiction over the UK and UK citizens will no longer have the rights of EU citizens.

“What is clear is that there will be significant practical difficulties associated with the need to disentangle EU-derived requirements from nonEU-derived requirements, especially where case law has, for over 20 years, drawn on the UK courts’ interpretation of EU directives and ECJ rulings.

“In the employment law field, a significant amount of UK legislation and case law developments have derived from the EU and this has strengthened workers’ individual rights in areas such as working time, annual holidays, family-friendly policies, anti-discrimination legislation, employment protection in the event of a change of employer and agency workers. If the UK has full freedom to repeal all European employment laws, there could be substantial upset across the country as workers face losing what they’ve long considered their fundamental rights.

“The way businesses handle redundancy, particularly within large organisations, is likely to change, as the 20-plus redundancy collective consultation laws stem from an EU directive. These are unpopular with employers and we suspect will be watered down – for example requiring collective consultation only if over, say, 100 people are being made redundant (rather than 20, which is the current threshold).

“Most of the Working Time Regulations will remain. Paid holiday will certainly stay, and of course, the UK gold-plated the European four weeks’ paid annual leave with 5.6 weeks in the UK.

“Immigration has been high on the news agenda since Brexit and is undoubtedly a concern for thousands of people across the UK.

“Following our formal exit from the European Union, EU nationals would no longer have the automatic right to continue to work in the UK. It seems likely that the UK Government will agree with the EU a position whereby existing EU migrants can stay (at least for a reasonable period) in return for permission for UK citizens working in the EU to remain where they are.

“It is also likely that the UK will introduce an immigration system similar to the current system for non-EU citizens, whereby skilled workers and students can gain permission to stay for a limited period.

“With this in mind, I’m certain that we’re about to see a boom in businesses taking on Brexit consultants as the UK looks to steer its way in a post-Brexit era.”