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A New Dawn
As you will no doubt have read, last Thursday 23 June the British people voted with a
majority of 51.9 % to 48.1% to leave the European Union.
The vote to leave has created an unprecedented and complex range of legal issues and
marks the beginning of a lengthy and complex process that will result in a significant and
substantial change of the UK's relationship with the rest of Europe.
Article 50 and withdrawing from the EU
The formal negotiations of the UK's exit will only start once Article 50 of the Treaty on the
European Union is triggered by the UK. This clause sets out a skeletal process by which a
Member State can voluntarily withdraw from the EU and provides for a negotiation period of
up to two years.
What happens now?
However, for the present time it is important to emphasise that there is no immediate change
to the current legal position / legal rights and obligations. The UK remains a full member of
the EU until the terms of the withdrawal agreement are negotiated. There will be no
immediate change in immigration status for example and the free movement of EU workers
will still apply during the negotiation period. It is unlikely that there will be any real changes
before 2019.
What will happen to UK law down the line?
In theory, EU Treaties and Regulations will cease to apply once a withdrawal agreement is
concluded. EU Directives which have been implemented into national law will continue to
apply until repealed. For example most UK employment law is derived from EU directives
and therefore these protections would not automatically fall away upon the UK's withdrawal
from the EU.
What can I do?

As an employer you may employ EU citizens here in the UK or you may have UK
citizens employed elsewhere in the EU. As mentioned above, whilst there is no
immediate change to immigration status you should keep the immigration status of
employees under review. Whilst there are longstanding conventions protecting the
rights of citizens acquired under international treaties, it remains to be seen what the
position will be on immigration status after the conclusion of negotiations.

Communicate with your employer/ employees if you have concerns over immigration
status. If you are an employer you should also ensure that your employees are aware
of and are complying with anti discrimination policies.

A wholesale review of employment contracts and policies would be unnecessary at
this stage as any provisions will not need to be amended until Brexit is confirmed.
However, it may be worth considering whether specific provisions could be affected
by a Brexit, for example, restrictive covenants with geographical restrictions linked to
the EU.
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
Whilst we would not recommend implementing any fundamental changes until the
UK's position becomes clearer, it may be advisable to carry out a review of the
current or planned EU laws you rely on (if any) to conduct your business.

If you are currently negotiating any contracts, you should think carefully about the
dispute resolution and governing law clauses to ensure it is clear which courts are to
have jurisdiction in the event of a dispute and which law is to govern the contract. It
would also be advisable to review contracts you may currently have with TU
companies to determine the commercial impact.
It is apparent that there will remain a degree of uncertainty over the coming months and
years and we cannot predict what an end agreement will look like. Please be assured
however, that we will be monitoring the situation closely as negotiations develop and will be
assessing what the outcome will mean for you and your businesses.
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