What are the likely implications of BREXIT to People Management & Development in the UK [if it happens!]?

1. Enterprise Nation Masterclass
BREXIT:
The People Management Challenges for SMEs
Peter Lawrence

2. Agenda
• The changing world of work [post
BREXIT]
• Employment Legislation [post
BREXIT]
• Changes in Employment Climate
[post BREXIT]
• Preparing an Action Plan to
mitigate negative consequences
and take advantage of
opportunities.

3. Changing World of Work & Business
Environment Post BREXIT

4. Change was predicted:
Charles Handy was talking about “Shamrock Model”
Back in the early 1980’s – core staff and an additional
flexible workforce, also recognising contracted
professionals & outsourced services.
Atkinson developed the model of “The Flexible
Firm” [1986]

5. Change is happening:
• There are five million people currently
working in the gig economy in the UK -
according to the McKinsey Global
Institute (MGI) [2017].
• This is around 15.6 per cent of the total full
and part-time workforce (32 million people).
4.86 million people.
• Dramatic growth in self employment - 44% up
in last ten years.
• A labour market characterised by the
prevalence of short-term contracts or
freelance work as opposed to permanent
jobs.
New Business
Model, where
the business
see themselves
as a platform
for service
delivery.

6. Demographics and Change:
• Ageing population – people able to work longer – no
automatic retirement age, state pension age pushed
back. People lasting longer and physically able to
work and want a sense of purpose [work provides].
[Daewoo Zero Hours Contracts]
• Less opportunity and less expectation of “job for
life” even within large established companies.
• Are they self-employed or employees? [Pimlico
Plumbers – Supreme Court Case]. Is an individual an
employee, a worker or genuinely in business?
Mutuality of Obligation [Can work be sub-
contracted to someone else or is there an
obligation on the employer to provide work].
• Increase in Artificial Intelligence, Robotics and
Automation could mean less need for workers.

7. 8th Feb 19 – The War for Talent
Check out our next HR Forum:

8. Recent Employment Legislation &
BREXIT

9. General Data Protection Regulations:
Fines:

10. • The regulations require big employers [over 250 employees]
to publish data on their gender pay gaps came into effect on
6th April 2017, with the first reports published in April 2018.
• The Equality Act 2010 (Gender Pay Gap Information)
Regulations 2017 apply to private and voluntary-sector
organisations with 250 or more employees.
• The Equality Act 2010 (Specific Duties and Public
Authorities) Regulations 2017 apply to public bodies with
250 or more employees.
• Employers whose headcount varies will have to report in any
year in which the headcount is 250 or more.
Gender pay gap reporting

11. Employment Tribunal Claims
• Claims received at Employment Tribunals continue
to rise following the abolition of ET fees. [in June
2017].
• Case load has increased by 165% compared to the
same period in 2017 when fees were enforce
[Reported by Ministry of Justice for period from April
to June 2018 [published 13th Sept 18].
• Some reports that Cases are facing a long wait [up to
a year] at the moment.

12. The Parental Bereavement [Leave and
Pay] Act 2018
• A new workplace right to paid leave for
bereaved parents was officially enshrined in
law on Thursday 13 September - the Parental
Leave and Pay Bill achieved Royal Assent.
• Employed parents who lose a child under 18
will receive 2 weeks’ leave under the Act,
which is expected to come into force in 2020
• The first law of its kind in the UK will support
those affected by the tragedy of childhood
mortality and is expected to come into force
in 2020.

13. Sweeping changes to UK employment law
unlikely [post-BREXIT]
• Since 1973 the UK has tended towards
harmonisation with EU employment laws. For
example; Working Time Regulations, [holiday
entitlement and hours of work], Health &
Safety Regulations, Data Protection & GDPR.
The move towards greater employee
protection and employment rights has
included; rights of part-time, fixed term and
agency workers, protection from
discrimination and family friendly policies has
also been consistent with Europe.
• It seems unlikely that there will be sweeping
changes to UK employment legislation
following BREXIT, and recent indications are
that we will continue to harmonise with EU
rules and regulations.

14. Changes in Employment Climate Post
BREXIT

15. Immigration impact on small businesses
• EU citizens and their families will have the right to live and work in the UK (and vice
versa) until the end of the transition period in December 2020.
• EU citizens who take up residence before the transition period end can remain beyond
transition, remain permanently if they stay for five years.
• After the transition period, the agreements allows the UK to require EU citizens who stay
on to apply for a new residence document. This also applies to UK citizens in EU
countries.
• Importantly for businesses, a separate ‘Outline Political Declaration’ from the UK
government says the UK and the EU will aim to achieve arrangements for temporary
entry for "business purposes" and visa-free travel for short-term visits.

16. Freedom of movement of labour
• Should BREXIT go ahead on March 29th, 2019, “Freedom of
movement of labour” will be curtailed.
• Looking ahead, it is likely that the current points-based
system for non-EU immigrants will be adopted for EU citizens
from 2021
• A third of employers who employ non-EU citizens say the
administrative burden of using the points-based system is too
great.
• Possible responses from employers are; an increased use in
automation, robotics and artificial intelligence, and increased
training and development of the local workforce to address
skill shortages.

17. Firms struggling to recruit
We are already seeing a "reversal" in the number of
migrants in UK workplaces.
The shortage of both EU and non-EU migrants reflects a
falling interest in the UK as a destination for migrant
workers. EU net migration to UK falls to lowest level in almost six
years [29th Nov 2018 The Guardian]

18. Summary
• The “Mood music” will change.
• Trends in Employment [gig economy etc.] are likely to continue.
• Wholesale reforms to Employment Law are unlikely [far more likely to
continue to move towards greater harmonization with EU].

19. Preparing an Action Plan

20. Your Action Plan
1. Health-Check
Questionnaire [HR Tool-Kit]
2. Right to work and
Recruitment Process
3. PESTLE Analysis.

21. 1] HR Health-Check Questionnaire
Take our free HR Health-Check Questionnaire
www.humancapitaldept.com
+ HR Tool-Kit or HR First Aid Kit

22. 2] Ensure employees have the Right to
Work in the UK
Check right of work survey on the government’s website:
Ensure you have Evidence of Right of
Work of Employees
Make sure your recruitment processes are not discriminatory – see our HR Tool-Kit

23. 3] PESTLE
• Political
• Economic
• Social
• Technological
• Legal
• Environmental
Will BREXIT happen?
Are we heading for another recession? How can you protect
your business against this? The employment market seems
likely to remain tight. What new opportunities might arise?
Employer brand and attracting talent.
Automation, AI, & Robotics.
Changes to employment law & employment environment.
Outsourcing.

24. Contact details

25. Our contact details:
• With offices at the Kings Lynn Innovation
Centre [KLIC] and London we are building our
reputation for excellence in People
Management & Development.
• Human Capital Department Limited, Kings Lynn
Innovation Centre, Innovation Drive, Kings
Lynn, PE30 5BY.
• Tel. 01553 609968 / 0333 772 9592
• www.humancapitaldept.com
• info@humancapitaldept.com

26. Enterprise Nation Masterclass
BREXIT:
The People Management Challenges for SMEs
Peter Lawrence