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Post Brexit Implications


The United Kingdom has officially left the European Union and set foot into a progression period until December 31 2020, unless a leeway of one or two years is granted by July 1 2020 (the Brexit Long Stop Date).Bilateral exchanges between the EU and the UK shall sustain in a way that resonates the trading process before Brexit. Negotiations will be conducted throughout this year to advance a perpetual association between the UK and the EU.
Employment
Irrespective of a “deal” or a “no deal” paradigm after a duration of execution, there is negligible alteration anticipated in regard to the UK employment laws. In relation to the position of current employment rights, the Government has issued a sequence of technical notices which corroborate that, in the event of a “no deal” Brexit, workers in the UK will persistently enjoy the rights they are currently entitled to under the EU law with one key exception(concerning European Works Council). For existing EWCs, the influence of Brexit will be contingent on the terms of the EWC. For EWCs which are not administered by UK law, the default position is that UK employees will no longer be entitled to have representatives on the EWCs, and the UK delegates’ seats will need to be budged unless the parties to the EWC agreement agree otherwise. Those governed by UK law will need to elect another EU country to govern the EWC. The choice of which alternative law will apply should be judiciously considered given that it will have calculated consequences for the configuration of the EWC and national legal concepts to which it will be subject.


Immigration
If the UK leaves the EU with a deal, it has been approved that there will be a “transition period” from Brexit Day to the Brexit Long Stop Date (being December 31 2020 at the time of writing). During the transition period, unrestricted movement will efficiently continue between the UK and the EU.

Employment Taxes: Social Security
EU regulations currently succour internationally mobile employees by paying social security contributions in only one Member State. In the event of a “no deal” Brexit, these regulations will stop affecting the UK post-Brexit Long Stop Date.
Thus, employers will need to learn the social security status of employees moving into or out of the EU, and will also need to assess all international labour provisions to ascertain if new social security obligations are violated.

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