Brexit, business and the law

Aziz Rahman is founder of Rahman Ravelli

Brexit will produce many legal as well as economic and political challenges. With this in mind, Aziz Rahman of business crime solicitors Rahman Ravelli urges companies and individuals to take a good look at their legal interests as Brexit looms.

I know I’m stating the obvious when I say that Brexit has caused all manner of concerns for many people in the UK. But bear with me as I think some points need making that may well have been overlooked by the politicians and the commentators.

Talk of hard and soft borders, trading arrangements and financial settlements have dominated much of the Brexit dialogue. And rightly so, as big changes to business may be on their way. In recent weeks, the Japanese car maker Nissan has said a no-deal Brexit would have “serious implications”. The firm, which employs almost 7,000 people at its Sunderland plant, urged the UK and the EU to “work towards a balanced Brexit”.  And as Nissan was voicing its concerns, RBS chief executive Ross McEwan warned that a no-deal Brexit could tip the UK economy into recession and raised the prospect of zero or negative economic growth.

So there is little doubt that business faces economic challenges as a result of Brexit. But what I would like to point out is that Brexit could well have some major implications for business from a legal point of view. We all need to look at Brexit from an economic perspective. After all, assessing the financial side of things and planning accordingly is at the heart of any business strategy. But every business also has to be aware of the need to comply with the law, both here in the UK and wherever else in the world it trades. And some of that law may well change with Brexit.

Many people reading this article will be looking to continue to trade in Europe whatever the exact terms of any finalised Brexit deal. And just as they work out the economic implications of any trade they do in Europe, many now need to look closely at a range of legal factors that could affect their activities on the continent.

The decision to leave the European Union (EU) raises questions for both employers and employees, with migration, the labour market and employment law all likely to undergo significant changes. There will be complications arising due to EU regulations no longer applying to the UK. Certain grants and subsidies will either disappear or face an uncertain future while vitally important areas of business law such as tax, mergers and acquisitions and even international image rights and data transfer could all undergo transformation.

In short, anything designed and introduced under EU law to aid business will now be subject to UK government policy, which could mean much of it being altered significantly, replaced or even abandoned.

Many in business in the UK have spent two years or more weighing up the economic impact of Brexit. I would argue that many also need to have contingency plans in place to minimise the risk and disruption posed by any legal impact that Brexit may have on their business. None of us can speak with any certainty about the precise legal changes that will affect business if and when Brexit is concluded. But one thing we can be sure of is that many laws that relate to business will be subject to change.

Whatever laws are retained, altered or consigned to history, companies need to be spending time now identifying the legal areas relating to them that could be subject to change. They need to consider what the implications could be for their business and what plans they need to draw up to make sure they remain legally compliant.

We have found an increasing number of clients coming to us for legal advice on possible post-Brexit outcomes. In response, we have created special resources outlining the areas that could be subject to legal change and have assigned specialist solicitors to these clients. It is not being alarmist, it is about being prepared.

Brexit may well have a large economic impact. But it may also have en equally large legal one. And business must be ready for this.

Aziz Rahman is founder of Rahman Ravelli; a top-ranked business crime law firm in national and international legal guides.

www.rahmanravelli.co.uk

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