Employment minefields follow Brexit decision
by Angela Gorton, director in the employment department of Lupton Fawcett Denison Till
A month on from Brexit and the dust has begun to settle. For many it is business as usual. For others attention has turned to future proofing their business.
In a sample poll conducted by Lupton Fawcett 22% of HR professionals anticipated redundancies or reorganisations as a result of the Brexit decision within their business.
Some expected trade to decrease and contracts to be lost. Others anticipated the need to reduce headcount to maintain profit margins being squeezed in light of the value of the pound as against the dollar and euro.
Businesses with a higher proportion of migrant EU workers were concerned that they would leave as a result of their uncertain future in the UK.
Worries arose that the weakened exchange rate meant work in the UK has become less lucrative and less attractive for EU nationals. For those workforces heavily reliant on EU workers, reorganising the workforce to ensure departures would not affect trade was going to be a challenge.
3% of those questioned expected to have to relocate parts of their business elsewhere in the EU as a result of the Brexit vote.
If redundancies are required it remains important to ensure that the criteria used for selection is not tainted by discrimination.
Selecting those to be made redundant on the basis they may no longer be able to work in the UK in due course is likely to amount to race discrimination on the basis of nationality in addition to an unfair dismissal claim.
Selection on the basis of an employee’s voting position on Brexit may also fall foul of the Equality legislation if such a belief amounts to a philosophical belief. Whilst discrimination on the grounds of political opinion is not protected, belief in a political doctrine or philosophy can be.
Whilst the Brexit position crosses the political divide, an employee who strongly believes in the freedom of movement within the EU is therefore potentially covered by the Equality legislation. Employers are advised to steer clear of such an approach when deciding on the criteria to be used and pooling of staff.
Compensation for discrimination is not capped. A recent Employment Appeal Tribunal decision has also confirmed that payments for injury to feelings awards, usually awarded as part of a discrimination claim, will in future be increased. An uplift of 10% will not be uncommon. The cost of getting it wrong have increased.
