Lawyer Monthly Magazine - February 2019 Edition

27 Xxx DEC 2018 www. lawyer-monthly .com Who Will Be Left to Work for You? Immigration was a major talking point during the EU referendum, but what was not addressed, was the importance EU nationals have in the workplace; from baristas to nurses, reduced EU migration may affect EU business development for UK businesses. We are expected to see pressures in a variety of sectors, and though settled status may be offered to those already residing in the UK, we aren’t too sure how restrictions of free movement will impact UK businesses. As reported on Airmic: “According to the Chartered Institute for Personnel and Development (CIPD), there were 2.26 million EU nationals working in the UK in September 2016. More than half (56%) of these workers are employed in either wholesale and retail, health and social work, accommodation and food services, construction and manufacturing.” 3 With the agriculture and construction sectors predicted to take a harder hit, CIPD's Labour Market Outlook for Winter 2016-17 found that 29% of employers claim they have evidence that EU nationals looked to leave their organisation due to the UK result of the Brexit referendum, with 27% considering doing so in 2017. In the public sector, where two thirds of organisations employ EU nationals, 42% have seen staff leave and the number of EU nationals registering as nurses in England had dropped by 92% since the vote. Could the Gig Economy Save Businesses? Often presenting controversy in employment tribunals, the Gig Economy has been subjected to scrutiny. With the gig economy thriving on frictionless convenience, it allows individual workers and small businesses to operate in large marketplaces without needing the bureaucratic or operational support. But, self- employment is at an all time high, and it is this fluidity which enables it to work, Yes, with Brexit imposing the need for new EU workers to obtain a visa prior to working in the UK, we may witness a reduction. But not all is lost. A report by McKinsey estimates that between 20 and 30% of the working age population are engaging in some form of independent work, with just under half (44%) relying on it for their primary income; the report also shows that 56% use it [the gig economy] to supplement their salary and a mass 74% stating it is their preferred way of working. 4 If businesses continue to offer the same With incessant toing and froing, the concept of the UK actually achieving a smooth, favourable Brexit seems like a lost dream, and with the deadline around the corner, the chance of a no deal Brexit occurring is becoming surprisingly more likely as the days pass. And even though the Parliament rejected a no deal Brexit, it is not technically legally binding 1 ; with Theresa May is keeping us all on our toes, businesses are yet to know what they should be preparing for. In 2017, it was reported that a total of 52,741 laws have been introduced in the UK as a result of EU legislation since 1990 2 , so, as you have probably gathered by now, it will not be a simple ‘farewell handshake and walk in opposite directions’ type of break up. Things will change, and the best way for us to prepare for it, is by briefly touching on some EU laws which majorly impact the way in which businesses in the UK work. opportunities that the gig economy presents to its workers, they may be able to soften the blow of losing EU nationals. As stated in the HR Magazine: “It [the gig economy] also offers a solution to the skills shortages already being felt across a number of industries, and that could be compounded by Brexit. With an army of on-demand gig workers available from across the globe, and the technology to facilitate remote working, this could be a viable option for a variety of industries.” Other workplace issues regarding staff shortages and productivity and their solutions, are as follows: (Source: AirMic 5 ) “ In 2017, it was reported that a total of 52,741 laws have been introduced in the UK as a result of EU legislation since 1990 ” - Higher wage bills - Less stable workforce - Staff shortage - Reduced productivity - Poorer workplace safety - Increased injury claims - Increased liability risk - Higher premiums Potential Challenges Risk Mitigation - Longer contracts - Employee benefits - Create new roles to attract skilled talent - Target more diverse labour pool - Automation of repetative tasks - Strict enforcement of health and safety - Improved training - Review coverage with broker - Demonstrate risk management to insurers Brexit and Changing Workforce Dynamics