The forthcoming election in the UK is provoking both the major parties to make declarations within their respective manifestos which will have far reaching effects for business if they are implemented. In an attempt to court voters each party is promising to introduce measures which will enhance the working lives of many employees, the financial impact of which will have to be funded by businesses.
Theresa May and the Conservatives plan to introduce the right for employees to take up to a year’s unpaid leave to care for elderly relatives whilst their employer keeps their job open, enshrining all the EU employment law and workers’ rights in English law post-Brexit, bringing in protections for employees with mental health issues, a place on the board for some workers, the right to leave for bereaved parents of young children, additional protections against pensions mis-management and also consideration is being given to raising the national living wage.
Jeremy Corbyn and the Labour party have a similar raft of plans to improve the lives of employees with a strong focus on taxing businesses and high earners in order to be able to pay for all their new policies.
The bill for all the new advantages extended to employees largely falls squarely on the shoulders of business and too much generosity will come back to haunt whichever party gains power in the shape of less investment in the UK, businesses failing under the weight of the additional costs and possibly those European businesses operating out of the UK may decide to leave and set up shop elsewhere, whilst other overseas businesses may decide not open a new business the UK at all.
However, it is highly likely that a large number of the proposed measures may not make it on to the statute book as anything that seriously threatens the economy may very well find that the policy is dropped or watered down.
Giambrone advises businesses based in the UK to prepare detailed flexible plans for the future as there is still a large amount of uncertainty surrounding Britain’s exit from the EU. Any business that, a) does not have a plan at all and b) does not have several alternative options which cover a wide range of eventualities, needs to address this lapse as soon as possible. Giambrone can offer advice on a wide range of issues that the Brexit may create, both legal and commercial, and can create 360 degree strategies from protecting the status of your foreign employees to ensuring that your intellectual property is still safe; with additional assistance available from our panel of professional advisors on tax, finance and IT matters and many other things.
If you would like more information on the impact of Brexit and how to minimise any adverse effects please contact firstname.lastname@example.org 020 7183 9482