DAC Beachcroft's Spring Budget 2016 Alert
Welcome to our alert on what may be known as the Referendum Budget Our analysis as to how today's budget affects the business community is below…
Published 28 June 2016
You will all have seen this morning's news that the UK have voted to leave the European Union. What happens now and what does this mean for employment and pensions law?
The UK is required to give two years' notice of its intention to leave the EU. Disentangling the UK from its commitments is likely to be a lengthy process. The UK and the EU will also have to agree the terms of exit and any trade agreement. Those terms could well include a requirement that the UK adhere to some, or all, EU employment and social policy. As such, employment and pensions law is unlikely to change in the short term. Please click here to read our more detailed analysis on employment and on pensions.
We will be keeping a close eye on developments, regularly reporting and providing updates and analysis through alerts and our twitter account @DACBEmployment.
We are here to support clients and answer any questions you have – please do contact your usual DACB contact if you have any queries.
Although the current legal framework which regulates UK pension schemes has been heavily impacted by EU treaties, directives and regulations, in the short term there are unlikely to be changes in legislation which will take us away from the current position.
The wider terms which the UK negotiate for its exit from the EU over the next few years will determine the impact on UK pensions legislation, including whether statutory scheme funding requirements will be diluted to the levels in place prior to the implementation of the EU IORP Directive, and the impact on equality legislation and TUPE-related pension requirements.
There are shorter term consequences of the UK's vote to leave the EU:
Our Brexit Advisory Team is working closely with pension clients to identify the issues and solutions to all aspects of the UK's future relationship with the EU.