Brexit - Some practical advice
Unless you have been on a very long holiday in a darkened room with no access to the news you will be aware that on June 23, 2016, the United Kingdom voted to leave the EU. While the notice period required means that the actual exit date is still unclear, some immediate challenges for businesses will arise in terms of planning.
We have set out below some of the implications and practical steps that you may want to consider as a result of the potential changes.
Staff who are EU citizens may be concerned about their future, we suggest that you
- Review to see who could be affected
- Review employment contracts and policies
- Consider adapting contracts to address any issues that could arise
- Consider providing counselling and support where necessary
- Be extra vigilant in relation to monitoring for inappropriate comments
Following the referendum Sterling fell heavily, whilst this was extremely irritating for those of us who were about to go abroad , for overseas businesses considering an investment in the UK, the fall in the value of Sterling may offer significant opportunities to acquire UK firms. Consider if this could be used to your advantage if you are planning your exit.
Consider if there are any steps (hedging or building in reviews/break provisions into contracts) you need to take to ensure your business is ready for the uncertainty that is likely to continue for the forthcoming period.
On Friday 25th May 2018 the General Data Protection Regulation will come into force across the European Union. It is likely that these will still be adopted by the UK and you should therefore prepare for the additional obligations these and relate data rules will impose on your business.
EU regulations impact on various areas including the recognition and enforcement of judgments, service of legal process and the choice of governing law of contracts. For new contracts, we suggest you consider future proofing to ensure that you are still covered regardless of the outcome of the negotiations.
Questions may also arise whether existing agreements which no longer are viable or attractive can be terminated as a result of Brexit. This will depend on the terms of the relevant contract and all such contracts should be reviewed.
If you would like help on any of the issues above please contact Mark Pelopida at Machins Solicitors on 01582 514330. As usual the information in this note is general in nature and specific advice should always be sought before acting.