A number of questions for employers and employees are being raised due to the vagueness resulting from the Brexit referendum and the prospect of the UK leaving the EU.
Dominating the HR agenda will be projects for data protection and gender pay reporting. The EU General Data Protection Regulation (GDPR) comes into force in May 2018 – when employers will be required to carry out audits of employee personal data that they collect and to make certain that it meets the conditions for employee consent. Employers will also have to create new record-keeping requirements. As this will come into effect before the UK leaves the EU, organisations not compliant will risk a fine of up to 20 million Euros or 4% of worldwide turnover.
Organisations with 250 employees or more are also being required to publish gender pay gap information for the first time. This will apply to the private sector, voluntary sector and public sector organisations. The gender pay gap regulations are expected to have an implementation deadline of April 2018.
In addition employers are likely to experience increasing costs as the apprenticeship levy and extra fees for foreign worker sponsorship are introduced. There were financial changes for employers sponsoring foreign workers which took effect in April but some new entrants to the job market - and some health and education staff - will be exempt from the new salary threshold until 2019.
Tax savings for employee benefits are also likely to be reduced and many employers will have had to reconsider their schemes, as salary-sacrifice schemes have been abolished. However childcare, cycle to work and low emission car schemes have not been affected and all schemes in place prior to April of this year will be protected until April 2018. Arrangements relating to car, accommodation or school fees are protected until 2021.
The alignment of rates for the national living wage - plus current and future rates for statutory maternity, paternity, adoption, shared parental and sick pay have already taken place.
New trade union balloting rules will apply too. Under these rules, a successful vote for strike action will mean that 50% turnout and a majority vote in favour will be required. Important public services will need a vote of 40% of all eligible voters.
The HR profession is being expected to help managers and employees to navigate their way through the short and medium-term implications of Brexit, especially as the effects of HR policy and practice become clearer.
