The final checklist: Brexit & article 50
The final checklist: Brexit & article 50
In two of our previous High Performance blogs we’ve discussed the implications for businesses of Brexit and the raft of changes brought in by the impending Article 50. Companies, if they are to thrive in this climate, must adapt as we draw closer to March 29th when many of the regulations come into force officially. To ensure the smooth transition or in extreme cases develop a viable contingency plan to keep your business afloat at the very least, please read on as we provide you with your final checklist.
Collecting figures & factoring new expenses into budgets;
At this stage you should be fully aware of the financial health of your company for a number of reasons in relation to the new changes. Firstly, companies (those containing 250 staff or more) are required to collect the figures they need for April’s mandatory gender pay gap data which will be collected for April 2018 publication. This data will act as a snapshot in time, companies must meet requirements within this snapshot. Consultations on this issue have unfortunately already ended but materials to advise are readily available online.
The rises in a number of pays need to be factored in financially such as increases in statutory maternity leave, paternity, adoption, shared parental, sick pay and family related leave. Other potential expenses and legal rights for employees include limit on week’s pay, cap on compensation for an unfair dismissal, pension allowance and a rise in the national living wage. It is important that all these costs are collated and there is enough revenue to cover the changes from existing budgets. Legally there are new rights for employees so they must be provided immediately at the risk of legal action if not followed. Financially companies need to be able to pay the new fees that could potentially hit them and nip all legal action against them in the bud.
Analysing the best investments in talent –
The Apprenticeship Levy gives companies a lot of advantages, it’s a smart initiative that closely follows market demand for such a regulation and the rise in popularity of apprenticeships. Businesses are already benefitting from them and analysing the benefits your company can gain from it is important especially if yours isn’t taking advantage of it. Consider what you need to meet certain quotas and criteria’s to perhaps have the right to more funding. Your business should understand the Levy completely and how it is supposed to be used, make sure you are well read on its regulations both for its introduction but into the future.
Limitations on International imports of staff –
Companies should have already have foresaw potential effects of the post Brexit immigration landscape could/will have on their business. Added to that there is now an immigration charge was announced, companies must make financial commitments if they are going to be effected by this to any degree. Decide if you can afford to be run in the same way in regards to the staff you hire, check if your finances are still in order despite added expenses. The unescapable aspect of this is that companies who rely on EU workers won’t be able to sustain this practice.
Planning strategies (Before it’s too late!) –
The planning of Brexit business strategies should utilise your senior members including those responsible for P&L, HR, external and internal communications, legal and risk. Its function is to keep the business informed of developments, identify risks and opportunities as well as advise on how best to react. These teams should be formed already and if this process hasn’t started it will need to be ramped up immediately to have any effect in time. The new business plan should analyse trading models, be flexible to change and take advice also from outside trade organisations. This is arguably the most I important preparation for Brexit, as long as you are up-to-date and aware of potential changes you can prepare.
Operational considerations –
Much like questioning your hiring practices companies must question their EU reliance on suppliers and how costs compare, analyse if it is best whether you change were you are supplied from. The impact of devaluation of the Pound Sterling must also be taken into account, financially your company is going to be challenged but the truth is no one really knows just how at this stage. The cost of the sterling will affect the opportunities to import and export, likely to be increased cost of imports but greater opportunities to export.
Hopefully your final checklist was helpful in pinpointing anything you forgot to factor during this tumultuous time in UK Business. For advice and guidance on anything mentioned in this blog please contact High Performance Consultancy, a UK leading specialist in Employment law, HR and Health and Safety Services.